Grain Dealers are required to obtain a license before conducting business in the State of Michigan. If you are engaged in the business of receiving, buying, exchanging, processing, selling or storing farm produce and you do not fall within an exception, you are considered to be a grain dealer and you must obtain a license from the Michigan Department of Agriculture. The exceptions are related to a person soley engaged in one of the following: selling own farm produce, buying farm produce for own livestock on cash basis, handling less than 30,000 bushels from producers during a fiscal period, contracting for land or services to produce seed for sowing or propagation and purchasing farm produce from a person other than the grower or the producer of the farm produce.  If you issue warehouse receipts or price later agreements you are considered to be a grain dealer.

ALERT:

Governor John Engler signed legislation (Public Act 80 of 2002) updating Michigan's grain dealers law, which regulates the storage, buying and selling of dry edible beans, soybeans, corn, small grains and cereal grains. The legislation, sponsored by Rep. Tom Meyer (R- Bad Axe), was needed to reflect current industry practices and changes in the marketplace, and was the result of many years of work by a group comprised of state officials and industry representatives, including agri-businesses and producers. Main provisions of the legislation, which will take effect 90 days after the Legislature officially adjourns in December of this year (April 1, 2003), include:

• Raising the allowable net assets required for grain dealers to be licensed.
• More accurately reflect current marketing practices and to allow for electronic commerce.
• Increasing MDA's regulatory authority, including the ability to seek administrative restitution for violations.

Below are links to the Michigan Grain Dealers Act PA 80 of 2002 (effective April 1, 2003) and a "Material Changes In the Michigan Grain Dealers Act" document, which will explain the material changes and the related impact.

• Material Changes in the Michigan Grain Dealers Act
• Michigan Grain Dealers Act PA 80 of 2002 (effective March 2003)  at the top the page, click on "Bills Affecting."