Agricultural Producer Security

Agricultural Producer Security Fund Program Overview

Veterans: For information on how to apply for License Fee Waiver under Act 209, see Veterans License Fee Waiver Program: 2011 Wisconsin Act 209.

The Department of Agriculture, Trade and Consumer Protection administers an agricultural producer security program under Wisconsin Statute Chapter 126. Chapter 126 is designed to protect agricultural producers from financial defaults by those purchasing the producer’s products. To view this legislation, review Chapter 126, Wis. Stats.

Chapter 126 created the Wisconsin Agricultural Producer Security Fund (the Fund). The Fund was introduced to pay default claims to producers and producer agents. Persons who purchase grain, milk or vegetables from Wisconsin producers, and grain warehouse keepers who store grain for others, are required to comply with provisions of Chapter 126. These entities are referred to as contractors. A producer or producer agent must submit a default claim by a contributing contractor to be reimbursed by the Fund, in the event that a contractor defaults on payment to producers or producer agents. Default claims must be filed within 30 days of the default.

Contractors must meet certain minimum financial standards and/or contribute to the Fund. Contractors that file a financial statement that has negative equity, when first licensed are required to provide security, such as a bond or irrevocable letters of credit.

We monitor the financial condition and/or business practice of Wisconsin contractors to provide reasonable assurance that agricultural producers and producer agents will be paid for milk, grain and/or vegetables delivered to licensed contractors under Chapter 126, Wis. Stats.

Milk Contractor
We regulate milk contractors who procure producer milk in Wisconsin to provide producers and producer agents a reasonable assurance that milk contractors are able to pay for producer milk that they purchase.

Vegetable Contractor
Vegetable contractors buying processing vegetables produced in Wisconsin are regulated to provide reasonable assurance that Wisconsin producers are paid for their vegetables.

Grain
The regulations for grain dealers and warehouse keepers are intended to help protect our grain producers and producer agents from non-payment for grain received by grain dealers and grain in storage.