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Public Utilities Commission's Warehouse Division
Rapid changes in the farm economy have made the oversight of public grain warehouses and grain buyers more important than ever. Monitoring the grain industry in South Dakota is a significant responsibility of the Public Utilities Commission. The PUC Warehouse Division licenses and regulates the following entities:
- State-licensed grain storage warehouses
- Federally-licensed grain storage warehouses holding state grain-buyer licenses
- Grain buyers licensed as brokers, truckers and non-storage facilities
- Grain processors and other end users who purchase grain worth $300,000 or more directly from producers.
The PUC warehouse staff consists of a director, an administrator and two full-time inspectors. The Warehouse Division also receives services and support from the PUC executive director; deputy executive director; legal, administrative and communications staff.
List of currently licensed Grain Warehouses/Grain Buyers (83 KB)* (Adobe Reader is needed to view.) This list is for informational purposes only and should not be used for solicitation. Pursuant to SDCL 1-27-1, this list may not be resold or redistributed. Violation of SDCL 1-27-1 is a Class 2 misdemeanor.
*This list may change. The PUC makes every attempt to keep this list current. If you have a question about someone who is not listed, please call the Warehouse Division at (605) 773-5280 or e-mail email@example.com.
Each state-licensed grain warehouse is required to post a warehouse bond equal to one-half the local market value of the grain stored at all their locations. However, a warehouse shall provide a minimum bond of no less than $25,000 at any one municipality or location.
Each state-licensed grain buyer is required to post a minimum $50,000 bond. The bond requirement is determined by a company's average annual purchases and may exceed the minimum.
State-licensed grain warehouses are required to file monthly grain storage reports for each licensed facility. The dollar amount of the warehouse bond requirement is determined by the value of the stored grain. The PUC warehouse staff reviews the monthly grain reports to determine the market value of the stored grain. This is compared with bonding levels to ensure commission requirements are being met.
The warehouse staff works to reduce producer risk by reviewing the grain buyer and grain warehouse financial statements each year and by performing regular on-site inspections. Problems are identified and addressed. Depending on the nature and severity of problems identified, the commission may: 1.) suspend, revoke or deny a license; 2.) require additional bond coverage to compensate for increased risk; 3.) impose limitations on management decisions when risks become excessive.
The commission regularly assists producers with problems they encounter with licensed and unlicensed grain buyers.Laws and Rules:
- Public Warehouse Laws SDCL 49-42A
- Public Grain Warehouses Laws SDCL 49-43
- Public Grain Warehouse Rules 20:10:11
- Grain Buyer Laws SDCL 49-45
- Grain Buyer Rules 20:10:12
- Grain Buyer/Warehouse Application - Updated 12/18/14
- Grain Buyer/Warehouse Bond Form - Updated 04/01/14
- Financial Statement Rules
- Monthly Grain Storage Report