Committee advances Grain Indemnity Act establishing voluntary indemnity program for grain producers; no seed funding included

The Senate committee advanced House Bill 1647, the Grain Indemnity Act, after sponsor explanation and questions about funding, insurance and bonding.

The chair explained the bill grew from multi-party planning and state examples and would create a voluntary program that grain producers must opt into; participants would be eligible for funds in the event of a claim tied to bankruptcy or insolvency of a grain buyer or storage facility. "Creates a volunteer voluntary program that the grain producer must opt into to be a part of. ... If there is a claim on the voluntary program, they would be eligible for funds that would come back in case there was a bankruptcy," the sponsor said.

Senator Younger asked whether money would be put into the program at its start; the sponsor and chair said there were no funds in the bill as presented, though seeding the program had been discussed. Senator Hill asked whether insurance could cover losses. A sponsor response noted grain buying facilities are required to be bonded but that bonds "will not cover the amount of damages lost" and that insurers often will not underwrite this exposure. A separate clarification confirmed one of the past failures involved a grain broker.

After discussion the committee voted 'title sufficient do pass' and the chair announced the bill carried. The transcript does not show any appropriation or seed funding adopted; the question of funding sources and insurance coverage remains unresolved in the committee record provided.