Current through August 26, 2024
(1) DECLARATION THAT ACREAGE IS ABANDONED.
For payment purposes under s.
ATCP 101.03, contracted vegetable acreage is considered
suitable unless the contractor declares that the acreage is abandoned under
this section. A contractor may declare that acreage is abandoned if any of the
following apply:
(a) The vegetable crop is
destroyed, or rendered clearly unsuitable for processing, by drought, flood,
wind, hail, frost or other natural peril.
(b) The crop yield or grade, determined
according to the procedure specified for unharvested suitable acreage under s.
ATCP 101.03(4), fails to meet the
contractor's reasonable minimum standard for harvest as specified in the
vegetable procurement contract.
(c)
The crop is not suitable for processing because it contains illegal pesticide
residues, or pesticide residues which exceed limits specified in the vegetable
procurement contract.
Note: Pesticide residues are illegal if, for example, they
exceed legal tolerances on the vegetable crop, or if they resulted from the use
of a pesticide which is not registered or labeled for use on that vegetable
crop.
(2) FORM
OF DECLARATION. If a contractor declares that acreage is abandoned under sub.
(1), the contractor shall make that declaration in writing to the producer. The
contractor shall specify the basis for the declaration under sub.
(1).
(3) CONTRIBUTION TO
UNHARVESTED ACREAGE POOL.
(a) Subject to par.
(b), a contractor may require a
producer of abandoned acreage to contribute to an unharvested acreage pool
under s.
ATCP 101.05, and may deduct the producer's contribution
from the amount paid to the producer for the abandoned acreage.
(b) A contractor may not require a producer
of abandoned acreage to contribute to an unharvested acreage pool unless all of
the following apply:
1. The producer's pool
contribution, expressed as a percentage deduction from the gross amount due the
producer for the abandoned acreage, equals the percentage contribution made by
every other producer of abandoned acreage.
2. The pool contribution requirement is
clearly disclosed in the vegetable procurement contract, pursuant to s.
ATCP 101.05.
3.
The pool contribution does not exceed the maximum contribution specified in the
vegetable procurement contract under s.
ATCP 101.05(6).
4. The pool contribution does not result in
any net payment from the producer to the contractor.
(4) NO NET CHARGE TO PRODUCER.
(a) If a contractor declares that acreage is
abandoned under this section, the contractor may not require the producer to
pay any supply or service charges, or make any pool contribution, which would
result in a net payment from the producer to the contractor.
(b) Paragraph (a) does not limit charges for
supplies and services which the producer was free to obtain from sources other
than the contractor.
(5)
CONTRACTOR FAULT. This section does not relieve a contractor from any contract
claim which a producer may have against a contractor because of the
contractor's failure to perform the contractor's obligations under the
contract.
