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Grain Standards Act

Grain is an important source of food for human beings and animals.  Grain is merchandised in both interstate and foreign commerce.  The rapid expansion of the U.S. grain industry created a need for a uniform system of grading, facilitating better trade.  The U.S. Grain Standards Act of 1916 (USGSA) authorizes the grain inspection, packing and stockyard administration.  A mandatory requirement instituted by the USGSA is that all U.S. grain sold by grade in foreign commerce must be officially inspected and graded.  The primary objective of the official US standards for grain is to certify the quality of the grain as accurately as practicable.

The purposes of the Act are[i]:

  • to establish official marketing standards for grains and oilseeds;
  • to assure that exported grains and oilseeds be officially weighed and inspected;
  • to establish the federal licensing and supervision of the work of grain inspectors;
  • to provide the framework necessary for markets to establish grain quality improvement incentives;
  • to reflect the economic value based characteristics in the end uses of grain;
  • to accommodate scientific advances in testing and new knowledge concerning factors related to the end use performance of grain;
  • to provide information to aid in determining grain storability; and
  • to entertain appeals from the grades assigned by the licensed inspectors.

The Act made official certification mandatory.  The exporting of grain sold by grade must be inspected and weighed.  The Act provided for the establishment of official U.S. grain standards to measure and describe the physical and biological properties of the grain at the time of inspection.  The marketing standards describe the physical characteristics of a commodity.  The physical characteristics include:

  • weight;
  • damaged kernels;
  • foreign material;
  • shrunken and broken kernels; and
  • defects.

The marketing standards serve as contract language to facilitate marketing.  The official weighing and inspection is not paid with federal funds but on a fee-for-service basis.

Export inspections are carried out by federal inspectors or by federally supervised state inspection agencies.  These agencies are called delegated official inspection agencies.  In domestic movements, official inspection is not mandatory.  Within the U. S., official inspections are issued by inspectors.  The inspectors are employed by boards of trade and like associations.  However, the inspectors are licensed by the U. S. Department of Agriculture.

The Secretary is authorized to investigate the handling, weighing, grading, and transportation of grain and to fix and establish federal standards for the most common grains[ii].  Federal standards are made for grains like: wheat, corn, barley, oats, rye, grain sorghums, flaxseed, soybeans and mixed grain.  The Secretary provides through regulation the registration of all persons engaged in the business of buying grain for sale in foreign commerce.  The regulations are made regarding the business of handling, weighing, and transporting of grain for sale in foreign commerce[iii].  The Secretary is empowered to issue a certificate of registration to persons applying for certificate.  The certificate of registration issued can be renewed annually.  The Secretary charges and collects fees from persons applying for registration.  The amount of such fees is determined on the basis of the costs of the Secretary in administering the registration.

The primary certificate for U. S. grain is issued by inspectors employed by the U. S. Department of Agriculture working locally.  The primary certificate can be replaced by a federal appeal certificate.  For an appeal certificate, new samples are taken and grading is directly done by the U.S. Department of Agriculture.  There is also a provision for appeal from federal appeal.  A final appeal is known as a board appeal.  A board appeal is done by a board of review.

Making, issuing, altering, forging, or counterfeiting any official certificate, official form, or official mark is prohibited under the USGSA[iv].  A person committing any offense prohibited under the Act is subject to the general penal statutes relating to crimes and offenses against the U S and is guilty of a felony[v].

[i] 7 USCS § 74.

[ii] 7 USCS § 77.

[iii] 7 USCS § 87.

[iv] Id.

[v] Id.


Inside Grain Standards Act