Agricultural Producer Security

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​The Wisconsin Depa​rtment of Agriculture, Trade and Consumer Protection (DATCP) ​administers an Agricultural Producer Security program under Wis. Stats. ch. 126​. This program is designed to protect agricultural producers of milk, grain, and processing vegetables from financial defaults by those purchasing their products or storing their grain.

The agricultural producer security program is administered with input from the Agricultural Producer Security Council, a statutory council created under Wis. Stat. § 15.137(1). The Agricultural Producer Security Council meets as often as DATCP deems necessary, but at least once annually.​

Those that purchase grain, milk, or vegetables from Wisconsin producers, an​d grain warehouse keepers who store grain for others, are required to comply with provisions of Chapter 126, and most are required to hold a license. These licensees are commonly referred to as contractors. The Department conducts periodic reviews to monitor the financial condition and business practices of contractors to provide reasonable assurance that agricultural producers and producer agents will be paid.

DATCP also administers the Agricultural Producer Security Trust Fund (Fund).

Most contractors must meet certain minimum financial standards and/or contribute to the Fund. In some cases, contractors file individual security in lieu of or in addition to contributing to the Fund. This Fund and individual security may be used to pay default claims in the event that a contractor defaults on payment to producers or producer agents. A producer or producer agent must submit a default claim to be reimbursed. D​efault claims must be filed within 30 days of the default unless DATCP has established a different claim filing deadline.

Grain Dealers

A grain dealer is anyone that buys producer grain or who markets producer grain as a producer agent.

Grain Warehouse Keepers

A grain warehouse keeper is anyone that operates grain warehouses that receive, store, condition, or ship grain for others.

Milk Contractors

A milk contractors is anyone that buys or acquires the right to market milk from producers.

Vegetable Contractors​

​A vegetable contractors is ​anyone that buys processing vegetables produced in Wisconsin.​