Contracts and Pricing – Trade Rules for Cash Grain Sales in the U.S.

What trade rules govern cash grain sales at U.S. elevators?

Many grain facilities in the U.S. use the NGFA Grain Trade Rules and arbitration. Adopted in
1902, these rules govern most transactions of a financial, mercantile or commercial nature
involving grain in the U.S. Members of the NGFA are obligated to abide by the rules and
arbitration in transactions with other NGFA members. Increasingly, NGFA members
reference the NGFA’s Trade Rules and Arbitration Rules in contracts with firms located in
Mexico and Canada. In addition, Canadian and Mexican firms that become NGFA
Associate/Trading members are expressly permitted to reference the NGFA’s Trade Rules
and/or Arbitration Rules in their contracts, or otherwise consent to have the NGFA’s rules
apply. However, before referencing the rules in cross-border trade NGFA cautions users that
it is advisable to consult competent legal counsel and review international treaties that
govern such transactions.

You can review these provisions and the other four sets of trade rules (barge rules, barge
affreigtment rules, feed rules and rail arbitration rules) promulgated by NGFA at
www.ngfa.org/rules-arbitration.cfm.

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