The Minnesota Grain and Feed Association, which represents the state's grain elevators, is asking legislators to “pump the brakes” on a proposal to set up an indemnity fund for Minnesota grain elevators, reports AgWeek.
The Minnesota Department of Agriculture is seeking to set up an indemnity fund with a one-time appropriation of $5 million to help ensure payments to farmers owed money by grain buyers who become insolvent.
While the state is being asked to provide $5 million to set up the fund, the grain industry would also be asked to feed the fund.
In the legislation, “beginning on July 1, 2022, sellers of grain must be charged a grain indemnity premium as determined and published by the commissioner not to exceed 0.2 percent of the price on all marketed grain that is sold to a grain buyer …"
