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The Indiana Grain Indemnity Program was created by the 1995 General Assembly to protect you in the event of a grain buyer's financial failure. It secures your investments and protects your future by establishing a fund to pay you if a grain buyer fails.
The Program is made up of premiums equaling just two-tenths percent (.002) of the gross sale price of each producer payment. Beginning July 1, 1996, grain buyers in Indiana were required by law to collect the two-tenths percent (.002) from each producer's payment. These farmer-paid premiums are used to protect you from the loss of your investment should a grain buyer fail.
Under the Program grain includes those grown for seed use and all corn (including popcorn, but excluding sweet corn and flint corn), wheat, oats, rye, soybeans, barley, sorghum, oil seeds, and other agricultural commodities as approved.
If a grain buyer fails and you have paid into the fund as required, you are entitled to 100% payment on your grain that has been stored in licensed warehouses, or 80% payment on all other financial losses from grain delivered to a licensed buyer. The producer's financial loss for unpriced grain is calculated using the market value of such grain on the buyer's last day of business, which may not be the same as the sale price, less certain charges, times either 80% or 100%. Claimants will be paid if they have done business with a firm registered with the Indiana Grain Indemnity Corporation & licensed by the Indiana Grain Buyers and Warehouse Licensing Agency.
If a producer has delivered $25,000.00 of grain to a grain buyer that does not pay the producer,
The Cost to the Producer Would Be:
If you requested a premium refund you are not protected by the fund. However, you may petition the board, at its annual May meeting, for re-entry. Upon acceptance, all refunded premiums are required to be repaid, with interest, for you to be fully covered. If you do not repay premiums before a failure that causes you to lose money, you are not eligible to receive payment from the fund. The premiums secure your investment and protect your financial future.
The Indiana Grain Indemnity Corporation's board may request some proof of the payment of premiums to the fund during the claims validation process. Producers should keep records of all their payments in case of a failure.
Premium collections ceased, as provided by law, on July 1, 1998, when the fund exceeded ten million dollars. If the fund dips below ten million dollars, premiums collections will be reinstated until the fund exceeds fifteen million dollars.
The Indiana Grain Indemnity Corporation's board consists of 13 members (ten voting) who represent farmers and grain, feed, and banking interests. The Grain Indemnity Program is administered by the board.