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Strain: Protect Yourself from Unlicensed Grain Dealers

June 4, 2019

Baton Rouge, La. (June 4, 2019) – Louisiana Department of Agriculture and Forestry (LDAF) Commissioner Mike Strain, D.V.M., is warning farmers that they are taking huge monetary risks when they sell grain to unlicensed grain dealers.

Louisiana Revised Statute 3:3401 et seq. requires all grain dealers, warehouses and cotton merchants doing business in Louisiana to be licensed annually. A grain dealer is any person who purchases any agricultural commodity from producers or represents producers in the sale of agricultural commodities. La R.S. 3:3410.A. states that “No person shall engage in the business of buying or selling agricultural commodities from producers unless licensed by the commission.”

“The only way to protect a farmer who has not been fully compensated for grain sold to a licensee is through the Grain and Cotton Indemnity Fund. The fund was created in 2008 to protect producers from insolvency, bankruptcy or any other type of loss,” said Strain.

When a farmer sells grain to an unlicensed dealer, the farmer has no recourse through the state if the farmer does not get paid.  A farmer would have to seek legal action.

Recently, the LDAF received a complaint from a farmer who sold grain to an unlicensed dealer from another state. “One farmer who has been scammed is one too many,” said Strain.

While most grain is contracted well in advance of harvest, there are spot sales and open contracts occurring during the peak of harvest which will be occurring in the next several months.

To check if a grain dealer is licensed, go to or download the Louisiana Department of Agriculture and Forestry application (App) available for both Android and Apple I-phones.