WASA News & Views - March 2001


Indemnity Fund Update

Governor McCallum included the Grain Indemnity Fund proposal in his announced budget last month. There are producer groups that are opposed to the proposal as currently written primarily on the basis of it being too expensive. WASA has not taken a pro or con viewpoint up to now, instead waiting to see what form changes in the proposal would take and there have been many. On the other side of the table, Senate Dems are anticipated to be submitting legislation for a producer first-priority lien this session. If that passes, an indemnity fund is redundant and unnecessary. We’ll see how this develops. And to clarify a point that has been asked, the Indemnity Fund assessments don’t just apply to licensed grain dealers, they apply to commercial grain buyers (both grain dealers and feed mills).

Required Scale Ticket Info

In recent weeks, we have heard from several members who have received formal, written violation notices following state grain audits. The violation notices involved not having the mandated-by-law, required information on their scale tickets. Yes, you can argue that the producers only care about the weights on the tickets and don’t read or care about anything else. Yes, you can argue that some of the required information is unnecessary, but, right now, those arguments don’t change the fact these requirements are in the law. So, to help clarify the situation, we are providing you with the information that is required.

Grain Dealer Scale Ticket or Purchase Receipts (this also includes scale tickets for feed mills)

  1. The name and permanent business address of the grain buyer.
  2. A statement indicating whether the grain buyer is a corporation.
  3. An indication that the document is a scale ticket or a purchase receipt for grain.
  4. The date on which the grain was received.
  5. The kind of grain, net weight, dockage (if determined), grade (if determined), and quality (if determined).
  6. An indication whether the grain buyer is purchasing the grain or receiving it for storage. (If a scale ticket or receipt fails to indicate whether it is a purchase receipt or storage receipt, it is considered a purchase receipt unless the grain buyer also operates as a warehouse keeper under the same name, in which case it is considered a storage receipt.)
  7. A written promise to pay the producer the total amount due for grain, less any discounts that may apply, within 7 days after the receipt date indicated on the scale ticket or purchase receipt. This statement is not needed if any of the following apply:

  1. the grain buyer made full cash payment before taking custody,
  2. the grain received was to be applied to an existing valid deferred payment or deferred price contract, or
  3. the scale ticket or receipt clearly specifies that the producer retains ownership of the grain and is depositing the grain for storage only.

If the grain is picked up at the producer's farm, documentation with all of the above specifications must be furnished to the producer.

Warehouse Keeper Scale Ticket or Storage Receipts

  1. The name and permanent business address of the warehouse keeper.
  2. The location of the warehouse.
  3. A statement indicating whether the warehouse keeper is a corporation.
  4. An indication that the document is a scale ticket, warehouse receipt or other storage receipt for grain.
  5. The date on which the grain was received.
  6. The kind of grain, net weight, dockage (if determined), grade (if determined), and quality (if determined).
  7. "Negotiable" or "Nonnegotiable" conspicuously noted on the receipt, if the document is issued in the form of a warehouse receipt. (If the grain is received from another warehouse that is obligated to store it for depositor(s), the warehouse receipt shall conspicuously display "Nonnegotiable.")
  8. A statement indicating that the depositor must remove the grain from storage by a specified date which is not more than 3 years after the date of deposit. (This does not apply to grain for which the warehouse keeper gives the depositor a warehouse receipt, to grain owned by the CCC, or grain, which is pledged as collateral for a price support loan from the ASCS.) An interesting note on this requirement is that no three-year maximum storage requirement exists in Wisconsin State law. But, the state law on warehouse scale tickets requires that the statement be there. So, the interesting question is now posed, "What if the producer and warehouse keeper mutually agree to allow the producer to keep his grain in storage past the three-year maximum?" Has a violation occurred and, if so, who is the harmed party? WASA staff will be working on this item in the coming weeks.

If you have any questions or seek further information, please contact WASA staff and we will happy to help you.

Keep D&A Testing Costs Low

Just a friendly reminder to all those in the WASA Drug & Alcohol Testing Consortium, please remember to keep us informed of any changes to your drivers list on a timely basis. This keeps our scheduling miscues to a minimum and our costs low. Also, when you are making a new hire, make sure to verify their participation in a testing consortium for the previous year and file that information in their personnel file. If they have not participated in a testing consortium in the past year, then law requires a pre-employment test be performed. Either contact a local clinic or the WASA office to arrange for the sample collection. In either case, WASA needs to know about your new hire and/or their drug test. And, don’t forget, a new CDL applicant can’t drive until you have a negative test result back.

Grain Grading Classes

WASA is once again offering grain-grading classes across the state. We are very fortunate to have as our instructor, Mike Wang of Milwaukee Inspection Service. Mike will be covering procedures and rules for corn, soybeans and wheat grading. An added feature this year will be testing procedures for genetically modified grains. And as a bonus, we’re giving every company that registers a free copy of the USDA Overview of Grain Grading CD-ROM. The CD is brand new and includes color pictures of the various types of grain damage as well as demonstrations of proper sampling technique. Now, attendees will have a quick reference to review some of the finer differentiations in damage quickly and easily.

And that’s not all! Every registered company will also receive the USDA’s handbook Inspecting Grain: Practical Procedures for Grain Handlers. This pamphlet is a handy and concise reference for the person doing the grading. This is a book that should be in every grading shed and attendees will get a copy free.

If you have not yet signed up, please use the enclosed registration form.

Eldon Roesler Scholarship

WASA annually provides four $1,000 scholarships to Wisconsin students. The criteria for consideration are the following:

Why should you concern yourself with this? Because it is entirely free advertising and promotion for your business! Besides, it promotes young people’s education in our industry. All you have to do is copy the enclosed form and leave it on your counter and/or mention it to any customers who may have an eligible child.