What is the appeal process?

Standard Mill Yield (M/Y) and Grade Assessment: All rough rice delivered to FRM is sampled and graded on a per truckload or rail car load basis. Each sample is tested independently to assess a M/Y and grade. The results of each sample are posted on the contract summary report that is used to develop an average M/Y and grade for any lot of rice delivered. Additionally, a portion of each sample is retained to produce a composite sample of the entire lot of rice being delivered. This composite will represent an accurate sample of the entire lot of rice delivered and will be retained for further testing if necessary.

Upon completion of delivery, the producer and/or the sales agent will be notified of the lab results and pricing of rice delivered. Method of notification will be in the form of the contract summary report. FRM will assume the milling, grade, and price on the contract summary are acceptable to the producer. If they are not, the producer or sales agent must notify FRM rough rice personnel that they wish to appeal the milling and/or grade determination made by FRM. By asking for an appeal, the results of the appeal will be final. A seller does not have the opportunity to retroactively choose between the results.

Milling yield and grade will be determined by testing the composite sample maintained on each lot or bin of rough rice delivered. FRM personnel will identify the composite sample, and with use of a Boerne divider, split the sample down into two (2) 100 gram samples which will be run on two separate lab machines. Standard internal testing procedures will be used in the test. Written results of the average milling of the two milling machines will be used to determine a M/Y and grade for this appeal. The results of this appeal will be submitted to the grower or his sales agent with any milling, grade and price differences. If the grower disputes these sample results, the grower can request an appeal to the USDA-FGIS grading lab located at FRM. Steps for this appeal process are listed in procedure 2. Again, by asking for an appeal, the results of the appeal will be final.

Upon completion of delivery, the producer and/or the sales agent will be notified of the lab results and pricing of rice delivered. Method of notification will be in the form of the contract summary report. FRM will assume the milling, grade, and price on the contract summary are acceptable to the producer. If they are not, the producer or sales agent must notify FRM rough rice personnel that they wish to appeal the milling and/or grade determination made by FRM. By asking for an appeal, the results of the appeal will be final. A seller does not have the opportunity to retroactively choose between the results.

Final milling yield, grade and price will be determined by requesting an appeal to the USDA-FGIS grading lab located at FRM. FRM scale room personnel will identify the composite sample in question and notify FRM quality control personnel. FRM scale room personnel will properly fill out Form FGIS -907 and place inside the composite sample.

The FRM form named Producer Rough Rice Appeal Procedure will accompany the request to FGIS. FRM quality control personnel will deliver the composite sample to FGIS personnel who will analyze the sample and provide written results on FGIS Form 994. The grower and or sales agent will be notified of the results. Final price determination will be made using the FGIS milling yield results and grade discounts when applicable.

Any seller or his sales agents are welcome to come observe the procedures used at Farmers Rice Milling Company to analyze incoming raw materials. We also welcome and encourage you to be present to observe the handling and testing of any rice that is going through an appeal process. Our goal is to be fair to all parties involved in each and every transaction.