Current high grain prices have given Alabama producers a chance to have a profitable year. As a precaution, Alabama Department of Agriculture & Industries’ Commissioner Ron Sparks warns that the high and volatile grain prices can cause certain problems in the grain industry.

One such problem is the possibility of large margin calls for grain buyers after contracting the producers’ grain.

Any person buying grain from an Alabama producer and not paying for grain at the time of delivery is required to be licensed and bonded with the Alabama Department of Agriculture & Industries. To protect themselves, producers can call the Department at 1-800-642-7761, Ext. 7223, and ask for Joe Cowart. Cowart can tell producers if the buyer is licensed and bonded.

“The grain industry in Alabama has a lot of reputable people marketing grain throughout the state,” said Sparks. “Under the current conditions, I would suggest that our grain producers be careful and knowledgeable about their potential buyers when selling their grain this year.”