HISTORY OF GRAIN ELEVATORS IN KANSAS
In 1907, Kansas enacted its first warehousing laws. The early farmers recognized the need for government to regulate the grain industry much in the same way it regulated banks. The primary goal for the program has not changed in over 100 years. The protection of the producers and their stored grain is the primary function of every employee of this program.
The Legislature authorizes the Kansas Department of Agriculture to license warehousemen storing agricultural products who meet department standards and who agree to abide by the laws and regulations. It further authorizes qualified employees to examine warehouses to ascertain the quantity of stored grain, the quality of said grain in a limited manner, the overall capacity of the warehouse facility, and to investigate the warehouseman prior to licensing. The Legislature also required the filing of a bond by an acceptable surety company prior to licensing. The Warehouse Law defined the warehouseman’s responsibilities and provides for supervising his operation after licensing. It prescribes the form of receipt that must be issued and contains penalties for infractions of law or regulation. The power, jurisdiction, and authority conferred upon the Kansas Department of Agriculture under the “Warehouse Law” shall be exclusive with respect to all persons securing a state license so long as said license remains in effect.
The primary purpose for this program, at the time of its enactment to the present, is to protect depositors of basic agricultural products in public warehouses. This is the prime directive and all employees are committed to this goal. To that end, we ensure producers that they have a safe place to store grain, that the grain is taken care of during the storage period, that grain of comparable grade and quality is available and can be delivered when called for, and that a warehouseman does not become insolvent.