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Title: Grain Buy and Store License
Alternate Title:
Description: The Grain Licensing Program licenses both grain buyers and grain warehouses and is designed to help protect grain sellers and depositors from monetary loss if they do not receive payment for grain sold or if grain stored is damaged or lost. Minnesota Department of Agriculture (MDA)
Subject: Grain
Creation Date: 9/11/2008 2:13:35 PM
Modification Date: 8/9/2024 11:32:12 AM
Audience: Hold Application URL:
Renewal URL:
Versa URL:
Requirements:

Review Grain Licensing

Grain Licensing
The Grain Licensing Program licenses both grain buyers and grain warehouses and is designed to help protect grain sellers and depositors from monetary loss if they do not receive payment for grain sold or if grain stored is damaged or lost.

License Requirements

What are the different types of licenses?

• Grain Buyer License: Required by anyone buying grain in Minnesota with the purpose of reselling the grain or products made from the grain.  
• Grain Buy & Store License: Required to operate a grain warehouse that stores grain for compensation.
       - In addition to a license, a $100,000 bond must be acquired for new license holders in their first three years of operation. 

Applying for a license

• Submit an application along with the required payment
• Obtain the required bond
• Submit a voided Warehouse Receipt and/or Scale Ticket. These forms must be printed in duplicate, consecutively pre-numbered, and show the name and location of the elevator.  
• If storing grain you must file a tariff or schedule of all charges relating to the storage of grain.
•   Rates for Storing & Handling Grain (pdf)
• If storing grain, you must provide evidence of insurance for any loss of stored grain due to fire, windstorm, and extended coverage risks.

What if I have multiple facilities?
A grain buyer's license must be purchased for each location. Only one storage license is required if there is one owner and operator for multiple storage facilities within the same city.

When do I renew my license?
The licensing period is July 1 - June 30 with an annual renewal. A renewal application will be mailed to you in May before your license expires and it must be returned by July 1 or late fees will apply. If you think your renewal may have been lost in the mail please contact us, we will gladly resend the renewal application.  

What are my responsibilities as a licensed entity?

• For cash sales, you must pay no later than the close of business on the next day after the sale of the shipment, or within 48 hours after the sale of the shipment, or whichever is later.
• If purchasing grain by voluntary extension of credit, you must document the sale in writing, using the proper format and within 30 days of delivery.
• If you purchase grain by voluntary extension of credit, you must at all times maintain grain, rights in grain, or proceeds from the sale of grain totaling 90 percent of the grain buyers' obligation for grain purchased by voluntary extension of credit contracts.
• Maintain accurate books and records, including a record of grain warehouse receipts if storing grain and secure them in a safe place.
• If storing grain, you must deliver grain within 48 hours of demand for such grain.
• If storing grain, a statement of all charges relating to the storage must be posted at each licensed location and must be clearly visible to the public.
• All license holders are required to have one examination each year. Examiners provide an onsite review including an audit of records and a physical measurement of grain bins and facilities to identify total capacities, shortages in storage, obligations, open storage accounts, contracts, insurance policies, and safety issues. Federally licenses grain warehouses are exempt from this requirement if they have had an exam conducted by the USDA during the license period. 

How do I know if a grain buyer or warehouse is licensed?
Contact us at the number listed on this page or check our online list of licensed grain buyers and grain elevators.

Bonds

How do I get a bond?
You may be able to obtain a bond through your bank or insurance carrier.

What does the bond cover?
The bond helps to reimburse the indemnity fund if payments are made to producers due to a breach of contract.

Rules: 1562.0100 - .2200

Statutes: 223
232

Forms:

Application - Buy & Store Grain

Application - Grain Buyer

Certification of Financial Statement

Bond Form - Grain

Proof of Claim Form - Grain

Rates for Storing & Handling Grain

Forms and Resources are available at Grain Licensing

Fees: