USDA Demands Warehouses End Farm Storage

WASHINGTON - Mar 12/04 - SNS -- Licensed warehouses who have been storing agricultural products on farms have bee given until April 15 to move the commodities.

The USDA said warehouse operators licensed under the United States Warehouse Act (USWA) or approved under a Commodity Credit Corporation (CCC) Storage Agreement are prohibited from "the use or acceptance of farm storage sites as USWA licensed or CCC approved space."

A farm storage site is any bin, tank, or building that is (or was previously) operated in conjunction with a farming operation with the intended purpose of storing agricultural products produced on that farm, and is located in a noncommercial area apart from the functional units that are a component of the warehouse operator's USWA license or CCC code. This policy applies to all agricultural products eligible for licensing under the USWA or approved under a CCC storage agreement.

"Effective immediately warehouse operators who are currently using farm storage sites to store agricultural products must move all such products into their USWA license or CCC approved storage space by April 15 2004.," the USDA said.

"Agricultural products stored in farm storage sites after April 15 2004, will not be included as a part of a warehouse stock inventory measurement under the USWA or CCC storage agreement. Please take appropriate and necessary action, as this could result in the warehouse operator having insufficient inventory to cover storage obligations."

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