MDARD Reminds Producers About Benefits of Using Licensed Grain Dealers

LANSING, Mich. - With the fall harvest in full swing, the Michigan Department of Agriculture and Rural Development (MDARD) is reminding producers that using licensed grain dealers can help protect their financial interests.

Michigan's licensed grain dealers form an important link in the food supply chain by connecting local grain growers with national and international markets. Michigan established the Farm Produce Insurance Authority (FPIA) to insure growers against losses if they use a licensed grain dealer that fails financially. Producers who use unlicensed grain dealers do not receive the same protection.

Before delivering grain or entering into a storage or sale agreement, MDARD recommends that producers:

1. Double-check that the entity is licensed - You can verify the grain dealer's license online.
2. Check the transaction terms - Ensure that you receive a proper scale ticket, warehouse receipt or price-later agreement.
3. Understand your settlement statement - Your statement should clearly identify any commodity check offs and FPIA assessments that your grain is subject to.
4. Know your rights and protections - If the licensed dealer fails financially, you as a producer may have claim rights under the FPIA.

After entering into a storage or sale agreement, grain producers should keep good records of:

• Deliveries
• Scale tickets
• Settlement statements
• Warehouse receipts
• Price-later agreements

With certain limited exceptions, the Grain Dealers Act (P.A. 141 of 1939) requires anyone in Michigan who buys, exchanges, sells or stores grain to be licensed by MDARD. MDARD conducts compliance audits of licensed grain dealers to protect producers and works with the FPIA to administer protections if licensed grain dealers fail financially. The department also offers guidance to producers and grain dealers to ensure transparent transactions and maintain a level playing field.

Any producer who has questions about grain dealer licensure or who has concerns about non-payment should email [email protected].

For more information, visit MDARD's Grain Dealers web page.

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