Annual Report 2022 i

Warehouse and Commodity Management Division

Fair Trade Practices Program — December 2022

UNITED STATES 

WAREHOUSE ACT 

2022 ANNUAL 

REPORT
Agricultural Marketing Service

Annual Report 2022 ii Annual Report 2022 1

The theme of this year’s annual report is “Continuing the Mission.” As the Coronavirus Pandemic 

transitioned to an endemic in 2022, the United States Warehouse Act (USWA) activities and services 

transitioned back to a normal level. USWA Warehouse Examiners were able to go into communities and 

facilities that had restricted access during the previous two years. Program management was able to attend 

conferences and events in order to network in person with stakeholders, licensees, and peers. USDA 

offices that had been closed, opened in 2022 allowing USWA staff to work together, face-to-face. There is 

a sense within the USWA program that we emerged from the Pandemic environ-ment as a wiser, more 

efficient, and more resourceful organization. As documented in this Annual Report, industry participation in 

the USWA remains very active. There is a feeling of renewed vigor going forward as we acknowledge the 

resiliency and strength of the program.

Sincerely,

Ned Bergman

Director

Warehouse and Commodity Management Division

TABLE OF CONTENTS

Featured Photographs throughout the Publication

Page 1- Ned Bergman; Page 3- photo provided by Richard Liggett of audit site in Freeborn, MN; Page 5- photo provided by Richard

Liggett of Dean Mather (L) and Richard Liggett (R) in Williston, ND; Page 7- photo provided by Matt Eaton of Shalynn Sumrow in 

Kragnes, MN; Page 9- photo provided by Natalie Wolverton of peanut farm tour in Colquitt, GA; Page 10- photo provided by Richard 

Liggett of audit site in Hutchinson, MN; and Page 13- provided by Richard Liggett of audit site in Murdock, MN.

MESSAGE FROM THE DIRECTOR

NED BERGMAN

TABLE OF CONTENTS ii

MESSAGE FROM THE DIRECTOR 1

YEAR AT A GLANCE 2

INTRODUCTION 2

3

3

4

KEY SERVICES 

2022 USWA OVERVIEW OF OPERATIONS 6

FY 2022 WAREHOUSE LICENSE AND CAPACITY OVERVIEW 6

WAREHOUSE AND INVENTORY EXAMINATIONS 8

FY 2022 INSPECTOR, WEIGHER, CLASSIFIER, AND GRADER LICENSES 9

WAREHOUSE RECEIPTS 9

FINANCIAL INFORMATION 10

EFFICIENCIES AND COST SAVINGS 12

GAINING EFFICIENCIES AND CONTROLLING COSTS 12

EFFICIENT USE OF PERSONNEL 12

MAXIMIZING EFFICIENCIES VIA TECHNOLOGY SOLUTIONS 12

EFFECTIVE COLLABORATION AND COMMUNICATION 13

CONCLUSION 13
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YEAR AT A GLANCE

The post-pandemic efforts of USWA’s services focused on overcoming market obstacles and consolidations 

needed to continue the FY 2022 recovery. While continuing to prioritize efficient use of personnel and streamlined business operations, this year brought a more normalized return to services. Throughout 2022, USWA 

services expanded upon 106 years of cumulative USDA and industry partnership to further the mission. 

KEY SERVICES

• Warehouse Licensing

• Inspect/Weigh/Grade/Classify Service Licensing

• Examinations

• Warehouse Receipts

• Central Filing Systems

o Electronic Warehouse Receipts

o Other Electronic Documents

ORGANIZATIONAL STRUCTURE

The Warehouse and Commodity Management Division 

(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.

INTRODUCTION

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) and other USDA programs.

24.5

1,436

68

for licensing, examinations, and general 

administration.

of USWA warehouses.

time was allocated to other 

USDA programs

STAFF YEARS SUPPORTED

EXAMINATIONS

PERCENT OF WCMD STAFF

year-end 

reserve 

balance

$1.5M

active service 

licenses

14,200+

MARKETING AND REGULATORY PROGRAMS MISSION AREA

AGRICULTURAL MARKETING SERVICE

FAIR TRADE PRACTICES PROGRAM

WAREHOUSE AND COMMODITY MANAGEMENT DIVISION

LICENCE AND STORAGE 

CONTRACT BRANCH

US WAREHOUSE ACT

COMMODITY MANAGEMENT 

BRANCH

EXAMINATION BRANCH

DEPARTMENT OF AGRICULTURE
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EMPLOYEES AND LOCATIONS

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 out of 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 Fiscal Year (FY) 2022, USWA user-fees supported 24.5 staff years for licensing, examinations, and general 

administration of the USWA program and activities. A staff year represents 2,087 hours. 
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In Fiscal Year 2022, we saw the beginning of the post-pandemic world, including increased travel and more 

normalized operations for both WCMD and industry. Prior investments in information systems and processes continued 

to deliver high returns and offer maximum flexibility.

Warehouse License and Capacity Overview, FY 2022

2022 USWA OVERVIEW OF OPERATIONS

Export Food Aid Commodity 

Licenses

• 15 licenses

• 11 functional units

Dry Edible Bean Licenses

• 5 license

• 28 functional units

• 9,727,000 CWT capacity

Cottonseed Licenses

• 1 license

• 1 functional unit

• 8,000 tons capacity

Electronic Provider Licenses

• 4 licenses
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INSPECTOR, WEIGHER, CLASSIFIER, AND GRADER LICENSES

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

recourse at the delivery point. In FY 2022, there were more than 14,200 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 and come with financial assurances for 

the depositor or holder. WCMD currently has three authorized receipt printers and four providers of electronic 

warehouse receipts (EWRs) and other electronic documents. The central filing systems allow for an efficient 

and secure method of issuance, storage, transfer, and auditing functions. WCMD, under USWA authority, 

establishes standards and validations that enhance EWRs acceptance by the commodity industry.

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021 2022

Beans EFAC Cottonseed Cotton Peanut Grain eProvider

WAREHOUSE AND INVENTORY EXAMINATIONS

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

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

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

WCMD conducted 1,436 examinations of USWA warehouses in FY 2022. Of those, 386 examinations uncovered 635 items requiring warehouse action and compliance follow-ups. WCMD staff continue to work with 

industry to resolve compliance items enabling enhanced warehouse operations and industry integrity.

2016 2017 2018 2019 2020 2021 2022

Beans 9 11 10 3 6 7 4

EFAC 103 92 82 117 47 50 84

Cottonseed 3 3 3 5 0 3 2

Cotton 242 226 218 178 188 142 197

Peanut 66 72 58 75 55 56 82

Grain 1,260 1,194 1,191 1,038 909 895 946

eProvider - - - - - - 2

Total 1,683 1,598 1,562 1,416 1,205 1,153 1,317 
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1. Fee reporting is recognized using the accrual method and will be

reported as billed opposed to collected.

2. Credits and adjustments occur when the underlying service contracts

and accounts are reconciled.

3. IT charges of $218,315 were posted to the USWA account in 2021, but

funds were returned in 2022 following a program activity allocation review.

FINANCIAL INFORMATION INCOME/EXPENSE STATEMENT

Reserve Account Balance - October 1, 2021 $1,543,563 

Fees Generated (Note 1) $3,572,979 

EXPENSES

Salaries $2,034,386

Employee Benefits $839,970

Travel $365,562

Communications $90

Communications – Credit/Adjustment (Note 2) $(1,703)

Other Operating Expenses $8,377

Information Technology Contracts $104,711

Information Technology Contracts – Credit/Adjustment (Note 3) $(218,315)

Overhead – Fair Trade Practices Program $105,151

Overhead – Agricultural Marketing Service $223,570

Overhead – US Department of Agriculture $109,854

TOTAL EXPENSES $3,571,653

Net Income $1,326 

Reserve Account Balance - September 30, 2022 $1,544,889 

ENSURING FINANCIAL STEWARDSHIP 

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

the USWA program. 

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

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

technology support. 

The FY 2022 year-end reserve balance of $1.5 million is equivalent to 5.2 months of operating expenses. The 

purpose of the reserve account is to buffer unexpected changes in user-fee collections or market disruptions 

and cover accrued liabilities in the event of unexpected program cessation.

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

Fees Generated line item includes all fees generated in FY 2022.
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EFFICIENCIES AND COST SAVINGS

GAINING EFFICIENCIES AND CONTROLLING COSTS

The USWA, under 7 USC § 243(e)(2), requires the Secretary “to minimize the fees established 

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

personnel to the extent practicable and consistent with the effective implementation of this Act.”

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

additional efficiencies. In order to meet the USWA statute requirements, WCMD’s highest priorities are the 

efficient use of personnel, streamlined business operations supported by modernized systems and technologies, and ongoing outreach and engagement with the commodity warehouse industry.

EFFICIENT USE OF PERSONNEL

In FY 2022, personnel expenses (salaries and benefits) represented 80 percent of all USWA costs and provided for a total of 24.5 staff years in direct support of USWA services. WCMD staff, including warehouse 

examiners, spent 32 percent of their time on USWA services. The balance was allocated to other USDA programs, including Country of Origin Labeling (COOL) Regulatory Reviews, Commodity Procurement Export 

and Domestic Warehouse Inspections, and CCC Storage Agreement Examinations. Managing human capital 

in this manner provided available staff resources to efficiently deliver timely, accurate, and quality services to 

the commodity warehouse community without relying on USWA-licensed warehouses to pay the full cost of 

maintaining the staff.

MAXIMIZING EFFICIENCIES VIA 

TECHNOLOGY SOLUTIONS

In addition, FY 2022 also marked the launch of 

the integration effort to connect with WCMD’s Box 

instance, a secure cloud content management 

platform allowing all staff access to all files, 

documents, and other forms of information for 

the entire warehouse program. The ability to 

leverage these two cloud-based solutions into a 

seamless workflow defines efficiency: reducing 

operating cost and maximizing customer delivery 

and usability. Essentially, reducing the overall 

physical, financial, and technological footprint of 

the Division’s IT infrastructure.

In FY 2022, WCMD completed a modernization 

effort that completely re-imagined how WCMD staff 

deliver the mission. The cloud-based, fully 

customized application used as the Division-wide 

system of record, provides real-time data to staff, no 

matter where they are located.

EFFECTIVE COLLABORATION AND COMMUNICATION

For decades, WCMD and its predecessors have worked closely with the commodity warehouse industry to 

support delivery of services, improve efficiencies, and resolve issues quickly. Effective collaboration is rooted 

in a sense of trust and care for one another. Open and timely communication is a crucial component of these 

professional relationships. While warehouse operators, industry associations, stakeholders, and WCMD 

each have their respective responsibilities and concerns, a history of successful collaboration has resulted 

in improved efficiencies in the delivery of USWA services and an overall reduction of risk for depositors of 

agricultural commodities in licensed warehouses.

CONCLUSION

Fiscal Year 2022 represented 106 years of cumulative USDA and industry partnership dedicated to 

developing, growing, and maintaining America’s public commodity warehousing system through the 

provisions of the USWA. Ongoing warehouse commodity market obstacles, consolidations, and postpandemic recovery continued in FY 2022. These trends were reflected in fewer warehouse licenses and a 

slight increase in functional units and capacity. It is evident that through continued technology 

enhancements, industry collaboration, and dedi-cated commitment to the agricultural community from 

USWA staff and stakeholders, the steadfast mission delivery will continue and be relevant for generations 

to come. 
Annual Report 2022 14

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 ofAgriculture, Office of theAssistant Secretary for Civil Rights, 1400 IndependenceAvenue, 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. 

August 2023

United States Department of Agriculture, Agricultural Marketing Service

Fair Trade Practices Program, Warehouse and Commodity Management Division

PO Box 419205, Mail Stop 9148, Kansas City, MO 64141-6205

Email: warehousing@usda.gov | Phone: 816-926-6474