Processors do not have 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