The Minnesota Department of Agriculture is seeking to provide a safety net for for farmers in the event their grain elevator becomes insolvent, reports AgWeek.
The department is asking for a one-time state contribution of $5 million to set up the fund that would pay farmers for grain that had already been delivered if the elevator is not able to. The fund would be replenished through fees associated with grain sales.
During the presentation, it was noted that Minnesota was an exception among its neighbors by not already having such an indemnity fund.
Nicholas Milanowski of the Ag Department said it would allow the state "to go after bad actors," such as Jerry Hennessey, the former manager of the Ashby Farmers Cooperative who went to federal prison after stealing more than $5 million from the elevator and spending part of the money on lavish big-game hunting trips and taxidermy.
