ATCP 101.04(1)(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: ATCP 101.04(1)(a)(a) The vegetable crop is destroyed, or rendered clearly unsuitable for processing, by drought, flood, wind, hail, frost or other natural peril. ATCP 101.04(1)(b)(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. ATCP 101.04(1)(c)(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. ATCP 101.04 NoteNote: 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.
ATCP 101.04(2)(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). ATCP 101.04(3)(a)(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. ATCP 101.04(3)(b)(b) A contractor may not require a producer of abandoned acreage to contribute to an unharvested acreage pool unless all of the following apply: ATCP 101.04(3)(b)1.1. 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. ATCP 101.04(3)(b)4.4. The pool contribution does not result in any net payment from the producer to the contractor. ATCP 101.04(4)(a)(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. ATCP 101.04(4)(b)(b) Paragraph (a) does not limit charges for supplies and services which the producer was free to obtain from sources other than the contractor. ATCP 101.04(5)(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. ATCP 101.04 HistoryHistory: Cr. Register, December, 1992, No. 444, eff. 1-1-93. ATCP 101.05ATCP 101.05 Unharvested acreage pool. A contractor may establish an unharvested acreage pool under this section. The unharvested acreage pool shall comply with all of the following requirements: ATCP 101.05(1)(1) Terms specified in contract. In each vegetable procurement contract with a pool participant, the contractor shall clearly specify the terms and conditions of the pool, including terms related to producer contributions, contractor contributions, and the use of pool funds. The same terms and conditions shall apply to every producer who participates in the pool. ATCP 101.05(2)(2) Pool coverage. Pool funds may be used only to pay for vegetable acreage contracted with pool participants. No pool may apply to more than one contract year. If a pool applies to more than one vegetable crop, the vegetable procurement contract shall clearly identify the crops included in the pool. ATCP 101.05(3)(a)(a) Pool participants and pool acreage shall be assigned to a specific pool when those participants sign vegetable procurement contracts for that acreage. Pool participants and pool acreage, once assigned to a pool, may not be reassigned to a different pool. ATCP 101.05(3)(b)(b) If any pool participants are located outside this state, the vegetable procurement contract shall identify all of the states in which pool participants are located. ATCP 101.05(4)(a)(a) A contractor may use pool funds to pay for unharvested suitable acreage or abandoned acreage. ATCP 101.05(4)(b)(b) If, because of low crop yield or grade, a producer is entitled to a smaller contract payment for harvested acreage than if that harvested acreage had been abandoned, a contractor may use pool funds to pay the producer the difference between the harvested acreage payment and the higher contract guarantee for abandoned acreage. ATCP 101.05(4)(c)(c) A contractor may not use pool funds for any purpose other than those specified under par. (a) or (b). Payments under pars. (a) and (b) are subject to the terms of the vegetable procurement contract. ATCP 101.05(5)(5) Producer contributions. In every vegetable procurement contract with a pool participant, the contractor shall clearly specify both of the following: ATCP 101.05(5)(a)(a) The circumstances under which the participant will be required to contribute to the pool, and the method by which contributions will be assessed. ATCP 101.05(5)(b)(b) The amount of the participant’s contribution to the pool, or the formula by which that contribution will be determined, subject to the maximum specified under sub. (6). ATCP 101.05(6)(a)(a) In every vegetable procurement contract with a pool participant, the contractor shall specify the participant’s maximum potential contribution to the pool. ATCP 101.05(6)(b)(b) The maximum contribution under par. (a) shall be stated as a maximum percentage deduction from the gross amount due the producer under the vegetable procurement contract. Producers of abandoned acreage may be subject to a different maximum contribution than producers of suitable acreage, provided that the different maximum contribution is clearly specified in the contract. ATCP 101.05(6)(c)(c) No contractor may require a pool participant to contribute more than the applicable maximum amount specified under this subsection. ATCP 101.05(7)(7) Contractor to match producer contributions. The contractor shall contribute to the pool an amount which is not less than the total of all producer contributions to the pool. ATCP 101.05(8)(a)(a) If, in any geographic area covered by a pool, a contractor grows the same vegetable crop on acreage owned or leased by the contractor, the contractor shall participate in the pool on the same basis as every other participating producer. ATCP 101.05(8)(b)(b) If the contractor participates as a producer under par. (a), the contractor’s pool contribution shall be treated as a producer contribution which the contractor shall also match with a separate contribution under sub. (7). ATCP 101.05(8)(c)(c) If a contractor participates as a producer under par. (a), the contractor is eligible for payments from the pool on the same basis as every other participating producer. ATCP 101.05(9)(9) Refunds to pool contributors. If the contractor collects more pool contributions than the contractor distributes to pool participants under sub. (4), the contractor shall refund all unused pool funds to pool contributors on a pro rata basis, based on the amount of each contributor’s pool contribution. If the contractor refunds pool funds to producers under this subsection, the contractor shall include each producer’s pro rata refund with the contractor’s final payment to the producer under the vegetable procurement contract. ATCP 101.05(10)(10) Information to producers. When the contractor makes final payment to a pool participant under a vegetable procurement contract, the contractor shall provide all of the following information to the pool participant: ATCP 101.05(10)(a)(a) The total amount that pool participants contributed to the pool. If the contractor participates as a producer under sub. (8), the contractor’s total contribution as a producer shall be stated separately. ATCP 101.05(10)(c)(c) The total amount of pool funds paid to pool participants under sub. (4). If the contractor received pool funds as a producer under sub. (8) (c), the amount paid to the contractor shall be stated separately. ATCP 101.05(10)(d)(d) The total number of suitable pool acres left unharvested, the number of pool participants who produced that unharvested suitable acreage, and the total amount of pool funds paid for unharvested suitable acreage. Instead of reporting the number of suitable pool acres left unharvested, the contractor may report that number as a percentage of total pool acres. ATCP 101.05(10)(e)(e) The total number of pool acres that were abandoned, the number of pool participants who produced that abandoned acreage, and the total amount of pool funds paid for abandoned acreage. If some of the abandoned acres were not eligible for pool payments, the contractor shall also report the total number of eligible acres and producers. Instead of reporting the number of pool acres that were abandoned, or the number of abandoned acres that were eligible for pool payments, the contractor may report those numbers as percentages of total pool acres. ATCP 101.05(10)(f)(f) The total number of harvested pool acres that were eligible for pool payments under sub. (4) (b), the number of pool participants who produced that eligible harvested acreage, and the total amount of pool funds paid under sub. (4) (b) for that eligible harvested acreage. Instead of reporting the number of pool acres that were eligible for pool payments under sub. (4) (b), the contractor may report that number as a percentage of total pool acres. ATCP 101.05(10)(g)(g) The total amount of pool funds, if any, that the contractor refunded to pool contributors under sub. (9). If the contractor contributed as a producer under sub. (8), the amount refunded to the contractor shall be stated separately. ATCP 101.05(11)(a)(a) For each unharvested acreage pool, the contractor shall keep complete and accurate records related to each of the items under sub. (10). ATCP 101.05(11)(b)(b) For each pool participant, the contractor shall keep accurate records of all of the following: ATCP 101.05(11)(b)4.4. The amount of unharvested suitable acreage for which the participant received pool payments, and the amount of those payments. ATCP 101.05(11)(b)5.5. The amount of abandoned acreage for which the participant received pool payments, and the amount of those payments. ATCP 101.05(11)(b)6.6. The amount of acreage for which the participant received pool payments under sub. (4) (b), and the amount of those payments. ATCP 101.05(11)(c)(c) If a contractor estimates the yield or grade of unharvested suitable acreage under s. ATCP 101.03 (4), the contractor shall keep complete and accurate records showing how the yield or grade was estimated in compliance with that subsection. ATCP 101.05(12)(12) Records retained; inspection and copying. A contractor shall retain the records under sub. (11) for at least 3 years, and shall make those records available to the department for inspection and copying upon request. ATCP 101.05 HistoryHistory: Cr. Register, December, 1992, No. 444, eff. 1-1-93. ATCP 101.06ATCP 101.06 Prohibited contract provisions. No vegetable procurement contract may do any of the following: ATCP 101.06(1)(1) Require any producer to purchase seed, pesticide applications, harvest services, hauling services, or other supplies or services from the contractor if the charges for the supplies or services exceed the reasonable market value of those supplies or services. ATCP 101.06(2)(2) Relieve, or purport to relieve a contractor from liability for property damage or personal injury caused by the negligent acts or omissions of the contractor. ATCP 101.06(3)(3) Impose, or purport to impose liability on a producer for personal injury or property damage caused by the contractor. ATCP 101.06 HistoryHistory: Cr. Register, December, 1992, No. 444, eff. 1-1-93. ATCP 101.07ATCP 101.07 Prohibited practices. No contractor may do any of the following: ATCP 101.07(1)(1) Fail to pay a producer according to the terms of a vegetable procurement contract. ATCP 101.07(2)(2) Knowingly misrepresent the terms of a vegetable procurement contract, the procedures used under the contract, or the services provided by the contractor under the contract, in order to induce a producer to sign a vegetable procurement contract. ATCP 101.07(3)(3) Conspire with other contractors to fix prices or restrain trade in the procurement of vegetables from producers. ATCP 101.07(4)(4) Fail or refuse to offer a vegetable procurement contract to a producer because the producer has done any of the following: ATCP 101.07(4)(d)(d) Joined an association of producers, advised or attempted to organize producers, or participated in any discussion, meeting or action related to vegetable procurement or vegetable industry issues. ATCP 101.07(4)(e)(e) Negotiated or attempted to enforce the terms of any vegetable procurement contract, or represented producer interests in any matter related to vegetable procurement or vegetable industry issues. ATCP 101.07(4)(f)(f) Sought government action related to vegetable procurement, or testified or participated in any way in the development or implementation of laws related to vegetable procurement or vegetable industry issues. ATCP 101.07(5)(5) Charge a producer for defective seed planted under a vegetable procurement contract if the seed supplier reimburses the contractor for the cost of that seed. ATCP 101.07 HistoryHistory: Cr. Register, December, 1992, No. 444, eff. 1-1-93. Subch. II of ch. ATCP 101 NoteNote: This subchapter is adopted under authority of ss. 93.07 (1), 126.49, 126.51 and 126.81, Stats., and interprets ch. 126, Stats. The Wisconsin department of agriculture, trade and consumer protection may enforce this subchapter under subch. VIII of ch. 126, Stats. ATCP 101.20ATCP 101.20 Definitions. In this subchapter: ATCP 101.20(1)(1) “Affiliate” has the meaning given in s. 126.01 (1), Stats. “Affiliate” includes a person who has significant control or influence over the business entity. ATCP 101.20(2m)(2m) “Contingent financial backing amount” means the amount of contingent financial backing, if any, which the department holds under s. 126.06, Stats.
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