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October
28, 2004
Understanding
USDA-Risk Management Agency Regulations
By
Brian Sorenson
NDSU Extension Service Crop Quality Specialist
and Northern Crops Institute Technical Director
As the harvest in
the North Dakota, South Dakota, Minnesota and Montana continues to be
delayed, the potential for crop damage increases. It is important for
producers to understand the regulations the USDA-Risk Management Agency
(RMA) has in place for properly sampling and grading damaged crops to
ensure that crop insurance claims are properly handled. On Sept. 3, 2004,
USDA-RMA released bulletin MGR-04-009 to clarify procedures for proper
sampling and grading of grains and most oilseeds. The report is available
at www.rma.usda.gov/news/managers/2004/pdf/mgr-04-009.pdf.
Due to questions raised in a previous release: www.ext.nodak.edu/extnews/newsrelease/2004/090904/10regula.htm,
it is important to clarify some key points, especially point two:
- Crops must be
sampled on a “per-conveyance” basis. In other words, each
truckload as it is delivered to the elevator or processor. The sample
must be taken by a “disinterested third party” (certified
quality loss adjustor or authorized employee of the elevator who is
not the farmer, related to the farmer, directly involved in his/her
business or the crop insurance agent).
- Samples can be
blended before grading; however the samples must come from the same
“unit” as determined by the farmer when purchasing crop
insurance.
- Grading results
from an elevator are acceptable for crop insurance, but elevators commonly
test for only those factors that affect pricing, and elevators may charge
producers for additional tests requested by the farmer for crop insurance
purposes.
- The producer may
request that a sample be sent to an official FGIS office for further
testing for crop insurance purposes. However, those fees are paid by
the producer.
- Elevators and
other processors are not required to store samples.
- In order to receive
all eligible quality loss adjustments, all of the factors that resulted
in the qualifying grade must be written on the grading certificate.
Contact your crop
insurance provider if you have any questions about your situation.
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Source:
Brian Sorenson, (701) 231-6048, brian.sorenson@ndsu.nodak.edu
Editor: Rich Mattern, (701) 231-6136, richard.mattern@ndsu.nodak.edu
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