Indiana Administrative Code Title 824 - INDIANA GRAIN BUYERS AND WAREHOUSE LICENSING AGENCY
Indiana Administrative Code – Title 824: Indiana Grain Buyers and Warehouse Licensing Agency
Purpose
Title 824 establishes the Indiana Grain Buyers and Warehouse Licensing Agency (IGBWLA), which regulates the business of buying, storing, and handling grain in Indiana.
Its goal is to protect farmers and grain sellers by ensuring buyers and warehouses operate fairly, maintain financial security, and handle grain responsibly.
1. Agency Organization
The Grain Buyers and Warehouse Licensing Agency (IGBWLA) is the official body that oversees all licensing and regulation for grain warehouses and grain buyers.
It operates under a director/commissioner, who is responsible for:
Issuing licenses.
Enforcing compliance with regulations.
Conducting investigations and inspections.
The agency may also coordinate with advisory committees that represent farmers, grain dealers, and warehouse operators.
2. Licensing of Grain Buyers
Who needs a license: Any business or individual buying grain from producers for resale, storage, or processing.
Application requirements:
Proof of financial responsibility.
Business information and records.
Payment of required licensing fees.
Renewals: Licenses must be kept current; failure to renew can suspend operations.
Bonding/insurance: Grain buyers are required to carry financial guarantees (bond, insurance, or other security) to protect farmers if the buyer defaults.
3. Licensing of Grain Warehouses
Warehouse license required for facilities storing grain for others.
Facility standards:
Must meet construction, safety, and maintenance requirements.
Must have sufficient capacity to handle grain volumes.
Financial standards: Operators must prove they are financially stable and carry insurance to cover stored grain.
Recordkeeping: Warehouses must maintain accurate storage records, scales, and receipts.
4. Storage and Grain Handling Rules
Receipts & Contracts:
Warehouses must issue warehouse receipts or scale tickets to farmers when grain is delivered.
Grain buyers must provide written contracts for deferred pricing, credit-sale, or delayed payment agreements.
Commingling grain: Allowed under rules, but operators must track ownership accurately.
Grain care: Stored grain must be maintained in good condition and free from contamination.
Inspections: The agency can inspect warehouses to check inventory and compliance.
5. Financial Protection for Farmers
Bonding & Security Programs: The agency requires grain buyers and warehouses to post a bond or financial guarantee.
Claims process: If a licensed grain buyer or warehouse defaults (cannot pay or deliver grain), farmers can file claims with the agency.
Compensation limits: Payments are made from the bond or financial responsibility posted by the licensee.
6. Enforcement & Discipline
The agency has authority to:
Suspend or revoke licenses for violations.
Issue fines or penalties for noncompliance.
Investigate complaints from farmers or grain sellers.
Violations include:
Failure to pay farmers on time.
Misrepresentation of grain contracts.
Operating without proper bonding.
Poor warehouse conditions or inaccurate records.
7. Appeals and Hearings
Businesses may appeal agency actions (such as denial, suspension, or revocation of a license).
Title 824 provides procedures for hearings, evidence presentation, and final administrative decisions.
Ensures due process for both operators and grain sellers.
8. Long-Term Mission
The Indiana Grain Buyers and Warehouse Licensing Agency exists to:
Protect producers from financial loss when selling or storing grain.
Ensure trust in Indiana’s grain market by requiring fair practices.
Maintain stability in the agricultural economy by regulating buyers and warehouses.
Provide clear accountability and transparency for all parties involved in grain transactions.
✅ In summary:
Title 824 of the Indiana Administrative Code gives the Indiana Grain Buyers and Warehouse Licensing Agency the power to license, regulate, and monitor grain buyers and warehouses. It sets rules for financial security, grain storage, contracts, inspections, and enforcement, with the central goal of protecting farmers and ensuring fair grain trade in Indiana.
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