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, reportsAgWeek.
The Minnesota Department of Agriculture is seeking toset up an indemnity fundwith 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 …"
