Abstract: An apparatus and method for stacking bags of granulated material on a pallet which is fixed in position during the stacking operation is disclosed. A bag supporting plate is mounted on an upper end of an apparatus frame for reciprocal horizontal movement between an extended bag receiving position covering a first area and a retracted position wherein the first area is uncovered. A fence mounted on the frame over the path of movement of the plate confines a bag deposited on the plate to the first area as the plate slides from under the bag to its retracted position. A bag carriage assembly is mounted in the frame under the first area for reciprocal vertical movement between a maximum raised position for receiving the bag from the plate and a variable lower position for discharging the bag from the assembly to the pallet. A first air cylinder moves the plate and a cable operated air cylinder moves the assembly.