Business Impact
The proposed rule will impact vegetable contactors who participate in the APSF though an increase in assessments paid by contributing vegetable contractors. The department expects to receive approximately $95,000 in additional revenue each year from 22 contractors.
Federal and Surrounding State Programs
Federal Programs
The Noninsured Crop Disaster Assistance Program provides some coverage for losses when natural disasters affect specialty crops such as vegetables and fruits. The program offers coverage at up to 65 percent of producers expected production at 100 percent of the average market price. However, this program targets the producers rather than the contractors.
Surrounding State Programs
Minnesota requires any wholesale dealer or food processor who contracts with other Minnesota dealers for fresh fruits or vegetables to be licensed as a Wholesale Produce Dealer. Dealers are required to obtain a surety bond and required to maintain trust assets so that assets are freely available to satisfy outstanding obligations.
Michigan requires producer security for all manufacturing and Grade A dairy plants that are a first receiving point for raw milk that will be processed at that facility. However, they do not have a similar program for vegetable producers.
Illinois, Iowa, and Indiana do not have similar programs.
DATCP Contact
David A. Woldseth
Department of Agriculture, Trade and Consumer Protection
P.O. Box 8911
Madison, WI 53708-8911
Telephone (608) 224-5164
Finding of emergency
No finding of emergency is necessary pursuant to s. 126.88(2)(b), Stats. Emergency rule
Section 1. ATCP 101.245 (2)(a) 2. is amended to read:
2. The sum of the amounts calculated under s. 126.60 (1) (a) and (b), Stats. except as follows: a.
A vegetable contractor's current ratio assessment factor under s.126.60 (3) (a), Stats. is 0.00048.b.
A vegetable contractor's current ratio assessment factor under s.126.60 (3) (b), Stats. is 0.00072.c.
A vegetable contractor's debt to equity ratio assessment factor under s.126.60 (5) (a), Stats. is 0.000135.d.
A vegetable contractor's debt to equity ratio assessment factor under s.126.60 (5) (b), Stats. is 0.000203.Section 2. ATCP 101.245 (2)(b) 2. is amended to read:
2. The sum of the amounts calculated under s. 126.60 (1) (a) and (b), Stats. except as follows: a.
A vegetable contractor's current ratio assessment factor under s.126.60 (3) (a), Stats. is 0.00048.b.
A vegetable contractor's current ratio assessment factor under s.126.60 (3) (b), Stats. is 0.00072.c.
A vegetable contractor's debt to equity ratio assessment factor under s.126.60 (5) (a), Stats. is 0.000135.d.
A vegetable contractor's debt to equity ratio assessment factor under s.126.60 (5) (b), Stats. is 0.000203.Section 3. ATCP 101.245 (2)(c) 2. is amended to read:
2. The sum of the amounts calculated under s. 126.60 (1) (a) and (b), Stats. except as follows: a.
A vegetable contractor's current ratio assessment factor under s.126.60 (3) (a), Stats. is 0.00048.b.
A vegetable contractor's current ratio assessment factor under s.126.60 (3) (b), Stats. is 0.00072.c.
A vegetable contractor's debt to equity ratio assessment factor under s.126.60 (5) (a), Stats. is 0.000135.d.
A vegetable contractor's debt to equity ratio assessment factor under s.126.60 (5) (b), Stats. is 0.000203.Section 4. Effective date: This emergency rule takes effect on February 1, 2016, and remains in effect for 24 months. The department implements this emergency rule as provided in s. 126.88 (2)(b), Stats.
