New Contract Language Required
Effective April 29, 2021, all contracts for the purchase of grain from producers, except a flat price contract or a contract for the production of seed, are now required to include the following updated notice immediately above the place on the contract where the seller of the grain must sign. In accordance to House Enrolled Act No. 1483, the previous required contract language has been updated to included additional language. This updated notice must be printed in all capital letters exactly as it is stated directly below in the contracts you enter with a licensed grain buyer.
NOTICE - SELLER IS CAUTIONED THAT CONTRACTING FOR THE SALE AND DELIVERY OF GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE FUTURE PAYMENTS BY YOU TO MAINTAIN THIS CONTRACT, A LOWER SALES PRICE, AND OTHER RISKS NOT SPECIFIED. INDIANA STATE LAW REQUIRES THAT AFTER JULY 1, 2022, ALL DEFERRED PRICED GRAIN MUST BE PRICED WITHIN THE CROP YEAR AS DEFINED BY IC 26-3-7-2(7). THIS CONTRACT MUST BE PRICED BY _(Insert Date)_. COVERAGE UNDER THE INDIANA GRAIN INDEMNITY PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED TO A FIRST PURCHASER LICENSEE WITHIN THE 15 MONTHS BEFORE THE DATE OF FAILURE AND IS LIMITED TO 100% OF A LOSS FOR STORED GRAIN AND 80% OF A LOSS FOR OTHER COVERED CONTRACTS. BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.
Source: Indiana Code 26-3-7-3(12)
New Deferred Pricing (Price Later) Contract Requirements
Effective July 2, 2022, a licensee may not enter into a deferred pricing agreement in connection with grain purchases that extends beyond the crop year for the delivered grain as defined in Indiana Code 26-3-7-2(7). Additionally, a licensee may not transfer the deferred pricing agreement to a new contract beyond the crop year for the delivered grain.
If a deferred pricing agreement in connection with a grain
1. The determined price date set forth in the deferred pricing agreement, if that date occurs before January 1, 2024.
2. If option 1 does not apply, a determined price date that is mutually agreed to by the licensee and the seller.
3. Or if options 1 and 2 do not apply, the date on which the licensee completes their payment obligations to the seller.
If a licensee is found out of compliance with this section,
Source: Indiana Code 26-3-7-26.5
What is a Crop Year?
Crop year is defined as the period from one year's harvest to the next year for field crops as follows:
1. Barley and barley seed from June 1 to May 31.
2. Canola and canola seed from July 1 to June 30.
3. Corn and corn seed from September 1 to August 31.
4. Lentils and lentil seed from July 1 to June 30.
5. Oats and oat seed from June 1 to May 31.
6. Popcorn and popcorn seed from September 1 to August 31.
7. Rye and rye seed from June 1 to May 31.
8. Sorghum and sorghum seed from September 1 to August 31.
9. Soybeans and soybean seed from September 1 to August31.
10. Sunflower and sunflower seed from September 1 to August 31.
11. Wheat and wheat seed from June 1 to May 31.
12. For all other field crops and other field crop seed from September 1 to August 31.
Source: Indiana Code 26-3-7-2(7)
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