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Grain Purchases in Minnesota

There are two types of grain purchases recognized in Minnesota, they are called Cash Sales and Voluntary Extension of Credit Contract (VECC) purchases.

Cash Sales: you must pay by cash, check, mail, or wire no later than the close of business on the next day after the sale of the shipment, or within 48 hours after the sale of the shipment, or whichever is later.

VECC: any purchase where payment for grain is made later than 48 hours after the sale of the shipment.

• If you purchase grain on cash sale that you do not pay within the time frame stated above, the purchase automatically becomes a voluntary extension of credit and must be put on contract.
• If purchasing grain by voluntary extension of credit, you must document the sale in writing using the proper format within 30 days of delivery. All voluntary extension of credit contracts must include the following statement in not less than ten-point, all-capital type, framed in a box with space provided for the seller's signature:

  "THIS CONTRACT CONSTITUTES A VOLUNTARY EXTENSION OF CREDIT. THIS CONTRACT MAY NOT BE COVERED COMPLETELY BY THE GRAIN INDEMNITY ACCOUNT."

• If you purchase grain by voluntary extension of credit, you must at all times maintain grain, rights in grain, or proceeds from the sale of grain totaling 90 percent of the grain buyers' obligation for grain purchased by voluntary extension of credit contracts.
• You must maintain accurate books and records, including a record of grain warehouse receipts if storing grain, and secure them in a safe place.
• If storing grain, you must deliver grain within 48 hours of demand for such grain.
• If storing grain, a statement of all charges relating to the storage must be posted at each licensed location and must be clearly visible to the public.
• For more information, please use the links on this page to familiarize yourself with the requirements in Statutes 223 and 232.