Grainnet

USDA Leaves Emergency, Temporary Storage Rules Unchanged for 2008-09

The U.S. Department of Agriculture's Commodity Credit Corp. (CCC) on Aug. 29 told Grainnet that its rules authorizing emergency and temporary storage under the U.S. Warehouse Act (USWA) will remain unchanged for 2008-09.

The USDA did not actually issue a Federal Register notice or any other sort of written notice to the industry this year.

Steve Gill, Warehouse Division director for the USDA's Farm Service Agency (FSA), said that with the huge volume of paperwork associated with the 2008 Farm Bill, the division did not have the time or resources for a Federal Register notice this year.

However, he said, the FSA did share the information with the National Grain and Feed Association (NGFA), which ran an article about the rules in its Aug. 28 newsletter.

Following are the emergency and temporary storage rules, updated from an article that appeared in the May/June 2007 issue of Grain Journal.

Emergency Storage

Emergency storage is limited to wheat, corn, sorghum, and other feed grains, unless otherwise allowed by the USWA and must be operated in conjunction with a USWA-licensed warehouse.

The warehouse operator may use such space from the time of initial licensing until March 31, 2009.

In addition, the warehouse operator must:

• Receive USWA authorization for the use of emergency storage space.

• Meet all USWA security, net worth, bonding, and insurance requirements as required for conventional storage space.

• Provide written justification that a need for emergency storage exists in the local area including the exact location, kind of commodity, and quantity requested.

• Meet the USWA requirement that emergency storage space be accessible for examination purposes.

• Receive USWA authorization for the emergency storage space prior to using it.

• Maintain a separate inventory record of all commodities stored in emergency storage space, as well as accounting for such commodities in the daily position record (DPR).

• Agree that all emergency storage space will be deleted from the license no later than March 31, 2009.

• Agree to move all commodities stored in emergency storage space into licensed space by that date.

• Notify CCC in writing when commodities are moved into licensed space.

• If the warehouse chooses to continue using the emergency storage space for company-owned commodities after that date, the warehouse operator must remove that quantity of the commodity from the warehouse’s official record, not use the commodity to cover the storage or warehouse-receipted obligations of the warehouse, and agree that the quantity will not be included in any warehouse examination conducted by CCC.

Temporary Storage

The warehouse operator may use such space from the time of licensing until March 31, 2009 for soybeans, rice, and other commodities deemed storable by CCC and until July 1, 2009 for wheat, corn, sorghum, and feed grains.

Temporary storage must be operated in conjunction with a USWA-licensed warehouse. In addition:

• Asphalt, concrete, or other approved base material must be used.

• Rigid, self-supporting sidewalls must be used.

• Aeration must be provided.

• Acceptable covering, as determined by CCC, must be provided.

• Receive USWA authorization for the use of temporary storage.

• Meet all USWA security, net worth, bonding, and insurance requirements as required for conventional storage space.

• Warehouse oeprators must maintain a separate record of all commodities stored in temporary storage space and must account for such commodities in the DPR.

• Agree to move all commodities stored in temporary storage space into licensed space by their respective final date.

• Notify USWA in writing when commodities are moved into licensed space.

• If the warehouse operator chooses to continue using the temporary storage space for company-owned commodities after that date, the warehouse operator must remove that quantity of the commodity from the warehouse’s official records, not use the commodity to cover the storage or warehouse-receipted obligations of the warehouse, and agree that the quantity will not be included in any warehouse examination conducted by CCC.

More information

USWA licensees should direct questions to Terry Chapman, chief, Licensing Branch, Warehouse License and Examination Division, Kansas City Commodity Office (KCCO), Mail Stop 9148, PO Box 419250, Kansas City, MO 64141-6205; phone: 816-926-6446; FAX: 816-926-1426; e-mail: bcdscd@kcc.usda.gov.

All other warehouse operators should direct questions to the Chief of the Storage Contract Branch, Bulk Commodities Division, KCCO, Mail Stop 8748, PO Box 410205, Kansas City, MO 64141-6205; phone: 816-926-6446; FAX: 816-926-1426; e-mail: bcdscd@kcc.usda.gov.