Processors do nothave to substitute

For list of approved national processors go to USDA website

3 scenarios when processor may choose not to substitute:

1. Small processor of F&V or bonus– Treat the same as processors substituting– Reported on Substitutable MPR– Shown on SEPDS A

Non-substitution continued:

2. Backhauled commodities– Processor shall not substitute backhauled

commodities– Processor must return end products from

backhauled commodity to original RA– Processor shall not cash out value of

backhauled commodities

• Backhauled commodities NOT from single inventory and permissible under State Participation Agreement should be reported on MPR for that commodity

• Backhauled commodities NOT from single inventory and permissible under SPA should be reported on MPR for that commodity

• Backhauled commodities from single inventory are NOT considered commodity and should not appear on MPR

Non-substitution continued:

3. No commercial equivalent available

– Shown on SEPDS B– Inventory reporting on GMR MPR