The U.S. Grain Standards Act, a cornerstone for the grain industry in grain and oilseed marketing that was originally passed by Congress in 1916, is up for reauthorization this year. The legislation was also the subject of a recent hearing held by the House Ag Committee’s Subcommittee on General Farm Commodities, Risk Management, and Credit.
Grain Standards Act provisions expire on September 30th, and industry witnesses urged House Ag lawmakers to renew and improve the law run by USDA’s Federal Grain Inspection Service (FGIS).
“Global customers consider FGIS the international gold standard for grain grading. Inspections carry the weight of the US government, creating peace of mind for international customers, and providing impartiality that private inspections may lack,” said Dave Walton, Secretary with the American Soybean Association.
Expiration of the act threatens to upend a system that has been the backbone of U.S. grain marketing, fostering trust in U.S. farm exports.
But reauthorization offers a chance to modernize the act to improve grading technology, enhance efficiency, and reduce costs.
Nicholas Friant, director of raw material quality and regulatory with Cargill, who testified on behalf of the National Grain & Feed Association as chairman of the group’s Grain Grades and Weights Committee on behalf of the National Grain and Feed Association, had two recommendations.
“First, investment in grain grading technology to speed and improve the inspection process and second, strengthening the emergency waiver authority to ensure continuity and flexibility in grain export inspection services,” he told lawmakers.
The industry also urges a restructuring of costly user fees, funding 70-percent of FGIS operations, and decoupling the fees from a rolling 5-year average for tonnage fees.
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