27 



Par. 182 



182 Adjustments to Actual Production Because of Quality Losses 



Quality Loss 

 Adjustments 



Actual production may be adjusted because of quality losses resulting 

 from damaging weather and related conditions. 



Notes: Do not adjust quality because of damaging weather or related 

 conditions occurring Jifter the crop is harvested. "Harvested" 

 means the crop is ready for storage. For example, wheat or 

 hay that has been windrowed is not harvested, wheat that has 

 been threshed or hay that has been baled is harvested. 



Use Exhibit 10.5 for performing calculations. 



B 



Quality Grade 



Table 



General rules for determining * * * grades are given in the following 

 table. If exceptions apply to specific crops, those exceptions are 

 included with the factor for the crop. 



*— If the grade shown on the production evidence reflects a grading 

 factor that was also used to reduce the gross quantity, determine the 

 grade without regard to the grading factor and use grade in determining 

 the quality adjustment. 



Example: The quantity of soybeans was reduced for foreign material 

 and graded U.S. Sample by the buyer because of the 

 percent of foreign material. By disregarding foreign 

 material, the soybeans would have graded U.S. Number 4. 

 The quality adjustment factor for U.S. Number 4 should 

 be used with the net bushels shown on the production 

 evidence for calculating disaster benefits. 



If the production evidence does not show the grading factors that made 

 up the grade, COC must determine whether the quantity was adjusted 

 by the buyer for grading factors that also determined the final grade. If 

 COC determines the grade was based on a grading factor that also 

 reduced the quantity, COC shall determine the grade without the 

 grading factor based on similar farms. 



Example: The production evidence showed only the net quantity 

 and grade. COC determined that the quantity was 

 reduced for foreign material so COC uses similar farms to 

 determine the grade without regard to foreign material.—* 



9-28-93 



1-PAD (Rev 2) Amend. 28 



Continued on the next page 

 Page 4-31 



