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News
eGrain, Inc. - License number 19-12, was approved by the USDA - Farm Service Agency (FSA) June 1, 2005 to establish and maintain a database and system, referred to as a central filing system (CFS) for the purpose of electronically filing grain warehouse receipts and U.S. Warehouse Act (USWA) grain documents issued under the authority of the USWA.
In September of 2006 the USDA approved the "Grain Addendum", which allows grain companies to issue EWRs for:
- Collateral for operating loans from banks
- Intra-company transactions when relocating grain between warehouses
- Collateral to Boards of Trade to cover registration of shipping certificates
Ethanol plants, starch processors, food milling operations and animal feed lots may also enjoy the convenience of originating grain, via EWRs, in-store at other warehouses to ensure supply for their end-user needs. These same operations mat also use the EWRs as collateral at Banks.
The Illinois, Indiana, Ohio, Kansas, Minnesota, Wisconsin, Kentucky, Oklahoma, Texas, Louisiana, Mississippi, Michigan and Missouri Departments of Agriculture allow by statute the use of EWRs by State licensed warehouses. Other states either address EWRs in their statutes and have not yet written Rules and Regulations or they are waiting for the Warehousemen in their respective states' to request EWRs inclusion in their statutes.
Currently eGrain, Inc. is the only EWR Provider allowed to participate in the USDA's, Rice EWR Pilot. Nearly 2,000 EWRS have been issued from 18 warehouses in Arkansas, Mississippi and California for the purpose of obtaining loans from the FSA - Price Support Division. And, several Pool Marketers have signed and are redeeming the EWRs from the USDA.
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