The North Dakota Public Service Commission (PSC) reported this week that licensed grain storage in North Dakota increased by 4.5 percent in 2016, growing from approximately 451 million bushels of licensed storage capacity in 2015 to almost 471 million bushels currently. This figure doesn’t include private, on-farm grain storage, which is not licensed and therefore not tracked by the PSC.
“Even in these times of depressed commodity prices, our grain industry has really stepped up by adding valuable new storage,” said Commissioner Randy Christmann. “As our agriculture producers continue to increase their ability to grow food and fuel for the world, we continue to benefit from additional storage options.”
Currently the PSC licenses 383 grain warehouses and 81 roving grain buyers. Although the number of licensed public grain warehouses has remained fairly level in the last year, the capacity continues to increase (69 percent in the last ten years). The average storage capacity of licensed public grain warehouses in North Dakota is currently 1,229,500 bushels, which has more than doubled in size since 2000. In contrast, records kept a century ago (1915) indicate there were more than 2,000 licensed elevators, but a much smaller average capacity of 30,000 bushels (total licensed capacity of approximately 60 million bushels).
Grain warehouses and grain buyers are required to be licensed and bonded and bond coverage does not exist if a buyer is not licensed. The Commission encourages farmers to sell grain only to grain warehouses and grain buyers that are licensed and bonded by the North Dakota PSC.
If a farmer sells grain to an unlicensed buyer and is not paid, the only recourse available may be action in civil court.
The PSC encourages farmers to know their rights and responsibilities, keep accurate records, and know who they are doing business with. A license can be verified via the PSC’s website at www.psc.nd.gov (Click on “grain” on the left side of the screen) or by calling 701-328-2400. Farmers are also reminded to make sure they are paid for their grain in a timely manner or have signed a valid credit-sale contract. If a farmer has a question about a credit-sale contract, or if the licensee is slow in paying for grain delivered, farmers should contact the PSC.
