Prairie Grains News Briefs

2000 Quality Loss Program Underway
Signup began Aug. 13, 2001, for the 2000 Quality Loss Program (QLP) through the USDA’s Farm Service Agency.  Eligible crops are those produced and harvested in the 2000 crop year and which suffered a minimum of 20% quality reduction. Unharvested production is not eligible for QLP. All crops are eligible except certain specialty crops, such as ornamental nursery, Christmas trees, aquaculture, and honey.

QLP applicants must provide FSA written documentation of the quality of their harvested crop. Examples of acceptable documentation include:

• Grading receipts from a warehouse or licensed grader;

• Sales receipts providing the grade of the crop;

• University recognized test results;

• Sales receipts showing disposition to a secondary market due to poor quality, such as malting barley sold for feed.

QLP payments are calculated by multiplying 65% of the affected production times 65% of the loss in value due to quality. For example, a farmer sells 1,000 bushels of a crop whose value was reduced by $1 per bushel due to poor quality. The payment to this farmer is calculated as follows:

1,000 bushels X 65% = 650

$1 X 65% = $.65

650 X $.65 = $422.50 (pymt to farmer)

The 2000 Crop Disaster Program (CDP) that USDA already paid to farmers included quality payments for many crops. QLP offers an additional payment for crops where the CDP quality payments were inadequate or nonexistent. Quality loss payment earned under CDP will be subtracted from the QLP. Combined total payments issued for QLP and CDP are limited to $80,000 per person.

For more information on this and other USDA programs, contact your local FSA office or USDA Service Center. Or, visit the FSA website at www.fsa.usda.gov.

Protecting Yourself As a Grain Seller
Though the chance of it happening is remote, the ND Public Service Commission and NDSU Extension Service offer tips to help protect grain sellers in the event of nonpayment, in a brochure “Selling Grain? Know Your Rights and Your Responsibilities.” It may be found online at http://www.psc.state.nd.us/license_frame.htm or call (701) 328-4097. The brochure includes advice on handling storage and grading disputes. The ND PSC also includes a list of licensed warehouse or grain buyers online.

Want More Risk Management Info? See Prairie Grains Marketing Guide Archives Online:
http://www.smallgrains.org/springwh/MGuide00/MGuide00.htm

http://www.smallgrains.org/springwh/MGuide99/MGuide99.htm