What is affiliation?
Affiliation is a type of linkage between a harvester and processor – in this Program, typically between a QS/IFQ holder and a PQS/IPQ holder. Affiliation exists if a person either directly or indirectly has a 10% or greater ownership interest in another person, or otherwise controls or directs that person (e.g., through lease arrangements or other factors). Affiliation is determined through an affidavit that is part of the annual application to receive IFQ. Each year a person applying to receive IFQ will have to state whether the entity, which holds their IFQ, is owned 10% or more by a PQS or IPQ holder, or if they are “otherwise controlled” by a PQS or IPQ holder. If either of those two statements are true, then they are affiliated. Control may exist when a PQS or IPQ holder has the ability to direct the business operations of the QS or IFQ holder. The specific measures for establishing control are based on standards that are detailed in the final rule (see 680.2 “Affiliation” definit
