Selling grain safely
Most grain buyers pay on time. When one fails, farmers who sold on credit or left grain in storage can wait months or lose money. A few checks before you deliver go a long way.
Before you sell or store
- Check the buyer's license. Most grain states license grain dealers and warehouses, and USDA licenses others. Use your state's lookup below, or USDA's list for federally licensed warehouses. An unlicensed buyer usually isn't covered by your state's protection fund.
- Know your state's indemnity fund. Many states (for example Illinois, Iowa, Indiana, Kentucky, Michigan, Ohio and Tennessee) run a fund that repays farmers when a licensed buyer fails. Coverage is often a percentage of what you're owed, and some sales (like deferred-price contracts held a long time) may be covered less or not at all. Ask your state ag department what's covered.
- Get paper for everything. Keep every scale ticket, warehouse receipt, settlement sheet and signed contract. Claims are paid on documents.
- Watch the payment timing. Cashing checks quickly and not leaving large unpaid balances limits your exposure. Deferred payment and price-later contracts are credit to the buyer; know the risk.
- Act fast if a buyer fails. Claim deadlines can be short. After a Nebraska grain dealer's 2025 bankruptcy, farmers had 120 days to file. Call your state ag department right away and keep copies of what you send.
Look up a buyer's license
- AR Grain dealers (Ark. Dept. of Agriculture)
- CO Commodity handlers (CDA)
- GA License search (GDA)
- IA Grain warehouses and dealers (IDALS)
- ID Warehouse licensees (ISDA)
- IL Dealer and warehouse look-up (IDOA)
- IN Licensees by county (ISDA)
- KS Grain warehouse program (KDA)
- KY Grain company search (KDA)
- LA Licensed warehouses and dealers (LDAF)
- MD Grain dealer information (MDA)
- MI Licensed grain dealers (MDARD)
- MN License search (MDA)
- MO Dealer and warehouse search (MDA)
- MS Grain dealers and warehouses (MDAC)
- MT License search (MDA)
- ND License search (NDDA)
- NE Grain locations (PSC report)
- OH Grain warehouse search (ODA)
- SD Grain license list (PUC)
- TN Licensed granaries (TDA)
- TX Licensed grain warehouses (TDA)
- WA Warehouse and dealer licenses (WSDA)
- WI Grain dealers and warehouse keepers (DATCP)
Not listed? Call your state department of agriculture and ask whether the buyer holds a grain dealer or warehouse license. Federally licensed and USDA-approved warehouses in every state: USDA AMS. Our bids map shows who licenses each buyer in its popup.
Red flags
- A price far above every other buyer nearby, especially from someone you don't know.
- Payment always "next week," bounced checks, or asking you to wait to cash a check.
- No license number, or a license that's expired or suspended.
- Pressure to sign a deferred-payment contract on the spot.
This page explains general practices and links to public license lists. It isn't legal advice; your state's rules decide what's covered. See also how to spot fake messages and the farm aid tracker.