USDA Announces Storage and Handling Rate Policy Changes under the Uniform Grain and Rice Storage Agreement

March 03, 2023

The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) today announced a new storage and handling rate policy under the Uniform Grain and Rice Storage Agreement will go into effect on April 1, 2023, for grain, rice and oilseeds forfeited to the Commodity Credit Corporation (CCC) through the USDA Marketing Assistance Loan Program.

AMS’s Fair Trade Practices Program (FTPP), Warehouse and Commodity Management Division (WCMD), is implementing the policy to remove over 8,200 reporting and renegotiation hours from approved warehouse operators, which will save more than an estimated $400,000 in labor costs. It will also remove more than 2,000 hours of USDA staff time, allowing WCMD to streamline its operations and focus on higher value customer needs.

Beginning with the new contract year on April 1, CCC will accept the handling and storage rates stated on the Warehouse Operator’s Public Tariff or Statement of Charges assessed to their commercial customers. Previously, CCC solicited storage and handling rate offers, completed an analysis of these rates, then negotiated with warehouse operators to achieve a mutually acceptable rate.

If a Public Tariff or Statement of Charges is not posted or made available, CCC will pay storage rates consistent with the rates stated on the Warehouse Receipt. In this situation, handling rates will be capped at a maximum of 12 cents per bushel for both receiving and loadout handling charges.

CCC retains the authority to negotiate special storage agreements for specific storage and handling rates with Approved Warehouse Operators. CCC also retains the authority to make policy changes for future contract years.

Contact with questions or for more information about AMS’ Warehouse Services.

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