The Minnesota Legislature has made changes to the Grain Buyer and Grain Buy & Store licenses. Those changes will take effect on July 1, 2020. To receive your license from the Minnesota Department of Agriculture (MDA) and continue operating, you must provide new information that was not previously required.
There are new requirements and changes you need to follow to get your Grain Buyer and Grain Buy & Store licenses from the Minnesota Department of Agriculture.
- Changes to the law are set to take effect on July 1, 2020.
- Changes to the law focus on financial reporting, contracts, exams, and bonding.
- NEW: Anyone buying grain must submit financial statements to the MDA. The requirements for those statements vary depending on the amount of grain purchased annually.
- $5 million or more: The financial statements must be audited by a certified public accountant.
- Less than $5 million: The financial statements must be reviewed by a certified public accountant.
- Less than $100,000: No financial statements are required of anyone buying less than $100,000 of grain annually with cash or cash equivalent. Learn more about the definition of "cash or cash equivalent."
NOTE: Financial statements should be submitted to the MDA anytime within the licensing period. The first financial statement is due between July 1, 2020, and June 30, 2021. After that, the financial statement is due within each licensing period.
- CHANGE: Deferred Payments, Delayed Pricing, and any other Voluntary Extension of Credit must be put in writing and signed by both the buyer and seller within 30 days of delivery of grain.
- NEW: Grain Buyer license holders will be required to have an annual examination including a measure of grain on hand. If you are also licensed by the United States Department of Agriculture (USDA) and get an exam from them, you can provide that exam to the MDA and avoid the exam fee.
- The fee for this exam will be assessed based on the bushel capacity of the licensed location. Following the exam, you will be invoiced for the exam fee. Beginning in 2021, the exam fee will be included as part of the renewal process.
- CHANGE: If you have a Grain Buy & Store License, you will be required to have one examination each year. This is a decrease from two annual exams previously required by law.
- NEW: Anyone buying less than $100,000 of grain annually with cash or cash equivalent does not need a bond or letter of credit. Learn more about the definition of "cash or cash equivalent."
- CHANGE: A bond or irrevocable letter of credit will be the only forms of surety accepted. If you have another form of surety, it must be changed to a bond or letter of credit by July 1, 2020.
- CHANGE: It is now clearly defined that any grain deposited in a grain bank is considered stored grain and must meet all the requirements of grain placed in storage.
- CHANGE: Temporary storage is now defined as grain stored in outdoor piles or suitable structures which are not in use for the entirety of the license period. All grain in temporary storage must be owned and exclusively maintained by the license holder.