FGIS Proposed Standard Changes

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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
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• FGIS proposed three certificate changes with
  regards to
• Mixed Beans
• Special Grade designation
• High Moisture
• Option 2 Certification

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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.

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• Proposed Procedure
• Percentage of each class would be removed from
  the certificate grade line and placed in the
  Results section.

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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.

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• Proposed Procedure
• Moisture percentage would be placed in the
  Results section.
• Special grade stills shows on grade line

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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

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• 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?

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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.

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• 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 2
Certificate U.S. No 3
Certificate U.S. No 1
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• 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
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• 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.

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VISIT GIPSA WEBSITEwww.usda.gov/gipsa
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Market and Program Analysis Staff
Pat McCluskey Patrick.J.McCluskey_at_usda.gov (816)
823-4639 Barley Sorghum Wheat Oats, Rye,
Triticale
Beverly Whalen Beverly.A.Whalen_at_usda.gov (816)
823-4648 Beans Lentils Peas
Rice
Marianne Plaus, Chief Marianne.Plaus_at_usda.gov (202
) 690-3460
Vacant Corn Sunflower Seed Soybeans
Canola, Flaxseed
Eric Jabs Eric.J.Jabs_at_usda.gov (816)
823-4635 Economic Support