Texas grain farmers to decide fate of indemnity fund Dec. 5-9
(WACO, Texas)—Risk management is part of any business, and Texas grain farmers have the opportunity to self-insure through the Texas Grain Producer Indemnity Fund.
Texas grain farmers can vote Dec. 5-9 for a producer referendum that, if approved, would create a refundable assessment of two-tenths percent of the gross sales price of the grain in Texas.
Eligible farmers can vote at any Texas A&M AgriLife Extension Service county office during each office’s regular business hours. A mail-in ballot may be requested from the Texas Department of Agriculture no later than Dec. 2, and postmarked no later than close of business Friday, Dec. 9.
If passed, the funds would be collected at the “first point of sale” grain buyer when farmers sell their grain, and remit to the Texas Grain Producer Indemnity Board (TGPIB).
The TGPIB will set the minimum fund balance necessary to cover all anticipated administrative and operating costs, as well as a reasonable estimate for indemnity claim payments. Once the fund reaches an amount determined by the TGPIB as sufficient to cover the risk, a refund process will be initiated to refund assessments. The fund is managed by the TGPIB. This money will not be a part of the State Treasury and can only be used for the indemnity fund program.
If farmers pass the referendum, the fund will be managed by grain farmers and industry stakeholders, a council appointed by the Texas Commissioner of Agriculture and includes a representative from the Corn Producers Association of Texas, Texas Agricultural Cooperative Council, Texas Farm Bureau, Texas Grain and Feed Association, Texas Grain Sorghum Producers Association, Texas Soybean Association and Texas Wheat Producers Association, as well as a member with expertise in production agriculture ﬁnancing and a representative with the non-warehouse grain buying industry.
Any grain farmer regardless of age who has sold grain in Texas anytime between Dec. 5, 2013, and Dec. 5, 2016, is eligible to vote.
A farmer may be an individual or legal business entity, such as a corporation, LLC, LLP, or LP. Each farmer (individual and/or legal business entity) may only vote once. Youth younger than 16 years of age must have a parent or guardian co-sign the ballot.
If approved, collection of the assessment will begin Feb. 1, 2017, and continue until the TGPIB notifies collection points to cease collection.
For more information on voting locations and hours, visit www.texasagriculture.gov.
For more information on the grain indemnity fund, visit http://www.texasgrainindemnity.org.