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Iowa Aflatoxin Workshop. April 19, 2006 Ned Bergman, Chief Examination Branch Ken Knosp, Merchandiser Bulk Commodities Division. Legal Authorities for Control or Regulation. United States Warehouse Act (USWA) Commodity Credit Corporation Charter Act (CCC)

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iowa aflatoxin workshop

Iowa Aflatoxin Workshop

April 19, 2006

Ned Bergman, Chief Examination Branch

Ken Knosp, Merchandiser Bulk Commodities Division

legal authorities for control or regulation
Legal Authorities for Control or Regulation
  • United States Warehouse Act (USWA)
  • Commodity Credit Corporation Charter Act (CCC)

Both Authorities are voluntary programs

purposes of authorities relevant to grain industry
Purposes of Authorities Relevant to Grain Industry


  • Allows for a system of public warehouses for storage of agricultural commodities
  • Facilitates trade including interstate and foreign commerce


  • Provides financial assistance and access to capital for agricultural producers
  • Allows grain companies to participate in USDA farm programs
  • Is mechanism for food security programs
scope of authorities in iowa
Scope of Authorities in Iowa


  • 374 Elevator locations
  • 573 million bushels storage space


  • 814 Elevator locations
  • 1.06 billion bushels

(numbers include both federal and state licensed facilities)

aflatoxin concerns
Aflatoxin Concerns


  • Financial risk to Licensed Grain Warehouse Operator
  • Depositors rights to redelivery of like quality of grain on deposit
  • As good Samaritans, the public health risk


  • Protect own financial interest
  • Preservation of markets, especially export markets
  • Public health risks
quality and grading requirements
Quality and Grading Requirements


  • Elevators must be equipped with all necessary grading and quality evaluation equipment for grain received
  • Grade grain according to official standards
  • Document records accurately of grain received and placed in storage
  • Preserve quality of grain in store
  • Notify USWA/CCC officials of major grain deterioration problems
ccc program eligibility
CCC Program Eligibility
  • CCC does not generally require aflatoxin testing for loan purposes
  • Corn tested less than 20 ppb is eligible for all program options
  • Corn tested greater than 20 ppb is:

eligible for LDP

recourse loan

nonrecourse loan at 10% of loan rate

will have zero settlement value when delivered against farm loan.