Changes to state’s Grain Indemnity Fund

INDIANAPOLIS — Farmers should be aware of changes to the state’s Grain Indemnity Fund, according to Harry Wilmoth, director of the Indiana Grain Buyers and Warehouse Licensing Agency.

Wilmoth took part in the “Movin’ the Pile” podcast hosted by Indiana Corn Marketing Council and Indiana Soybean Alliance.

“In the 2021 legislative session there was a bill that was passed out of the House,” he said. “The first change was really about deferred pricing. It’s important for farmers to remember, beginning after July 1, 2022, the commercial licensee of the Grain Buyers Agency will not be able to enter a deferred pricing agreement with grain that goes beyond the crop year that grain was delivered.”

He encouraged farmers to begin talking to grain buyers and financial advisers now.

The new legislation also defined the term “crop year” to match all of the other U.S. Department of Agriculture crop year ranges.

The Grain Indemnity Fund program is important to farmers because it provides relief in case of an emergency.

“The hard truth is, there are situations where grain companies may have financial hardships,” Wilmoth said. “For whatever reason, the agency may have to revoke their license. We just want to make sure farmers can be compensated as much as possible.”

To learn more about the fund, visit www.in.gov/isda/divisions/indiana-grain-buyers/grain-indemnity-corporation.

Listen to the complete podcast at www.indianasoybean.com/movin-the-pile-podcast.

What is the grain indemnity fund?

The Indiana Grain Indemnity Program protects farmers in the event of a licensed grain buyer’s financial failure. The Indiana Grain Indemnity Fund is voluntarily funded by producers who pay a producer premium equal to 0.2% of the price on all marketed grain that is sold in Indiana. The program provides payments to those producers who have not requested or received a producer premium refund and are economically damaged by the financial failure of a licensed grain buyer.