§ 26.115 Percentages.

All percentages shall be upon the basis of weight. Percentages except for dockage shall be expressed in whole and tenth percent to the nearest tenth of a percent. The percentage of dockage when equal to one-half percent or more shall be stated in terms of half percent, whole percent, or whole and half percent, as the case may be, with other fractions disregarded as shown in the following examples: Dockage ranging from 0.5 to 0.9 percent shall be expressed as 0.5 percent, from 1.0 to 1.4 percent as 1.0 percent, from 1.5 to 1.9 percent as 1.5 percent, etc.

§ 26.116 Moisture.

Moisture shall be ascertained by use of the equipment and procedure prescribed by the Agricultural Marketing Service, United States Department of Agriculture. (Information thereon may be obtained from said Service.)

§ 26.117 Test weight per bushel.

Test weight per bushel shall be the weight per Winchester bushel as determined by the method prescribed by the United States Department of Agriculture, as described in Circular No. 921 issued June 1953. Test weight per bushel shall be expressed to the nearest tenth of a pound.

Wheat shall be divided into the following seven classes: Hard Red Spring Wheat, Durum Wheat, Red Durum Wheat, Hard Red Winter Wheat, Soft Red Winter Wheat, White Wheat, and Mixed Wheat.

§ 26.119 Hard Red Spring Wheat.

The class Hard Red Spring Wheat shall include all varieties of hard red spring wheat. This class shall be divided into the following three subclasses:

(a) Dark Northern Spring Wheat. The subclass Dark Northern Spring Wheat shall be Hard Red Spring Wheat with 75 percent or more of dark, hard, and vitreous kernels.

(b) Northern Spring Wheat. The subclass Northern Spring Wheat shall be Hard Red Spring Wheat with 25 percent or more but less than 75 percent of dark, hard, and vitreous kernels.

(c) Red Spring Wheat. The subclass Red Spring Wheat shall be Hard Red Spring Wheat with less than 25 percent of dark, hard, and vitreous kernels. § 26.120 Durum Wheat.

The class Durum Wheat shall include all varieties of white (amber) Durum Wheat. This class shall be divided into the following three subclasses:

(a) Hard Amber Durum Wheat. The subclass Hard Amber Durum Wheat shall be Durum Wheat with 75 percent or more of hard and vitreous kernels of amber color.

(b) Amber Durum Wheat. The subclass Amber Durum Wheat shall be Durum Wheat with 60 percent or more but less than 75 percent of hard and vitreous kernels of amber color.

(c) Durum Wheat. The subclass Durum Wheat shall be Durum Wheat with less than 60 percent of hard and vitreous kernels of amber color.

26.121 Red Durum Wheat.

The class Red Durum Wheat shall include all varieties of red durum wheat. There are no subclasses in this class.

§ 26.122 Hard Red Winter Wheat.

The class Hard Red Winter Wheat shall include all varieties of hard red winter wheat. This class shall be divided into the following three subclasses: (a) Dark Hard Winter Wheat. The subclass Dark Hard Winter Wheat shall be Hard Red Winter Wheat with 75 percent or more of dark, hard, and vitreous kernels.

(b) Hard Winter Wheat. The subclass Hard Winter Wheat shall be Hard Red Winter Wheat with 40 percent or more but less than 75 percent of dark, hard, and vitreous kernels.

(c) Yellow Hard Winter Wheat. The subclass Yellow Hard Winter Wheat shall be Hard Red Winter Wheat with less than 40 percent of dark, hard, and vitreous kernels.

26.123 Soft Red Winter Wheat.

The class Soft Red Winter Wheat shall include all varieties of soft red winter wheat. There are no subclasses in this class.

The class White Wheat shall include all varieties of white wheat. This class shall be divided into the following four subclasses:

(a) Hard White Wheat. The subclass Hard White Wheat shall be White Wheat with 75 percent or more of hard kernels and may contain not more than 10.0 percent of wheat of the white club varieties.

(b) Soft White Wheat. The subclass Soft White Wheat shall be White Wheat with less than 75 percent of hard kernels and may contain not more than 10.0 percent of wheat of the white club varieties.

(c) White Club Wheat. The subclass White Club Wheat shall be White Wheat consisting of wheat of the white club varieties and may contain not more than 10.0 percent of other white wheat.

(d) Western White Wheat. The subclass Western White Wheat shall be White Wheat containing more than 10.0 percent of wheat of the white club varieties and more than 10.0 percent of other white wheat.

26.125 Mixed Wheat.

The class Mixed Wheat shall be any mixture of wheat which consists of one of the following:

(a) Two or more classes each of which constitutes more than 10.0 pecent of the mixture; or

(b) One class that constitutes more than 10.0 percent and two or more other classes in combination that exceed 10.0 percent of the mixture; or

(c) Several classes none of which constitutes 10.0 percent or more of the mixture but which combined meet the definition for wheat.

§ 26.126 Grades.

Grades shall be the numerical grades, Sample grade, and special grades provided for in § 26.127 and § 26.128.

26.127 Numerical grades and Sample grade and grade requirements.

(a) Numercial grades and Sample grade and grade requirements for all classes of wheat except Mixed Wheat (see also § 26.128).

Sample grade: Sample grade shall be wheat which does not meet the requirements for any of the grades from No. 1 to No. 5, inclusive; or which contains stones; or which is musty, or sour, or heating; or which has any commercially objectionable foreign odor except of smut or garlic; or which contains a quantity of smut so great that any 1 or more of the grade requirements cannot be applied accurately; or which is otherwise of distinctly low quality.

1 Red Durum wheat of any grade may contain not more than 10 percent of wheat of other classes. (b) Numerical grades and Sample grade and grade requirements for Mixed Wheat. (See also § 26.128). Mixed Wheat shall be graded according to the numerical and Sample grade requirements of the class of wheat which predominates in the mixture, except that the factor "wheat of other classes" shall be disregarded.

§ 26.128 Special grades, special grade requirements, and special grade designations. (a) Tough wheat-(1) Requirements. Tough wheat shall be wheat which contains more than 13.5 percent of moisture.

(2) Grade designation. Tough wheat shall be graded and designated according to the grade requirements of the standards applicable to such wheat if it were not tough, and there shall be added to and made a part of the grade designation the word "Tough."

(b) Smutty wheat-(1) Requirements. Smutty wheat shall be wheat which has an unmistakable odor of smut or which contains balls, portions of balls, or spores, of smut in a quantity equivalent to more than 14 balls of average size in 250 grams of wheat.

(2) Grade designation. Smutty wheat shall be graded and designated according to the grade requirements of the standards applicable to such wheat if it were not smutty; and

(i) In the case of smutty wheat which has an unmistakable odor of smut, or which contains balls, portions of balls, or spores, of smut, in excess of a quantity equal to 14 balls but not in excess of a quantity equal to 30 balls of average size in 250 grams of wheat, there shall be added to and made a part of the grade designation the words "Light Smutty"; and

(ii) In the case of smutty wheat which contains balls, portions of balls, or spores, of smut, in excess of a quantity equal to 30 balls of average size in 250 grams of wheat, there shall be added to and made a part of the grade designation the word "Smutty."

(c) Garlicky wheat-(1) Requirements. Garlicky wheat shall be wheat which contains two or more green garlic bulblets, or an equivalent quantity of dry or partly dry bulblets, in 1,000 grams of wheat.

(2) Grade designation. Garlicky wheat shall be graded and designated according to the grade requirements of the standards applicable to such wheat if it were not garlicky; and

(i) In the case of garlicky wheat which contains two or more but not more than six green garlic bulblets, or an equivalent quantity of dry or partly dry bulblets, in 1,000 grams of wheat, there shall be added to and made a part of the grade designation the words "Light Garlicky"; and

(ii) In the case of garlicky wheat which contains more than six green garlic bulblets, or an equivalent quantity of dry or partly dry bulblets, in 1,000 grams of wheat, there shall be added to and made a part of the grade designation the "Garlicky."

(d) Weevily wheat-(1) Requirements. Weevily wheat shall be wheat which is infested with live weevils or other insects injurious to stored grain.

(2) Grade designation. Weevily wheat shall be graded and designated according to the grade requirements of the standards applicable to such wheat if it were not weevily, and there shall be added to and made a part of the grade designation the word "Weevily."

(e) Ergoty wheat—(1) Requirements. Ergoty wheat shall be wheat which contains more than 0.3 percent of ergot.

(2) Grade designation. Ergoty wheat shall be graded and designated accoring to the grade requirements of the standards applicable to such wheat if it were not ergoty, and there shall be added to and made a part of the grade designation the word "Ergoty."

(f) Treated wheat-(1) Requirements. Treated wheat shall be wheat which been scoured, limed, washed, sulfured, or treated in such a manner that the true quality is not reflected by either the numerical grade or the Sample grade designation alone.

(2) Grade designation. Treated wheat shall be graded and designated according to the grade requirements of the standards applicable to such wheat if it were not treated, and there shall be added to and made a part of the grade designation a statement indicating the kind of treatment.

(g) Heavy wheat-(1) Requirements. Heavy wheat shall be (i) Hard Red Spring Wheat of grades No. 1, No. 2, and No. 3 which has a test weight per bushel of 60 pounds or more, or (ii) any other class of wheat of grades No. 1, No. 2, and No. 3 which has a test weight per bushel of 62 pounds or more.

(2) Grade designation. Heavy wheat shall be graded and designated according to the grade requirements of the standards applicable to such wheat if it were not heavy, and there shall be added to and made a part of the grade designation preceding the name of the class or subclass, as the case may be, the word "Heavy."

26.129 Grade designation for all classes and subclasses of wheat.

(See also § 26.128). The grade designation for wheat shall include in the order named the number of the grade or the words "Sample grade," as the case may be; the name of the applicable subclass, or in the case of Red Durum Wheat, Soft Red Winter Wheat, and Mixed Wheat, the name of the class; the name of each applicable special grade; and when applicable the word "dockage" together with the percentage thereof. In the case of Western White Wheat, the grade designa

tion shall also include, following the name of the subclass, the name and percentage of white club wheat and other white wheat in the mixture. In the case of Mixed Wheat, the grade designation shall also include, following the name of the class, the name and percentage of hard red spring, durum, red durum, hard red winter, soft red winter, and white wheat, if any, contained in the mixture.

The foregoing standards supercede the official grain standards of the United States for wheat as amended effective June 15, 1957, and shall become effective May 1, 1964.

Done at Washington, D.C., this 22d day of January 1964.

ORVILLE L. FREEMAN,

Secretary.

Mr. MICHEL. Mr. Secretary, in view of your responses to the questions of Mr. Horan in this area, what would be the situation of the warehouseman who has in his facility warehouse receipts say, x number bushels of No. 2 corn, wheat, whatever commodity, but at the time of his taking in this grade and volume of the commodity in question, the standards were less than what they are today.

Does he get penalized in any way because he took over the grain with a lower standard than what is now going to be in effect?

Secretary FREEMAN. It is my understanding, and I am not a grain trader or an expert, that following June 1, the standards which have gone into effect will be applicable to grain placed in storage after that date. The grain that might be held on a warehouse receipt, issued prior to June 1 under the old standards and under loan or something of this kind, would be redeemable on the basis of that receipt. Any grain taken on subsequent to June 1 would be held to the specifications set forth in the warehouse receipt, which would be issued in accordance with the new standards.

Now what kind of transition arrangements might exist here? I would appreciate your directing more detailed questions to some of the management people.

Mr. MICHEL. Right. But I think you have pretty well answered it. We can explore that further with the folks that are dealing with this every day. But what I wanted to be absolutely sure was that we weren't getting to an ex post facto situation here, where warehousemen had taken in grain with such and such a standard in force now, and then when selling the grain or getting out from underneath the obligation, having a different standard applied.

Secretary FREEMAN. During this period, we are going to have to, in effect, operate under two standards until we have washed out the old ones, which will take a year or so.

Mr. MICHEL. Thank you.

Mr. HORAN. Now, the first application of the revised grain standards then will take place when the producer obtains a warehouse receipt?

Secretary FREEMAN. The new standards will become effective June 1, 1964. The first application will come when the farmer brings his grain to the line elevator for his initial sale, or storage after that date, as the case may be. And it will be classified according to these new standards, and it will be evaluated in terms of the amount of dockage in it more strictly than has hitherto been the case.

PRICE SUPPORTS UNDER NEW GRAIN STANDARDS

Mr. HORAN. Now in the application of price supports against that wheat, are you going to make determinations on the basis of what your grain standards now would indicate is quality wheat, in terms of what might be maximum support prices?

Secretary FREEMAN. As I understand the operation of this procedure, the given price-support level appropriately adjusted for the area in question, and the grade of wheat plus the quality of that wheat, as measured by its protein and sedimentation rate, will determine the level of payment made.

you

Mr. HORAN. Well, now, am I to understand that there might be, if followed this to its ultimate conclusion, that there might be some wheat submitted for price support as grain that would be ineligible for price supports?

Secretary FREEMAN. Yes. There is all kinds of grain that we will not support, because it won't meet minimum standards, it is too wet, wet corn, grain that doesn't grade up to necessary standards-and that is not supportable.

Mr. HORAN. Hasn't it been a problem in the past that price supports and the privileges of the Commodity Credit Corporation have been thrown open to grains that were of very poor quality and of minimum value?

Secretary FREEMAN. Well, no. Let me say "Yes," and "No," and then amplify.

First, grain that meets minimum standards in terms of quality and not being too wet and soforth, is all that is taken under loan. It must meet those standards or it will not be taken under loan, if everyone is doing his job properly. Then when this grain is commingled, our problem then tends to be that the grain of the best quality within a class will move off into commerical uses and the grain of the less quality within that class will tend to remain and so there is a tendency in the trade to siphon off the most valuable grain and to leave that which is less valuable.

But to say we are taking on grain that isn't fit for hog feed, is just not, I think, an accurate statement, unless someone is falling far short of living up to his orders.

WAREHOUSE INSPECTIONS

Mr. MICHEL. If I might ask one other question at this point, which I think is apropos: At one time the tolerance which the inspector had in classifying a particular grain in a warehouse was something I think like 5 percent. In other words, if the inspector came and looked at an elevator, the commodities in an elevator, and it met specifications within a 5-percent tolerance, he never said anything to the warehouseman that "your grain is deteriorating," or "becoming out

of condition."

If there was more than a 5-percent tolerance, then as I understand it, the inspector's obligation was to tell the warehouseman, "Look, so much of your grain is going out of condition; you better do something about it." Or, "We have to move against you."