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Producers Advisory Committee The Nebraska Grain and Feed Association (NGF) will be launching an educational and media campaign aimed at educating producers, elevators and processors throughout the state of Nebraska on the current laws and regulations governing state and Federal grain warehouse activities. The NGF decided to launch the new informational program in response to legislation that failed to move thought the Nebraska Unicameral. According to NGF Vice President Todd Gerdes with the Aurora Cooperative, the association believes that producers must understand the state and Federal grain laws in order to secure their protection or risk loosing money if they are doing business with unlicensed entities such as feed lots, or rogue grain dealers. “Today, the Public Service Commission (PSC) requires grain warehouses and dealers doing business in the state to be licensed and bonded for the protection of the producers storing or selling grain,” said Gerdes. “However, many farmers selling grain directly have a false sense of security that all livestock feeding operations or processing facilities are also licensed and bonded. Not true.” Last legislative session, Senator Roger Wehrbein introduced LB 1197, a bill that would have established a voluntary license and a $150,000 maximum bond for feedlots that operate a grain bank. The bill would have required significant purchasers of grain who are not required to be licensed to disclose that fact on scale tickets or contracts. Currently, 331 or more than 55% of all first purchasers of grain are exempt from PSC licensing and bonding authority. The disclaimer would read as follows; "__________________________________ is not a licensed and bonded Nebraska Grain Dealer or Warehouseman. State law does not require this facility to be licensed by the Nebraska Public Service Commission. This facility does not carry a Grain Dealers or Warehouseman bond. Therefore, there is no bond coverage for your protection if you are not paid for your Grain." While LB 1197 died in the Agriculture Committee at the end of the session, the Committee introduced interim study LR 350. The legislative study will determine if producer disclosure or warning to seller language is appropriate and should be required if significant purchasers of grain are not required to be licensed and do not offer bond protections to depositors or sellers of grain. According to Gerdes, the disclosure makes sense and it’s fair. “Under recent changes to the grain laws, now even licensed and bonded grain dealers must print expanded warning to seller language for direct delivered grain so that the producer understands the scope of protection and their responsibility should a licensed entity fail,” said Gerdes. “NGF believes that all significant purchasers of grain should be licensed and offer bond protections or none at all. At the very least, discloser to producers that the buyer is unlicensed should be mandatory.” The campaign will begin this summer and include information on state and Federally licensed and bonded entities, as well as the level of coverage in case of financial failure. The educational push is an extension of the efforts of the Public Service Commission, NGF and the Nebraska Cooperative Council (NCC). Last month, the state agency and two trade groups drafted warehouse, dealer AND producer pamphlets outlining basic questions and answers grain sellers should know. The NGF campaign will stress that the producers know their rights, understand the warehouse and dealers security and identify significant purchasers of grain, in and out of state, not required to be licensed or bonded.
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calendar of events
08.08.08 Summer Meeting & All-NGF Golf Scramble Quarry Oaks Golf Club, Ashland
contact us Nebraska Grain and Feed Association
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