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Jeff Haarer
Producer Security and Ag Products Manager
The Producer Security Team monitors agricultural elevators through regular audits, ensuring farmers are compensated fairly for the grains they deliver to market. We use time tested methods to measure and determine the number of bushels that are obligated to producers at any given time. In doing so, we employ the latest technologies to determine the financial obligations of over 200 licensed grain dealers in the state, including two licensees in the upper peninsula. While in the field, our team also performs checkoff audits for commodity groups, grant site audits for the AgD Grant Team and various other compliance activities related to the trade of grain in Michigan.
The Producer Security Team also collaborates with neighboring states grain programs and monitors out-of-state grain dealers in an effort to protect our $10M indemnity fund, which is money paid by farmers into the fund in case a grain dealer experiences an insolvency such as bankruptcy.
The team is currently composed of Jeff Haarer (Program Manager), Denise Studders (Auditor), David Hall (Auditor), Dominic Perrone (Compliance Officer), Jonathon Schweda (Administrative Support) and Madison Essex (Administrative Support). Housed within the Agriculture Development Division, the Producer Security team also answers to the Farm Produce Insurance Authority for semi-annual reporting and guidance.
In this bulletin:
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Denise Studders
Denise is an Auditor with the Producer Security Team. She performs audits on Michigan licensed grain dealers, performs financial grant reviews, grant site visits, assists with feed and fertilizer tonnage audits, and other producer related audits as needed. She has worked at MDARD since 2002.
Jeff Haarer
Jeff is the Program Manager of the Producer Security Team. Jeff, has experience in a variety of legal topics across the domestic and international agriculture industry and is active in the MDARD Mentorship Program. He received his B.A., J.D. from Michigan State University, Thomas M Cooley Law School.
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Dominic Perrone
Dominic is a Compliance Officer with the Producer Security Team, specializing in regulation and communication. He has worked at MDARD for over 20 years and serves as a board member of the Association of Grain Regulatory officials.
Madison Essex
Madison is the Office Assistant for the Producer Security Team. She attended Michigan State University’s Institute of Agriculture Technology for Dairy Management, and then went on to attend Baker College receiving an Associates of Applied Science in Agriculture Technology and Agribusiness.
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David Hall
David is an auditor with the Producer Security Team. He specializes in Working Capital Audits and has 20 years of experience working with grain merchandisers.
Johnathon Schweda
Johnathon is the Agriculture Development Division's Operations Analyst. He has a focus in the Producer Security (PS) Program to oversee assessments to be remitted towards Michigan's $11M Farm Produce Indemnity Fund in conjunction with Program Manager Jeff Haarer. Johnathon also provides IT, vehicle, and procurement support to the PS Team.
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Industry Information
 What does the Producer Security Program and its Auditors do? How does it impact Michigan agriculture?
The top priority of the Producer Security Program is to ensure compliance with the Grain Dealers Act 141 of 1939. In doing so, this provides adequate producer security for grain delivered but not paid for. This also creates a level playing field for all entities, domestic and foreign, who operate as a grain dealer in Michigan. The program is continually adapting focus to industry and producer demands in an ever-changing market and provides an environment that invites industry development and communication. The Producer Security Team consistently reviews and improves processes and procedures to stay ahead of potential grain dealer failures.
What is the Grain Dealers Act 141 of 1939?
This Act regulates the storage, warehousing, buying, and selling of farm produce within Michigan. MDARD receives its authority for regulating and licensing individuals under this Act to provide for the licensing, regulation, and bonding of grain dealers; to provide for warehouse receipts, acknowledgment forms, and price later agreements and their use and priority; to provide for the creation of security interests; to provide for certain powers and duties of the department of agriculture and its director; to impose certain duties on insurance companies and sureties; and to provide administrative remedies and penalties for the violation of this act.
Who needs a grain dealer's license?
If you are engaged in the business of receiving, buying, exchanging, selling, or storing farm produce and you do not fall within an exception, you are considered a grain dealer and must obtain a license from the Michigan Department of Agriculture & Rural Development (MDARD).
Who does not need a grain dealer's license?
- A grower or producer who sells farm produce that the grower or producer actually produces.
- A person who buys farm produce, pursuant to a cash sale, as a feeder of the person's own livestock or poultry.
- A person who handled less than 30,000 bushels of farm produce from producers in the prior or current fiscal period, buying farm produce in a cash sale.
- A person who contracts for land or services to produce seed for sowing or propagation.
- A person who purchases farm produce from an entity other than a grower or producer pursuant to a cash sale.
Note: Exceptions are not available if the person is required to offer warehouse receipts or price later agreements or if the person takes title prior to payment for farm produce of a producer or grower. To qualify for an exception, the person must engage solely in the exceptions listed above.
How many grain dealer licenses are there?
There are currently 200 licensed grain dealers responsible for handling the majority of $2.2 billion in field crops
How often are grain dealer audits performed?
A risk-based analysis is performed on a routine basis for all licensed grain dealers and merchandisers. Based on the level of risk assessed, an audit may be performed at predetermined increments between weekly for those grain dealers with high risk of failure and up to 18 months for those grain dealers with little or no risk of failure.
Does the Producer Security audit staff only audit licensed grain dealers?
No. The audit staff also performs oversight reviews on the 14 legislatively established commodity groups that have producer checkoffs or assessments. They also assist with commercial feed and fertilizer, livestock auctions, wholesale potato dealers, dairy plants, and milk manufacturing reviews and assistance as needed. Audit staff also performs site visits and financial reviews for Rural Development, Value Add, and Food and Agricultural Investment grants.
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Save The Date
 Save The Date: April 20, 2023
The Making It In Michigan Conference and Tradeshow includes:
- In-depth educational sessions, networking opportunities and take-home resources
- Special guest speaker
- Conference luncheon
- Afternoon tradeshow and more networking with vendors and buyers
- Pitch competition with Michigan Good Food Fund
- Vendor/PC client awardees
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Industry Events
This information is being shared on behalf of the West Michigan Food Processing Association.
The West Michigan Food Processing Association will host the quarterly network meeting, on Thursday, January 12, 2023 from 9AM-3PM, at the West Michigan Research Station in Oceana County, supported by The Right Place and MDARD, along with key sponsors.
This meeting is open to the public and welcomes partners throughout the food supply chain to come together and learn the latest in sustainability practices, challenges and solutions from food industry leaders including Peterson Farms and Continental Dairy, through a keynote presentation and panel discussions.
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Grants
The Michigan Department of Agriculture and Rural Development provides grants to establish, retain, expand, attract or develop value added agricultural processing in Michigan, or that expand or develop regional food systems or access the healthy food.
The 2023 Grant Cycle Request for Proposals will open on
February 2, 2023.
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Grants
The Michigan Department of Agriculture and Rural Development Specialty Crop Block Grant Program awards funds to projects to enhance the competitiveness of Michigan specialty crops, which include fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).
The 2023 Grant Cycle Request for Proposals will open on
January 4, 2023.
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In mid-November, we said a fond farewell to International Marketing Program Coordinator, Liz Smith. She has relocated to Denver, Colorado and will continue to work in the food and agriculture industry there.
Updates about staffing for the International Marketing Program will be shared in upcoming editions of this bulletin.
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Farm Produce Insurance Authority Board Meeting
December 14, 2022 | East Lansing, MI
Specialty Crop Block Grants
Open January 2023
Michigan Agri-Business Association's 2023 Trade Show
January 10-11, 2023 | Lansing, MI
Great Lakes Crop Summit
January 25-26, 2023 | Mt Pleasant, MI
MAC Outlook Conference
February 2, 2023 | Bath, MI
Value Added & Regional Food System Grants
Open February 2, 2023
National Restaurant Association Show
May 20-23, 2023 | Chicago, IL
*Discounted booth spaces remaining*
Sweets & Snacks Expo
May 22-25, 2023 | Chicago, IL
*SOLD OUT*
Summer Fancy Food Show
June 25-27, 2023 | New York City, New York
*Contact MDARD-AgD@michigan.gov for details*
ANUGA Food Show
October 7-11, 2023 | Cologne, Germany
*Contact MDARD-AgD@michigan.gov for details*
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Michigan Department of Agriculture and Rural Development
Agriculture Development Division
MDARD-AgD@Michigan.gov
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