One bill the Indiana General Assembly will consider in 2017 is House Bill 1237.
One bill the Indiana General Assembly will consider in 2017 is House Bill 1237, which addresses changes to the Indiana Grain Indemnity Fund Cap. The bill proposes to raise the insurance time from 12 months from delivery to 15 months. It also requires producer notification by the state and/or the grain buyer of the changes to the indemnity fund.
The indemnity fund was created in 1995 to protect grain producers in the event of a failure by their grain buyer. Producers contribute to the fund through a fee of 0.2% when grain is sold. At the creation of the fund, farmers contributed for three years until the original cap of $14 million was met. Producers fees were not needed again until 2015 with the cap rose to $25 million. The estimate is the current cap will be achieved by this summer, and collections will stop.
The fund was last needed in 2016 to handle the closure of a business with facilities in western Indiana.
For more information on the Indiana Grain Indemnity Fund, visit: http://www.in.gov/isda/2352.htm
For more information on H.B. 1237, visit: https://iga.in.gov/legislative/2017/bills/house/1237#digest-heading