Q: Who is required to have a grain warehouse license under the Grain Warehouse Law.
A: Anyone who is receiving grain for consideration without the grain being paid for, upon receipt of that grain, must be licensed.
Q: Who do I contact to answer my questions about the Public Grain Warehouse Law?
A: Call the Arkansas State Plant Board at: 501-225-1598, and ask for the Grain Warehouse and Catfish Processor Section
Q: Can I be state licensed and issue warehouse receipts for USDA?
A: Yes. To issue warehouse receipts under your state License you then must obtain a coop agreement from the USDA. With this agreement you will be given a license code number to be placed on our warehouse receipts so that you can issue warehouse receipts that will be accepted by your local FSA office.
Q: How many times per year will I be audited by the State Plant Board?
A: The Grain Warehouse Law requires each licensed grain warehouse to be audited at least once every year, but we usually audit each facility 2 or 3 times each year.
Q: How much will my license cost?
A: A new applicant will be charged $150.00 for the first time licensing fee. All years there after will be based on the amount of your storage capacity. See CHAPTER IV, Section IV of the Law on Fees for more detail.
Q: What other costs may we incur in the licensing process?
- A: Fees for a Surety (Bond, CD or Letter of Credit)
- A Financial Statement must be prepared by a CPA or RPA.
- Insurance at Fair Market Value to cover grain stored at your facility.
- Printing Cost - Example: pre-numbered scale tickets, pre-numbered contracts, and any other documents as required.
Q: How is my surety (Bond, Letter of Credit, or CD) calculated.
A: The surety for your company will be based upon the total mount of storage capacity of your facility. The minimum amount of surety is $20,000.00 for storage up to 100,000 bushels of grain. After 100,000 bushels, Surety is based on 20 cents X your total storage capacity for the first million bushels and 15 cents for the second million bushels and 10 cents per bushel for any capacity exceeding 2 million bushels.