Section 107 of ARPA requires a review of current quality loss adjustment procedures in order to develop procedures that moreo accurately reflect local quality discounts. Based on the results of this review, RMA may make adjustments to the current program, after consideration of actuarial soundness and prevention of fraud, waste and abuse.

The analysis includes a review of current quality discount adjustment factors for the following agricultural commodities: corn, soybeans, grain sorghum, wheat, barley, oats, rye, flax, canola, sunflower, and safflower.

The analysis further develops new quality discount adjustment factors for rice, dark roast confectionary sunflowers and buckwheat, consistent with the recommended procedures developed in the analysis described above.

A separate analysis is performed for cotton quality adjustments.

Interested parties have until August 29, 2003 to submit their comments.