Federal Grain Inspection Service

2018 Annual Report

PROMOTE

PROVIDE

PROTECT
2018 FGIS Annual Report to Congress | 2

About This Report

Each year, pursuant to section 87(f-2) of the U.S. Grain Standards Act, the Federal Grain Inspection 

Service respectfully submits an annual report to the U.S. Congress. Activities described in this report 

cover Fiscal Year (FY) 2018 (October 1, 2017, through September 30, 2018).

All content is reported as Grain Inspection, Packers and Stockyards Administration (GIPSA). In FY 2018, 

the realignment of offices within the U.S. Department of Agriculture eliminates GIPSA as a standalone 

agency. The grain inspection activities formerly part of GIPSA are now organized under the Agricultural 

Marketing Service.

This report is divided into six sections. After the Introduction, Sections II through V represent program 

goals, and Section VI provides information regarding the Federal Grain Inspection Service’s management 

initiatives and financial position.

Any mention of firm names or trade products does not imply that they are endorsed or recommended 

directly or indirectly by the U.S. Department of Agriculture.

This document is available in an electronic 508 PDF version on our website at www.ams.usda.gov/aboutams/accessibility.
2018 FGIS Annual Report to Congress | 3

Table of Contents

SECTION I Introduction ............................................................................................................................................................................4

Agency Mission ....................................................................................................................................................................................5

The Federal Grain Inspection Service..................................................................................................................................................5

Grain Inspection, Packers and Stockyards Administration (GIPSA) and Agricultural Marketing Service (AMS) Merger .....................6

Grain Inspection Advisory Committee ..................................................................................................................................................6

Key Activities ........................................................................................................................................................................................7

Services Provided Under USGSA ........................................................................................................................................................8

Employees and Locations ....................................................................................................................................................................8

SECTION II Outlook 2019 .......................................................................................................................................................................10

U.S. Standards for Grain ....................................................................................................................................................................11

SECTION III Providing the Market With Terms and Methods for Quality Assessment..............................................................12

Board of Appeals and Review ............................................................................................................................................................13

Pesticide Residue Testing and Method Development ........................................................................................................................14

Mycotoxin and Biotechnology Rapid Test Kit Evaluations ..................................................................................................................15

Reference Method Analyses...............................................................................................................................................................16

Biotechnology Proficiency Program....................................................................................................................................................17

Standardizing Commercial Grain Inspection Equipment....................................................................................................................18

Promoting U.S. Grain to International Customers ..............................................................................................................................19

Visiting Trade and Governmental Teams............................................................................................................................................20

International Activities.........................................................................................................................................................................21

Summary of International Travel for Fiscal Year 2018........................................................................................................................23

SECTION IV Protecting the Integrity of U.S. Grain and Related Markets.................................................................. 24

Alleged Violations ...............................................................................................................................................................................25

Registrants to Export Grain ................................................................................................................................................................25

Domestic Grain Inspection .................................................................................................................................................................26

Meeting the Needs of International Customers ..................................................................................................................................27

SECTION V Providing Official Grain Inspection and Weighing Services.................................................................. 28

Partnerships With States and Private Entities....................................................................................................................................29

SECTION VI Financial Information................................................................................................................................ 37
2018 FGIS Annual Report to Congress | 4

SECTION I 

Introduction
2018 FGIS Annual Report to Congress | 5

Section I Introduction

Agency Mission

FGIS’s primary mission is twofold: promote the marketing of high-quality grain to domestic and 

international buyers, and maintain objective standards for grain to certify its quality as accurately as 

practicable. These standards define uniform and descriptive terms to facilitate the grain trade, help 

determine grain storability, offer users the best possible information to determine end-product yield and 

quality, provide market incentive frameworks, reflect the economic value-based characteristics to endusers, and accommodate scientific advances in testing.

The Federal Grain 

Inspection Service

The U.S. Department of Agriculture’s 

(USDA) Federal Grain Inspection Service 

(FGIS) establishes quality standards for 

grains, oilseeds, pulses, and legumes; 

provides impartial inspection and weighing 

services through a network of Federal, 

State, and private entities; and monitors 

marketing practices to enforce compliance 

with the U.S. Grain Standards Act, as 

amended, (USGSA) and the Agricultural 

Marketing Act of 1946, as amended (AMA). 

Through these activities, FGIS facilitates the 

marketing of grains, oilseeds, and related 

products.

FGIS administers uniform national grain 

inspection and weighing programs 

established by the USGSA. Services under 

the USGSA are performed on a fee basis for 

both export and domestic grain shipments. 

The USGSA requires that export grain be 

inspected and weighed, prohibits deceptive 

practices with respect to the inspection and 

weighing of grain, and provides penalties for 

violations.
2018 FGIS Annual Report to Congress | 6

Grain Inspection Advisory Committee

Grain Inspection, Packers and 

Stockyards Administration (GIPSA) 

and Agricultural Marketing Service 

(AMS) Merger

On November 14, 2017, Secretary Sonny Perdue issued a 

Memorandum that authorized the realignment of offices within the U.S. 

Department of Agriculture. This Memorandum eliminated GIPSA as a 

standalone agency and reorganized the grain inspection activities under 

AMS. AMS administers programs that create domestic and international 

marketing opportunities for U.S. producers of food, fiber, and specialty 

crops. AMS also provides the agriculture industry with valuable services 

to ensure the quality and availability of wholesome food for consumers 

across the country. The realignment was designed to improve upon 

customer engagement and maximize efficiencies.

The Grain Inspection 

Advisory Committee 

meets no less than once 

a year to advise FGIS 

on the programs and 

services it delivers under 

the U.S. Grain Standards 

Act. Recommendations 

by the committee help 

FGIS to better meet the 

needs of its customers 

who operate in a 

dynamic and changing 

marketplace.

The committee comprises 15 members appointed by the U.S. Secretary of Agriculture who represent all segments of the grain industry. 

They include grain producers, processors, merchandisers, handlers, exporters, consumers, grain inspection agencies, and scientists. 

Committee members serve without compensation, but are reimbursed for travel expenses.

On September 5-6, 2018, the committee held a meeting at the National Grain Center (NGC) in Kansas City, Missouri. The committee 

listened to presentations on updates from Quality Assurance and Compliance Division, Technology and Science Division, International 

Affairs Division, Field Management Division, FGISonline, FGIS Budget, and USDA's Animal and Plant Health Inspection Service.

The committee meeting was attended by 14 committee members and 20 public attendees. Minutes, presentations, and other 

information on the committee can be found on the AMS public website www.gipsa.usda.gov/fgis/advcommittee/KC_GIAC_

Minutes_2018V3.0.pdf.

Section I Introduction
2018 FGIS Annual Report to Congress | 7

Key 

Activities

In Administering and Enforcing the USGSA, FGIS:

• Establishes and maintains official U.S. grain standards 

for barley, canola, corn, flaxseed, oats, rye, sorghum, 

soybeans, sunflower seed, triticale, wheat, and mixed 

grain;

• Promotes the uniform application of official U.S. grain 

standards by official inspection personnel;

• Establishes methods and procedures and approves 

equipment for the official inspection and weighing of 

grain;

• Provides official inspection and weighing services at 

certain U.S. export port locations and official inspection 

of U.S. grain at certain export port locations in eastern 

Canada along the St. Lawrence Seaway;

• Delegates qualified State agencies to inspect and 

weigh grain at certain U.S. export port locations;

• Designates qualified State and private agencies to 

inspect and weigh grain at interior locations;

• Licenses qualified State and private agency personnel 

to perform inspection and weighing services;

• Provides Federal oversight of the official inspection and 

weighing of grain by delegated States and designated 

agencies;

• Monitors the quality and weight of U.S. grain as 

received at destination ports, and investigates 

complaints or discrepancies reported by importers;

• Investigates, in cooperation with the USDA’s Office of 

Inspector General, alleged violations of the USGSA and 

initiates appropriate corrective action; and

• Helps U.S. trading partners develop and improve their 

grain inspection and weighing programs.

Section I Introduction
2018 FGIS Annual Report to Congress | 8

Section I Introduction

Services Provided Under USGSA

Under provisions of the USGSA, most grain exported from U.S. export 

port locations must be officially weighed. A similar requirement exists for 

inspection, except for grain that is not sold or described by grade. The 

USGSA also requires that all corn exported from the United States be 

tested for aflatoxin prior to shipment unless the contract stipulates that 

testing is not required.

Employees and Locations

As of September 20, 2018, FGIS is comprised of 442 full-time, permanent 

employees and 75 temporary employees located at the headquarters unit 

in Washington, D.C.; the National Grain Center in Kansas City, Missouri; 

7 field offices; and 1 Federal/State office. Field offices are located 

in Grand Forks, North Dakota; Kansas City, Missouri; League City, 

Texas; New Orleans, Louisiana; Portland, Oregon; Stuttgart, Arkansas; 

and Toledo, Ohio. FGIS also has a Federal/State office in Olympia, 

Washington.

FGIS offers official inspection and weighing services in all areas of the 

United States and services for U.S. grain exported through Canadian 

ports.
2018 FGIS Annual Report to Congress | 9

Designated Private Agencies Designated States Designated and Delegated States

Delegated State

DIOO (Grain/Pulses/Processed Commodities)

Stuttgart (Rice)

League City

New Orleans

Olympia

Toledo

Field Office Areas of Responsibility

● FGIS Field Office

À Federal/State Office

▲ FGIS Duty Point

£ Official Agency Boundaries

£ Unassigned Areas

£ State Boundaries

AL Alabama

SC South Carolina

VA Virginia

WA Washington

GA Georgia

LA Louisiana

MD Maryland

MO Missouri

MT Montana

NC North Carolina

UT Utah

AB 

AM 

JB 

CI 

CG

CD 

DB 

EI 

EN 

FS 

FE 

HA 

ID 

JA 

KA 

KS 

KE 

LN 

MH

CR 

Aberdeen

Amarillo

Barton

Cairo

California Agri

Champaign

Detroit

Eastern Iowa

Enid

Farwell Southwest 

Fremont

Hastings

Idaho

Jamestown

Kankakee

Kansas

Keokuk

Lincoln

Michigan

Mid-Iowa

MM

MP

NR

NE

NP

EV

OM

PL

SH

SI

SG

TT

TS

Midsouth

Minot

North Dakota

Northeast Indiana

Northern Plains

Ohio Valley

Omaha

Plainview

Schaal

Sioux City

State Grain

Titus

Tri-State

WI Wisconsin

Section I Introduction

OFFICIAL AGENCY GEOGRAPHIC AREAS AND FGIS FIELD OFFICES

U.S. GRAIN STANDARDS ACT
2018 FGIS Annual Report to Congress | 10

SECTION II 

Outlook 2019
2018 FGIS Annual Report to Congress | 11

U.S. Standards for Grain FGIS regularly reviews the official standards for grain to ensure that the standards remain 

relevant to the marketplace. In FY 2018, FGIS completed its review of the U.S. Standards 

for Barley and published three Request for Comments notices in the Federal Register, 

opening review of the United States Standards for Corn, the United States Standards 

for Canola, and the United States Standards for Soybeans. The Request for Comments 

documents were published with a 60-day comment period. Stakeholders requested 

additional time to provide comments. FGIS published notices in the Federal Register 

extending the comment period an additional 60 days. The Final Rule revising the United 

States Standards for Barley became effective August 1, 2018.

Section II Outlook 2019

Federal Register /
2018 FGIS Annual Report to Congress | 12

SECTION III 

Providing the Market 

With Terms and 

Methods for Quality 

Assessment
2018 FGIS Annual Report to Congress | 13

Board of Appeals and Review

The Board of Appeals and Review (BAR) is a team of six senior-level grain 

inspectors led by a Chairman and an Assistant Chairman. The BAR is the 

final adjudication body for all disputes regarding subjective grain quality 

issues presented by any interested party in a grain transaction. The BAR 

performs appeal inspections after the issue has been considered by other 

FGIS field offices. The BAR rendered decisions on 347 grain appeals 

during FY 2018. 

The BAR provided grain grading presentations and “hands 

on” grain grading training to domestic grain associations 

and international trade teams. BAR members also provided 

annual training for Federal and official agency grain inspectors 

at FGIS field offices.

The BAR is responsible for ensuring alignment of sensory 

inspections throughout the entire official inspection system. 

This is accomplished through a network of Quality Assurance 

Specialists (QAS) at both Federal and official agency 

inspection points. To maintain inspection alignment, the BAR 

holds annual QAS seminars for Federal and official agency 

QASs at the National Grain Center in Kansas City, Missouri. 

In FY 2018, the BAR also provided technical grain grading 

training for one newly appointed QAS, and a 1-week training 

course for five new QASs. 

Section III Providing the Market with Terms and Methods for Quality Assessment
2018 FGIS Annual Report to Congress | 14

Section III Providing the Market with Terms and Methods for Quality Assessment

Pesticide Residue Testing and 

Method Development

FGIS provides pesticide residue testing services for 

applicants and for domestic and export surveys. In 

addition, FGIS develops analytical methods to support 

these activities, which play a critical role in demonstrating 

the quality of U.S. grain as it relates to food safety, value, 

and adherence to U.S. and international regulatory limits. 

In FY 2018, FGIS analyzed 488 export wheat samples 

for 75 pesticide residues and 100 export corn samples 

for 60 pesticide residues. In addition to the survey work, 

FGIS analyzed 13 corn, soybean, and popcorn applicantsubmitted samples for 56 pesticide residues and analyzed 

19 applicant-submitted wheat samples for 75 pesticide 

residues. An FGIS certificate was issued to the customer 

for each of the submitted samples. 

In support of these programs, FGIS developed one new 

method for the analysis of paraquat and diquat, modified 

the analytical method for glyphosate to quantify at a 

lower concentration, and improved the efficiency of seven 

existing methods. 
2018 FGIS Annual Report to Congress | 15

Section III Providing the Market with Terms and Methods for Quality Assessment

Mycotoxin and Biotechnology Rapid Test Kit Evaluations

The grain industry needs fast reliable tests to detect and quantify the incidence of fungal-produced mycotoxins in grain as well as to 

accurately identify Genetically Engineered (GE) traits in grains. To ensure that commercially available tests provide reliable results, 

FGIS offers a performance evaluation and certification program. In FY 2018, 29 rapid test kits were evaluated for the analysis of 

mycotoxins (aflatoxins, deoxynivalenol, fumonisins, ochratoxin A, and zearalenone). Of the 29 test kits, 22 met the FGIS performance 

criteria and were certified.

MYCOTOXIN MONITORING PROGRAMS. In FY 2016, 

FGIS initiated monitoring programs for deoxynivalenol 

(DON) and aflatoxins, respectively, as part of an overall 

mycotoxin quality assurance program. Under the 

mycotoxin monitoring programs, a percentage of original 

inspection results obtained by service providers using an 

FGIS-approved test kit is compared to the results obtained 

from FGIS’ reference methods. FGIS reference methods 

utilize highly sensitive and selective instrumentation; 

ultra-high performance liquid chromatography (UHPLC)/

tandem mass spectrometry and UHPLC/fluorescence, 

for DON and aflatoxins, respectively. Weekly and annual 

reports showing a comparison of the results obtained from 

the original inspection to those obtained by FGIS’ reference 

method are provided to testing locations to assess their 

performance. Routine correspondence between official service 

providers and FGIS chemists is maintained to aid in report 

interpretation, quality assurance, and resolution of testing 

issues. In FY 2018, FGIS continued both DON and aflatoxin 

monitoring programs where 1,090 samples were analyzed from 

59 specified service points (SSPs) for DON and 1,796 samples 

from 96 SSPs for aflatoxins. 

WATER-BASED TEST KITS. A technology has been 

developed using water for the extraction of aflatoxins, 

deoxynivalenol, fumonisins, and zearalenone instead of more 

hazardous organic solvents. The use of water instead of 

organic solvents eliminates the need for special handling of 

this waste, thereby reducing overall costs. It also reduces 

possible exposure of operators to hazardous chemicals when 

performing these tests. Of the 28 kits currently approved for 

use by FGIS for analysis of mycotoxins, 21 use water-based 

extraction technologies.
2018 FGIS Annual Report to Congress | 16

Section III Providing the Market with Terms and Methods for Quality Assessment

Reference Method Analyses

WHEAT FUNCTIONALITY. The intrinsic qualities of wheat affect the 

quality of end products. To best determine the ability of wheat to meet 

specific end-use needs, accurate test methods are needed to differentiate 

functional qualities. These methods should also be practical, rapid, and 

reproducible among different laboratories to provide value transparency 

from the producer to the processor and provide information that better 

predicts appropriate end uses, thereby enhancing the marketability of 

U.S. wheat. The Falling Number test is an important measure of the 

effect of sprout damage on wheat and an indicator of the performance of 

wheat during the processing of flour for making various food products. In 

FY 2018, FGIS completed two rounds of check sample distributions and 

continued Falling Number inspection monitoring to evaluate accuracy of 

official testing. Reports were issued for both check sample distributions 

and monitoring program results summarizing testing performance. 

FGIS personnel provided on-site falling number training and evaluated 

the performance of each analyst. In May 2019, FGIS will implement a 

new barometric pressure correction and require the use of the Perten 

Shakematic for the determination of Falling Number for wheat grain to 

reduce overall variation of test results within the official inspection system.

FGIS establishes and performs reference methods for protein, 

moisture, oil, and mycotoxins. These methods are used to maintain 

the accuracy of current testing in the official inspection system 

and to support development of new rapid field tests. The protein, 

moisture, oil, and fatty acid reference analyses support the nearinfrared spectroscopic, dielectric, and nuclear magnetic resonance 

instruments used for rapid inspection at field locations that perform 

official testing. The mycotoxin reference analyses support the 

evaluation and standardization of rapid tests for official and commercial 

grain inspection, and support quality assurance programs ensuring 

consistent and reliable testing results. Reference method analysis is 

available upon request for Board Appeals of mycotoxins – aflatoxins, 

deoxynivalenol, fumonisin, ochratoxin A, and zearalenone. 

In FY 2018, FGIS evaluated a method used by the U.S. Food and Drug 

Administration for extraction of several mycotoxins and verified that it 

compared closely with the FGIS reference methods for aflatoxins and 

deoxynivalenol. This effort helped ensure harmonization of results 

within the food safety and marketing sectors of the grain industry. 
2018 FGIS Annual Report to Congress | 17

Biotechnology Proficiency Program

Section III Providing the Market with Terms and Methods for Quality Assessment

FGIS' Biotechnology Proficiency Program now involves 210 

organizations on five continents – Africa, Asia, Europe, and 

North and South America, with more than 80 percent of the 

participants from organizations outside the United States. 

FGIS bi-annually distributes blind test samples to participants 

and compiles and disseminates the results of tests. This 

program, which FGIS initiated in 2002, enables organizations to 

assess and improve their accuracy and precision in identifying 

genetically engineered (GE) events in grains and oilseeds 

and gives grain buyers and sellers confidence in the results 

produced by GE testing laboratories: 

www.gipsa.usda.gov/fgis/proficiencyprogram.aspx

HARMONIZING BIOTECH REFERENCE METHODS. There is 

a need for highly specific and accurate tests for the various GE 

crops grown in the United States. FGIS has developed intralaboratory validated real-time polymerase chain reaction methods 

and has evaluated the accuracy, reliability, and proficiency of 

publicly available methods used to detect and identify GE grains 

and oilseeds. FGIS participated on a scientific panel of experts 

engaging U.S. stakeholders and influencing outcomes on issues 

related to testing of GE traits in grains with the goal of developing 

global scientific consensus regarding the analysis of transgenic 

events. FGIS continues to collaborate with international 

organizations such as Analytical Excellence through Industry 

Collaboration, International Organization for Standardization, 

American Association of Cereal Chemists International, The 

Global Low-level Presence Initiative, and the Canadian Grain 

Commission to harmonize testing technologies for GE grains and 

oilseeds.
2018 FGIS Annual Report to Congress | 18

Standardizing Commercial Grain Inspection Equipment

National Type Evaluation Program (NTEP). In FY 2018, FGIS continued the cooperative effort 

with the National Conference on Weights and Measures (NCWM) and the National Institute for 

Standards and Technology to standardize commercial inspection equipment. The commercial 

inspection equipment includes moisture meters and any test weight modules contained within 

moisture meters, as well as near-infrared analyzers for protein, oil, and starch. FGIS served 

as the sole evaluation laboratory for grain inspection equipment under the NCWM NTEP. 

FGIS collected grain moisture meter calibration data for eight instrument models as part 

of the NTEP ongoing calibration program. Calibrations developed in this program provide 

traceability throughout the official FGIS moisture program, including the air oven reference 

method, and they are used in the majority of moisture meters used for commercial grain 

transactions throughout the United States. 

In FY 2018, FGIS’ NTEP laboratory coordinated its issuance of Certificates of Conformance 

with FGIS’ implementation of calibrations for the official moisture meter models for use with 

the major grains. This close coordination ensured that State-regulated commercial moisture 

meter users could use the same meters and calibrations as those used in official inspection. 

In FY 2017, the NTEP laboratory began evaluation of a near-infrared analyzer for moisture, 

oil, and protein. The evaluation of this device is ongoing. In FY 2019, FGIS will collect grain 

moisture meter calibration data for eight NTEP models and will conduct NTEP testing for new 

grain inspection equipment models upon request. 

Section III Providing the Market with Terms and Methods for Quality Assessment
2018 FGIS Annual Report to Congress | 19

Section III Providing the Market with Terms and Methods for Quality Assessment

Promoting U.S. Grain to 

International Customers

FGIS personnel frequently meet with delegations visiting 

from other countries to brief them on the U.S. grain 

marketing system, our national inspection and weighing 

system, U.S. grain standards, and FGIS’ mission. Many 

of these delegations are sponsored by USDA Cooperator 

organizations like U.S. Wheat Associates and U.S. Grains 

Council, which arrange visits to grain production areas, FGIS 

field offices, onsite laboratories at export grain elevators, 

and the FGIS National Grain Center (NGC) in Kansas City, 

Missouri. At the NGC, delegations often receive technical 

training on analytical testing procedures and grain inspection 

methods and procedures.

Briefings are tailored to address each group’s interests and 

concerns. Presentations include explanations of the various 

services available from FGIS and the Official Agencies use 

of the latest technology to provide grain traders with accurate 

and reliable inspection and weighing information. For 

importers or potential importers new to the U.S. grain market, 

FGIS provides information on how to contract for the quality 

they desire. 

These briefings foster a better understanding of the entire U.S. 

grain marketing system and serve to enhance purchasers’ 

confidence in U.S. grain. Ultimately, these efforts help move 

our Nation’s harvest to end-users around the globe.
2018 FGIS Annual Report to Congress | 20

Section III Providing the Market with Terms and Methods for Quality Assessment

Visiting Trade and Governmental Teams

During 2018, FGIS personnel met with 21 teams from 13 countries.

• Brazil

• China

• Chile

• Ecuador

• El Salvador

• Indonesia

• Israel

• Japan

• Korea

• Nigeria

• Philippines

• Saudi Arabia

• Sudan
2018 FGIS Annual Report to Congress | 21

Section III Providing the Market with Terms and Methods for Quality Assessment

International Activities TECHNICAL ASSISTANCE. In FY 2018, FGIS responded to customers’ needs for 

technical assistance in foreign markets. Exporters, importers, and end-users of U.S. 

grains and oilseeds, as well as other USDA agencies, USDA cooperator organizations, 

and other governments, occasionally ask for FGIS personnel to provide expertise. These 

activities include representing the Agency at grain marketing and grain grading seminars, 

meeting with foreign governments and grain industry representatives to resolve grain 

quality and weight discrepancies, helping other countries develop domestic grain and 

commodity standards and marketing infrastructures, assisting importers with quality 

specifications, and training local inspectors in U.S. inspection methods and procedures. 

Such activities typically have been funded through various programs administered by 

USDA’s Foreign Agricultural Service (FAS) or directly by FGIS.

From August 28-30, 2018, representatives from the U.S. soybean 

industry, along with importers and end users from 58 countries, attended 

the Global U.S. Soy and Specialty Grains Conference in Kansas City, 

Missouri. The National Grain Center gave tours of FGIS’ various 

laboratories to three large groups attending the conference. 

From August 5-9, 2018, an FGIS representative traveled 

to Malaysia to participate in the Annual Southeast Asia 

Agricultural Cooperators Conference (ACC). The conference 

is an example of the collaboration undertaken by USDA 

cooperators who share the objective of fostering U.S. feed 

grain and oilseed sales in the Southeast Asia region. Over 

the last 16 years, the Conference has become a premier 

industry event that brings together high-level executives 

from major feed, livestock production, and grain 

trading companies from the region. Every year, 

the conference results in actual sales of U.S. corn, 

DDGS, soybean meal, wheat, and soybeans. Prior 

to the conference, FGIS also met with several grain 

organizations to discuss the services FGIS offers 

and also to discuss any concerns they may have had 

about U.S. grain imports. 
2018 FGIS Annual Report to Congress | 22

Section III Providing the Market with Terms and Methods for Quality Assessment

SOYBEANS TO CHINA. In December 2017, representatives from the USDA, 

Animal and Plant Health Inspection Service (APHIS) and FGIS traveled to 

China to meet with Chinese officials to discuss their Grain Export and Import 

Law, Decree 177, and propose a “Systems Approach” study to address their 

quarantine weed seed concerns and continue to allow U.S. soybean shipments 

entry into China uninterrupted. China agreed to a 3-year study to determine 

if any correlation exists between the amount of foreign material (FM) and the 

number of weed seeds present in soybean cargoes. In FY19, APHIS and FGIS 

will implement the 3-year study to collect FM samples from soybeans arriving 

at local, regional, and export grain facilities. The Agricultural Marketing Service 

(AMS) National Seed Testing Laboratory analyzes the weed seed content.

CORN, SOYBEANS, AND WHEAT QUALITY SURVEYS. FGIS coordinated 

with U.S. Grains Council and U.S. Wheat Associates to conduct export corn, 

soybean, and wheat quality surveys. FGIS assisted with the surveys by 

collecting, grading, and testing samples, and providing export inspection data. 

These surveys are conducted annually. 

SOUTHEAST ASIA OUTREACH. In September 2018, FGIS temporarily stationed an International Grain Marketing Specialist in Asia 

for 4 weeks to work with Asian customers and their governments. FGIS was able to address immediate and long-term issues in the 

region and promote a better understanding of U.S. 

sampling and inspection methods, which leads to 

fewer differences in test results. This assignment 

also provides FGIS with the opportunity to develop 

face-to-face relationships with customers, USDA 

cooperators and government officials. 

During his time in Asia, the FGIS representative traveled to Indonesia, 

Thailand, Vietnam, Philippines, Japan, and Taiwan to conduct grading 

seminars and meet with individuals and groups involved in the grain and 

milling industry. The seminars, organized with the help of the USDA, Foreign 

Agricultural Service, U.S. Wheat Associates, U.S. Grains Council, and 

U.S. Soybean Export Council, provided much-needed technical education 

to foreign buyers and end users. While in Southeast Asia, the FGIS 

representative was also able to address several grain quality issues with the 

importers in one-on-one meetings, providing the personal customer service 

experiences that are highly valued in Asia. 
2018 FGIS Annual Report to Congress | 23

Section III Providing the Market with Terms and Methods for Quality Assessment

Purpose

Number of 

Travelers

Countries 

Visited

Dates 

of Visits

Stowage Examinations and 

Grain Inspections 1-4 per trip Canada 5 trips - various dates

Asia Pacific Economic 

Cooperation 1 China October 9 - 14, 2017

APHIS Bilateral Decree 177 Talks 1 China December 8 - 12, 2017

Jordan Grain Standards 1 Jordan February 1 - 8, 2018

Rice Testing Algorithms 1 Switzerland February 23 - March 3, 2018

US - Japan Committee on 

Toxin Microorganisms 1 Japan April 23 - 27 2018

Codex Committee on Methods of 

Analysis and Sampling 1 Hungary May 7 - 11, 2018

Africa Food Safety Workshop 1 South Africa June 1 - 10, 2018

Southeast Asia Agricultural 

Cooperators Conference 1 Malaysia August 5 - 9, 2018

Association of Official Agricultural 

Chemists Annual Conference 2 Canada August 26 - 29, 2018

Global Low Level 

Presence Initiative 2 Brazil September 23 - 30, 2018

CDO - Southeast Asia 1 Indonesia, Thailand, Vietnam, 

Philippines, Japan, Taiwan August 31 - September 29, 2018

Summary of International Travel for Fiscal Year 2018
2018 FGIS Annual Report to Congress | 24

SECTION IV

Protecting the 

Integrity of 

U.S. Grain and 

Related Markets
2018 FGIS Annual Report to Congress | 25

Alleged Violations

At the beginning of fiscal year FY 2018, seven cases involving alleged violations of the 

USGSA were pending. During the FY, FGIS opened nine new cases stemming from 

engaging in prohibited or deceptive grain handling practices, exporting grain without 

official personnel onsite to witness the loading. FGIS closed nine cases from prior years 

(2014, 2015, and 2016) during FY 2018. There are currently seven pending cases.

Section IV Protecting the Integrity of U.S. Grain and Related Markets

Violations of 

provisions in 

the U.S. Grain 

Standards Act

The USGSA requires that all persons who buy, handle, weigh, or transport 15,000 metric 

tons or more of U.S. grain for sale in foreign commerce during the current or previous 

calendar year must register with FGIS. During FY 2018, FGIS issued 96 Certificates of 

Registration to individuals and firms to export grain.

Registrants to Export Grain
2018 FGIS Annual Report to Congress | 26

FGIS oversees 45 official State and private agencies that provide 

official services under the USGSA. FGIS supervises 33 official 

private agencies and 7 official State agencies that are designated 

to provide official inspection and/or weighing services in domestic 

markets; 4 official State agencies that are delegated to provide 

mandatory official export inspection and weighing services and 

designated to provide official domestic inspection and weighing 

services within the State; and 1 official State agency that is 

delegated to provide mandatory official export inspection and 

weighing services within the State. 

In FY 2018, FGIS renewed nine official agencies. There were 6 

agencies and 1 State agency renewed for full 5-year designations 

and 1 private agency and 1 State agency renewed for 3-year 

designations. In addition, FGIS amended the geographic area for 

two official agencies.

Section IV Protecting the Integrity of U.S. Grain and Related Markets

Domestic Grain Inspection

RESPONSE TO INADVERTENT RELEASE OF UNAPPROVED TRAITS INTO THE MARKETPLACE. In recent years, there have 

been rare occasions when unapproved GE events 

entered into the U.S. grain handling system. When 

such an inadvertent release occurs, a rapid response 

is necessary to identify and validate methods to detect 

the trait and thereby protect the integrity of U.S. grain 

markets. The testing methods must be highly specific 

and sensitive to effectively maintain confidence in 

U.S. grain marketing systems. Current detection 

methods within FGIS’ Biotechnology Laboratory focus 

on high-throughput DNA extraction methodologies, 

which enables FGIS to more effectively respond to 

inadvertently released products. FGIS has completed 

the development of high-throughput DNA extraction 

methods for corn, soybeans, wheat, and rice. FGIS 

assists government and private laboratories that 

use protein and DNA-based technologies by performing impartial third-party verification of their methods for both qualitative and 

quantitative detection of transgenic events in GE crops. FGIS involvement in responding to such incidents facilitates harmonization of 

sampling plans and of international testing for GE grains and oilseeds. FGIS provides expertise to USDA’s APHIS when responding to 

inadvertent releases of unapproved GE events.
2018 FGIS Annual Report to Congress | 27

Meeting the Needs of International Customers

FGIS administers a formal process for investigating grain quality and weight discrepancies. When an importer of U.S. grain submits a 

claim regarding quality or weight, FGIS analyzes samples retained on file from the original inspection and analyzes samples submitted 

from the complainant (if the buyer chooses to submit them) to evaluate the accuracy of the initial inspection. This process allows 

FGIS to verify whether the original inspection and weighing service provided at the time of loading was correct, based on all available 

information. FGIS then issues a report outlining its findings.

Occasionally, a particular buyer or importing country reports repeated discrepancies that cannot be resolved by a shipment-byshipment review under this process. In such cases, FGIS may conduct collaborative sample studies or joint monitoring activities to 

address the discrepancy in a more comprehensive manner.

In FY 2018, FGIS received four quality complaints and one weight complaint from importers on grains inspected under the U.S. Grain 

Standards Act, as amended. The complaints involved 212,154 metric tons of the 139,458,344 metric tons of grain exported in FY 

2018, or 0.15 percent by weight. 

COMPLAINTS REPORTED BY IMPORTERS ON INSPECTION AND WEIGHING IN FISCAL YEAR 2018

Section IV Protecting the Integrity of U.S. Grain and Related Markets

Complainant Grain/Commodity Number of 

Complaints Nature of Complaint

China Corn 1 Broken corn and foreign material

China Soybeans 2 Weed seeds, damaged kernels heat 

damage, heating, and odor

Costa Rica Soybeans 1 Short weight

TOTAL 4
2018 FGIS Annual Report to Congress | 28

SECTION V

Providing Official 

Grain Inspection and 

Weighing Services
2018 FGIS Annual Report to Congress | 29

Partnerships With States and Private Entities

FGIS manages the national inspection and weighing system through a unique network of approximately 2,000 staff members at 

Federal, State, and private laboratories that serve grain producers, handlers, processors, and exporters across the country. 

FGIS’ State and private partners are authorized to provide official services on FGIS’ behalf under the authority of the USGSA. FGIS 

delegates States to provide official inspection and weighing of U.S. grain at export port locations and designates States and private 

agencies to provide official inspection and weighing services in the domestic market.

Section V Providing Official Grain Inspection and Weighing Services
2018 FGIS Annual Report to Congress | 30

Section V Providing Official Grain Inspection and Weighing Services

Exports of U.S. grain for FY 2018 exceeded 139.4 million metric tons, falling in second to the all-time high of 145.9 million metric 

tons set in FY 2017. Even though the FY record was not achieved, the total volume for the months of April, May, and June combined 

reached a record high. This helped narrow the gap from being down nearly 19 percent at the end of January year over year to only 

missing the record by only 4.4 percent. Overall, FY 2018 was 11.3 percent above the 5-year average. 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

2010

2011

2012201320142015201620172018

FY1983

19841985198619871988

60,000

40,000

20,000

0

120,000

140,000

100,000

80,000

Thousand Metric 

Tons

FISCAL YEAR EXPORT GRAIN INSPECTION TONNAGE
2018 FGIS Annual Report to Congress | 31

Section V Providing Official Grain Inspection and Weighing Services

INSPECTION PROGRAM DATA

QUANTITY OF STANDARDIZED GRAIN OFFICIALLY INSPECTED 1 (MMT)2

1

Quantity of Standardized Grain Officially Inspected includes grains for which FGIS maintains official standards: barley, canola, corn, flaxseed, oats, 

rye, sorghum, soybeans, sunflower seed, triticale, wheat, and mixed grain.

2

 Million Metric tons.

FISCAL YEARS

2016 2017 2018

Domestic 188.9 194.3 187.8

Export by FGIS 85.7 90.9 80.8

Export by Delegated States 35.7 40.2 43.3

Export by Designated States 11.8 14.9 15.3

TOTAL 322.1 340.3 327.2
2018 FGIS Annual Report to Congress | 32

INSPECTION PROGRAM DATA

Section V Providing Official Grain Inspection and Weighing Services

FISCAL YEARS

2016 2017 2018

FGIS 116,332 115,643 101,912

Delegated States / Official Agencies 3,268,868 3,333,922 3,226,909

TOTAL 3,384,806 3,449,565 3,328,821

FGIS 393 329 356

Delegated States / Official Agencies 21,341 26,299 26,775

TOTAL 21,734 26,628 27,131

Field Offices 2,544 3,610 2,197

Board of Appeals and Review 371 481 351

2,915 4,091 2,548

FGIS 17,958 14,682 15,874

Delegated States / Official Agencies 1,337,810 1,333,979 1,230,558

TOTAL 1,355,768 1,348,661 1,246,432

FGIS 33 2 0

Delegated States / Official Agencies 5,113 4,876 3,549

TOTAL 5,146 4,878 3,549

4 Includes original inspections for grade, factor-only, official criteria, and official commercial inspections.

NUMBER OF OFFICIAL ORIGINAL INSPECTIONS4

NUMBER OF GRAIN REINSPECTIONS

NUMBER OF GRAIN INSPECTION APPEALS

NUMBER OF OFFICIAL COMMERCIAL INSPECTIONS

NUMBER OF BARLEY PROTEIN INSPECTIONS
2018 FGIS Annual Report to Congress | 33

INSPECTION PROGRAM DATA

Section V Providing Official Grain Inspection and Weighing Services

FISCAL YEARS

2016 2017 2018

FGIS 4 0 8

Delegated States / Official Agencies 3,121 375 1,146

TOTAL 3,125 375 1,154

FGIS 13,218 6,827 7,428

Delegated States / Official Agencies 444,221 505,992 360,973

TOTAL 457,439 512,819 368,401

FGIS 6,467 7,690 7,419

Delegated States / Official Agencies 5,009 4,652 5,361

TOTAL 11,476 12,342 12,780

FGIS 0 0 0

Delegated States / Official Agencies 18,891 127,529 18,022

TOTAL 18,981 127,529 18,022

FGIS 2,786 2,392 2,480

Delegated States / Official Agencies 120,105 134,672 139,396

TOTAL 122,891 137,064 141,876

NUMBER OF CORN PROTEIN, OIL, AND STARCH INSPECTIONS

NUMBER OF WHEAT PROTEIN INSPECTIONS

NUMBER OF SOYBEAN PROTEIN AND OIL INSPECTIONS

NUMBER OF SUNFLOWER SEED OIL INSPECTIONS

NUMBER OF AFLATOXIN INSPECTIONS
2018 FGIS Annual Report to Congress | 34

Section V Providing Official Grain Inspection and Weighing Services

INSPECTION PROGRAM DATA

FISCAL YEARS

2016 2017 2018

FGIS 10,398 6,067 6,633

Delegated States / Official Agencies 126,626 136,170 85,473

TOTAL 137,024 142,237 92,106

FGIS 55 12 49

Delegated States / Official Agencies 3,790 10,504 33,564

TOTAL 3,845 10,516 33,613

NUMBER OF DEOXYNIVALENOL INSPECTIONS

NUMBER OF FUMONISIN TESTS
2018 FGIS Annual Report to Congress | 35

Section V Providing Official Grain Inspection and Weighing Services

FGIS

Class X1 49,030 48,977 49,436

Class Y2 29,509 23,515 24,528

TOTAL 78,539 72,492 73,964

Class X1 169,906 257,527 309,512

Class Y2 57,068 67,166 62,906

TOTAL 226,974 324,693 372,418

DELEGATED STATES / OFFICIAL AGENCIES

FGIS 85.3 90.3 80.5

Delegated States 34.4 38.7 42.0

TOTAL 119.7 129.0 122.5

EXPORTED GRAIN WEIGHED (MMT)

WEIGHING PROGRAM DATA

FISCAL YEARS

Official Weight Certificates Issues 2016 2017 2018

1 2 3

1 Class X weighing involves 100 percent supervision of weighing.

2

 Class Y weighing involves a minimum of 25 percent of supervision of weighing.
2018 FGIS Annual Report to Congress | 36

VOLUME OF EXPORT GRAIN INSPECTIONS BY PORT AREAS FISCAL YEAR 2018

Section V Providing Official Grain Inspection and Weighing Services

Port Areas Metric Tons (mt) Percent of Total U.S. Exports

California 27,154 0.02%

Chicago 424,937 0.30%

Columbia River 33,151,985 23.49%

Duluth-Superior 706,144 0.50%

East Gulf 552,313 0.39%

Interior1 17,051,997 12.08%

Lake Ontarior 22,510 0.02%

Lake Superior 19,537 0.01%

Mississippi River 66,722,853 47.28%

North Atlantic 108,975 0.08%

North Texas 5,233,091 3.71%

Puget Sound 10,097,306 7.15%

South Atlantic 2,391 506 1.69%

South Texas 3,307,955 2.34%

Seaway 189,120 0.13%

Toledo 1,117,823 0.79%

TOTAL 141,125,206 100.00%

1

 Figures include all rail and containers loaded in the continental United States destined for export. The primary destination for rail 

shipments is Mexico, with containers shipped worldwide through established ports.
2018 FGIS Annual Report to Congress | 37

SECTION VI 

Financial Information
2018 FGIS Annual Report to Congress | 38

1

 Obligations are total obligations to support the program during fiscal year 2018 regardless of budget period funding source used.

2

 Includes adjustments to prior year revenue and obligations.

3 Appropriations include sequestration and rescission amounts.

FGIS User Fee Accounts1

Revenue Obligations Profit/Loss Operating Reserves2

U.S. Grain Standards Act

Inspection & Weighing $36,996,535 $39,321,550 ($2,325,015) $21,561,945

Official Agencies $75 $1,882,463 ($1,882,388) $5,084,246

TOTAL FY 2018 $36,996,610 $41,204,013 ($4,207,403) $26,646,191

Section VI Financial Information

Appropriations (Dollars in millions)3

Discretionary Appropriations

FY 2012 FY2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

$16.48 $20.8 $17.91 $20.0 $20.0 $20.0 $20.0
2018 FGIS Annual Report to Congress | 39

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 institutions 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 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, SW, 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.

Learn more about the 

Federal Grain Inspection Service 

www.ams.usda.gov.

May 2019
2018 FGIS Annual Report to Congress | 40