NGFA Arbitration System

Formally established in 1901, the NGFA’s Arbitration System has operated in some form since the formation of the Association on November 9, 1896.

The Arbitration System provides a fair, cost-effective and timely way to resolve disputes involving grain, feed, barge, barge freight and rail freight transactions. Its use is compulsory for resolution of disputes between Active members under NGFA’s Bylaws.  The Arbitration Rules are referenced in the underlying contractual agreement or the parties otherwise consent. The Arbitration System is kept current through the amendment process at NGFA’s annual business meeting.

Rail Arbitration

The Rail Arbitration Rules, first adopted on Aug. 24, 1998, supplement the Arbitration Rules.  The Rail Arbitration Rules are applicable to disputes between railroads and their customers using the NGFA Arbitration System.

NGFA-member railraods and their customers can use the NGFA Arbitration System to resolve any type of dispute where both agree.  All NGFA Active, Allied and Transportation members are covered by, and have access to, NGFA rail arbitration unless they notify NGFA of their desire to withdraw from the Rail Arbitration System within 30 days of membership approval. Thereafter, an Active, Allied or Transportation member may withdraw from the Rail Arbitration System after providing 90-day’s advance notice to the NGFA Secretary.

In addition, nearly all Class I railroads and some shortline and regional railroads have agreed to enter confidential mediation on certain rate-related issues upon request by an NGFA Active or Allied member.

Members withdrawing from Rail Arbitration

  • Columbia Grain & Ingredients
  • Mid-Coast Grain Company
  • FAMO Feeds Inc.
  • Quad Commodities Marketing Service Inc.
  • Farmers Elevator Co. of Biggs & Easton
  • R.J. O’Brien
  • Harmony-Preston Agri-Services Inc.
  • Revillo Farmers Elevator
  • Ingram Barge Company
  • See-Mor Grain Inc.
  • Keller Grain & Feed
  • Settlemyre Seed Company
  • M.D. Thompson & Son Co.
  • White Commercial Corporation
  • Marquette Transportation Company

Trade Rules

The five sets of the NGFA Trade Rules facilitate the purchase and sale of grain and feed products. They provide a framework for the trade and a foundation for resolution of disputes under the NGFA Arbitration System.

The NGFA Trade Rules Committee formulates and recommends rule changes to the membership. Rules are proposed that reflect trade practice and facilitate trade between NGFA members specifically as well as between all firms in the grain, feed and processing industry generally.

Trade Rules Training

Grain Trade Rules Course:

This course is intended to familiarize individuals with the Grain Trade Rules and provide practical guidance in understanding the rules. It consists of trade rules outlines, arbitration decision summaries, practical guidance from members of NGFA’s Trade Rules Committee, and questions.

Trade Rules Seminar:

Offered only once every other year, NGFA’s Trade Rules Seminar provides attendees with a primer on contracting principles and trading practices designed to minimize costly trade disputes and contract non-performance.