One of Indiana Farm Bureau’s legislative priorities for 2021 was to improve transparency and functionality of the Indiana Grain Buyers and Warehouse Licensing Agency (IGBWLA) – a priority that was accomplished by the passage of House Enrolled Act 1483 yesterday.
“For more than 100 years, INFB has supported farmers, which is why INFB led the initiative to improve the IGBWLA to protect Hoosier farmers,” said INFB President Randy Kron. “Due to the failure of Salamonie Mills and Agland Grain and the hundreds of farmers who were severely impacted, we knew we had to do something. This law creates a review process to ensure that Hoosier farmers are further protected during grain elevator closures.”
- Requires a performance review of the IGBWLA audit procedures to ensure that they meet modern grain marketing practices;
- Allows the agency to accept third party audits to lighten their workload and spend more time on licensees that need their attention;
- Requires pricing of deferred price accounts based on the crop year to prevent those accounts from running beyond the 15-month indemnity coverage period;
- Provides additional enforcement for minimum net worth deficiencies;
- Raises the IGBWLA’s administrative expenses account to have access to more funding for its duties; and
- Creates more information sharing between the agency and the Grain Indemnity Board relating to risks in the grain market.
Kron thanked the Indiana General Assembly for passing HEA 1483 and for recognizing the need to protect farmers. “During this process, INFB worked closely with State Rep. Craig Snow and State Sens. Travis Holdman, Jean Leising and Andy Zay, and we appreciate their support.”
More than 150 agricultural entities were impacted by the failure of Salamonie Mills and Agland Grain.
HEA 1483 is now on its way to the governor for his consideration.