Nebraska company fined for lacking S.D. grain license

Capitol News Bureau

PIERRE, S.D. (KELO) — A trucking brokerage based in Minden, Nebraska, has agreed to pay a $2,000 penalty for purchasing grain in South Dakota without a South Dakota license.

BK Commodities did have a Nebraska grain-buying license at the time, co-owner Kirk Frecks told the South Dakota Public Utilities Commission on Friday.

Several South Dakota-licensed entities reportedly told the commission’s grain-warehouse staff that BK Commodities was buying grain in South Dakota without a South Dakota license.

Cody Chambliss, the grain-warehouse program’s manager, contacted BK Commodities. The company stopped buying grain in South Dakota until after it was licensed and also agreed to a $2,000 fine.

According to the stipulation, BK Commodities purchased at least 30 truckloads in South Dakota prior to receiving the license September 21, 2021. The company could have faced penalties of $1,000 per load up to the maximum $20,000 in state law.

Commission chairman Chris Nelson said he found the failure to have a license “absolutely mystifying” but accepted an explanation that the company was buying bird seed and thought it qualified as feed.

South Dakota law exempts grain buyers from needing a license if the purchase is for feeding livestock or for planting for reproduction.

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