Grain Journal - January/February 2008 - (Page 102)

U.S. Warehousing Agreement DETAILS OF THE REVISED AGREEMENT THAT TOOK EFFECT IN 2007 This article is based on a presentation by Roger Hinkle, formerly U.S. Warehouse Act (USWA) program manager with the U.S. Department of Agriculture’s Warehouse and Inventory Division in Washington, DC. He spoke early in December 2007 at the National Grain and Feed Association’s Country Elevator Council Meeting in Chicago, IL. Hinkle has retired from USDA since giving that presentation and returned to his hometown in Texas. Congress passed its last round of amendments to the U.S. Warehouse Act back in 2000. Two years later, USDA consolidated eight different regulations into one overall regulation governing the nation’s federally-licensed warehouses for agricultural commodities across the board. Since then, USDA engaged in a five-year rewriting process, soliciting a great deal of input from organizations representing warehouse operators such as the National Grain and Feed Association (NGFA), as well as a wide range of producer organizations. The revised warehouse licensing agreement reflects the 2000 amendments and 2002 implementing regulations, as well as all of the evolution in USDA policy toward licensed warehouses up to the present. Some Key Highlights Here are a few of the key features of the revised federal warehouse licensing agreement: • The minimum net worth of licensees has been increased to $200,000. • Some additional financial assurance forms may be used for establishing minimum net worth, including letters of credit, U.S. treasury notes, and U.S. bonds. • Warehouse receipts now are required for identity-preserved grain and grain in conjoint storage. Conjoint storage is a storage obligation for grain created by warehouse receipts issued in common to multiple depositors that identify specific binning methods that results in the segregated storage and handling of grain with like characteristics apart and separate from all other grain. Ownership of the grain remains with the depositors, even though it is commingled. • Requirements for voluntary use of electronic warehouse receipts (EWRs) are included in the agreement for the first time. Following are additional details of some of the newer aspects of the revised USWA agreement. Financial Requirements Under Section C of the revised USWA agreement, the warehouse operator agrees: • To have and maintain a total net worth of at least the amount obtained by multiplying 25 cents by the warehouse capacity in bushels. However, that total net worth may not be less than $200,000. Any deficiency in that net worth above the $200,000 minimum may be supplied by an increase in the amount of the financial assurance. Response No. 1021 102 GJ J/F http://www.tandemproducts.com http://www.tandemproducts.com

Table of Contents Feed for the Digital Edition of Grain Journal - January/February 2008

Grain Journal - January/February 2008 Contents GEAPS Exchange 2008 Omaha Entertainment 2008 NGFA Convention Great Lakes Regional Conference GEAPS What's New Northern Star II Fiction Series Western Iowa Cooperative, Washta, Mapleton, and Onawa, IA Cooperative Elevator Co., Akron, MI AgVantage FS, Chapin, IA Zeeland Farm Services, Inc., Zeeland, MI Meadowland Farmers Cooperatrive, Avoca, MN W.B. Johnston Grain Co., Enid, OK Pro Cooperative, Plover and Rolfe, IA Old-Time Elevator Old-Time Elevator Book Delux Mfg. Co. Brock Grain Systems Omaha Dining NGFA Interviews - Kendell Keith NGFA Interviews - Jess McCluer Low Linolenic Premiums 2008 Bin Rescue Workshops Bin Operation and Safety Manager Profiles Executive Search Grain Salvage Grain News Wooden Storage: Part Two The IT Crystal Ball Grain News Biotech News Distillers Grains Standards Daily Price Limits Grain Notes Saftey, Adam Schupp Security, Curtis Haugen AgVantage Software Grossman & Associates 2007 Crop Production Safety Insights, Lynn Larsen Stored Grain Management, Linda Mason U.S. Warehousing Agreement Corn/Soybean Merchandising, John Beurskens What Merchandising, Kyle Smith 2007 Annual Exchange Volume Futures Markets The Big Issues Contractors/Engineers/Millwrights Restoration Contractors Elevator Manager Short Course Executive Search Dust Suppression Grain Grading Scales Aeration Manlift Repair/Inspection Grain Temperature Systems NGFA Country Elevator Council Harvest International, Inc. Contractors/Engineers/Millwrights Industrial Scientific Corp. Temputech Incorporated Easy Energy Systems, Inc. Premier Components, Inc. Screw Conveyor Corp. KC Supply Co., Inc. The Aldon Co. Inc. BinMaster Level Controls Douglas Products and Packaging Probes Protectants Johnson System Inc. Van Sickle Allen & Associates Pneumatic Conveyors AgKnowlogy Inc. Restoration Contractors Raven Industries, Inc. NGFA Trade Rules Seminar Elevator Buckets Aeration Trends in Biofuels Automation Systems Belting Bin Cleaning Bin Sweeps Bucket Elevators Cleaners Obituaries O'Connor Named FGIS Director of Compliance Fumigants OSHA News Computer Software Firms Grain Temperature Systems Dust Collection Dirk Maier Named KSU Dept. Head Grain Coolers Grain Dryers Liners Manlifts Edward Schafer Confirmed As Agriculture Secretary Grain Handling Accessories Monitoring Equipment NGFA Officers and Staff Safety/Maintenance Equipment Scales Steel Storage Transportation News Square Bins Transportation Equipment GIPSA News Support Towers OSHA Form 300A Steel Storage Temporary Storage Across the State Line Millbanks Mills - 140 Years Feed News Executive Search AFIA Feed Expo Roundup Power Transmission Hammermill Screens Hammermills Feed News Mixers Ad Index

Grain Journal - January/February 2008

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