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Indiana Grain Indemnity Program supports the state’s farmers

An ag lawyer says a ruling earlier this year reinforces the benefit of the Indiana Grain Indemnity Program for the state’s farmers.  

Brianna Schroeder, from Janzen Schroeder Ag Law says the fund is supported by voluntary farmer payments. 
 
“The grain indemnity program reimburses losses incurred by farmers who delivered grain to a licensee who failed,” she says.

Salamonie Mills, a grain elevator with locations in Northeast Indiana, financially failed.  Following its closing the elevator was liquidated, and grain and other assets were sold to pay off its debt. The Indiana Grain Buyers and Warehouse Licensing Agency used March 20, 2020, as the elevator’s failure date, meaning only farmers who delivered grain after December 20, 2018 would be eligible for reimbursement.  

She tells Brownfield the firm questioned the original failure date of the grain elevator and if the farmers were eligible for reimbursement from the fund. 

“The purpose of the agency and the fund is to protect the farmers that this decision was kind of a reminder to the agency who it worked for, you know the farmers,” she says.

In April 2024, the Huntington County Circuit Court reversed the initial decision and ruled Salamonie Mills had failed by December 31, 2018 and as a result farmers who delivered grain after September 30, 2017 would be eligible for reimbursement from the Fund.

The Indiana Grain Indemnity Program was established in 1995 to protect farmers in the event of a licensed grain buyer’s financial failure. It is voluntarily funded by producers who pay a producer premium on all marketed grain that is sold in Indiana. 

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