Gov. Eric Holcomb recently signed legislation authored by State Rep. Craig Snow (R-Warsaw) to protect Indiana’s grain farmers from catastrophic financial losses when licensed grain buyers fail.
The Indiana Grain Indemnity Fund protects Hoosier grain farmers from catastrophic financial losses when state-licensed grain buyers, grain banks or warehouses fail. Snow said grain farmers typically store their harvests in these licensed warehouses and enter deferred pricing agreements with buyers to determine a selling price at a later date. In the event of a warehouse failure, the fund covers 100 percent of contracted stored grain and 80 percent of other grain transactions for up to 15 months prior to the date of failure. The fund is supported by farmers who pay a 0.2 percent premium on the gross value of all grain marketed to licensed grain buyers in Indiana.