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Iowa Aflatoxin Workshop

Iowa Aflatoxin Workshop

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Iowa Aflatoxin Workshop

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  1. Iowa Aflatoxin Workshop April 19, 2006 Ned Bergman, Chief Examination Branch Ken Knosp, Merchandiser Bulk Commodities Division

  2. Legal Authorities for Control or Regulation • United States Warehouse Act (USWA) • Commodity Credit Corporation Charter Act (CCC) Both Authorities are voluntary programs

  3. Purposes of Authorities Relevant to Grain Industry USWA • Allows for a system of public warehouses for storage of agricultural commodities • Facilitates trade including interstate and foreign commerce CCC • Provides financial assistance and access to capital for agricultural producers • Allows grain companies to participate in USDA farm programs • Is mechanism for food security programs

  4. Scope of Authorities in Iowa USWA • 374 Elevator locations • 573 million bushels storage space CCC • 814 Elevator locations • 1.06 billion bushels (numbers include both federal and state licensed facilities)

  5. Aflatoxin Concerns USWA • Financial risk to Licensed Grain Warehouse Operator • Depositors rights to redelivery of like quality of grain on deposit • As good Samaritans, the public health risk CCC • Protect own financial interest • Preservation of markets, especially export markets • Public health risks

  6. Quality and Grading Requirements USWA and CCC • Elevators must be equipped with all necessary grading and quality evaluation equipment for grain received • Grade grain according to official standards • Document records accurately of grain received and placed in storage • Preserve quality of grain in store • Notify USWA/CCC officials of major grain deterioration problems

  7. CCC Program Eligibility • CCC does not generally require aflatoxin testing for loan purposes • Corn tested less than 20 ppb is eligible for all program options • Corn tested greater than 20 ppb is: eligible for LDP recourse loan nonrecourse loan at 10% of loan rate will have zero settlement value when delivered against farm loan.