Drought conditions across Indiana have left many farmers facing yield loss, market uncertainty and price fluctuations. The Indiana State Department of Agriculture wants to encourage all Hoosier producers to talk to their grain elevators about their delivery concerns due to potentially reduced yields, and what options might be available to them.
Hoosier farmers do have financial protection through the Indiana Grain Indemnity Fund from licensed grain elevators unable to pay. The Indemnity Fund is overseen by the Indiana Grain Buyers and Warehouse Licensing Agency. Since 1998, Indiana grain farmers have received more than $4.4 million when grain companies were unable to pay farmers.
The Indiana Grain Indemnity Fund is an insurance fund that is paid by farmers to protect farmers in the event of a grain business failure. Today farmers are protected by the fund for 100 percent of stored grain and 80 percent on other grain transactions—but only if they are doing business with licensed entities.
Today more than $14 million is available to grain farmers; however, farmers need to be aware of their responsibilities and the rules and regulations:
- To be covered by the Grain Indemnity Fund, a farmer must do business with a licensed grain company. All licenses must be posted as shown below. Call the ISDA office at (317) 232-8770 or visit our website at www.in.gov/isda to find out if your dealer is licensed.
- 21-Day Rule: Any grain that farmers deliver must have a disposition in 21 days (spot, storage, contract, etc).
- Only grain delivered in the last 12 months will be considered for payment by the Indemnity Fund in the event of a grain elevator failure.
- Always read and sign contracts and keep copies for your records.
- Make sure storage and service rates are posted.
- Look to make sure moisture meter and scales have been inspected in the last year.
- Keep all scale tickets and settlement sheets; they are proof of valid claims.
- Call Indiana Grain Buyers if an elevator is not making payments.
- Farmers are encouraged to look for the Buyer/Warehouse license at their grain elevator.
Farmers looking for additional resources due to loss from this year’s drought should go to www.drought.in.gov.