Producer's Risk Law and Legal Definition
According to 7 CFR 43.102 (Title 7, Agriculture; Subtitle B, Regulations of The Department of Agriculture; Chapter I , Agricultural Marketing Service H1 (Standards, Inspections, Marketing Practices), Department of Agriculture; Subchapter A, Commodity Standards and Standard Container Regulations; Part 43, Standards for Sampling Plans; Definitions), producer's risk is “the risk that a producer takes that a lot will be rejected by a sampling plan even though the lot conforms to requirements. In the standards of this subpart this risk is nominally set at five percent.”
