Section 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:

(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.

(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.

(3)   Producers and acreage assigned to pool.

(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.

(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.

(4)   Use of pool funds; general.

(a) A contractor may use pool funds to pay for unharvested suitable acreage or abandoned acreage.

(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.

(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.

(5)   Producer contributions. In every vegetable procurement contract with a pool participant, the contractor shall clearly specify both of the following:

(a) The circumstances under which the participant will be required to contribute to the pool, and the method by which contributions will be assessed.

(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) .

(6)   Maximum producer contribution.

(a) In every vegetable procurement contract with a pool participant, the contractor shall specify the participant's maximum potential contribution to the pool.

(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.

(c) No contractor may require a pool participant to contribute more than the applicable maximum amount specified under this subsection.

(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.

(8)   Contractor acreage included.

(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.

(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) .

(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.

(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.

(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:

(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.

(b) The contractor's total contribution to the pool as a contractor under sub. (7) .

(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.

(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.

(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.

(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.

(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.

(11)   Records.

(a) For each unharvested acreage pool, the contractor shall keep complete and accurate records related to each of the items under sub. (10) .

(b) For each pool participant, the contractor shall keep accurate records of all of the following:

1. The participant's name and address.

2. The amount of each participant's pool acreage.

3. The participant's pool contribution, if any.

4. The amount of unharvested suitable acreage for which the participant received pool payments, and the amount of those payments.

5. The amount of abandoned acreage for which the participant received pool payments, and the amount of those payments.

6. The amount of acreage for which the participant received pool payments under sub. (4) (b) , and the amount of those payments.

(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.

(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.

History: Cr. Register, December, 1992, No. 444 , eff. 1-1-93.