INDIANA GRAINBUYERS WAREHOUSE LICENSING AGENCY
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QUICK FACTS: GRAIN PRODUCER: INDIANA LICENSING & BONDING WHAT YOU SHOULD KNOW GRAIN BUYERS & $ A permanent license is issued. If the elevator is offering storage, grain bank, warehouse receipts, deferred pricing (D.P.), price $ Yearly licensing fee is required. later contracts or is buying grain; do they have a WAREHOUSE current license posted? $ Licensee shall maintain the required amount of Are storage and service rates disclosed to you? bonding as prescribed in the statute. LICENSING Does the facility use grain contracts? $ Licensee shall maintain a current asset to current Does the facility give numbered scale tickets? Are liability ratio of 1:1. AGENCY they marked correctly (storage, D.P., price later, sold)? $ Licensee shall maintain net worth as prescribed in the statute. Are the SPARC checkoff & Indemnity Fund premium (if in effect) deducted and itemized on the $ Licensee must insure all grain that is or may be in settlements? the licensee=s facilities for it=s full value, and provide Is the facility well maintained? a certificate of insurance to the Agency. Does the facility have regular business hours? $ Producer has an automatic lien on their grain when it is delivered to a licensed facility. The lien expires TIPS when the producer is paid. The statute establishes a Always read, then sign, the contracts and keep a priority of liens. copy for your records. $ Public notices may be published in the case of Always keep your scale tickets and settlement suspensions or failure to comply with licensing sheets. They are valid proofs of claim. requirements. Keep settlement sheets that show Indemnity Fund deductions. $ Law, rules and forms are available on the web at www.IN.gov/isda This is proof of participation in the fund. Look for the LICENSE and BIN CHARTS posted at Rebecca S. Skillman the facility. Lieutenant Governor Secretary of Agriculture and Rural Affairs For detailed clarification or a copy of the appropriate state statute contact: Anne C. Hazlett Agriculture Director Indiana Grain Buyers & Warehouse Licensing Agency 101 West Ohio Street, Suite 1200 Indiana State Department of Agriculture Indianapolis, Indiana 46204 Phone: 317/232-1356 Fax: 317/232-1362 Jerome G. Hawkins www.IN.gov/isda Director of Grain Buyers and Warehouse Licensing Revised April 2009 OUR MISSION OPERATIONS LICENSING TYPES To ensure the financial integrity of the grain marketing Licensing Grain Bank license - infrastructure, while allowing the industry to be Four license types: Stores only grain bank grain. competitive, innovative and efficient. Grain bank Buyer/Warehouse Purchases less than 50,000 bushels of grain per Warehouse Grain buyer year and has storage capacity of not more than Warehouse regulation is intended to ensure that 50,000 bushels of grain. warehousemen maintain the quantity and quality of Licenses, bin charts and diagrams are to be posted in a Warehouse license - grain stored for farmers and other depositors. This conspicuous place at each facility. Primarily stores grain. applies to warehouse receipt, open storage and grain Permits limited purchases of grain from bank obligations. Auditing producers. Monitor the grain banks, grain buyers and warehouses Grain Buyer license - for compliance to state statutes. Purchases at least 50,000 bushels of grain per AGENCY HISTORY Field auditors measure grain and perform state, IGIC year from producers, which is not for the sole purpose of feeding the company=s own livestock and SPARC audits. or poultry. Indiana=s grain dealer and warehouse licensing laws Offers deferred pricing, delayed payments, or became effective on January 1, 1975, when the Indiana contracts linked to the commodity futures or Commodity Warehouse Licensing Agency (ICWLA) commodity options market in connection with was created to oversee the activities of grain buyers and grain purchases. warehouses. Buyer/Warehouse license - Operates both as a warehouse and as a grain In 1982, the dealer law was repealed and grain buying buyer. was deregulated. REQUIREMENTS In 1991, the statute was updated to reflect changes in the industry. Applications and Fees CMust complete the application and fee process. In 2001, IGBWLA entered into an audit agreement with Bonding C Determined by the type of license being the Indiana Soybean Development Council, Inc. to issued and the scope of the business (storage capacity, conduct audits on the Soybean Promotion and Research purchase volume, etc). Checkoff (SPARC). Moisture Meter Testing Inspect and test moisture testing equipment each year. Annually Reviewed Financial Statement C Licensees In 1996, the Agency entered into a similar agreement Ensures that both the producer and the elevator have an are required to provide a Areview-level@ financial with the Indiana Grain Indemnity Corporation (IGIC). equitable system to determine moisture levels in grain. statement within 90 days of the fiscal year end. Net Worth C Varies with the type of license and the In 1997, a new law was passed regulating grain banks, Hearings scope of the business. grain buying, and warehousing. Hosts administrative hearings to confirm if a licensee has failed to meet its obligations under the law when an Stocks Insured C Required to be insured for full market apparent violation of Indiana statute occurs. value. In 2005, the Agency became part of the Indiana State Department of Agriculture (ISDA). Equipment & Record Keeping C Truck scales are required to be inspected annually. Scale tickets and adequate record keeping are required.