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Improvements to Michigan’s Grain Dealer’s Act

Michigan Farm Bureau says proposed legislation in the Michigan Senate will update the state’s Grain Dealer’s Act.

Legislative council Rebecca Park tells Brownfield the Act was originally put in place to provide farmers an insurance if their grain elevator goes bankrupt. She says the proposed amendments will further protect farmers.  “The first thing that they would do would be to increase the cap on the indemnification fund from $5 million today up to $10 million.”  She says, “In addition, it would create a priority lean for producers that are participating in the fund in the event that the elevator goes into bankruptcy.”  Park says the changes would also reduce the time a farmer is eligible to file a claim.

Associate field crops specialist Kate Krepps says the insurance fund is a safety net for farmers that is paid for by a voluntary assessment.  “When the Lapeer Grain Failure occurred in 2014, they were the 11^th largest grain dealer in the state of Michigan and that one incident paid out over $3.5 million.”

Krepps says the proposed legislation has moved out of the Senate Commerce Committee, but she doesn’t expect approval until sometime this fall.

AUDIO: Interview with Michigan Farm Bureau