United States Department of Agricul

Agricultural Marketing Serv

Federal Grain Inspection Serv

Review of Geographic Area Bound

October 20
Table of Contents

Executive Summary�����������������������������������������������������������������������������������������������������������������������������������������������3

Introduction������������������������������������������������������������������������������������������������������������������������������������������������������������5

Statutory and Historical Context �������������������������������������������������������������������������������������������������������������������������5

Geographic Area Boundaries �������������������������������������������������������������������������������������������������������������������������������7

Exceptions ������������������������������������������������������������������������������������������������������������������������������������������������������������9

Current Rulemaking on Timely Service and Nonuse of Service Exceptions ����������������������������������������������������11

 Fees for Official Agency Services�����������������������������������������������������������������������������������������������������������������������12

Other Services Provided by Designated Official Agencies �������������������������������������������������������������������������������13

Official Inspection Data ��������������������������������������������������������������������������������������������������������������������������������������13

Locations Where Official Services Were Provided �������������������������������������������������������������������������������������������13

Number of Official Inspections by Official Agencies ���������������������������������������������������������������������������������������14

Volume of Officially Inspected Grain ���������������������������������������������������������������������������������������������������������������14

Export Vessels Inspected by Delegated States ���������������������������������������������������������������������������������������������������14

Official Service (Inspection and/or Weighing) Categorized by Carrier �������������������������������������������������������������15

Conclusion and Recommendations ��������������������������������������������������������������������������������������������������������������������15

Appendix A: Historical Geographic Boundary Maps (1979-2019)����������������������������������������������������������������������16

 Appendix B: Examples of Unofficial Services Offered (Outside of the USGSA) by Some Official Agencies ���21
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EXECUTIVE SUMMARY

Under the authority of the U.S. Grain Standards Act (USGSA) (7 USC 71 et seq.), the U.S. Departmen

Agriculture (USDA), Agricultural Marketing Service’s (AMS) Federal Grain Inspection Service (FGIS) 

oversees and administers the national inspection and weighing system for grains

1

 Through a network of 

authorized agencies (delegated States and designated official agencies), as well as licensed personnel at 

the Federal, State, and private levels, official grain inspection and weighing services are provided to grain 

producers, shippers, processors, and exporters across the country. The Act requires all exported grains and

oilseeds to be officially inspected, if sold by grade, and weighed.2 The Act also allows for voluntary, official 

inspection and weighing of grain that will be sold domestically.

In the case of grain exports that are inspected and weighed at export port locations, services must be performed 

by FGIS personnel or delegated State agencies. For grain exports that originate from and are inspected or

weighed at “other than export port locations,” such as containerized grain at interior locations, inspection and 

weighing are mandatory, as well. Such grain may be inspected and weighed by FGIS or by designated official 

agencies that provide inspections of containerized grain at interior locations throughout the United States. With

respect to domestic bound shipments, voluntary official inspection and weighing of grain may be performed by 

FGIS and designated official agencies.

To become a designated official agency, any State or local governmental agency, or any person, may apply to 

AMS, during select periods, and express interest in, as well as demonstrate capacity and ability to carry out, 

inspection and weighing services in accordance with the USGSA. In reviewing the applications, areas of focus

include facilities, equipment, and personnel; preserving system integrity; training requirements and personnel 

standards; conducting training and providing supervision; official inspection fees and billing; conflict of 

interest; official recordkeeping; compliance with USGSA, regulations, and FGIS instructions; and other criteria 

in regulations

FGIS’s enforcement of the Act is critical, as it ensures integrity and quality across the U.S. grain indust

In 2021, the cash receipt value of grain crops surpassed $140 billion, and feed grains further supported $196 

billion in animal agriculture

3

The USGSA was reauthorized December 11, 2020 (P.L. 116-216). As a part of its reauthorization, Congre

amended the Act to include a provision requiring that AMS conduct a review of geographic boundaries, within 

which designated State and private entities provide FGIS official grain inspection and weighing services. 

Accordingly, this document responds to that requirement and takes into consideration the following factors: 

• Statutory establishment of geographic boundaries;

• Historical perspective of setting initial boundaries;

• Grain handling facilities that have received official grain inspection and weighing service within

 the past 5 years; 

1

 Under the USGSA, the term “grain” includes corn, wheat, rye, oats, barley, flaxseed, sorghum, soybeans, mixed grain, and any 

other food grains, feed grains, and oilseeds for which standards are established under section 4 of the Act

2 7 CFR 800.18 allows waivers from mandatory inspection and weighing requirements for specific circumstances.

3

 Value of grain totaled receipts from the following crops: barley, canola, corn, flaxseed, food grains, oats, proso millet, sorghum, 

and soybeans, which averaged $100 billion in 2017-2020, and jumped to $142 billion in 2021. Value of animal agriculture totaled

receipts of Animals and Products category, which dropped from approximately $175 billion in 2017-2019 to $165 billion in 2020 

and increased to $196 billion in 2021. Cash receipts by Commodity 2013-2022, USDA, Economic Research Service, available at:

https://data.ers.usda.gov/reports.aspx?ID=1
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• Official agencies that provide official inspection and weighing services;

• The volume of grain for which official agencies provide services at grain handling facilities

within the official agency geographic areas; 

• The number of official inspections of vessels and other carriers within the official agency

 geographic areas; 

• Other related services performed by official agencies at grain handling facilities within the

official agency geographic areas; 

• The timeliness, accuracy, and appropriateness of services performed by official agencies at grain

handling facilities within the official agency geographic areas; 

• Fees charged by official agencies for services performed under the United States Grain Standards

 Act (7 U.S.C. 71 et seq.), including grading, weighing, sampling, stowage examination,

certification; and 

• Any implications of modifications to the official agency geographic areas on enhancing official

inspection, official weighing, and supervision of weighing in the domestic market.

In conducting this review, FGIS notes that there are, currently, 6 Federal field offices (located in Kansas City, 

MO; League City, TX; New Orleans, LA; Portland, OR; Stuttgart, AR; and Toledo, OH) and 42 State or private 

agencies, collectively comprising approximately 2,700 licensed or authorized personnel that provide official 

services in specified geographic areas. Data show that between 2017 and 2021 an average of 3.1 million original 

inspections were performed at thousands of locations across the country, resulting in an average inspection 

volume (domestic and export) of 325 million metric tons (MMT), with 2021 representing the largest volume 

year (349.2 MMT)

This review will provide the statutory and historical context that led to the establishment of geographic 

boundaries, as well as exceptions to them. It will summarize the process for designating official State and 

private agencies to provide services on behalf of FGIS and give an update on current rulemaking regarding 

timely service and nonuse of service exceptions. This review discusses the evaluation of official agencies’ fees 

and offers perspective on other services such agencies may provide outside of their official capacity. Lastly, 

FGIS presents summary data regarding official inspection activity and concludes with recommendations 

resulting from its review of geographic boundaries

In summary, FGIS acknowledges that, based on this review: (1) Current data collection forms and processes 

need to be assessed for relevance, simplification, and data sharing purposes (including the capture of physical 

addresses where grain is sampled); (2) data visualization tools should be leveraged to support independent 

analysis regarding performance of the official system; (3) geographical boundaries should be displayed on 

FGIS’s website along with official designated area descriptions to aid analysis and understanding of the 

local and national service areas; (4) geographic area historical descriptions should be updated to account for 

landmarks that no longer exist and to provide for updated use of technology to clarify boundary lines; (5) posted 

geographical boundaries should detail available points of exception to those boundaries; and (6) official agency 

fee schedules should be listed on the website.
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INTRODUCTION

Authorized by the United States Grain Standards Act (USGSA) (7 USC 71 et seq.), the Federal Grain Inspection

Service (FGIS) manages a national grain inspection and weighing system through a network of official service 

providers (i.e., Federal, State, and private entities that are authorized and licensed to inspect and weigh grai

under the USGSA). On the Federal side, FGIS has 6 field offices and approximately 400 licensed personnel 

that provide direct service to grain shippers. These field offices and employees are located in Kansas City, MO; 

League City, TX; New Orleans, LA; Portland, OR; Stuttgart, AR; and Toledo, OH. With respect to State and

private entities (that are delegated or designated to provide official grain inspection and weighing service on 

behalf of FGIS), there are 42 entities (with approximately 2,300 personnel) serving American farmers, grain 

elevators, and shippers across the country.

For States that are “delegated” under the USGSA, such entities may provide mandatory official grain 

inspection, weighing, and scale testing services at export port locations within their respective State. There

are, currently, four delegated States. They are as follows: Alabama Department of Agriculture and Industries;

Virginia Department of Agriculture and Consumer Services; Washington State Department of Agriculture; and 

Wisconsin Department of Agriculture, Trade and Consumer Protection. Delegated States are reevaluated and

recertified every 5 years, in accordance with the Act. 

As it pertains to “designated” State and private agencies (i.e., official agencies), these entities may perform 

permissive/voluntary official grain inspection and/or weighing services at domestic (non-export port) locations. 

However, in the case of containerized grain originating from non-export port locations, such inspection and 

weighing is mandatory. Official agencies are designated to perform such services for a period of up to 5 years. 

More information about the locations and contacts for all of these entities can be found by visiting the following 

link: https://agtransport.usda.gov/stories/s/a384-dj

STATUTORY AND HISTORICAL CONTEXT

Grain was first graded in the United States in 1857 by Chicago Board of Trade inspectors. Over time, other 

chambers of commerce and boards of trade mirrored the same type of inspection (e.g., Milwaukee Chamber o

Commerce, Toledo Board of Trade, Cleveland Board of Trade, etc.). As grain trade grew and became importan

to the economies of surplus-producing States, the grading and inspection work was eventually taken over by 

several State governments. These market-by-market grades and grading procedures caused confusion in the

grain market. Each market had its own grades or methods for interpreting grades, and sometimes the certificate 

of grade issued in one market was not recognized in another. This confusion of grades and lack of centralized

oversight contributed to a lack of confidence in certificates issued for the inspected grain. It also created 

opportunities for handlers and dealers to manipulate grain quality (e.g., dilute the quality of grain by blendin

with cheaper grain). Moreover, complaints were submitted from foreign buyers who expressed concerns

regarding the unreliability of American grain merchandising.
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As a result, industry, through the Grain Dealers National Association, focused efforts on developing uniform, 

voluntary grading standards. In 1908, the Grain Dealers National Association adopted national grade standard

However, the voluntary standards were not quickly or widely adopted for various reasons. Between 1907 and

1915, twenty-five bills proposing grain legislation were introduced into Congress. Federal intervention was not 

supported by all members of the grain industry; but in 1916, after years of hearings and deliberations, the 64th 

Congress of the United States passed the USGSA (using the work of the Grain Dealers National Association 

as a foundation). The 1916 USGSA gave USDA authority to establish uniform standards for all grain sold

or shipped by grade in interstate and foreign commerce, from or to an inspection point, and to establish a 

supervisory organization to oversee the application of the standards.

Over time, the credibility and integrity of the American grain market, domestically and internationally, became 

at risk by the early 1970s. Investigations conducted by USDA, the Federal Bureau of Investigations, the

Department of Justice, and several Congressional committees uncovered numerous irregularities and instances 

of fraud throughout the grain industry. Reports of grain theft, bribery, and other discrepancies were identified 

in the lower Mississippi River area. Consequently, several indictments and convictions occurred that evoked

the implementation of tighter Federal controls within grain trade. Additionally, the 94th Congress began a

nationwide investigation of grain inspection and weighing practices, and the General Accounting Office (GAO) 

was directed to prepare an evaluation of the entire grain marketing chain. The initial and supplemental GAO

findings are referenced below:

• Report of the Comptroller General of the United States: Assessment of the National Grain

 Inspection System, 1976 https://www.gao.gov/assets/red-76-71.pdf

• Report of the Comptroller General of the United States: Supplemental Information on

 Assessment of The National Grain Inspection System 

 https://www.gao.gov/assets/ced-76-132.pdf

Because of issues discovered through the investigations and incidents mentioned above, on October 21, 1976, 

Congress passed a series of amendments to the USGSA, which included the establishment of FGIS, as well as 

authority for delegating and designating inspection and weighing responsibilities to States and private entities 

within geographically assigned areas (PL 94-582). Prior to these amendments, there was no formal process

to authorize or designate entities that performed domestic grain inspection. Entities performing official grain 

inspection “popped up” or "evolved" at many locations in the United States without much Federal oversight/

involvement. There was no restriction or limitation on the time period for which they operated. The only way t

remove such an entity was by formal administrative procedures

However, through the 1976 revision of the USGSA, Congress instituted a provision limiting entities (that 

would be designated, by USDA, to provide official services under the USGSA) to a designation period of 3 

years. After such time, the designation would automatically terminate or could be renewed, competitively, by

USDA. As USDA implemented these amendments and designated official agencies that would operate under 

the USGSA, the initial geographic boundaries that were established for these agencies were based on historic 

patterns of inspection service that was being delivered to grain facilities prior to the 1976 USGSA
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Geographic Area Boundaries

According to the USGSA, 7 USC 79(f)(2), not more than one designated official agency (OA) or State 

delegated authority shall be operative, at the same time, in any geographic area, except where authorized due to 

prescribed exceptions (discussed in the next section). From 1979 to September 2015, the maximum term for a

designation was 3 years. However, in October 2015, the USGSA was amended to allow designation terms of up

to 5 years

Since FGIS began, there have been many changes in geographic areas and service providers. The trend shows

that, roughly, every 10 years, the average number of official agencies declines by about 10. Below, Table 1 

reflects changes in the number of official agencies, in 10-year integrals, from 1979 to 2019. Appendix A also 

illustrates how geographic area assignments have changed over the same time. FGIS does not have data that

explain the reasons for all changes over the years; however, anecdotally, such attrition could be related to 

business closures, consolidations, and competition through the designation process.

Table 1: Number of Designated Agencies - 1979-2020

When the designation of an official agency nears its termination date, FGIS publishes a Federal Register Notice 

that announces the opportunity for interested parties to apply for all, or any part of, the geographic area that is 

being serviced by the prevailing official agency. The Notice also calls for customer input/feedback regarding the 

past and present performance of the existing official agency that services the geographic area. Entities applying 

for the geographic area must demonstrate they meet designation criteria outlined in section 79 (f)(1)(a) of the 

USGSA; and, through such demonstration, reflect how they are better able than any other applicant to provide 

official service (7 USC 79 (f)(1)(b)). 

Further, before a current designee can have its designation renewed, FGIS conducts an audit of the designee’s 

operations under the USGSA. Areas of focus include facilities, equipment, and personnel; preserving system

integrity; training requirements and personnel standards; conducting training and providing supervision; official 

inspection fees and billing; conflict of interest; official; compliance with the USGSA, regulations, and FGIS 

instructions; and other criteria in regulations. From calendar year 2019 through calendar year 2022, FGIS

conducted 40 audits. The audit findings are reviewed, in conjunction with the application details, before FGIS 

can determine whether any changes should be made within or to the geographic areas being serviced by official 

agencies.

YEAR NUMBER OF DESIGNATED AGENCIES 

1979 86

1989 76

1999 62

2009 54

2019 43
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As part of this review, FGIS confirmed that its descriptions for geographic boundaries could be updated and 

clarified, as some boundary descriptions reference landmarks may no longer exist or are difficult to pinpoint 

through geospatial mapping technology. For that reason, conveying and communicating specific boundary 

information using the current descriptions may be challenging in certain circumstances. As a result, FGIS has

begun exploring options for clarifying the identification and display of official agency geographic boundaries 

and plans to work with official agencies on updated physical descriptions of service areas. 

In addition, FGIS has also considered the implications of modifying official agency geographic areas for the 

purpose of enhancing official inspection, weighing, and supervision. When FGIS designates the OAs, FGIS 

considers modification of the geographical boundaries as part of the designation. FGIS uses data gathered 

during the designation process to determine if one applicant is better able to provide services than another

In some instances, FGIS modifies geographic boundaries with the purpose of providing better service. Some 

modifications have succeeded. For instance, in 2021, the geographical boundary for an OA was divided among 

two different OAs (86 FR 33967). Some modifications have been less successful. For example, in 2014, FGIS 

opened an unassigned territory so a geographic area could be designated to an interested party. In that instance,

FGIS had been providing services to facilities in the geographic area. Once FGIS designated an OA to the new

geographical area, FGIS closed an office and relocate employees, as well as equipment. Unfortunately, the 

OA failed, and FGIS accordingly returned to providing services for that area. To return, FGIS hired new staff,

secured new office space, and procured equipment. This incident burdened the Program and industry. FGIS’s 

current designation process, however, is a transparent way of modifying geographical boundaries to address 

industry needs

To help ensure the quality and consistency of official services, FGIS provides training and certification of 

inspection personnel. FGIS has implemented extensive quality control systems to monitor samples and

confirm the grading quality: Sample Inspection and Monitoring System (SIMS) and the Subjective Testing and 

Evaluation Process (STEP). SIMS has two distinct purposes. The first is to monitor the quality of the inspection 

service provided by the official system. The second is to provide data to evaluate standards and procedures. 

STEP provides continuous evaluation of the Official Service Provider’s (OSP) Quality Assurance Specialist’s 

interpretive inspection and oversight skills, ensuring alignment of results between the local and national levels

Also, to ensure that the equipment used in grain inspection is consistent, FGIS checktests over 1,400 pieces 

of grain analyzing equipment each year. FGIS’s checktesting aligns all equipment used in the official system 

with the master equipment located at the National Grain Center. If a piece of equipment does not pass, FGIS

removes the equipment from official services until the equipment is returned to a condition in which it can pass 

the checktest. Moreover, all equipment used in the official system must be listed on the approved equipment list, 

and FGIS publishes this list on a public website. Regarding new equipment, FGIS reviews and tests every piece

of new equipment before it may enter service
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Exceptions

Exceptions (to the geographic boundary provisions) started with the 1993 amendments to the USGSA (P.

103-156). These amendments allowed the agency Administrator to conduct pilot programs to allow more than

one official agency to carry out inspections and weighing provisions, within a single geographic area, and 

without undermining the provisions of the Act. These exceptions were considered necessary because some grain

facilities reported delays in getting service due to the distance from the inspection agencies serving them. Other

grain facilities had difficulty obtaining service during harvest or other peak demand periods. 

FGIS proposed six pilot programs, over 9 years, in the Federal Register. A list of those proposals can be found

in Table 2 below. Through those pilot programs, FGIS evaluated the impact of allowing more than one official 

agency to provide service within a single geographic area. FGIS concluded, based on information gathered from

the pilot programs, that less restrictive geographic service area requirements on designated official agencies 

would improve the quality of service provided to the American grain industry and facilitate the marketing of 

grain without undermining the integrity of the USGSA and the official system. 
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Table 2: FGIS Actions Regarding Exceptions Pilots to the Geographic Boundary Provision

FEDERAL REGISTER NOTICE DATE ACTION

59 FR 11759 March 14, 1994 FGIS proposed and requested comments 

on pilot programs for barges on selected 

rivers or portions of rivers, exceptions, 

commercial inspection services, 

submitted samples, and timely service

60 FR 13113 March 10, 1995 FGIS requested comments on its 

previously proposed timely service 

program and a newly proposed open 

season program. Also acknowledged that

the remaining four pilot programs that 

were proposed in the March 14, 1994, 

Federal Register (i.e., barges on selecte

rivers or portions of rivers, exceptions, 

commercial inspections, and submitted 

samples) were too narrow in scope to 

conduct an appropriate pilot program

60 FR 49828 September 27, 1995 FGIS launched pilots for timely service 

and open season exceptions that would 

run for 1 year (until October 1996)

61 FR 51674 October 3, 1996 FGIS extended the timely service and 

open season pilots to October 31, 1999

62 FR 52967 October 10, 1997 FGIS requested comments on four barge 

pilots

63 FR 2360 January 15, 1998 FGIS announced a pilot program that 

allowed barges to be sampled, by probe, 

by any official agency.

63 FR 52682 October 1, 1998 FGIS extended the timely service, open 

season, and barge pilots until September 

30, 2000

63 FR 66119 December 1, 1998 FGIS published a correction notice 

regarding the qualifying terms for the 

pilot programs

65 FR 58504 September 29, 2000 FGIS extended the pilot programs for 

timely service, open season, and barge, 

pending changes to the current statutory 

authority for such programs

67 FR 44571 July 3, 2002 FGIS published a proposed rule to 

establish criteria to allow more than one 

designated official agency to inspect or 

weigh grain within a single geographic 

area

68 FR 19137 April 18, 2003 FGIS published the final rule on its 

exceptions
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As a result of the pilot programs and rulemaking, the following related exceptions are allowed under the 

USGSA and/or the FGIS regulations:

• Timely service. If the assigned official agency cannot provide service within 6 hours of a request,

the service may be provided by another official agency upon approval from the Service. 

• Barge probe service. Any official agency may provide probe sampling and inspection service for

 barge-lots of grain with no restrictions due to geographical locations

• Written agreement. If the assigned official agency agrees in writing with the adjacent official

 agency to waive the current geographic area restriction at the request of the applicant for service,

the adjacent official agency may provide service at a particular location upon providing written

 notice to the Service, and the Service determines that the written agreement conforms to the

 provisions in the Act

• Submitted samples. Agencies are allowed to enter another agency's assigned area to pick u

 submitted samples

• Nonuse of Service. Regarding this exception, a customer who had not obtained inspection or

weighing services from the designated official agency, for a specified length of time, could

obtain/request services from another official agency.

Current Rulemaking on Timely Service and Nonuse of Service Exceptions

On April 1, 2020, FGIS published an Advanced Notice of Proposed Rulemaking (ANPR) to solicit industry 

comments on how FGIS should amend its criteria for reviewing, approving, and implementing exceptions to 

the USGSA’s requirements for geographic boundaries (85 FR 19155). Through that ANPR, FGIS incorporated

industry feedback into a proposed rule which was published on August 19, 2021 (86 FR 46606). In the proposed

rule, FGIS proposed amendments to modify parameters/criteria regarding the exceptions program for timely 

service and to reinstate the exception program for nonuse of service (based on the USGSA amendment through 

2018 Farm Bill). The comment period on the proposed rule closed on September 20, 2021. FGIS is finalizing 

rulemaking, accordingly.

Prior to engaging in this rulemaking, FGIS received requests from industry to enhance competitiveness within 

geographic boundaries. FGIS believes that competitiveness is encouraged through the designation process,

in which interested parties can apply for all, or any part of, the geographic area that is being serviced by the 

prevailing official agency. Through this process, there have been times where prevailing official agencies lost 

some, or all, of their geographic area to another official agency. 

However, regarding the proposed rule (86 FR 46606) addressing the timely service exception program, FGIS 

proposed factors that would encourage even greater competition among official agencies. For a timely service 

exception, FGIS proposed granting an exception when: (1) the designated OA is unable to provide services 

to an applicant within 6 hours or the OA is unable to provide results and certificate in accordance with 7 CFR 

800.160(c); or (2) a request for services not offered by the assigned OA would result in an inability to receive

timely service; or (3) a weather event or impact caused by a weather event results in an inability to receive 

timely service from the assigned OA; and (4) granting an exception is in the best interest of the integrity of the 

official system. 
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The proposal puts forth three levels for which customers may request an exception under this program. The first 

is a one-time exception for untimely service. In the case of untimely service, the ability to use another official 

agency may be granted for the pending service request, as applicable. The second is a 90-day exception for

untimely service. If, after the first request is granted, a second instance of untimely service occurs within 180 

days, the customer may apply for a 90-day exception. Once granted, the alternate official agency would provide 

services to the customer for 90 days. The third is a long-term exception for untimely service. If there is anothe

occurrence of untimely service within 365 days of the applicant’s return to the designated official agency, 

the applicant may request a long-term exception, extending until the termination date of the gaining agency's 

designation. FGIS believes that, through this rulemaking, modifications will be made to the current exceptions 

provisions that will support the continued efficient and effective performance of the official system, including 

timeliness, accuracy, and appropriateness of services offered by official agencies. 

Fees for Official Agency Services

Under the Code of Federal Regulations, FGIS developed Directive 9100.7, Fees for Official Agency Services, 

which provides direction for official agencies when establishing the fees that FGIS evaluates and approves. 

The USGSA provides that a delegated State or designated official agency’s fees for official services must not 

be discriminatory or unreasonable. To be nondiscriminatory, an agency (delegated State or designated agency)

must charge each customer the same fee for a particular service, and each customer must have an opportunity to 

qualify for any discounts established by an agency. Section 800.70(c) of the regulations provides that fees wil

be considered reasonable if:

(a) They cover the estimated total cost to the agency providing official inspection, official

 commercial inspection, Class X and Class Y weighing, inspection equipment testing services,

 and related supervision and monitoring activities; 

(b) They are assessed based on the average cost of providing the same or similar services at all

 locations served by the agency; 

(c) They are reasonably consistent with fees for similar services charged by adjacent agency; and

(d) The agency submits sufficient information showing how they derived the fees.

In evaluating official agency fees, FGIS reviews each agency’s fee structure and justification for increases to 

ensure reasonableness and service consistency through its fee review process. This does not mean that each

agency will charge the same fee for the same service due to local labor costs, travel distances, etc. In addition,

FGIS conducts a periodic review of each agency’s invoices. By comparing the invoices with their approved

fee schedule, FGIS determines whether agencies’ fees are collected from all applicants for official service 

in accordance with their approved fee schedules. These procedures ensure that the current fees charged by

agencies meet the regulatory requirements and that the fees are reasonable and nondiscriminatory

As noted above, through this review, FGIS recognizes that it could enhance the ease of searching for and 

analyzing official agency fees by posting what we have reviewed and approved. Accordingly, FGIS will 

consider developing this repository
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Other Services Provided by Designated Official Agencies

Designated official agencies may provide services outside of the USGSA, provided the services do not conflict 

with USGSA restrictions implemented in 7 CFR §800.76 – Prohibited services; restricted services. This sectio

States:

Prohibited services. No agency shall perform any inspection function or provide any inspection service on the

basis of unofficial standards, procedures, factors, or criteria if the agency is designated or authorized to perform 

the service or provide the service on an official basis under the Act. No agency shall perform official and 

unofficial weighing on the same mode of conveyance at the same facility.

FGIS does not approve the fees for such services; however, OAs must show such charges on a separate page 

of their fee schedule and clearly identify them as services not provided under the USGSA. These unofficial 

services are not considered during the evaluation of an OA being considered for designation. They are only

monitored for compliance, to ensure agencies are not performing unofficial services that may be performed 

officially, as well as engaging in prohibited acts. 

See a list of related unofficial services that may be performed by official agencies at grain handling facilities 

(Appendix B)

OFFICIAL INSPECTION DATA

Locations Where Official Services Were Provided 

Through this review, FGIS created a data visualization that displays the locations where official certificates were 

issued for grain services performed under the USGSA, whether by FGIS directly, or through the network of 

official agencies and delegated States. This data does not include address information for each location, as FGIS 

has not enforced standardized data collection for each service location addresses. Furthermore, FGIS data does

not include information regarding the number of grain handling facilities that do not use the official services. As 

part of this review, FGIS has identified 5,129 unique location names, where OAs provided certificates. Some of 

these unique location names could reflect the same facility because of the way the OAs report the information. 

As a result, to ensure more accurate reporting regarding facility information from OAs, FGIS will revise their 

current data collection forms and processes so that more relevant and consistent information can be captured 

and reflected. 

Information presented through the data visualization tool reflects the cities and States contained on official 

certificates issued for each respective location. The data can be accessed by visiting the following link: 

https://agtransport.usda.gov/stories/s/a384-djzj. Based on the data for inspection years 2017-2021, offici

certificates were issued to customers in over 2,000 cities across the United States and British Columbia.
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Number of Official Inspections by Official Agencies

The following table reflects the number of official inspections conducted by delegated State and designated 

official agencies (excludes FGIS). The inspection categories include:

• Original Inspections =The first time a sample is inspected by a licensed inspector. 

• Reinspections = When an applicant requests for the original inspection to be repeated, utilizing

the same file sample. Using the file sample permits the same or another inspector to reevaluate a

 sample that is equivalent to the original

• Mycotoxin tests = Tests performed for determining the amount of aflatoxin, deoxynivalenol, and

 fumonisin in grain

Table 3: Number of Official Inspections by Official Agencies

GRAIN SERVICES FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Original Inspections* 3,333,922 3,225,808 3,027,790 3, 093,516 3,156,031

Reinspections 26,299 26,775 30,355 32,122 20,150

Mycotoxins 281,363 258,451 253,289 263,325 279,391

*Includes original inspections for grade, factor-only inspection, official criteria only, and official commercial 

inspections

Volume of Officially Inspected Grain 

The following table reflects the volume of standardized grain inspected, by agencies and FGIS, per fiscal year. 

The inspection categories include:

Table 4: Volume of Standardized Grain Officially Inspected (Million Metric Tons)

INSPECTION CATEGORY FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Domestic 194.3 187.9 170.1 191.8

Export by Delegated States 40.2 43.3 32.8 33.3

Export by Designated Agencies 14.9 15.8 17.5 16.6

Export by FGIS 91.2 82 69.9 73.1 

TOTAL 340.6 329 290.3 314.8 3

Note: Quantity of grain officially inspected does not contain official commercial inspection.

Export Vessels Inspected by Delegated States

The following table shows the count of export vessels that received official inspections by delegated States. 

Table 5: Number of Export Vessel Official Inspections by Delegated State Agencies

DELEGATED STATE FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Alabama 23 12 9 6 15

Virginia 62 65 61 17 53

Washington 917 1001 955 946 938

Wisconsin 63 55 64 74 35

Note: Designated official agencies are not allowed to perform inspection and weighing for bulk grain shipped 

on export vessels
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Official Service (Inspection and/or Weighing) Categorized by Carrier

The following table shows the count of official grain inspections performed by designated official agencies and 

categorized by carrier:

Table 6: Number of Carriers that Received Official Service (Inspection and/or Weighing) 

by Official Agencies

TYPE OF CARRIER FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Truck 775,703 681,215 558,840 514,606 464,148

Barges 39,118 37,246 27,194 46,009 32,667

Rail 1,318,172 1,269,238 1,197,449 1,156,884 1,401,958

Containers 202,922 243,634 206,230 199,980 205,851

*Includes original inspections for grade, factor-only inspection, official commercial inspections, and weighing 

only

CONCLUSION AND RECOMMENDATIONS

Since establishment of geographic boundaries and enhanced Federal oversight through the 1976 amendments 

of the USGSA, the official grain inspection and weighing system has performed as envisioned by Congress. 

USDA continues to work collaboratively with the grain industry and official agencies to facilitate effective 

communication and resolution of issues that arise through the execution of statutory responsibilities. In carrying

out this review of geographic boundaries, FGIS recognizes that improvements can be made by: (1) assessing 

and revising current data collection forms and processes so that more relevant information sharing can be 

facilitated; (2) leveraging data visualization tools to support independent analysis regarding performance of 

the official system; (3) displaying geographical boundaries on website along with official designated area 

descriptions to aid analysis and understanding of the local and national service areas; (4) updating geographic 

area historical descriptions to account for landmarks that no longer exist and to provide for updated use of 

technology to clarify boundary lines; (5) posting geographical boundaries to detail available points of exception 

to those boundaries; and (6) listing official agency fee schedules on the website. 

In conjunction with this review, FGIS is launching a new data visualization tool on its website that will display 

updated geographical boundaries (as well as exceptions) and information about delegated State, designated 

official agency, and FGIS offices that provide official services. This tool will be improved, over time, to include 

more information and aid with data analysis. FGIS anticipates that efforts to assess and revise current data

collection forms and processes will be extensive and require coordination with delegated States and designated 

official agencies, as well as industry. The results of this work may necessitate modifications to the FGIS data 

enterprise system and require increased spending to make those modifications. Lastly, FGIS believes that it can 

make agency fee schedules available on its website by the completion of the next fee review cycle in FY 23.
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Appendix A: Historical Geographic Boundary Maps (1979-2019)

1978-79 Official Agency Designations Map
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1989 Official Agency Designations Map
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1999 Official Agency Designations Map
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2009 Official Agency Designations Map
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• AB Oil & Moisture

• Additional Letterhead Statement

• Amylase Test

• Black Light Analysis

• Brown Kernel Count (in corn)

• Calcium Analysis

• Canola Oil Testing

• Certificate of Conformity 

• Clean-out (per test)

• Corn Borer Certificate

• Enogen Test

• Equipment Testing/Samples 

 (Elevator owned equipment)

• Falling Number Determination

• Germination Analysis

• GMO

• Laboratory Analysis

• Loose Smut

• NIR Calibration Samples

• Noxious Seed Exam

• Nusun/Mid-Oleic Acid Test

• Ridascreen Fast DON SC (ELISA)

• Sample Preparation/Composite

 Sample

• Sample Pick-Up Fee

• Sand & Aggregate Material 

• Secondary Analysis, 2 Maximum,

 Scan only, per scan

• Special Handling

• Spreadsheet Report

• Starlink Test

• T2/H2 Toxin Analysis

• Training

• Urease Test

• Viptera Test

• Weighmaster License 

 Fee

• Wheat Hardness

 Appendix B: Examples of Unofficial Services Offered (Outside of the USGSA) by Some Official Agencies 

Examples of Unofficial Services Offered (Outside of the USGSA) by Some Official Agencies 

NIR = Near Infrared

GMO = Genetically Modified Organism

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