Agricultural Producer Security
Vegetable Contractors Security
A vegetable contractor purchasing processing vegetables grown in Wisconsin is required to obtain a vegetable contractor license under Chapter 126 and Chapter ATCP 101, Wis. Adm. Code.
Vegetable contractor licenses expire on January 31 of each year. In order for a vegetable contractor to purchase Wisconsin grown processing vegetables, a vegetable contractor must do the following:
- If their annual processing vegetable purchases exceed $500,000, demonstrate their financial condition by filing a reviewed or an audited annual financial statement. An audited financial statement is required if purchases of Wisconsin grown processing vegetables exceed $7,500,000. For reviewed statements, file form #9 below.
- Financial conditions, as measured by their current ratio and debt-to-equity ratio, determine their annual assessments. Vegetable Contractor Assessment Calculator (Excel). Certain vegetable contractors, such as nonparticipating processing potato buyers and vegetable contractors paying cash on delivery are not required to pay assessments, as long as all required conditions are met, but must still be licensed.
- A vegetable contractor will be required to file and maintain security with the department at 75% of the largest amount of unpaid contract obligations to vegetable producers and producer agents, if the financial statement has negative equity when first licensed.
- As part of each vegetable procurement contract, notify producers and producer agents whether the vegetable contractor is a participant in the Fund and the manner in which they participate. The disclosures can be found in § ATCP101.26(2), Wis. Adm. Code.
- Pay producers and producer agents according to the terms of their contracts,which must meet the requirements specified in §§126.63(3) and 126.63(4), Wis.Stats.
- Comply with the deferred payment contact terms specified in §126.63(5), Wis.Stats. This includes having vegetable producers vote on a deferred payment contract and paying an additional security required under §126.61(3), Wis.Stats.
If a vegetable contractor is handling sweet corn, snap beans or peas, they must:
- Enter into written contracts with producers addressing specified requirements of Chapter 126 and Subchapter I of Chapter ATCP 101.
- Meet the requirements related to unharvested and abandoned acreage.
For more information, call our offices at 608-224-4998. Please click on the following links for vegetable contractor license materials:
- Vegetable Contractor License Application - 4 page PDF
- Vegetable Contractor Fees Surcharges - 1 page PDF
- Vegetable Contractor License Application Information Memo - 4 page PDF
- Certification for Potato Processors who Elect not to Participate - 2 page PDF
- Irrevocable Letter of Credit Vegetables - 1 page Word doc
- Vegetable Contractors Commercial Surety Bond - 2 page PDF
- Licensed Vegetable Contractors - Excel file
- Vegetable Contractor Waiver Form - 2 page PDF
- Signature Certification Form - 1 page PDF
- Vegetable Contractor Disclosure - 1 page PDF
- TR-SB-89 Vegetable Obligation Report - 1 page PDF
- Default Claim Form - 1 page PDF
- Vegetable Claim Form Instructions - 1 page PDF