Agricultural Marketing Service 

UNITED STATES UNITED STATES 

WAREHOUSE ACT WAREHOUSE ACT 

2020 ANNUAL REPORT 2020 ANNUAL REPORT 

Warehouse and Commodity

Management Division 

Fair Trade Practices Program December 2020 
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TABLE OF CONTENTS TABLE OF CONTENTS MESSAGE FROM THE DIRECTOR

MESSAGE FROM THE DIRECTOR 2

YEAR AT A GLANCE 3

INTRODUCTION 4

United States Warehouse Act 4 

Key Services 4 

Organizational Structure 5 

Key Stakeholders 5 

Employees and Locations 6 

2020 USWA OVERVIEW OF OPERATIONS 7

FY 2020 Warehouse License and Capacity Overview 8 

Warehouse and Inventory Examinations 11 

FY 2020 Inspector, Weigher, Classifier, and Grader Licenses 13

Warehouse Receipts 13

Commodity Warehouse Industry Communication and Collaboration 14 

FINANCIAL INFORMATION  15

FY 2020 Financials 15 

EFFICIENCIES AND COST SAVINGS  17

Efficient Use of Personnel 18

IT Modernization (eWCMD) 19 

WCMD Cost Control Monitoring and Management 19 

CONCLUSION  20

Featured Employees throughout the Publication 

On the Cover: Featuring (left to right) Kaylee Holdvogt, Richard Liggett, and Jerald Qualley / Page 1: Ashley

McCallum based in Amarillo, TX / Page 4: William Vereen based in North Little Rock, AR / Page 6: Dean

Mather based in Altoona, IA (left) and Richard Liggett based in Elko New Market, MN (right) / Page 11: 

Kaylee Holdvogt based in Blue Earth, MN / Page 14: National Cotton Council Meeting. Featuring (left to right)

Shane Stephens, Michael Quinn, and Larry McClendon / Page 15: At Dakota Plains Elevator - Plankington,

South Dakota. Featuring (left to right) Examiner Ron Steffen based in Clear Lake, IA; Examiner Alex Bernard 

based in North Sioux City, SD; AMS Administrator Bruce Summers; and Examiner Marc Bernard based in 

Mitchell, SD / Page 17 - At Cargill export elevator in New Orleans, February 2020. Featuring USDA staff (left

to right back row) Michael Durando, Ned Bergman, Dan Schofer, Jose Gonzalez; (left to right front row) Carie

Cameron and Kelly Hereth 

MESSAGE FROM THE DIRECTOR 

The U.S. Department of Agriculture 

(USDA) is entrusted as a steward of the 

U.S. Warehouse Act (USWA), first enacted 

in 1916. For the past 41 years, I have had the 

privilege to support the USWA, along with 

a dedicated team of professionals, commit-

ted to the commodity warehouse industry. 

Our goal is to provide efficient, effective, 

and customer-focused services in support of 

the USWA. 

The USWA, one of the oldest Federal ag-

ricultural laws, facilitates trade, provides a 

regulatory framework, protects producers 

and depositors, provides legal validity for 

issuance of warehouse receipts, enforces 

rules, and provides penalties for non-com-

pliance. While administration of the USWA 

has shifted through the years within differ-

ent agencies of the USDA, our team of pro-

fessionals has remained a steady constant. 

Our leadership team has more than 164 col-

lective years of service to the program. Now 

part of the Agricultural Marketing Service 

(AMS), Warehouse Commodity Manage-

ment Division (WCMD), the USWA team 

continues to provide dedicated service to 

the commodity warehouse industry. 

This year’s annual report provides an over-

view of USWA operations, financial infor-

mation, and efficiencies and cost savings 

gained in Fiscal Year 2020 (FY 2020) from October 1, 2019 to Septem-

ber 30, 2020. 

FY 2020 marked a particularly challenging year for the industry, our 

nation, and the world at large as we adjusted to operate amidst the 

COVID-19 global pandemic. The coronavirus pandemic impacted 

worldwide agricultural trade and affected delivery of some USWA pro-

grams and services. The commodity warehouse industry modified oper-

ations to address evolving local and state health and safety guidelines. 

Our team worked closely with industry to adjust operations during this 

time and quickly resumed onsite examinations during the spring and 

summer of 2020. While there was a decrease in the number of ware-

house examinations (14.8%) during FY 2020, issuance of USWA ware-

house receipts and licensing of inspectors, weighers, classifiers, and 

graders were not affected by the pandemic.

In response to the rapidly evolving conditions during FY 2020, our 

team innovated and implemented measures to minimize costs and im-

pact to the USWA program. Staff who support the USWA program were 

redeployed to support other USDA mission critical programs, reducing 

personnel costs to USWA. This included support for the USDA Farmers 

to Families Food Box Program, a part of the Coronavirus Food Assis-

tance Program. 

A $4.5 million Congressional appropriation was received to support in-

formation technology (IT) modernization investments for the Electron-

ic Warehouse and Commodity Management Data (eWCMD) System. I 

encourage you to read about the progress we made this year on phase 

two of this critical project. We look forward to the service improve-

ments that phase three of the project will enable us to bring to our cus-

tomers in FY 2021. 

While COVID-19 conditions and ongoing market consolidation created 

unique circumstances and impact on operations during FY 2020, the 

year ended with user-fee collections totaling $4.14 million (13.1 per-

cent increase) and expenses totaling $3.4 million (19 percent reduction) 

compared to FY 2019. Cost reductions were realized in all expense cat-

egories. The year-end reserve balance was $1.71 million (78.3 percent 

increase), equivalent to approximately 6.1 months operating expenses. 

As we look forward to FY 2021, we recognize that the industry will face 

ongoing challenges and opportunities. We will, in turn, work closely 

with our industry partners to build on lessons learned and continue our 

efforts to innovate, adapt, and provide effective and efficient services to 

the commodity warehouse community. 

Ned Bergman, Director 

Warehouse Commodity Warehouse Division 
$4.5M

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YEAR AT A GLANCE YEAR AT A GLANCE INTRODUCTION

United States Warehouse Act 

Efficient Use of Personnel

38% staff time 

dedicated to USWA 

62% staff time allocated 

to other USDA priorities 

22 staff years 

COVID Response/

Collaboration 

Remote 

Work 

Warehouse and Inventory Exams in 2020 

95% closure rate 

Cost Savings 

A 

B 

C 

D 

Reassignment of

Staff 

Industry Meetings 

Staff Development 

Warehouse Licenses in 2020 

787 Total

563 grain

1,205 examinations 

488 compliance items 

19% overall expense

reduction compared

to 2019 

55.6% reduction in 

indirect expenses

compared to 2019 

3.7% reduction in 

direct expenses

compared to 2019 

2020 Finances 

$4.1M

user-fee 

collections 

$3.4M

in expenses 

$1.7M

year-end reserve 

balance 

$4.5M

appropriation

to support IT

modernization 

IT Modernization 33 peanut

$4.5M appropriated to 

154 cotton support IT modernization 

efforts 

37 other

INTRODUCTION 

104 Years of Service to the Agricultural Commodity Warehouse System

United States Warehouse Act 

The USWA was enacted in 1916 to stabilize and standardize the agricultural commodity warehouse 

system. The Act provides for the licensing of public warehouse operators in the business of storing agricultural products, examination of such federally licensed warehouses, and collection of fees to sustain 

the operation and administration of such efforts. Participation in the USWA program is voluntary. Participants may choose to obtain licensing under USWA to meet State or other industry requirements. 

Warehouse examiners review the financial status, operational facility, 

and the integrity of the commodities stored in the licensed warehouse.

Key Services 

Under authority of the USWA, WCMD provides

key services to the agricultural commodity

industry that protect depositors, support

inventory accuracy, and ensure accountability

from commodity warehouses. 

Warehouses are licensed through examination of ownership 

and operational control, financial assurance, and necessary 

records. WCMD also licenses industry inspectors, weighers, 

classifiers, and graders. WCMD controls the printing of paper 

warehouse receipts. Central filing systems for electronic warehouse receipts and other electronic documents are licensed 

and audited. Examinations of warehouses are conducted to 

determine the suitability of those facilities for storage of specific commodities. Inventories are compared with daily position records. Individual units are identified and examined for 

nonfungible commodities. 

Fiscal viability is verified through review of financial statements. WCMD collects user-fees through a monthly 

statement process. Risks to depositors are minimized by seizing control, if necessary, of in-store inventories in 

cases of financial insolvency and cause.
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Organizational Structure 

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

the License and Storage Contract Branch, and the Commodity Management Branch. USWA services are delivered by staff

in WCMD’s Examination Branch and the License and Storage 

Contract Branch with support provided by the Office of the Director. WCMD also conducts various activities on behalf of the 

Commodity Credit Corporation (CCC). Those activities, while 

sometimes tangentially related to USWA activities, are funded 

separately through appropriations. 

Warehouse and Agricultural 

Sector Stakeholders 

• American Cotton Shippers Association 

• American Peanut Shellers Association 

• Cotton Growers Warehouse Association 

• Cotton Warehouse Association of America 

• National Cotton Council 

• National Grain and Feed Association 

• National Peanut Buying Point Association 

• US Dry Pea and Lentil Association 

• US Rice Producers Association 

• USA Rice Federation 

Key Stakeholders 

USWA stakeholders have a shared interest in protecting agricultural commodity depositors, which include farmers, cooperatives, 

merchandisers, banks, investors, the CCC, and other entities. 

Warehouses that acquire USWA licenses are USWA customers. 

Industry associations that represent warehouse operators and other agricultural sectors work closely with WCMD to support delivery of services, improve efficiencies, and resolve issues quickly. 

Associations of government entities with shared responsibilities 

or interests in oversight of agricultural commodity warehouses are 

key partners. USWA license holders provide services to depositors 

under authority of the USWA and in cooperation with WCMD. 

Associations of Government 

Agencies with Shared

Responsibilities and Interests 

• Association of Grain Regulatory Officials

• National Association of State Departments of 

Agriculture 

• USDA - AMS Commodity Procurement 

Program 

• USDA - Farm Service Agency 

• United States Agency for International 

Development 

Employees and Locations 

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

examiners are distributed across the nation for effective and efficient delivery of on-site services. Staff supporting 

USWA administrative functions work in offices located in Washington, DC and Kansas City, MO. Staff members 

split their time between USWA and other program activities to maximize efficient resource allocation.

In FY 2020, USDA user-fees supported 22 staff years for licensing, examinations, and general administration of the 

USWA program and activities. A staff year represents 2,080 hours. 

Figure 1. Staff Duty Stations
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2020 USWA OVERVIEW OF OPERATIONS 

Resilience and Innovation Amidst Adversity 

FY 2020 will come to be known as the year of COVID-19. This global pandemic 

disrupted and forced changes in operations throughout the agricultural supply chain. 

COVID-19 Required Ingenuity

The industry and WCMD exercised creativity, innovation, and resilience to cope with challenges

presented by the coronavirus. 

Adjusted Operations 

As warehouse visitor, travel, and health and safety guidelines evolved, the WCMD team adjusted

operations to maintain essential services and redeploy staff to support other mission critical USDA 

operations. 

Incorporating IT Modernization 

As a result, USWA services were delivered effectively and efficiently, investments were made to 

further modernize IT solutions, and cost reductions were realized across the entire USWA program.

FY 2020 Warehouse License 

and Capacity Overview 

The USWA authorizes WCMD to license warehouse 

operators who store agricultural products. Licensed 

warehouse operators must meet the standards established in the USWA and its regulations. Through the 

licensing program, WCMD works to verify quantity, 

quality, and financial arrangements to ensure commodities are properly accounted for and stored. 

Key indicators WCMD monitors include capacity (volume of licensed storage space), functional units (physical locations licensed for storage), and licenses (active 

licenses). USWA offers stakeholders multi-faceted benefits including third party physical inventories, reports 

for management oversight, and baseline best business 

practices as part of regulatory requirements. These 

benefits lead to quality control and industry consistency on a nationwide level. 
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Grain 

Licenses 

In FY 2020, there were 563 

licenses, 2,663 functional 

units, and 6 billion bushels of capacity. Compared 

to FY 2019, there was a 

slight decrease (less than 

1 percent) in licenses and 

functional units, reflecting

a continued trend in market 

consolidation. There was a 

small increase (less than 1 

percent) in licensed capacity. 

Peanut 

Licenses 

In FY 2020, there were 33 

licenses, 333 functional 

units, and 4.7 million tons 

of capacity. Compared to 

FY 2019, this represents a 

10-percent increase in licenses, a slight (less than 

one percent) decrease in 

functional units, and a 

13-percent increase in capacity. The industry observed new entities enter 

the warehousing sector. 

Overall, the number of peanut licenses has remained 

comparatively steady for 

the past 10 years. 

Cotton Licenses 

In FY 2020, there were 154 licenses, 179 functional units, and capacity of 8.9 million bales. Com- Table 1. FY 2011 - FY 2020 Grain Licenses, Functional Units, and Capacity by bushel

pared to FY 2019, this represents a 4-percent increase in licenses and an 11-percent increase in 

both functional units and capacity. Capacity continues to vary each year depending on crop size 

and market demand. On average, 50 percent of commercial cotton storage space is licensed under 

USWA. In light of marketing obstacles this past year, there is an abundant carry-over and the need for cotton 

storage space is on the rise. 

Table 3. FY 2011 - FY 2020 Cotton Licenses, Functional Units, and Capacity by bales

Table 2. FY 2011 - FY 2020 Peanut Licenses, Functional Units, and Capacity by ton
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Other Licenses 

Other warehouse licenses held in FY 2020 included 37 licenses representing a variety of participants such as cottonseed, dry edible bean, and export food aid commodity warehouse operators, and electronic receipt providers. 

There were 3 licensees for cottonseed warehouses located in Missouri and Arkansas and 15 dry bean licensees 

located throughout the Midwest, West, and Pacific Northwest regions. The Export Food Aid Commodity warehouses account for 15 licensees located at 9 ports throughout eight States. There are four electronic providers with 

central filing systems across the United States.

Warehouse and Inventory 

Examinations 

WCMD conducts examinations of warehouses for 

USWA compliance. Examinations consist of documentation of storage obligations, physical inventory of stored commodities, comparison of inventory 

with storage obligations, review of the warehouse’s 

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

practices for conformance with USWA regulatory 

requirements. 

examinations of USWA 1,205 warehouses conducted

by WCMD in FY 2020. 

A total of 379 of these examinations were Location 

Examinations, allowing a modified examination process permitting some examination procedures to be 

conducted at individual warehouse locations. This 

process is used primarily on large multi-location 

warehouse licenses where a coordinated inventory is 

impractical. The use of Location Examinations as an 

optional approach is in response to changing market 

dynamics as the industry continues to consolidate 

and reduce the number of licenses while steadily increasing the number of functional units. 

During FY 2020, the COVID-19 pandemic disrupted normal operating conditions for warehouse examinations. Limitations on warehouse visits, travel restrictions, and mandated health and safety guidelines resulted 

in an approximate 14.8-percent decrease in examinations as compared to FY 2019. 

Warehouse examinations conducted in FY 2020 resulted in the identification of 488 compliance items for 256 

examinations. At the end of the year, 462 items were closed and 26 remained open, representing a 95-percent 

rate of closure. WCMD staff will continue to work with industry in a comprehensive way to achieve successful 

resolution of open items enabling enhanced warehouse operations. Prior to FY 2020, compliance activity was 

managed on an individual case basis using different systems, making consolidated reporting a challenge. As a 

result of newly implemented process improvements, multiyear reporting will be possible going forward. 

Table 4. FY 2016 - FY 2020 Warehouse Examinations

2016 2017 2018 2019 2020 

Beans 9 11 10 3 6 

EFAC 103 92 82 117 47

Cottonseed 3 3 3 5 0 

Cotton 242 226 218 178 188 

Nut 66 72 58 75 55 

Grain 1260 1194 1191 1036 909 

TOTAL 1683 1598 1562 1414 1205
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FY 2020 Inspector, Weigher, Classifier, and Grader Licenses 

WCMD licenses private industry inspectors, weighers, classifiers, and graders. These licenses are issued to provide 

documented validation and legal recourse of the weighing, inspecting, and grading process. In FY 2020, there were 

more than 15,000 active USWA licenses for industry samplers, inspectors, weighers, classifiers, and graders of 

agricultural products. 

Warehouse Receipts 

Warehouse receipts are issued by licensed 

warehouse operators as documents of title to commodities in storage. Warehouse 

receipts can either be in paper or electronic form. WCMD licenses three providers of electronic warehouse receipts 

(EWRs) for the maintenance of the EWR 

central filing system: EWR Inc., eGrain, 

Inc., and eCOPs, LLC. The central filing 

systems allow for an efficient and secure 

method of issuance, storage, transfer, and 

auditing functions for warehouse receipts 

and other electronic documents (OEDs). 

The USWA establishes associated standards and validations that enhance the 

EWRs acceptance by the commodity industry. 

Grain Electronic Warehouse Receipts 

In FY 2020, 9,851 grain EWRs were issued covering 931,181,897 

bushels. Compared to FY 2019, grain receipts issued declined 6 

percent while volume also decreased by 18 percent. This decrease 

was consistent with prior year trend activity. 

Cotton Electronic Warehouse Receipts 

In FY 2020, 21.8 million cotton EWRs were issued. As an identity preserved commodity, each EWR represents one bale of cotton. Compared to FY 2019, cotton receipts and bales increased 20 

percent, similar to the percentage increase in domestic production 

from 2019 to 2020. 

Peanut Electronic Warehouse Receipts 

In FY 2020, 31,914 peanut EWRs were issued covering 2.16 million 

tons. Compared to FY 2019, peanut receipts declined 5 percent and 

volume covered also narrowly declined 0.5 percent. 

Commodity Warehouse Industry 

Communication and Collaboration 

WCMD staff communicate and interact with the grain, cotton, and peanut 

industries on an ongoing basis. In addition to ongoing exchanges of information, WCMD staff participate in national and regional warehouse industry 

trade association annual meetings and periodic workshops and committee 

sessions, and conduct training sessions with commodity warehouse industry 

representatives and licensees. These events provide a forum and platform for 

industry and WCMD staff to interact, exchange information, and learn from 

one another. More specifically, WCMD staff strengthen their knowledge and 

understanding of the industries served, the operating challenges they face, 

and how to ensure that resources available through USWA licensing are 

optimized. In turn, industry representatives gain knowledge and insight on 

USWA programs, how those programs influence their trading environment 

and enhance their warehousing operations, while using WCMD expertise 

for technical assistance on prospective policy proposals. 

During FY 2020, WCMD staff attended and presented at a variety of in-person and virtual industry events including:

• Cotton Growers Warehouse Association Board Meeting, Amarillo, TX 

• National Cotton Council Annual Meeting, New Orleans, LA 

• National Grain and Feed Association Annual Convention, Austin, TX 

• Cotton Growers Warehouse Association Annual Meeting 

• Cotton Warehouse Association of America Annual Conference 

Due to constraints associated with the pandemic, it was not feasible to conduct in-person training sessions in FY 2020. Meetings were adapted and 

conducted virtually between March and July, benefiting the entire 80-person 

WCMD team. Representatives from the National Cotton Council, National 

Peanut Buying Association, American Peanut Shellers Association, Georgia 

Peanut Commission, USDA, and several commercial entities gave generously of their time and talent to present and participate in these meetings. 

Industry Meetings 

WCMD staff attended 

and presented at five

industry meetings

and conferences on 

both policy issues and

statistical information 

related to the USWA. 

Attendance also 

allowed for networking

and informal 

conversations on 

issues of relevancy to

conference attendees. 

Annual Training Sessions 

Virtual training 

sessions and meetings

held in place of

in-person annual

sessions enhanced 

the WCMD team’s 

knowledge on grain,

cotton, and peanuts,

including challenges

in production,

marketing, insurance,

and storage. This 

also represented

an effective use of 

staff time when the 

pandemic prevented

examiners from 

conducting warehouse

examinations.

USWA Annual Report 

During FY 2020, 

WCMD sought

industry feedback on

the FY 2019 USWA 

Annual Report.

Input on content and

transparency of future

annual reports was

incorporated into the

FY 2020 annual report. 
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FINANCIAL INFORMATION FINANCIAL INFORMATION 

Ensuring Financial Stewardship 

The USWA authorizes the collection of fees and rate changes, as necessary, to cover the costs of administering 

the USWA program. During FY 2020, the global community experienced unprecedented shifts as the COVID-19 

pandemic forced market shutdowns and quarantine 

orders. USDA and its Federal partners combined efforts to provide immediate and long-term assistance FY 2020 Financials 

to communities affected by the pandemic. WCMD FY 2020 USWA user-fee collections restructured its approach to examinations during FY totaled $4.14 million representing a 2020, updating protocol to avert risk for staff and 13.1-percent increase over FY 2019. to protect licensees and stakeholders. In addition, FY 2020 expenses totaled $3.4 million,

WCMD assisted in the pandemic relief effort by pro- representing a 19-percent reduction

viding administrative support to the Farmers to Fam- over FY 2019. Cost reductions were 

ilies Food Box Program which was administered by realized in all expense categories.

USDA to help farmers and segments of the food industry impacted by the closure of restaurants, hotels, 

and other food service businesses. USWA personnel costs were reduced by the reassignment of USWA staff resources, leading to overall savings for the USWA program. 

As directed, USWA fees cover direct and indirect costs of providing services. Direct expenses include the cost 

of salaries, employee benefits, and non-labor operating costs (e.g. equipment, supplies, and postage). Indirect or 

administrative expenses include budget, human resources, legal services, and information technology support. 

Total Direct Expenses 

Salaries and benefits, travel, communications were 

reduced 3.1 percent as compared to FY 2019.

• Personnel salaries and benefits made up the 

largest expense, representing $2.4 million or 86 

percent of all expenses. There was an 11 percent 

reduction in salaries and benefits expenses as 

compared to FY 2019. 

• Non-labor expenses covering travel and communications totaled $385.037 or 11.4 percent of all 

expenses. Compared to FY 2019, there was a 15.9 

percent reduction. 

Total Indirect Expenses 

Information technology and administrative costs dropped 81 

percent as compared to FY 2019.

• Technology expenses associated with major modernization initiatives accounted for $31,010 or 5.5 percent of indirect expenses. 

Compared to FY 2019, this represented a 94.8 percent expense 

reduction due to a $4.5 million appropriation made to supplement 

technology expenses associated with the USWA and AMS’ Warehousing Program. 

• Expenses covering administration and shared services within 

USDA, AMS, and FTPP accounted for $531,627 or 15.7 percent of 

total spending. Compared to FY 2019, this represents a 20.3 percent 

reduction. 

The FY 2020 year-end reserve balance of $1.71 million is equivalent to 6.1 months of operating expenses, an increase of $750,117 over 2019 ($958,356 or 2.7 months of operating reserves). The purpose of the reserve account 

is to buffer unexpected changes in user-fee collections due to changes in licensed warehouse capacity to cover 

accrued liabilities in the event of unexpected program cessation and to support other unforeseen needs. 

Table 5. FY 2020 Financials

INCOME/EXPENSE STATEMENT 

FY2019 FY2020 

INCOME 

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

$ Change 

$478,039 

% Change 

13.1% 

Total Collections $3,659,342 $4,137,381 $478,039 13.1% 

EXPENSES 

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

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

Travel $419,862 $360,781 

Communications $24,016 $18,000 

Other Operating Expenses $14,198 $6,256 

($57,147) 

$38,646 

($59,081) 

($6,016) 

($7,942) 

-3.2% 

5.7% 

-14.1% 

-25.0% 

-55.9% 

Subtotal: Direct Expenses $2,916,167 $2,824,627 ($91,540) -3.1% 

Information Technology Contracts $600,812 $31,010 

Administrative Program Services $212,213 $123,081 

Agency Shared Services $323,295 $296,949 

Departmental Shared Services $131,631 $111,597 

($569,802) 

($89,132) 

($26,346) 

($20,034) 

-94.8% 

-42.0% 

-8.1% 

-15.2% 

Subtotal: Indirect Expenses $1,267,951 $562,637 ($705,314) -55.6% 

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

Excess/Deficiency of Income Over Expense ($524,776) $750,117 

($796,854) 

$1,274,893 

-19.0% 

32.1% 

FUND BALANCE 

FY2019 

October 1 Beginning Balance $1,483,132 

Excess / Deficiency of Income Over Expense ($524,776) 

FY2020 

$958,364 

$750,117 

$ Change 

($524,776) 

$1,274,893 

% Change 

-35.4% 

-242.9% 

September 30 Ending Balance $958,356 $1,708,473 $750,117 78.3% 
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EFFICIENCIES AND COST SAVINGS EFFICIENCIES AND COST SAVINGS 

Gaining Efficiencies and Controlling Costs

The USWA authorizes the collection of fees to administer the program and requires the Secretary “to minimize 

the fees established under this section by improving efficiencies and reducing costs, including the efficient use 

of personnel to the extent practicable and consistent with the effective implementation of this Act (7 U.S.C. § 

243(e)(2)).” 

Accordingly, WCMD continues to implement cost controls and simultaneously explore innovative strategies 

to gain additional efficiencies. Primary focus is placed on the efficient use of personnel, streamlined business 

operations supported by modern systems and technologies, and ongoing outreach and engagement with the 

commodity warehouse industry. 

Efficient Use of Personnel

In FY 2020, personnel expenses (salaries and benefits) represented 71 percent of all USWA costs and provided 

for a total of 22 staff years in direct support of USWA services. FY 2020 personnel costs represent an 11-percent reduction compared to FY 2019 expenses. Warehouse examinations were conducted by examiners with 

duty stations strategically located across the United States. 

Managing human capital in this manner provided available staff resources to efficiently deliver timely, accurate, 

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

to pay the full cost of maintaining the staff. 

WCMD 

22 38%

allocated to

62%

time on staff years USWA other USDA supporting programs services USWA 

COVID-19 Response

While WCMD has historically assigned personnel to other nonUSWA activities to gain efficiencies, during FY 2020, the COVID-19 

pandemic required WCMD to further adjust the way work was assigned and conducted. 

Remote Work During COVID-2019

Office and field staff quickly converted to remote work arrangements

that respected warehouse and local distancing requirements and 

provided for the safety of WCMD staff, warehouse personnel, and the 

public at large. 

Reassignment of Staff 

Additionally, WCMD reassigned staff to other USDA work activities to 

contribute to agency priorities while maintaining staff productivity. 

Non-USWA work funded by other sources during FY 2020 included: 

• USDA-AMS Farmers to Families Food Box Program Reviews 

• CCC Storage Agreement Examinations 

• USDA-AMS Commodity Procurement Program Port Warehouse Inspections 

• USDA-AMS Country of Origin Labeling (COOL) Regulatory Reviews 
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IT Modernization (eWCMD) CONCLUSION

During FY 2020, WCMD continued work on a major IT modernization effort, the Electronic Warehouse and 

Commodity Management Data (eWCMD) System that was launched in FY 2019. Over the course of a three-year, 

three-phase development and deployment process, WCMD seeks to consolidate seven IT systems into one unified 

and streamlined system that will enhance customer service, re-engineer and automate business operations, and 

align with departmental security requirements. 

Each IT Modernization phase focuses on development of key functionalities.

Phase 1: Entities, Phase 2: Licensing Phase 3: Other Program Licenses, and Actions, Financial Areas and Functionality Examinations (completed Review, and Invoicing Enhancements 

August 2019) (December 2020) (September 2021)

During FY 2020, WCMD continued development of Phase 3 of eWCMD will feature development and imeWCMD supported by a special $4.5 million Con- plementation of improved workflows, dashboards, and 

gressional appropriation resulting in lower overall FY management-level reporting. 

2020 USWA administrative costs. eWCMD will result in efficiency gains and improved 

Phase 2 activities conducted in FY 2020 included the customer service. When fully developed, users will 

execution of contracts for development, moderniza- experience improved service response time and on-detion, and enhancements to components of the system in mand access to accurate, quantitative data delivered 

addition to operations and maintenance of the system. in a user-friendly format. This includes visibility of 

In FY 2021, WCMD will complete phase 2 by decom- licensed and other authorized storage space data, enmissioning the Commodity Operations Management hanced inventory control applications, and online deSystems (COMS) Suite of investments, including the livery of statements. The online availability of their inGrain Inventory Management System (GIMS), the formation will support planning and marketing efforts 

primary application used to administer the USWA. for USWA licensees. 

WCMD Cost Control Monitoring and Management 

To manage and control costs in support of USWA, WCMD implements a variety of cost monitoring, management, 

and control activities. Labor and non-labor activity and expenses are separated and monitored on a real-time basis, 

allowing for adjustments, as necessary. Current and projected expenses are tracked, compared, and analyzed to inform and facilitate decisions on staff scheduling and assignment. Additional cost controls, such as an Alternative 

Work Schedule (AWS), including variable work hours, are used to minimize travel and personnel expenses. An 

increase in location examinations also maximizes commutable work and reduces staff needed on specific exams. 

In FY 2020, these strategies were essential in planning for and reassigning personnel to non-USWA activities 

during the COVID-19 pandemic, resulting in cost savings to the USWA program. 

CONCLUSION 

FY 2020 was a year of unprecedented challenges in delivering programs and services to the commodity warehouse community. WCMD today, and organizations before it, have worked closely with the industry for over 

100 years and developed a reputation of setting the “gold standard” among USDA programs. During the economic and health challenges in FY 2020, WCMD reached out to its customers, strengthened existing working 

relationships, built new relationships, and solicited input on how to best move forward in FY 2021. 

Each year brings its own set of opportunities and challenges. As one year ends and another begins, WCMD 

pauses, takes stock of prior year achievements and challenges, and applies those lessons learned to continuously improve operations. To maintain the “gold standard” reputation with its valued customers into FY 

2021, WCMD is first focused on prioritizing customer service through the improved eWCMD system. Further 

development and implementation of eWCMD will allow warehouse examiners and WCMD staff greater access to data enabling quicker response times to customers and real-time decisions from managers. Secondly, 

WCMD is committed to stewardship of the responsibilities, user-fees, and appropriated funds entrusted to 

WCMD. While there are constants —such as set salary guidelines or travel rates —outside the control of 

WCMD, all costs to the USWA program will continue to be re-evaluated in FY 2021 to maximize efficiency. 

Lastly, WCMD is committed to reliably providing valuable USWA services to customers, on time, every time. 

WCMD will work with the commodity warehouse industry in FY 2021 to develop new operating procedures 

to maintain the same high level of customer service, while maintaining the health safety of warehouse staff, 

WCMD examiners and the general public. 

For United States Warehouse Act inquiries, please email the Warehouse and Commodity Management Division at warehousing@usda.gov, call (816) 926-6474, or write:

Director, 

Warehouse and Commodity Management Division 

Fair Trade Practices Program 

Agricultural Marketing Service 

United States Department of Agriculture 

1400 Independence Avenue, SW, 

Washington, DC 20250 
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and 

policies, the USDA, its Agencies, offices, and employees, and institution participating in or administering USDA programs 

are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender 

expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance 

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

or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or 

incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 

720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program 

information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, 

found online at How to File a Program Discrimination Complaint and at any USDA office or write to a letter addressed to 

USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call 

(866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of the 

Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410; (2) fax: (202) 690-

7442; or (3) email: program.intake@usda.gov.

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

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

December 2020 

For more information about the United States Warehouse Act, 

please call (816) 926-6474. 

Email: warehousing@usda.gov

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

United States Department of Agriculture, Agricultural Marketing Service 

Fair Trade Practices Program, Warehouse and Commodity Management Division 

1400 Independence Avenue, SW, Washington, DC 20250