---
kind: "section"
citation: "7 U.S.C. § 247"
title: "7"
title_heading: "Agriculture"
number: "247"
heading: "Fair treatment in storage of agricultural products"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/247"
units:
  - "Chapter 10 — Warehouses"
---

# §247. Fair treatment in storage of agricultural products

- (a) **In general—** Subject to the capacity of a [warehouse](/usc/7/241.md?p=10), a [warehouse operator](/usc/7/241.md?p=11) shall deal, in a fair and reasonable manner, with [persons](/usc/7/241.md?p=7) storing, or seeking to store, an [agricultural product](/usc/7/241.md?p=1) in the [warehouse](/usc/7/241.md?p=10) if the [agricultural product](/usc/7/241.md?p=1)—
  - (1) is of the kind, type, and quality customarily stored or handled in the area in which the [warehouse](/usc/7/241.md?p=10) is located;
  - (2) is tendered to the [warehouse operator](/usc/7/241.md?p=11) in a suitable condition for warehousing; and
  - (3) is tendered in a manner that is consistent with the ordinary and usual course of business.
- (b) **Allocation—** Nothing in this section prohibits a [warehouse operator](/usc/7/241.md?p=11) from entering into an agreement with a depositor of an [agricultural product](/usc/7/241.md?p=1) to allocate available storage space.

## Source credit

(Aug. 11, 1916, ch. 313, pt. C, § 8, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 247, acts Aug. 11, 1916, ch. 313, pt. C, § 6, 39 Stat. 486; July 24, 1919, ch. 26, 41 Stat. 266; Feb. 23, 1923, ch. 106, 42 Stat. 1283; Mar. 2, 1931, ch. 366, § 2, 46 Stat. 1463, required bond as condition to granting of license and additional bonds if first bond determined to become insufficient, prior to the general amendment of this chapter by Pub. L. 106–472. See section 245 of this title.

A prior section 8 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 250 of this title, prior to the general amendment of this chapter by Pub. L. 106–472.