Benefits The list of beneficiaries of the eGrainSM system will include the warehouse, producers, USDA - FSA, commercial lenders and licensing authorities. The benefits realized will include convenience; time savings; faster processing; uniform, complete and accurate issuance of receipts; improved customer service; improved security and safeguarding of negotiable receipts; reduced paper consumption and improved regulatory efficiency. Benefits of Electronic Warehouse Receipts Benefits of Electronic Price Later/Credit Sales Contracts

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Benefits of Electronic Warehouse Receipt for

The current paper warehouse receipt system is cumbersome, costly and inefficient. Paper receipts must be accounted for at all times and stored for a period of several years after cancellation. The paper receipt must be physically transferred between the warehouse, grain owners and lien holders to assure the control and protection afforded by possession. It is important to note that the same business rules that currently apply to the use of paper receipts, also apply to electronic warehouse receipts (i.e. when a warehouse issues an electronic warehouse receipt to a producer, the producer immediately assumes absolute and complete control of that receipt). The list of beneficiaries of the eGrainsm System will include the warehouse, producers, farm managers, USDA – FSA, commercial lenders and licensing authorities. The benefits realized will include convenience; time savings; faster processing; uniform, complete and accurate issuance of receipts; improved customer service; improved security and safeguarding of negotiable receipts; reduced paper consumption and improved regulatory efficiency. The eGrain, Inc. eGrainsm system is based on the Standards of Operation for electronic warehouse receipts that were developed and adopted by the Association of American Warehouse Control Officials (AAWCO), an association of state and federal grain warehouse regulatory officials.

Key Benefits for the Warehouse : [ Top ] Responsibilities relating to storing, filing, safeguarding and accounting for used and unused paper warehouse receipts will be greatly diminished. USDA approved, electronic warehouse receipt providers, (not the grain warehouses) will be responsible for the storage, filing, safeguarding and accounting for all electronic warehouse receipts. A supply of electronic receipts will always be readily available. Multiple location warehouses can centralize the issuance of warehouse receipts to one location and authorize a fewer number of employees to issue electronic warehouse receipts. Electronic Warehouse Receipts (EWR) can greatly enhance internal controls with the ability to more easily monitor and control warehouse receipt activity. The headquarters office of multi-location companies will have the ability to see and review every receipt issued. The electronic warehouse receipt will soon be accepted by the USDA - FSA county offices for loan and LDP purposes. Physical delivery of a paper receipt will be unnecessary. USDA will soon accept electronic warehouse receipts to prove a producer’s beneficial interest in grain, making them eligible to receive LDP payments. When a producer/customer’s FSA loan is paid off, the EWR can instantly be sent back to the warehouse, allowing for cost effective and timely cancellation. Smaller warehouse operations that do not utilize grain accounting software can still use the Internet based eGrainsm system to issue electronic warehouse receipts and realize cost and time saving efficiencies, while providing added convenience for their producer customers. Additional computer software does not have to be purchased. eGrain staff will work with any grain accounting software provider to electronically transfer information between the two systems maximize efficiencies for the grain business. Warehouses can eliminate the costs and delays associated with physically transporting negotiable paper warehouse receipts to and from commercial lenders for loans. Warehouses can eliminate the problems associated with lost paper warehouse receipts (affidavits, bonds, legal advise and expense). Electronic warehouse receipts will never get lost. Warehouses can reduce or eliminate demurrage costs on barges or rail cars by allowing receipts to be instantaneously surrendered for cancellation and allowing the warehouse to immediately begin moving that grain out of the warehouse. Warehouses can put an electronic warehouse receipt in ‘suspended’ status and still issue a regular paper receipt, if a customer prefers to have a paper receipt. Warehouses can issue electronic warehouse receipts for collateral purposes and have their lender immediately assume control of the electronic receipt and transfer funds to the warehouse account within a matter of minutes. The eGrainsm system could allow for fewer and or shorter on-site examinations by state and federal examiners. State and federal regulatory officials will have the ability to review electronically, via the Internet, the same information they would view in person through examination staff. The eGrainsm system allows receipt information to be electronically transferred to regulatory examination staff and substantially reduce data input time. The eGrainsm system will streamline the process for warehouses who enter into repurchase agreements with lenders and other Agribusinesses. Title to grain can immediately be confirmed through the issuance of EWR and money quickly transferred to the warehouse account. When this grain is repurchased by the warehouse, receipts can quickly be surrendered for cancellation. Key Benefits for the Producer : [ Top ] The eGrainsmsystem can reduce or eliminate the need for producers (including landlords) to make custodial arrangements for someone else to physically handle their receipts for them while they are away from home. The eGrainsm system will be more convenient and easy for producers and farm managers to obtain an electronic warehouse receipt for all of their grain in storage at a licensed warehouse. Holding a negotiable warehouse receipt is undisputed evidence of a secured interest in grain. Current cell phone technology will allow a producer or farm manager to sell warehouse receipted grain via cell phone to the storing warehouse, surrender the warehouse receipt back to the storing warehouse, via the Internet, using that same cell phone from any where, including the truck, tractor or combine. The eGrainsm system will eliminate the need to file, store and safeguard warehouse receipts. Electronic warehouse receipts will never get lost. Producers can utilize the eGrainsm System as a supplemental record keeping system for tracking warehouse receipt transactions. Producers will have access to their electronic warehouse receipts and various reports 24 hours a day, 7 days a week. The esmGrain system streamlines the process necessary to participate in government programs by eliminating the need to physically transport warehouse receipts from the warehouse, to the county USDA – FSA office to obtain a government loan. A significant number of LDP transactions occur during the busy harvest season. Electronic warehouse receipts can be issued by the grain warehouse, for warehouse delivered grain, allowing producers to electronically prove beneficial interest to the county FSA office and receive LDP payments. Key Benefits for the Commercial Lenders : [ Top ] Lenders can verify, via the Internet, that they have a security interest in an electronic warehouse receipt, enabling the loan to be processed more quickly for the warehouse or a producer. Lenders can eliminates the costs associated with overnight shipping of paper warehouse receipts back to a warehouse or producer when the loan is repaid. The eGrainsm system relieves the lender of having to designate a local bank or another individual as a custodian of warehouse receipts. Benefits of Price Later/Credit Sales Contracts for The eGrainsm system is a secure, web-based system where price later/credit sales contracts can be electronically created and settlements recorded by licensed grain dealer/buyers, eliminating the need to use pre-printed forms. eGrain, Inc. is registered with the Illinois Department of Agriculture as a provider of PL contracts and the eGrainsm system is currently available to all licensed grain dealers in the state of Illinois. The current Price Later/Credit Sale contract system is cumbersome, costly and inefficient. Pre-printed, paper contracts must be accounted for at all times whether they have been used or are still unused and must be kept on file for several years after cancellation. Paper contracts, in many states, are highly regulated and require written signature of both, buyer and seller within a specified time period. A separate, numerical file must often be maintained for the licensing authority to periodically review. Selling transactions must be documented on the grain dealer’s copy on the contract and in some cases on the licensing authority’s copy of the contract as well.   The list of those who will benefit from the use of the eGrainsm system includes: licensed grain dealers, producers, farm managers and licensing authorities. Among the benefits are: convenience; time savings; faster processing; uniform, complete and accurate issuance of agreements/contracts; improved customer service; improved security and safeguarding of agreements/contracts; reduced paper consumption and improved regulatory efficiency. Key Benefits for the Grain Dealer/Buyer : [ Top ] Responsibilities relating to storing, filing, safeguarding and accounting for used and unused paper contracts can be substantially reduced. The “provider” of electronic contracts will provide long-term storage, filing and safeguarding of contracts, electronically, as an added back up to the grain dealer’s paper filing system. The eGrainsm system improves many business processes and efficiencies. Enables grain dealer/buyers to provide a valuable time and cost saving opportunity to their producer customers who will appreciate the convenience, time and cost savings afforded by the ability to do more of their business electronically. Delaers/Buyers can take advantage of discounted prices for large volume supplies of “electronic” contracts. Delaers/Buyers will no longer have expensive unused, paper contracts to dispose of when contract language is changed. Delaers/Buyers will no longer need to be concerned with running low on their supply of unused contracts. New supplies of Electronic contracts are readily available in a matter of minutes. Multiple location operations can centralize the issuance of price later contracts to one location if they choose, and can authorize a fewer number of employees to issue contracts. The eGrainsm system eliminates the need to maintain a separate supply of pre-printed, paper contracts at each issuing location. The eGrainsm system provides an opportunity to make the process of obtaining producer signatures much easier and convenient for those producers with Internet access. The eGrainsmsystem can greatly enhance internal controls with the ability to more easily monitor and control contract activity. The headquarters location will have the ability to see and review all contracts issued by all locations 24/7. Producers with Internet access can be automatically notified by e-mail and instructed to go into the eGrainsm system to review, print, sign and return the contract. Smaller grain dealer/buyer operations that do not utilize grain accounting software can still use the Internet based eGrainsm system to issue contracts, realizing cost and time efficiencies for themselves and their producer customers. No computer software needs to be purchased, or eventually upgraded. eGrain staff will work with grain accounting software vendors to enable electronic data interface with the eGrainsm system. Electronic contracts will never get lost. The electronic contract will meet licensing authority regulations for format and content. Use of electronic contracts could lead to shorter on-site examinations by state and federal examiners. The eGrainsm system enables price later/credit sale information to be electronically transferred to regulatory field staff computers and reduce data input time and on-site examination time. Key Benefits for the Producer/Seller : [ Top ] The eGrainsm system can reduce or eliminate the need for producers/landlords with Internet access, to make power of attorney arrangements for someone else to enter into contracts for them while they are away from home. This would be a service provided by the grain dealer they do business with. eGrain does not charge producers for accessing the system. Producers/Sellers can utilize the eGrainsm system as a supplemental record keeping system for tracking price later/credit sale transactions. Producers/Sellers will have access to their contracts, settlement history and various reports, 24 hours a day, 7 days a week. Producers who work off-farm jobs can electronically access their contracts at their leisure, to review, print and sign contracts at any time of the day or night from any location with Internet access. The eGrainsm system is convenient and easy to use.