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New Indiana Grain Indemnity law takes effect

The director of the Indiana Grain Buyers and Warehouse Licensing Agency says a bill signed into law earlier this year gives farmers added protections in the event of a grain licensee failure.

Clark Smith says it provides much needed updates to the law’s language.

“Once a revocation happens, we are revoking the grain license,” he says. “If farmers are getting multiple services from these licensees, the business is not a failure. All the agency is doing is revoking the grain license.”

He tells Brownfield farmers will still be compensated from the state’s grain indemnity fund.

“When it does come to the license revocation working through the claims process, a farmer can be paid out 100% of their losses if it is grain on storage,” he says. “The new law says farmers will not only have to prove storage, but they will have to prove that they paid a minimum storage fee.”

Smith says the agency doesn’t expect any collections from the Indiana Grain Indemnity Fund over the next 12 months. 

The new law took effect on July 1st.

AUDIO: Clark Smith, Indiana Grain Buyers and Warehouse Licensing Agency