Changes to Grain Dealer Act take effect Aug. 30

Grain dealers and producers should be aware that changes to the Grain Dealer Act become effective Aug. 30.

In May, the Legislature passed LB 183 modifying certain portions of the act. With the effective date just weeks away, the Nebraska Public Service Commission wants those affected to be prepared. Beginning Aug. 30, producers that sell grain to a dealer have 15 days from the last delivery, instead of 30 days, to demand payment from the dealer.

The deadlines to negotiate checks received from a dealer and report an insufficient fund check to the PSC were also reduced to 15 days. Failure to comply with the deadlines will result in no security protection for those transactions in the event of a dealer failure.

“The changes to the Dealer Act incentivize prudent business practices within the industry,” said Commission Chair Jerry Vap. “These are extremely important changes for those conducting business with grain dealer.”

LB 183 made other changes as well, including clarifying dealer security coverage applies to first producers, eliminating commission licensing requirements for dealers utilizing their own grain trucks and clarifying acceptable financial documents for licensing.

More information on LB 183 is available at http://www.psc.nebraska.gov