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Grain Dealers Division
Grain Dealer Licenses
Grain Dealer Statistics
Forms
Application for Grain Dealers License
Chapter 75 Grain Dealer Act
Grain Dealer Rules and Regulations
Any person, partnership, corporation, limited liability company or association, other than a
custom feeder of livestock or poultry or a grain warehouse licensed under the Grain Warehouse
Act or located in Nebraska and licensed under the United States Warehouse Act that does not buy,
sell or transport grain other than grain that is received at its licensed warehouse facilities,
who purchases grain or transports grain in
or out of Nebraska, or acts as an agent of a buyer or seller for purposes of selling such grain, is
required to be licensed. Producers, or businesses, who sell their own grain or buy grain for
feeding
purposes are exempt from this licensing requirement. Currently, a minimum net worth of
$10,000
and
a working capital ratio of one to one or better is required for licensing.
Each grain dealer is required to post a security, an application form with a $60.00 fee plus
$40.00 fee
for each truck that transports the grain, and a Grain Dealer receipt form. For security purposes, a
grain dealer may file a bond, an irrevocable letter of credit (ILC), certificate of deposit (CD), or US Government Securities in
an
amount based on 7% of the preceding year's grain sales with a minimum of $35,000 and a
maximum
of $300,000. Each year a financial statement representing the grain dealer's operations must be reviewed or audited by an independent certified public accountant or an independent
accountant who holds a permit granted by Nebraska Board of Public Accountancy. This
statement
must be prepared and filed according to Commission Rules and Regulations. A corporation must
be
registered with the Secretary of State's Office to conduct business in Nebraska. Each applicant must submit to a criminal background check by providing fingerprint cards to the Nebraska State Patrol. No license will be issued if the background check reveals a conviction for a felony financial crime.
WARNING TO SELLER: You will have no recourse to the grain dealer's security posted with the Nebraska Public Service Commission (NPSC) unless you (1) demand payment from the grain dealer within thirty (30) days after the date of the last shipment of any contract; and, (2) cash any check or draft issued as payment for your grain within thirty (30) days after its issuance; and, (3) notify the Nebraska Public Service Commission, PO Box 94927, Lincoln, NE 68509-4927, within thirty (30) days if a check or draft is returned unpaid. You will have no recourse to the grain warehouseman's security posted with the NPSC unless you have secured a post-direct delivery storage position within thirty (30) days after the last shipment of any contract. Direct delivery of grain may affect the eligibility of the grain for participation in federal price support programs.
To conduct grain dealer business in Nebraska without a Grain Dealer's License is a Class IV
Felony
punishable by five years in prison and/or a $10,000 fine. Investigators are on duty checking
trucks
throughout the state to provide for the regulation of this program. Fill out the application above or contact this office to
request
the required forms, if you have any questions concerning licensing requirements.
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