Agricultural Marketing Service

Annual Report 2021 i

UNITED STATES 

Fair Trade Practices Program — December 2021

WAREHOUSE ACT 

2021 ANNUAL REPORT

Warehouse and Commodity 

Management Division
Agricultural Marketing Service

Annual Report 2021 ii Annual Report 2021 1

TABLE OF CONTENTS

Get acquainted with the organization of this report

MESSAGE FROM THE DIRECTOR 1

INTRODUCTION 2

YEAR AT A GLANCE 2

KEY SERVICES 2

ORGANIZATIONAL STRUCTURE 3

EMPLOYEES AND LOCATIONS 3

KEY STAKEHOLDERS 4

2021 USWA OVERVIEW OF OPERATIONS 5

WAREHOUSE AND INVENTORY EXAMINATIONS 6

FY 2021 INSPECTOR, WEIGHER, CLASSIFIER, AND 

GRADER LICENSES 6

FINANCIAL INFORMATION 7

ENSURING FINANCIAL STEWARDSHIP 7

EFFICIENCIES AND COST SAVINGS 8

GAINING EFFICIENCIES AND CONTROLLING COSTS 8

EFFICIENT USE OF PERSONNEL 8

IT MODERNIZATION (eWCMD) 8

COMMODITY WAREHOUSE INDUSTRY 

COMMUNICATION AND COLLABORATION 9

CONCLUSION 9

for your support

THANK YOU

We would like to thank 

everyone that contributed, 

not only to the FY 2021 

annual report, but to the 

licensees, stakeholders, 

and staff that make the US 

Warehouse Act program 

possible.

Featured Employees 

throughout the Publication

On the Front and Back Cover: Christy 

Wallace, Gavilon in Billings, MT; Ashley 

McCallum and Barbara Weathers; Gina 

Green in Houston, TX; Cortez Wofford 

in Texarkana, TX; Clarkfield, MN Prairie 

Grain Partners Elevators; Additional 

photos provided by John Hagenow, 

Richard Liggett, and Bill Vereen (Retired 

Examiner). Inside the Report: Page ii - 

Dan Delong (left) Dean Mather (right), 

St. Louis; Page 1 - Ned Bergman; Pages 

2,3, and 7 - photos provided by Bill 

Vereen (Retired Examiner); Page 7 - 

Cortez Wofford in Texarkana, TX; Page 

8 - Duluth, MN - General Mills Elevator 

“A” taken by Richard Liggett; Page 10 

- Cortez Wofford in Texarkana, TX; and 

Page 11 - Redwing, MN.

MESSAGE FROM THE DIRECTOR

Addressing the overall progress and initiatives for the year

NED BERGMAN

The year 2021 marks the 105th year since enactment of the United States Warehouse Act 

(USWA). Signed into law in August 1916, the 

USWA was designed to address deficiencies 

in the agricultural commodity industry. The 

major issues brought out in the framing of the 

legislation were inadequate storage facilities; 

improper regulation of storage systems; no 

uniformity in operations and receipts issued; absence of standards for 

grading, classifiers, and weighers; and improper relationship between 

storage and banking systems. After a century plus the USWA is still 

viable and a cornerstone to the successful commercial process of 

storing and merchandising agricultural commodities. It still addresses 

the needs of the industries that were identified in its original drafting. 

The basic principles included in the framework become even more 

essential to U.S. agriculture when operating through challenges of 

a worldwide pandemic, major weather events, and market volatility. 

As documented in this Annual Report, participation in the USWA remains very active. The number of warehouses and warehouse capacities under USWA licensing are at historical highs. Through the 

challenges, USWA administrators were able to meet the demands 

and expectations of the commodity industries we serve. As systems 

and services continue to evolve to meet the needs of a transforming 

commercial landscape, the USWA, and the Federal employees I have 

the honor of leading, maintain the resiliency to be transformational, as 

well as to continue meeting industry needs and expectations.

Sincerely,

Ned Bergman

Director

Warehouse and Commodity Management Division

DID YOU KNOW? Did you know that James Earl Carter Jr., the 39th 

President of the U.S. was also a Proprietor and Manager 

of a UWA licensed cotton warehouse? 

Along with his mother Lillian and brother Billy, they operated the 

Carter’s Bonded Warehouse located in Plains, Georgia, license 

number 2-2315. His active interest in the warehouse had to be 

transferred to a blind trust when he took the oath of office in 1977.
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Annual Report 2021 2 Annual Report 2021 3

INTRODUCTION

A quick review of the year, key services, and the organization

YEAR AT A GLANCE

FY 2021 provided unique challenges and opportunities for growth and development, capping off with lowering 

expenses, efficient use of staff time, and strategic processes to withstand the implications of COVID-19 on the 

workplace and the economy.

FINANCIAL IMPACT

Throughout 2021, USWA services were 

delivered effectively and efficiently to minimize the impact of COVID-19 on our operations. Furthermore, investments were 

made to further modernize IT solutions, 

and cost reductions were realized across 

the entire USWA program.

People

contribute 

portions of 

their time to 

USWA

58

24.7

38

STAFF YEARS

for licensing, examinations, and general administration of the USWA program and activities. A staff year 

represents 2,087 hours.

62

of WCMD staff, including warehouse examiners, 

spent on USWA services.

of WCMD staff was allocated to other USDA programs.

PERCENT OF TIME

PERCENT OF TIME

2021 Finances

$3.65M

in expenses $1.74M

year-end reserve 

balance

$3.69M

user-fee 

collections

KEY SERVICES

Under authority of the USWA, WCMD provides key services to the agricultural commodity industry that protect 

depositors, support inventory accuracy, and ensure accountability from commodity warehouses.

• Warehouse Licensing

• Inspect/Weigh/Grade/Classify Service Licensing

• Examinations

• Warehouse Receipts

• Central Filing Systems

o Electronic Warehouse Receipts

o Other Electronic Documents

ORGANIZATIONAL STRUCTURE

WCMD is made up of four organizational components including the Division Director’s Office, the 

Examination Branch, the License and Storage Contract Branch, and the Commodity Management 

Branch.

USWA services are delivered by staff in WCMD’s Examination Branch and the License and 

Storage Contract Branch with support provided by the Office of the Director. WCMD also 

conducts various activities on behalf of the Commodity Credit Corporation (CCC). 

EMPLOYEES AND LOCATIONS

The WCMD staff supporting USWA activities are strategically located throughout the United States.

Warehouse examiners are distributed across the nation for effective and efficient delivery of on-site services. Staff supporting USWA administrative functions work in offices located in Washington, DC and Kansas 

City, MO. Staff members split their time between USWA and other program activities to maximize efficient 

resource allocation.

In FY 2021, USWA user-fees supported 24.7 staff years for licensing, examinations, and general administration of the USWA program and activities. A staff year represents 2,087 hours.
Agricultural Marketing Service

Annual Report 2021 4 Annual Report 2021 5

KEY STAKEHOLDERS

USWA stakeholders have a shared interest in protecting agricultural commodity depositors, 

which include farmers, cooperatives, merchandisers, banks, investors, the Commodity Credit 

Corporation, and other entities. 

Industry associations that represent warehouse operators and other agricultural sectors work closely with WCMD to 

support delivery of services, improve efficiencies, and resolve issues quickly. Associations of government entities with 

shared responsibilities or interests in oversight of agricultural commodity warehouses are key partners. USWA license 

holders provide services to depositors under authority of the USWA and in cooperation with WCMD.

• American Cotton Shippers Association

• American Peanut Shellers Association

• Cotton Growers Warehouse Association

• Cotton Warehouse Association of America

• National Cotton Council

• National Grain and Feed Association

• National Peanut Buying Point Association

• US Dry Pea and Lentil Association

• US Rice Producers Association

• USA Rice Federation

Warehouse and Agricultural Sector Stakeholders

•	 Association of Grain Regulatory Officials

• National Association of State Departments 

of Agriculture 

• USDA - AMS Commodity Procurement 

Program 

• USDA - Farm Service Agency

• United States Agency for International 

Development

Associations of Government Agencies with 

Shared Responsibilities and Interests

2021 USWA OVERVIEW OF OPERATIONS

Examinations, licenses, and inspections over the course of 2021

RESILIENCE AND INNOVATION AMIDST ADVERSITY

FY 2021 was the second year of the COVID-19 Pandemic that has disrupted and forced changes in operations throughout the agricultural supply chain. The industry and WCMD exercised creativity, innovation, and resilience to cope with 

challenges presented by the coronavirus. As health and safety guidelines evolved, the WCMD team adjusted operations 

to maintain essential services. A pillar of this flexibility was prior investments in information systems and processes.

Export Food Aid 

Commodity 

Licenses

• 16 licenses

• 19 functional units

Dry Edible 

Bean 

Licenses

• 5 licenses

• 29 functional units

• 8,586,000 CWT 

capacity

Cottonseed 

Licenses

• 1 license

• 1 functional unit

• 8,000 tons capacity

Electronic 

Provider 

Licenses

• 4 licenses
Agricultural Marketing Service

Annual Report 2021 6 Annual Report 2021 7

WAREHOUSE AND INVENTORY EXAMINATIONS

WCMD conducts examinations of warehouses for USWA compliance. Examinations consist of documentation of storage obligations, physical inventory of stored commodities, comparison of inventory with storage 

obligations, review of the warehouse’s physical suitability for storage of specific commodities, and a review of 

the warehouse’s business practices for conformance with USWA regulatory requirements. 

WCMD conducted 1,153 examinations of USWA warehouses in FY 2021. Of those, 408 examinations uncovered 645 items requiring a compliance follow-up. WCMD staff continue to work with industry to resolve 

compliance items enabling enhanced warehouse operations and industry integrity.

2017 2018 2019 2020 2021

Beans 11 10 3 6 7

EFAC 92 82 117 47 50

Cottonseed 3 3 5 0 3

Cotton 226 218 178 188 142

Peanut 72 58 75 55 56

Grain 1,194 1,191 1,038 909 895

Total 1,598 1,562 1,416 1,205 1,153

FY 2021 INSPECTOR, WEIGHER, CLASSIFIER, AND GRADER LICENSES

WCMD licenses private industry inspectors, weighers, classifiers, and graders to provide validation and legal 

recourse at the delivery point. In FY 2021, there were more than 15,000 active USWA licenses for non-official 

industry samplers, inspectors, weighers, classifiers, and graders of agricultural products. 

FINANCIAL INFORMATION

Finance management and expenses amid COVID-19

ENSURING FINANCIAL STEWARDSHIP 

The USWA authorizes the assessment and collection of fees to cover the costs of administering 

the USWA program. 

These fees cover costs of providing services, including salaries and benefits, travel, equipment, supplies, and 

administrative expenses. Administrative expenses include budget, human resources, legal, and information 

technology support. 

The FY 2021 year-end reserve balance of $1.75 million is equivalent to 5.8 months of operating expenses. 

The purpose of the reserve account is to buffer unexpected changes in user-fee collections or market disruptions and cover accrued liabilities in the event of unexpected program cessation.

Annual capacity-based user-fees and specific license action fees are collated and billed at month-end. This 

process creates a receivable for the last billing month that carries over into the next fiscal year. The USWA 

receivable balance was $497,637 at year-end.

 INCOME/EXPENSE STATEMENT

FY2019 FY2020 FY2021

Reserve Account Balance - October 1 $1,483,132 $958,356 $1,708,473 

INCOME

User Fees $3,659,342 $4,137,381 $3,693,739 

Total Collections $3,659,342 $4,137,381 $3,693,739 

EXPENSES

Salaries $1,777,356 $1,720,209 $1,951,509 

Salary/Employee Benefits $680,735 $719,381 $771,900 

Travel $419,862 $360,781 $344,477 

Communications $24,016 $18,000 *$0 

Other Operating Expenses $14,198 $6,256 $3,243 

Information Technology Contracts $600,812 $31,010 $39,958 

Administrative Program Services $212,213 $123,081 $155,692 

Agency Shared Services $323,295 $296,949 $283,110 

Departmental Shared Services $131,631 $111,597 $105,003 

Total Expenses $4,184,118 $3,387,264 $3,654,892 

Net Gain/Loss ($524,776) $750,117 $38,847 

Reserve Account Balance - September 30 $958,356 $1,708,473 $1,747,320

*Communication expenses are included in Shared Services in FY 2021. 
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Annual Report 2021 8 Annual Report 2021 9

EFFICIENCIES AND COST SAVINGS

Building and implementing efficiencies into cost, personnel usage, and modernization

GAINING EFFICIENCIES AND CONTROLLING COSTS

The USWA, (7 USC § 243(e)(2)), authorizes the collection of fees to administer the program and 

requires the Secretary “to minimize the fees established under this section by improving efficiencies and reducing costs, including the efficient use of personnel to the extent practicable and 

consistent with the effective implementation of this Act.”

Accordingly, WCMD continues to take steps to minimize costs and implement innovative strategies to gain 

additional efficiencies. Primary focus is placed on the efficient use of personnel, streamlined business operations supported by modernized systems and technologies, and ongoing outreach and engagement with the 

commodity warehouse industry.

EFFICIENT USE OF PERSONNEL

In FY 2021, personnel expenses (salaries and benefits) represented 75 percent of all USWA costs and provided for a total of 24.7 staff years in direct support of USWA services. WCMD staff, including warehouse 

examiners, spent 32 percent of their time on USWA services, and the remaining 68 percent was allocated to 

other USDA programs, including Country of Origin Labeling (COOL) Regulatory Reviews, Commodity Procurement Export and Domestic Warehouse Inspections, and CCC Storage Agreement Examinations. Managing human capital in this manner provided available staff resources to efficiently deliver timely, accurate, 

and quality services to the commodity warehouse community without relying on USWA-licensed warehouses 

to pay the full cost of maintaining the staff.

IT MODERNIZATION (eWCMD)

WCMD has been undergoing a massive modernization 

effort that centers around using a cloud-based, fully customized application to be used as the Division-wide system of record. Significant milestones accomplished in FY 

2021 included enhancements to examination processes 

and development of USWA license action tracking, emergency and temporary storage management, and financial 

statement review and tracking.

WCMD, in FY 2021, also utilized a Government 

Publishing Office (GPO) Term Contract to convert 

all paper files – approximately 2.2 million pages 

– in the Kansas City office to electronic records, 

with metadata, in compliance with Office of Management and Budget (OMB) Memorandum M-19-

21, Transition to Electronic Records.

These newly digitized records are stored in WCMD’s 

Box instance, a secure cloud content management platform allowing all staff visibility into the entire warehouse 

program. WCMD is working with vendors to build a 

bridge between this records repository and eWCMD.

These investments culminate WCMD’s initiative to 

streamline business processes by fully decommissioning seven legacy systems, including mainframe and 

in-house developed shadow IT solutions while reducing 

the overall physical, financial, and technological footprint of the Division’s IT infrastructure.

COMMODITY WAREHOUSE INDUSTRY COMMUNICATION AND 

COLLABORATION

For decades, WCMD has worked closely with the 

commodity warehouse industry to support delivery 

of services, improve efficiencies, and resolve issues 

quickly. Open and timely communication is a crucial component of these professional relationships. 

While warehouse operators, industry associations, 

stakeholders, and WCMD each have their respective 

responsibilities and concerns, a history of successful 

collaboration has resulted in improved efficiencies in 

the delivery of USWA services and an overall reduction of risk for depositors of agricultural commodities 

in licensed warehouses.

CONCLUSION

A final word on this year’s successes and opportunities for continued growth

As we conclude the 105th year of the USWA, WCMD is eager to leverage the rapid change launched by 

eWCMD into lasting opportunities for our staff and stakeholders. Recognizing that the post pandemic 

landscape is still evolving, WCMD stands ready to meet any challenges in collaboration with our industry 

partners. The USWA has been cited numerous times as the “gold standard”- an expectation that is considered integral to our shared success. WCMD will work diligently in FY 2022 to preserve and grow this 

legacy. 

For USWA inquiries, visit our website at https://www.ams.usda.gov/services/warehouse, email us at warehousing@usda.gov, call (816) 926-6474, or write:

Director, 

AMS, FTPP, WCMD, 

1400 Independence Avenue, SW, 

Washington, DC 20250
Annual Report 2021 10

In accordance with Federal 

civil rights law and U.S. 

Department of Agriculture (USDA) 

civil rights regulations and policies, 

the USDA, its Agencies, offices, and 

employees, and institution participating 

in or administering USDA programs are 

prohibited from discriminating based on race, 

color, national origin, religion, sex, gender identity 

(including gender expression), sexual orientation, 

disability, age, marital status, family/parental status, 

income derived from a public assistance program, political 

beliefs, or reprisal or retaliation for prior civil rights activity, in any 

program or activity conducted or funded by USDA (not all bases 

apply to all programs). Remedies and complaint filing deadlines vary 

by program or incident.

Persons with disabilities who require alternative means of communication for 

program information (e.g., Braille, large print, audiotape, American Sign Language, 

etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-

2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-

8339. Additionally, program information may be made available in languages other than 

English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint 

Form, AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office 

or write to a letter addressed to USDA and provide in the letter all of the information requested in the form. 

To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA 

by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence 

Avenue, S.W., Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

Use of commercial and trade names does not imply approval or constitute endorsement by USDA. 

December 2021

For more information about the United States Warehouse Act, please call (816) 926-6474.

Email: warehousing@usda.gov

Website: ams.usda.gov/rules-regulations/uswa

United States Department of Agriculture, 

Agricultural Marketing Service

Fair Trade Practices Program, 

Warehouse and Commodity Management Division

1400 Independence Avenue, SW, Washington, DC 20250