The Minnesota Legislature has made changes to the Grain Buyer and Grain Buy & Store Program. The changes are effective July 1, 2023.
- Minnesota producers selling grain are protected in the event they go unpaid for grain that has been delivered in Minnesota.
- Collection of premiums on grain sales are not currently required. The Department will announce the need for grain indemnity premiums when the fund balance dips below $8,000,000.
- Premiums, when turned on, will be on all grain sales by producers.
- Licensed entities should prepare to put systems in place to account for these sales and related premiums.
- Premiums, when collected, will be required to be paid twice during the licensing period.
- If you are a producer and would like to opt out of participation with the fund and receive a refund on the premiums you have paid, please submit this form with documentation of the premiums collected.
- Anyone buying grain must submit financial statements prepared by a third-party CPS in accordance with generally accepted accounting principles (GAAP) to the MDA. The requirements for those statements vary depending on the amount of grain purchased annually.
- $7.5 million or more: The financial statements must be audited by a certified public accountant.
- Less than $7.5 million: The financial statements must be reviewed by a certified public accountant.
- Less than $1,000,000: No financial statements are required of anyone buying less than $1,000,000 of grain annually with cash or cash equivalent. Learn more about the definition of "cash or cash equivalent." An exemption form must be completed to qualify.
NOTE: Financial statements should be submitted to the MDA anytime within the licensing period July 1 through June 30.
- New licensees must hold a $100,000 bond for the first three years of licensure.
- Bonds are no longer required for entities that have been in operation for more than three years.
- The Commissioner may require additional bonds based on financial statements.