HB 1624 -- Grain Indemnity Program

Sponsor:  Mayer

This bill establishes the Missouri Grain Indemnity Corporation to
reduce the financial loss grain producers would incur due to the
failure of a grain dealer or warehouseman.  The corporation will
be governed by a seven-member board selected by advocacy
organizations.  The appointment, term, powers, and duties of the
board are specified in the bill.

Beginning September 1, 2004, grain dealers buying over 100,000
bushels of grain per year are to register with the corporation
and remit a $100 registration fee.  Grain dealers are to collect
a variable producer premium and remit monthly the collected
premiums to the corporation.  The premium amount will be
two-tenths of 1% of the price of all grain for which the title
transfers in the state for that year.  In succeeding years, the
premium will vary from zero to three-tenths of 1% as required by
the net fund balance amounts.

The Missouri Grain Indemnity Fund, created by the bill, will be
used exclusively for the purposes of the program.  If the net
fund balance falls below $2 million, the board will set a
producer premium for the following year to restore the fund
balance to an appropriate amount.  If the net fund balance
exceeds $4 million, the producer premium for the following year
will be zero.

The board may enter into financial agreements with lenders and/or
issue bonds to satisfy valid producer claims provided that they
are to the financial advantage of grain producers.

A producer who claims to have a valid storage loss within the
previous 18 months due to the failure of a warehouseman will be
compensated for 100% of the loss less any producer premium due
upon the sale of the grain.  A producer who claims to have a
valid financial loss due to the failure of a grain dealer will be
compensated for 80% of the loss.  The Department of Agriculture
will determine the loss amount and take appropriate disciplinary
action against the failing grain dealer or warehouseman.
Repayment of all obligations to the fund by the failed grain
dealer or warehouseman does not nullify any other disciplinary
actions.

Any person who knowingly does not collect or pay producer
premiums is guilty of a class C felony.  Any person who knowingly
impedes the performance of the duties of the corporation or who
knowingly makes false statements to the department or corporation
is guilty of a class C felony.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am