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PSC APPROVES HIGHER STORAGE RATES The Nebraska Public Service Commission (PSC) has decided to increase the Schedule A grain storage rates state licensed elevators can charge depositors, but left the current 25 cent handling charge unchanged. The Nebraska Grain and Feed Association (NGF) joined the Nebraska Cooperative Council (NCC) and other agribusiness organizations at the May 7 hearing and strongly supported an increase of storage and handling rates. Nebraska's current maximum storage rate for soybeans stands at about 4 cents per bushel per month, while corn and most other grains are at 3.5 cents per bushel per month. Nebraska handling charges and soybean storage rates have not changed since 1987, while corn and other grain storage rates were last increased in 2001. NGF and NCC recommended increasing the maximum allowed charge for handling to 40 cents per bushel, increase corn and other grain storage rates to 000150 per day or about 4 cents per month, and soybeans to 000165 per day or about 5.5 cents per month. The PSC approved increasing corn and other grain storage rates to 000150 per day or 4 cents per month, and soybeans to 000170 per day or 6 cents per month. The PSC expedited the decision in order to provide the 30 day notice grain warehouses have to inform their depositors of any rate increase, and before the wheat harvest begins. Volatile grain markets, soaring transportation and energy costs for fuel and transportation, interest rates, insurance, labor and repairs has taxed grain and feed firms across the state. After several years without increasing the maximum handling and storage rates, NGF felt he time was right to press for an upward adjustment. The National Grain and Feed Association (NGFA) has also requested that the CME group survey elevators across the nation about a national rate increase to help encourage market convergence. The official order is included in the newsletter.
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