Grain Dealers Act (PA 141 of 1939, as amended)
The Grain Dealers Act (PA 141 of 1939, as amended) gives regulatory responsibility of the Act to the Michigan Department of Agriculture & Rural Development (MDARD) and provides for:
- the storage, warehousing, buying, and selling of farm produce within the state of Michigan
- the licensing, regulation, and bonding of grain dealers
- warehouse receipts and price later agreements and their priority
- the creation of security interests
- the establishment of an inspection service and personnel for licensed grain dealers
- Penalties for the violation of this act.
MDARD is required to supply sufficient copies of this Act to grain dealers upon request. A person shall not act or offer to act as a grain dealer without annually securing a license from MDARD. No license can be issued unless the dealer, which handles less than 500,000 bushels during their fiscal year, reports at least $50,000 in allowable net assets. For dealers that handle more than 500,000 bushels, the calculation is 10 cents of allowable net assets for every bushel handle up to a maximum of $1,000,000 in allowable net assets.