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Grain Dealers

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Grain Dealers

Notice of Failure The Michigan Department of Agriculture and Rural Development on behalf of the Farm Produce Insurance Authority and in accordance with Sections 7(7) (g) and 15(2) (f) of the Farm Produce Insurance Act, PA 198 of 2003, as amended, is providing a notice of failure as to Pipeline Foods, LLC. of Minneapolis, MN. This notice is for its failure to financially satisfy claimants on October 20, 2021 in its capacity as a licensed grain dealer under the Grain Dealers Act, PA 141 of 1939, as amended. Contact Our Office for More Information

The Michigan Department of Agriculture and Rural Development licenses individuals and business who receive, buy, exchange, sell, or store dry edible beans, soy beans, small grains, cereal grains and/or corn in the state of Michigan.

Statutory exceptions to the licensing requirements are as follows:

  • A grower or producer who sells farm produce that the grower or producer actually produces.
  • A person who buys farm produce, pursuant to a cash sale, as a feeder of the person's own livestock or poultry.
  • A person who handled less than 30,000 bushels of farm produce from producers in the prior or current fiscal period, buying farm produce in a cash sale.
  • A person who contracts for land or services to produce seed for sowing or propagation.
  • A person who purchases farm produce from other than a grower or producer pursuant to a cash sale.

Note: Exceptions are not available if the person is required to offer warehouse receipts, price later agreements, or if the person takes title prior to payment to farm produce of a producer or grower. To qualify for an exception, the person must engage solely in the exceptions listed above.

Contact

Jeff Haarer, Program Manager, Producer Security Program
Michigan Department of Agriculture & Rural Development
517-284-5642
MDARD-GrainDealers@michigan.gov

Regulatory Authority

MDARD receives its authority for regulating and licensing individuals under the Grain Dealers Act (PA 141 of 1939, as amended) and provides for:

  • The storage, warehousing, buying, and selling of farm produce within the state of Michigan.
  • The licensing, regulation, and bonding of grain dealers.
  • Warehouse receipts and price later agreements and their priority.
  • The creation of security interests.
  • The establishment of an inspection service and personnel for licensed grain dealers.
  • Penalties for the violation of this Act.

The Department is required to supply sufficient copies of this Act to grain dealers upon request. Key points of the Act may be found here. A person shall not act or offer to act as a grain dealer without annually securing a license from MDARD. No license can be issued unless the dealer, which handles less than 500,000 bushels during their fiscal year, reports at least $50,000 in allowable net assets. For dealers that handle more than 500,000 bushels, the calculation is 10 cents of allowable net assets for every bushel handle up to a maximum of $1,000,000 in allowable net assets.

Grain Dealer License Fee Schedule

Facility - Online Application / Printable Application

Each Facility Receiving Point

Total Bushel Capacity

 License Fee

0 - 100,000

 $555

100,001 - 200,000

$690
200,001 - 300,000 $830
 300,001 - 400,001  $970

400,001 +

$1,100

 

Merchandisers and Truckers - Online Application / Printable Application

License Type

License Fee

Grain Merchandiser

$1,100
 First Truck $555
 Each Additional Truck $220

 

Note: The January 1, 2022, license fee increase is based on the annual change in the Detroit Consumer Price Index. See Section 8 (4) of the Grain Dealers Act, PA 141 of 1939, as amended (MCL 285.68(4)).


Forms & Reporting

Your one-stop-shop for forms and documents needed to run your grain business.
More Forms & Documents

Items of Interest

Stay up-to-date on events in Michigan's grain industry and other useful resources.
Additional Resources

Licensee Reports

Find a Michigan grain facility, grain merchandiser, or grain hauler today!
ExamNet Logo

ExamNet

MDARD has rolled out a Measured Self Inventory (MSI) program for licensed grain dealers. The program utilizes ExamNet software. Measured Self Inventory is useful to dealers for managing and identifying trends in grain quality, reconciling inter-company transfers, identifying grain theft, and satisfying lenders. Regulators can save more than half of their on-site time spent on audits each year through spot-checks and audits of dealer records conducted by MDARD staff.
Learn how to install and use ExamNet
Farm Produce Insurance Authority Logo in Black and White

Farm Produce Insurance Authority

The Michigan Farm Produce Insurance Authority, created by P.A. 198 of 2003, is a ten-member (eight voting) board, representing farmers, grain industry, banking interests, and has the responsibility of establishing, administering and promoting the Farm Produce Insurance Fund. Director is the non-voting chair; others appointed by the Governor.
Learn how the FPIA protects your financial assets

Frequently Asked Questions

The Producer Security Program, which oversees the licensing of grain dealers and haulers and conducts the responsibilities outlined in the Farm Produce Insurance Act (PA 198 of 2003, as amended), receives many questions. See if your question's already been answered.