#1North Dakota Department of Agriculture Doug Goehring, Agriculture Commissioner - Agriculture is for everyone - NORTH DAKOTA www.nd.gov/ndda DEPARTMENT OF of AGRICULTURE 1-800-242-7535 ALATOONAE#2License Types Public Warehouse (260 state warehouses) Any elevator, mill, warehouse, subterminal, grain warehouse, terminal warehouse, or other structure or facility not licensed under the United States Warehouse Act in which grain is received for storing, buying, selling, shipping, or processing for compensation. Grain Buyer Facility-Based Grain Buyer (108 federal warehouses) - Any grain buyer who operates a facility licensed under the United States Warehouse Act. Roving Grain Buyer (97 licensees) - Any grain buyer who does not operate a facility where grain is received. A roving grain buyer purchases, solicits, merchandises, or takes possession of grain in North Dakota. DAKOTA NORTH DEPARTMENT OF AGRICULTU#3● Public Warehouse License Fees Based on capacity (initial license effective on or after June I does not expire until July 31 of following calendar year). If two or more warehouses are operated in same city or citing in conjunction with each other, only one license is required. Annual license - first six years of operation $400 maximum capacity of 200,000 bushels $550 capacity of 200,001 through 500,000 bushels - $650 capacity of more than 500,000 bushels - Biennial license - thereafter $700 maximum capacity of 200,000 bushels $1,000 capacity of 200,001 through 500,000 bushels $1,200 capacity of more than 500,000 bushels ⚫ Late fee - $100 per warehouse for 1-year license $200 per warehouse for 2-year license DAKOTA NORTH DEPARTMENT OF AGRICULTU#4Grain Buyer License Fees License fee for a facility-based grain buyer - $400 annually • License fee for a roving grain buyer $300 annually Late fee - . $100 per location/license Facility-based grain buyer and roving grain buyer licenses are one-year licenses. Initial license effective on or after June | does not expire until July 31 of the following calendar year. DAKOTA NORTH DEPARTMENT OF AGRICULTU#5Release of Records As a condition of licensure, an applicant shall agree to provide to the Commissioner any financial record the Commissioner deems relevant for the purpose of: Issuance or renewal of a warehouse or grain buyer license. An investigation after issuance or renewal of a license. Any information obtained by the Commissioner under the grain warehouse and grain buyer statute is confidential and may be provided only to: Federal authorities in accordance with federal law. The Attorney General, state agencies, and law enforcement agencies, for use in the pursuit of official duties; and As directed by an order of a court pursuant to a showing of good cause. DAKOTA NORTH DEPARTMENT OF AGRICULTU#6Bond Types and Levels Public Grain Warehouse - determined by licensee's total physical capacity licensed in ND, the length of time the licensee has been licensed, the licensee's annual grain purchase volume*, and the licensee's scale ticket conversion policy**. • Licensed less than 7 years $65,000 minimum $2,000,000 maximum unless Commissioner determines additional bond is needed Licensed 7 years or more $50,000 minimum $2,000,000 maximum unless Commissioner determines additional bond is needed *If more than 7 times its total licensed and bonded capacity, additional bond coverage is required at a rate of $5,000 for each 25,000 bushels or fraction. **A required bond may be reduced by 30% if licensee establishes and follows a conversion policy of 10 days or less and by 15% for a policy of 11 to 21 days. DAKOTA NORTH DEPARTMENT OF AGRICULTU#7• Bond Types and Levels (continued) Facility-based grain buyer - determined by volume of grain the licensee purchases annually in ND at a rate of $.50/bushel for volume up to and including 100,000 bushels + $.20/bushel for each bushel exceeding 100,000 bushels up to and including 1,000,000 bushels + $.05/bushel for each bushel exceeding 1,000,000 bushels. $50,000 minimum bond $2,000,000 maximum bond unless Commissioner determines additional bond is needed Roving grain buyer - determined by the projected annual grain purchase volume of $.50/bushel for first 500,000 bushels + $.20/bushel when volume exceeds 500,000 bushels $50,000 minimum bond $2,000,000 maximum bond unless Commissioner determines additional bond is needed DAKOTA NORTH DEPARTMENT OF AGRICULTU#8Bond Types and Levels (continued) Bonds are continuous and must be filed before a license can be issued. Purpose of the bond is to protect holders of outstanding receipts and sellers of grain and cover costs incurred by the Commissioner in the administration of insolvency. The Commissioner sets the amount of bond (via rule) and may require an increase in the amount of any bond, if deemed necessary. Only one bond may be given for any line of elevators, mills, warehouses, etc., or for any series of facilities operated by a facility-based grain buyer. Only one bond can be filed for a roving grain buyer. The Commissioner may accept cash, a negotiable instrument, or bond executed by personal sureties in lieu of a surety bond. DAKOTA NORTH DEPARTMENT OF AGRICULTU#9Inspection Process We have updated our inspection software to add the ability to use Electronic Data Interchange (EDI) An EDI is electronic format of the data you usually provide during inspection Contracts Priced later, purchase contracts, sales contracts, basis contracts Warehouse receipts Payables and Receivables Purchased and deferred payments Scale ticket numbers By using an EDI we can save around 5 hours of inspection time DAKOTA NORTH DEPARTMENT OF AGRICULTU#10Ag Vision Ag Vance or SSI Agris Theos Vertical EDI capable software If your software is listed, please ask them to assist you in creating the EDI file EDI file is only readable by our inspection software, so all information is protected Ask our inspection staff if you have more questions DAKOTA NORTH DEPARTMENT OF AGRICULTU#11● Public warehouseman Scale Tickets ● A uniform scale ticket must be issued for every load of grain received. • All scale tickets must be converted into cash, noncredit-sale contracts, credit-sale contracts or warehouse receipts within 45 days of grain being delivered to the warehouse. Exception for conversion - if the person to whom a scale ticket is issued signs a form waiving all rights to trust benefits in event of insolvency. The form must identify each scale ticket to which the waiver applies and must also be signed by warehouseman. A copy of the waiver must be kept with elevator records, a copy provided to the person who was issued the scale ticket and one copy must be filed with the Commissioner. NOT REQUIRED TO RECEIVE GRAIN FOR STORAGE - must publish and post a publication identifying whether storage is available or whether grain will be accepted via cash or credit-sale contract arrangement. A grain buyer shall issue a uniform scale ticket or comparable receipt for each load of grain received. DAKOTA NORTH DEPARTMENT OF AGRICULTU#12Warehouse & Storage Contract (Warehouse Receipt) Public Warehouse A storage contract/warehouse receipt is a negotiable instrument. A storage contract/warehouse receipt must contain the fees that will be assessed for receiving, storing, processing, or redelivering grain and the termination date of its warehouse receipts. A warehouseman must publish and post in a conspicuous place in its warehouse, the fees that will be assessed and the termination date of its receipts. The publication must be filed with the Commissioner. The fees or termination date may be changed upon filing a revised publication with the Commissioner. A warehouseman is not required to receive grain for storage and must publish and post, in a conspicuous place in the warehouse, a publication identifying whether storage will be available or whether grain will be accepted via cash or credit-sale contract arrangement. Facility-based grain buyers - warehouse receipts are regulated under the United States Warehouse Act. DAKOTA NORTH DEPARTMENT OF AGRICULTU#13Termination of Storage Contracts Public Warehouse Storage contracts terminate on the date identified in the publication (June 30 for grain and April 30 for dry edible beans unless a different date is identified.) At least 30 days before the termination date of a storage contract, the warehouseman must notify the receiptholder by mail of the warehouseman's intention to terminate the storage contract, unless the receiptholder before that time, demands redelivery, authorizes sale, extends the storage contract, or enters into a new contract for restorage. Failure to notify the receiptholder results in forfeiture of storage charges accrued for the grain during the previous 12 months. forkerture of storage chi In the absence of a demand for delivery, an order to sell, or an agreement between the warehouseman and the receiptholder, upon the expiration of the storage contract, the warehouseman may sell at the local market price on the close of business on that day, all stored grain and tender the proceeds of the sale, less accrued storage charges and advances upon any previous storage contract of the receiptholder. DAKOTA NORTH DEPARTMENT OF AGRICULTU#14Credit-Sale Contracts A written contract for the sale of grain pursuant to which the sale price is to be paid or may be paid more than 30 days after the delivery or release of the grain for sale. If a part of the sale price of a contract for the sale of grain is to be paid or may be paid more than 30 days after the delivery or release of the grain for sale, only such part of the contract is a credit-sale contract. Credit-sale contracts must be in writing and must contain: The seller's name and address. The conditions of delivery. The amount and kind of grain delivered. The price per unit or basis of value. The date payment is to be made. The duration of the credit-sale contract. Notice in a clear and prominent manner that the sale is not protected by the bond coverage. The contract must be signed by both parties and executed in duplicate. The credit-sale contract indemnity fund assessment (2/10 of 1% of value of grain). DAKOTA NORTH DEPARTMENT OF AGRICULTU#15Credit-Sale Contract Indemnity Fund • The fund was created by the 2003 Legislature. The fund reached the $6,000,000 cap and collections were suspended on July 1, 2008. Assessments will remain ceased until the fund balance drops below $3,000,000. ● • • Fund coverage limit 80% of valid unsatisfied credit-sale contract claim for each insolvency $280,000 Fund balance Exceeds $4 million If claims for indemnity payments from the fund exceed the amount in the fund, the Commissioner shall prorate the claims and pay the prorated amounts. As future assessments are collected, the Commission shall continue to forward payments until the person receives the maximum amount payable. The chronological order of insolvencies is determined by the date the Commissioner is appointed trustee. DAKOTA NORTH DEPARTMENT OF AGRICULTU#16Legislative Interim Study • Interim Agriculture and Transportation Committee will study all aspects of grain inspection prior to 2021 Legislative session Chaired by Representative Dennis Johnson First meeting scheduled October 3, 2019 Meeting will be scheduled after that to discuss items and gather more information Your input is needed for this study to be successful DAKOTA NORTH DEPARTMENT OF AGRICULTU#17Questions? NORTH DAKOTA DEPARTMENT OF AGRICULTU