Delivery of Grain – Recourse for Quality Problems or Rejection of Canadian Grain in the U.S.

What recourse do sellers of Canadian grain have with quality problems or rejection in the U.S.?

Sellers should be sure to understand all terms that apply to the sale of grain to any U.S. grain buyer. Contract provisions or trade rules like those maintained by the National Grain and Feed Association often provide specific methods of recourse for disputes including those related to quality determination.  Sellers of grain wishing to deliver to a U.S. grain facility are advised to contact the company prior to delivery to obtain the information necessary to conclude a commercial transaction.

If there is a question about a particular grade or factor within a grade there may be an opportunity for a representative sample to be drawn and submitted to an U.S. “official” agency or some other qualified third party.  If the shipment was already officially inspected in the U.S. after entry, the FGIS appeal inspection process can be invoked under specific circumstances.  The delivering farmer should expect to pay a reasonable fee for the “official” grade determination.  More information on the official services provided by the U.S. Department of Agriculture’s Federal Grain Inspection Service (FGIS) can be found at: http://www.gipsa.usda.gov/fgismain.html

Specific rights regarding grade determination may vary by state and Canadian farmers should become familiar with their rights and obligations under various state laws.  For example further details of such laws are available at:

  1. Idaho Department of Agriculture: www.agri.idaho.gov
  2. Michigan Department of Agriculture: www.michigan.gov/mdard/
  3. Minnesota Department of Agriculture: www.mda.state.mn.us/
  4. Montana Department of Agriculture: www.agr.mt.gov/
  5. Washington Department of Agriculture:  www.agr.wa.gov/

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