Wis. Stat. § 126.13 — WI Code / Chapter 126 / Section 126.13
Grain dealers; financial statements.
Status: in_force

(1) Required annual financial statement.

(a) A grain dealer shall file an annual financial statement with the department, before the department first licenses the grain dealer under s. 126.11 , if the grain dealer’s license application shows any of the following:

1. That the amount of grain reported under s. 126.11 (9) (d) , less the total amount reported under s. 126.11 (9) (e) 2. , if any, exceeds 200,000 bushels.

2. Any deferred payment contract obligations under s. 126.11 (9) (c) to a grain producer or producer agent that has not, under s. 126.70 (1) (b) , permanently waived eligibility to file a default claim against the grain dealer.

(b) A grain dealer licensed under s. 126.11 shall file an annual financial statement with the department during each license year if the grain dealer’s license application for that year shows any of the following:

1. That the amount of grain reported under s. 126.11 (9) (d) , less the total amount reported under s. 126.11 (9) (e) 2. , if any, exceeds 200,000 bushels and the grain dealer is not a contributing grain dealer who procures grain in this state solely as a producer agent.

2. Any deferred payment contract obligations under s. 126.11 (9) (c) to a grain producer or producer agent that has not, under s. 126.70 (1) (b) , permanently waived eligibility to file a default claim against the grain dealer.

(c) A grain dealer shall file an annual financial statement under par. (b) by the 15th day of the 4th month following the close of the grain dealer’s fiscal year, except that the department may extend the filing deadline for up to 30 days if the grain dealer, or the accountant reviewing or auditing the financial statement, files a written extension request at least 10 days before the filing deadline.

(d) Except as provided under par. (e) , a grain dealer licensed under s. 126.11 may not incur any obligations under deferred payment contracts for grain procured in this state unless the contractor first notifies the department and files an annual financial statement with the department.

(e) A grain dealer licensed under s. 126.11 is not required to notify the department or file an annual financial statement with the department under par. (d) for an obligation incurred under a deferred payment contract, for grain procured in this state, with a grain producer or producer agent that has, under s. 126.70 (1) (b) , permanently waived eligibility to file a default claim against the grain dealer.

(2) Voluntary annual financial statement. A contributing grain dealer who is not required to file a financial statement under sub. (1) may file an annual financial statement with the department to qualify for a lower fund assessment under s. 126.15 .

(3) Reviewed or audited financial statement. A grain dealer filing a financial statement under sub. (1) or (2) may file either a reviewed financial statement or an audited financial statement, except that if the volume of grain reported by the grain dealer under s. 126.11 (9) (d) , less the total volume reported by the grain dealer under s. 126.11 (9) (e) 2. , if any, exceeds 2,500,000 bushels, the grain dealer shall file an audited financial statement.

(4) Accounting period. A grain dealer filing an annual financial statement under sub. (1) or (2) shall file a financial statement that covers the grain dealer’s last completed fiscal year unless the grain dealer has been in business for less than one year.

(4m) Interim financial statement. The department may, at any time, require a grain dealer licensed under s. 126.11 to file an interim financial statement with the department. An interim financial statement need not be a reviewed financial statement or an audited financial statement.

(5) Generally accepted accounting principles.

(a) Except as provided in par. (b) , a grain dealer filing an annual financial statement under this section shall file a financial statement that is prepared according to generally accepted accounting principles.

(b) If a grain dealer is a sole proprietor and the grain dealer’s financial statement is not audited, the grain dealer shall file a financial statement that is prepared on a historical cost basis.

(6) Financial statement contents.

(a) Except as provided in par. (b) , a grain dealer filing a financial statement under this section shall file a financial statement that consists of a balance sheet, income statement, equity statement, statement of cash flows, notes to those statements, and any other information required by the department. If the grain dealer is a sole proprietor, the grain dealer shall file his or her business and personal financial statements. A grain dealer shall disclose on the grain dealer’s financial statement, separately and clearly, the grain dealer’s unpaid obligations to grain producers and producer agents.

(b) If a grain dealer has been in business for less than one year, the grain dealer may file an annual financial statement under sub. (1) or (2) consisting of a balance sheet and notes.

(c) A grain dealer filing a financial statement under this section shall include in the financial statement, or in an attachment to the financial statement, calculations of all of the following:

1. The grain dealer’s current ratio, excluding any assets required to be excluded under sub. (7) .

2. The grain dealer’s debt to equity ratio, excluding any assets required to be excluded under sub. (7) .

(7) Assets excluded. A grain dealer may not include any of the following assets in the calculations under sub. (6) (c) unless the department specifically approves their inclusion:

(a) A nontrade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals, unless the note or account receivable is secured by a first priority security interest in real or personal property.

(b) A note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

(c) A note or account that has been receivable for more than one year, unless the grain dealer has established an offsetting reserve for uncollectible notes and accounts receivable.

(9) Entity covered. A person filing a financial statement under this section may not file, in lieu of that person’s financial statement, the financial statement of the person’s parent organization, subsidiary, predecessor, or successor.

(10) Department review. The department may analyze a financial statement submitted under this section and may reject a financial statement that fails to comply with this section.

History: 2001 a. 16 ; 2009 a. 296 ; 2017 a. 155 .