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FGIS Proposed Standard Changes Beverly Whalen Market and Program Analysis Staff Federal Grain Inspection Service Grain Inspection, Packers and Stockyards Administration. US Dry Bean Convention Traverse City, Michigan July 29, 2007. FGIS proposed three certificate changes with regards to:
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FGIS Proposed Standard Changes Beverly WhalenMarket and Program Analysis StaffFederal Grain Inspection ServiceGrain Inspection, Packers and Stockyards Administration US Dry Bean Convention Traverse City, Michigan July 29, 2007
FGIS proposed three certificate changes with regards to: • Mixed Beans • Special Grade designation “High Moisture” • Option 2 Certification
Mixed Beans • Current Procedure • For samples classed as Mixed, regulations require the name and percentage of each class in the mixture be shown on the certificate grade line.
Proposed Procedure • Percentage of each class would be removed from the certificate grade line and placed in the “Results” section.
High Moisture Beans Current Procedure • Special grade designation “High Moisture” is applicable to all classes of beans containing over 18.0 percent moisture. • Moisture percentage shown on the certificate grade line.
Proposed Procedure • Moisture percentage would be placed in the “Results” section. • Special grade stills shows on grade line
Mixed & High Moisture Beans • Same information on certificate with only the location of percentages moved. • There is ample space in the “Results” section of the certificate. • This approach will not change the grade of the product and will enhance certificate readability
Gathering Industry Feedback • to better meet the needs of applicants and other interested parties to transactions, • prefer the current grade designation to stand as is or • Move the extra information from the grade line and display in the “Results” section of the certificates?
Option 1 vs Option 2 • Applicants for inspection may obtain Option 1 or Option 2 certification by requesting it on the application for inspection (Bean Inspection Handbook, Chapter 4, Page 4-18, date 4/01/99) • The request must be filed prior to the beginning of the inspection. • NOTE: If no request for either option is submitted prior to the beginning of inspection, certification shall be Option 1.
Under Option 1, beans offered for inspection are certificated as a specific grade; • e.g.,“U.S. No 2 Pinto Beans” Lot #A Lot #B Lot #C Certificate U.S. No 1 Certificate U.S. No 2 Certificate U.S. No 3
Under Option 2 grade designation and certification, beans that are a better quality than that specified by the contract would be certified as being a specific grade “or better,” e.g., “U.S. No. 3 or better Pinto Beans.” If the lot presented for inspection is not uniform in quality for the declared grade, each portion is certified on a single certificate according to quality certifying the lot with the lowest grade in the lot. Lot #B U.S. No 2 Lot #A U.S. No 1 Lot #C U.S. No 3 U.S. No 3 or better
Option 2 is based on contract upon Applicant request only. • Customers are currently requesting and receiving Option 2. • Option 2 has been listed in the Bean Inspection Handbook since 1999. • Financial Institutes may not always accept a certificate stating a grade other than what the contract calls for. • FSA announcements state the Commodity Specifications to be - U.S. No. 2 or better. • Provides more flexibility to both buyer and seller.
Market and Program Analysis Staff Pat McCluskey Patrick.J.McCluskey@usda.gov (816) 823-4639 Barley Sorghum Wheat Oats, Rye, Triticale Beverly Whalen Beverly.A.Whalen@usda.gov (816) 823-4648 Beans Lentils Peas Rice Marianne Plaus, Chief Marianne.Plaus@usda.gov (202) 690-3460 Vacant Corn Sunflower Seed Soybeans Canola, Flaxseed Eric Jabs Eric.J.Jabs@usda.gov (816) 823-4635 Economic Support