News Release

INDIANAPOLIS — Gov. Eric Holcomb recently signed legislation authored by State Rep. Craig Snow (R-Warsaw) to protect Indiana’s grain farmers from catastrophic financial losses when licensed grain buyers fail.

Craig Snow

The Indiana Grain Indemnity Fund protects Hoosier grain farmers from catastrophic financial losses when state-licensed grain buyers, grain banks or warehouses fail. Snow said grain farmers typically store their harvests in these licensed warehouses and enter deferred pricing agreements with buyers to determine a selling price at a later date. In the event of a warehouse failure, the fund covers 100% of contracted stored grain and 80% of other grain transactions for up to 15 months prior to the date of failure. The fund is supported by farmers who pay a 0.2% premium on the gross value of all grain marketed to licensed grain buyers in Indiana.

With the new law authored by Snow, grain farmers and buyers will establish an agreement that extends up to one year from the date of grain delivery, following the market standard for farmers to adhere to. This encourages farmers to practice good marketing practices with their grain and prevents them from running beyond the 15 month indemnity coverage period, which puts them at risk of losing all their profits should a warehouse fail.

“Farmers place everything on the line when they sign contracts with grain buyers,” said Snow, who works in the agriculture insurance industry. “This law gives farmers clarity on what is and is not covered by the Indiana Grain Indemnity Fund. These new protections will help the fund and oversight board be better prepared for challenges in the market and address issues with licensed buyers before they result in huge financial problems.”

Snow also collaborated with the Indiana Farm Bureau and other stakeholders on the law to include a review of the Indiana Grain Buyers and Warehouse Licensing Agency’s audit procedures to ensure they meet modern grain marketing practices. In addition, new tools for the agency will help to better monitor grain market risks and share information with the Grain Indemnity Board on struggling buyers before they become much larger problems.

 House Enrolled Act 1483 is now in effect. To learn about other new laws recently signed by the governor, visit in.gov/gov/newsroom/2021-bill-watch.