Vegetable Contractor Definitions

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Default Claims

Producers selling potatoes to nonparticipating processing potato buyers may not seek recovery from the department’s agricultural producer security fund. These producers should preserve their trust rights under the federal Perishable Agricultural Commodities Act, 7 USC 499a to 499t.

  • Default claims must be filed within 30 days after the claimant first learns of the default. The claimant shall specify the nature and amount of the default in writing.

  • Default claims should be sent to Eric Hanson, Chief of the Producer Security Section. Claims may be faxed to 608-224-4937 or mailed to Eric Hanson; Wisconsin Department of Agriculture, Trade and Consumer Protection; PO Box 8911; Madison, WI 53708-8911.

  • The department will disallow a claim if the claimant continued to deliver grain, milk or vegetables to the defaulting contractor more than 10 days after the claimant first learned of the contractor’s default. For example on April 18, you learn that you will not be paid for your product delivered to the contractor, any product delivered on or after April 28 can not be covered by the Fund.

  • Detailed information regarding default claims can be found in §126.70, Wis. Stats.

Processing Vegetables

Processing vegetables are defined in §126.55(11), Wis. Stats., as vegetables grown or sold for use in food processing, regardless of whether those vegetables are actually harvested or processed as food. “Processing vegetables” includes sweet corn grown or sold for use in food processing, but does not include grain.

The following vegetable contractors are exempt from licensing under §126.56(1), Wis. Stats.,

  • A vegetable contractor who procures vegetables primarily for unprocessed, fresh market use and is licensed under the federal Perishable Agricultural Commodities Act, 7 USC 499a to 499t.

  • A restaurant or retail food establishment that procures processing vegetables solely for retail sale at the restaurant or retail food establishment.

Contribution to the Fund

Certain vegetable contractors, are not required to contribute to the Fund, but may voluntarily do so:

  • Vegetable contractors paying cash on delivery under all vegetable contracts during the license year. Cash on delivery is defined as payment of the full agreed price for vegetables when the vegetable is tendered or delivered to a contractor, or a cash payment of the full agreed price within 72 hours if the vegetable is graded. Cash payment is defined in §126.55(2), Wis. Stats.

  • A processing potato buyer that meets all requirements as specified in §126.595, Wis. Stats. A processing potato buyer is defined as a vegetable contractor who purchases processing potatoes and no other processing vegetables.