USDA Announces New Storage Rate Policy
USAgNet - 03/13/2023
The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) announced on March 3 a new storage and handling rate policy.
Effective April 1, USDA will begin accepting warehouse operators’ public tariff rates rather than having a separate set of rates for grain owned by the Commodity Credit Corporation (CCC).
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.
AMS said the new policy will remove over 8,200 reporting and renegotiation hours from approved warehouse operators, which will save more than an estimated $400,000 in labor costs.
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