Don’t Get Stiffed on Payment for Grain

The problem with Danielson Grain in East Grand Forks, Minn. failing to pay for grain purchased from producers, on the heels of a similar problem with an elevator that went defunct several years ago near Wimbledon, N.D., is a reminder to all farmers to exercise caution when entering into grain contracts.

“Farmers need to ask questions before delivering grain to a company for the first time,” says Jim Johnson, a warehouse examiner with the Minnesota Department of Agriculture. “This is especially true when you’re not taking immediate payment. If you’re allowing a grain buyer to delay payment or store your grain, be sure to inquire about their license status and bonding protection.”

For more information about selling or storing grain in Minnesota, farmers can visit the MDA website at www.mda.state.mn.us/grain/grainfaq.htm . This site offers information about applicable laws and a list of licensed grain buyers and grain elevators in Minnesota.

The North Dakota Public Service Commission also offers seller protection tips, including advise on handling storage and grading disputes, online at www.psc.state.nd.us/psc/jurisdiction/grain-consinfo.html . The ND PSC also includes a list of licensed warehouse or grain buyers online.

In South Dakota, the Public Utilities Commission has grain selling information online at www.state.sd.us/puc/T-WDivision/Warehouse.htm . The web site includes list of currently licensed grain dealers and public storage licenses. Further, there are three online publications (scroll down to bottom):

• What Happens To Your Grain After You Deliver It For Sale or Storage

•  Storing Grain at Elevators

•  Grain Sales Options: Deferred Payment, Delayed Pricing, and Other Voluntary Credit Sales Contracts.