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The 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. In addition, paper receipts must be physically transferred between grain warehouses, grain owners and lien holders to assure the control and protection afforded by holding the receipts which adds unnecessary costs and time to normal business transactions.

Electronic warehouse receipts are simply computer records of all of the information which is required to appear on a paper warehouse receipt. EWRs are authorized by federal law and represent title documents which make them legally equivalent in every way to paper warehouse receipts. It is important to note that the same business and regulatory rules that 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). Electronic warehouse receipts are widely accepted by banks and lending institutions as well as federal and state regulatory agencies.

Electronic warehouse receipts are currently utilized for many purposes, including:

  • As collateral for loans from banks and other lending institutions
  • For intra-company transactions when relocating grain between warehouses
  • As collateral to cover margins and/or to meet financial requirements at futures exchanges
  • Transferring ownership through the delivery process at exchanges
  • For producer price support benefits with the USDA – FSA
  • Transferring ownership between warehouses, processors, ethanol plants and other end users

Reporting Feature

One of the added features of the eGrainsm System is its powerful reporting menu. Users can instantly sort the entire history of electronic warehouse receipts, produce customized reports and import information into accounting software. In addition, data can be imported into third-party applications such as Microsoft® Excel. This feature adds value to the electronic warehouse receipt system and improves the accuracy and efficiency for tracking documents. Customized reports can also be developed to meet the needs of certain industry segments or individual companies.


Grain warehouses can eliminate the need to store, file, safeguard and track used and unused warehouse receipts with the eGrainsm System, since all activity is automatically tracked for a minimum of six years. Multiple facility companies can centralize the issuance of warehouse receipts and authorize certain employees to have issue/transfer rights or view only access. The eGrainsm System can greatly enhance internal controls with the ability to monitor and control warehouse receipt activity across all facilities. The management staff of multiple facility companies has the ability to see and review every EWR issued for the entire company. In addition, multiple facility warehouses can share one supply of EWRs across all locations and purchasing is done instantly on the eGrainsm System.

Warehouses can instantly view the history of every EWR issued or held for a detailed audit trail. In addition, 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 their lender immediately assumes control of the receipt and can transfer funds to the warehouse within a matter of minutes. In addition, warehouses can eliminate the costs and delays associated with overnight delivery or physically transporting negotiable paper warehouse receipts to and from lenders.

Furthermore, the eGrainsm System can allow for fewer and/or shorter on-site examinations by state and federal examiners. State and federal regulatory officials have the ability to electronically review receipt information that used to be only available during on-site examinations. In addition, the eGrainsm System allows receipt information to be electronically transferred to regulatory examination staff through an Electronic Data Interchange (EDI) function and substantially reduces data input time.

Intra-Company Transfers

Warehouses can utilize electronic warehouse receipts to expedite intra-company transfers of grain in order to overcome storage capacity issues, intra-company processing needs and the inadequacies of the existing transportation system by repositioning grain inventories, grain flows and barge transfers.

In addition, warehouses can reduce or eliminate demurrage costs on barges or rail cars by allowing warehouse receipts to be instantly surrendered for cancellation and allowing the warehouse to immediately begin moving that grain out of the facility.

Accounting Software Integration

Our programmers can work with most grain accounting software providers to electronically transfer information between the eGrainsm System and the accounting system to maximize efficiency for the grain company. Smaller grain warehouses that do not utilize grain accounting software can still use the web-based eGrainsm System to issue EWRs and realize cost and time saving efficiencies, while providing added convenience for their producers. In addition, the eGrainsm System can generate customized reports for accounting and reporting purposes.


An electronic warehouse receipt is the most efficient process for the agriculture lending industry, as lenders can control and monitor the EWRs from their computer. The lender still has complete control of the EWR, which retains the same value and title rights as a paper warehouse receipt. Additionally, the lender receives EWRs in a timelier manner and the eGrainsm System eliminates safe keeping of paper receipts that can be lost or destroyed.

Lenders can verify via the web-based eGrainsm System that they have a security interest with an electronic warehouse receipt, thus enabling the loan to be processed more quickly for the warehouse or a producer. In addition, lenders can eliminate the costs associated with overnight shipping of paper warehouse receipts back to the warehouse or producer when the loan is repaid. The eGrainsm System and EWRs eliminate the need to designate a local bank or another individual to act as a custodian of warehouse receipts.

Repurchase Agreements

The eGrainsm System can streamline the process for warehouses that enter into repurchase agreements with lending institutions and other agribusinesses. Title to grain can immediately be confirmed through the issuance of EWRs and the funds are quickly transferred to the warehouse’s account. When the grain is repurchased by the warehouse, EWRs can be immediately surrendered for cancellation.


The eGrainsm System can reduce or eliminate the need for producers and landlords to make custodial arrangements for someone else to physically handle their receipts for them. The eGrainsm System is more convenient for producers and farm managers to obtain an electronic warehouse receipt for all of their grain in storage at a licensed warehouse. Electronic warehouse receipts give producers undisputed evidence of a secured interest in stored grain.

Current cell phone technology allows producers and farm managers to check grain prices, sell warehouse receipted grain to the storing warehouse and surrender the electronic warehouse receipt back to the warehouse, via the Internet, using the same cell phone from anywhere, including the truck, tractor or combine.

The eGrainsm System eliminates the need to file, store and safeguard warehouse receipts, since electronic warehouse receipts will never get lost. Producers can utilize the eGrainsm System as a supplemental record keeping system for tracking all warehouse receipt transactions.

Furthermore, the eGrainsm System streamlines the process necessary to participate in government programs by eliminating the need to physically transport warehouse receipts between the warehouse and the USDA – FSA county office to obtain a government loan. EWRs can be issued by the grain warehouse, for grain delivered to the warehouse, allowing producers to electronically prove an ownership interest to a FSA county office and receive LDP payments.

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