Grain Warehouse Audit Overview


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Warehouse Audit Program Overview

For more information, contact program staff, or call (509) 533-2488.

Current License Book [PDF 256 KB]

The Warehouse Audit Program protects commodity depositors and producers by regulating and educating stakeholders on state and federal grain warehouse and dealer requirements.


Points To Know

Commodities deposited for storage must be fully insured by the warehouseman for losses caused by fire and wind.

Licensees must meet a minimum net worth and working capital ratio as a requirement of licensing.

Warehouseman must file their charges for receiving, storage, and load out with the Department and must post a copy of these charges in a conspicuous place in their office.

Upon request, a warehouseman must issue a storage depositor a warehouse receipt.

Written purchase contracts entered into by a depositor must contain:

  • A clear title pass statement;
  • The net price or charges to be deducted from selling price;
  • Payment due date; and
  • Commodity and quantity to be purchased. A Delayed Price contract must also show the date by which the commodity must be priced and the methods of setting the price if the commodity is not priced by that date.

Covered Commodities

Commodities covered by the Warehouse and Deposit Act are:

  • Barley,
  • Buckwheat,
  • Dry Beans,
  • Dry Peas,
  • Field Corn,
  • Flax,
  • Grain Sorghum,
  • Lentils,
  • Malt,
  • Millet,
  • Mustard,
  • Oats,
  • Popcorn,
  • Rapeseed,
  • Rye,
  • Triticale,
  • Safflower,
  • Soybeans,
  • Sunflower Seeds,
  • Wheat, and
  • The by-products resulting from the conditioning of these commodities.

Protection Provided

Licensees, with the exception of Grain Dealers acting as a limited cash buyer, must file a bond or other approved form of security with the Department. The minimum amount of security is $50,000.00 and the maximum is $750,000.00.

The amount of required security is determined by the higher of six percent of the cost of the commodities purchased from producers or eighteen cents times the licensed capacity. Valid claims against a licensee are entitled to a pro rata share of the security.


Protect Yourself

  • Verify that the warehouseman or grain dealer you are intending to do business with is licensed and/or bonded.
  • Upon deposit of a commodity, obtain a copy of the scale weight ticket.
  • Make all your marketing transactions in writing.
  • Understand all the terms of the contract before signing.
  • Obtain and keep a copy of your contract for your files.
  • Report violations or breaches of your contract to the Department as soon as possible.

 


Producer Checklist for Storing Commodities

  • Conduct business with a licensed warehouse operator.
  • Make arrangements with warehouse operator for delivery prior to deposit.
  • Check the warehouse operator's filed tariff rates for:
    • Receiving 
    • Storage 
    • Load-out 
    • Drying 
    • Cleaning 
    • Bagging 
  • Fully understand how warehouse operator tariffs are applied.
  • Have commodity sampled and graded upon deposit.
  • Obtain copies of scale ticket and grade as soon as possible after delivery.

If a dispute arises that cannot be resolved, contact the Department at:

WSDA Warehouse Audit
PO Box 11559
Spokane Valley, WA 99211-1559
Phone: (509) 533-2488
Fax: (509) 533-2486


Checklist for Marketing Commodities

  • Conduct business with a licensed grain dealer
  • Request your transaction terms be made in writing
  • Ensure the written contract contains the following:
    • Title Pass Statement
    • Specifies kind, quantity, & quality
    • Date for delivery
    • Price
    • Charges to be assessed
    • Method of adjustment for over and under deliveries
    • Date payment is due
  • Ensure all terms are honored before payment.
  • Verify Payment is correct.

Notify WSDA within thirty days of a failure to comply with the terms at:

WSDA Warehouse Audit
PO Box 11559
Spokane Valley, WA 99211-1559
Phone: (509) 533-2488
Fax: (509) 533-2486