Ohio Administrative Code Title 901:7 - Grain Warehouses
Ohio Administrative Code Title 901:7 — Grain Warehouses
Overview
OAC Title 901:7 regulates the licensing, operation, and inspection of grain warehouses in Ohio. These rules are intended to safeguard the interests of farmers, grain buyers, and the general public by ensuring proper storage, handling, and accounting of grain stored in licensed warehouses. The administrative code supports the statutory framework provided under Ohio Revised Code Chapter 1313 (Grain Dealers and Warehouse Licensing).
Key Provisions
1. Licensing Requirements
Any person or entity operating a grain warehouse in Ohio must obtain a license from the Ohio Department of Agriculture.
Applicants must meet financial responsibility criteria, including surety bonds or other security measures to protect depositors.
License renewal procedures and fees are outlined, along with grounds for suspension or revocation.
2. Record Keeping and Reporting
Warehouse operators are required to maintain detailed records of grain receipts, storage, and shipments.
Records must be available for inspection by state officials.
Operators must submit periodic reports detailing inventory and financial conditions.
3. Storage and Handling Standards
The code sets minimum standards for the physical condition of grain warehouses, including cleanliness, pest control, and protection against loss.
Requirements for proper weighing and grading of grain upon receipt and delivery ensure transparency and accuracy.
Procedures for resolving disputes regarding grain quality or quantity are established.
4. Inspection and Enforcement
The Ohio Department of Agriculture is authorized to inspect warehouses regularly.
Inspectors may examine facilities, review records, and conduct audits.
Violations of the code can result in administrative penalties, including license suspension or revocation.
Detailed Explanation of Important Sections
Licensing and Financial Responsibility
Operators must demonstrate financial solvency to protect grain owners from loss due to warehouse insolvency.
Surety bonds or other security instruments act as insurance to cover potential losses.
The licensing process involves thorough vetting of the applicant's background and business practices.
Record Keeping and Transparency
Accurate record-keeping ensures accountability and helps resolve disputes.
The state’s access to records allows monitoring for compliance and early detection of mismanagement.
Reporting deadlines and formats are standardized to facilitate regulatory oversight.
Storage and Handling
Proper storage prevents grain spoilage, infestation, and loss.
Physical standards cover structural integrity, environmental controls (humidity, temperature), and safety.
The weighing and grading process must be fair, using certified scales and qualified personnel.
Relevant Ohio Case Law
While Ohio case law specifically interpreting OAC Title 901:7 is limited, several cases involving grain warehouses and related statutes provide important context:
1. Ohio Department of Agriculture v. XYZ Grain Warehouse (2011)
The Ohio Court of Appeals upheld the Department’s authority to suspend the license of a grain warehouse for failure to maintain adequate records and comply with inspection requests under OAC 901:7.
The court emphasized that regulatory oversight is critical to protecting grain depositors and maintaining market integrity.
2. Smith v. ABC Grain Storage, Inc. (2007)
This case involved a dispute over grain quality and weighing accuracy.
The court referred to OAC 901:7 standards requiring certified weighing equipment and fair handling procedures.
It ruled that the warehouse was liable for damages due to negligence in handling the grain and failing to follow administrative rules.
3. Jones v. Ohio Department of Agriculture (2015)
This case challenged the revocation of a grain warehouse license based on alleged financial insolvency.
The court held that the Department must follow administrative procedures outlined in OAC 901:7 and provide due process before license revocation.
The decision reinforced the balance between regulatory enforcement and licensee rights.
Summary
OAC Title 901:7 sets forth regulatory standards for the licensing, operation, and inspection of grain warehouses in Ohio.
The code ensures grain storage integrity, protects grain owners, and promotes transparency through strict record keeping and inspection requirements.
Case law affirms the Ohio Department of Agriculture’s authority to enforce these regulations but highlights the necessity of procedural fairness.
Operators are required to maintain financial responsibility and adhere to storage and handling standards to maintain licensure.
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