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Indiana State Department of Agriculture

ISDA > Grain Indemnity Corporation > Grain Indemnity Corporation Program Grain Indemnity Corporation Program

Securing Your Investment-Protecting Your Future-Farmer's Protection Fund

The Indiana Grain Indemnity Program

    The Indiana Grain Indemnity Program was created by the 1995 General Assembly to protect you in the event of a grain buyer's financial failure. It secures your investments and protects your future by establishing a fund to pay you if a grain buyer fails.


Farmers Protecting Farmers

    The Program is made up of premiums equaling just two-tenths percent (.002) of the gross sale price of each producer payment. Beginning July 1, 1996, grain buyers in Indiana were required by law to collect the two-tenths percent (.002) from each producer's payment. These farmer-paid premiums are used to protect you from the loss of your investment should a grain buyer fail.

    Under the Program grain includes those grown for seed use and all corn (including popcorn, but excluding sweet corn and flint corn), wheat, oats, rye, soybeans, barley, sorghum, oil seeds, and other agricultural commodities as approved.


Protection that Counts

    If a grain buyer fails and you have paid into the fund as required, you are entitled to 100% payment on your grain that has been stored in licensed warehouses, or 80% payment on all other financial losses from grain delivered to a licensed buyer. The producer's financial loss for unpriced grain is calculated using the market value of such grain on the buyer's last day of business, which may not be the same as the sale price, less certain charges, times either 80% or 100%. Claimants will be paid if they have done business with a firm registered with the Indiana Grain Indemnity Corporation & licensed by the Indiana Grain Buyers and Warehouse Licensing Agency.


What is Your Cost and Coverage?

    If a producer has delivered $25,000.00 of grain to a grain buyer that does not pay the producer,

    The Cost to the Producer Would Be:

    • $25,000.00 of grain delivered

    • $25,000.00 x .002 = $50.00 Producer Premium

    The Coverage Provided Would Be:

    • 100% coverage on stored grain - $25,000.00

    • 80% coverage on other grain - $20,000.00

    The $50.00 premium will provide $25,000.00 of coverage to the producer on stored grain.

Premium Security

    If you requested a premium refund you are not protected by the fund. However, you may petition the board, at its annual May meeting, for re-entry. Upon acceptance, all refunded premiums are required to be repaid, with interest, for you to be fully covered. If you do not repay premiums before a failure that causes you to lose money, you are not eligible to receive payment from the fund. The premiums secure your investment and protect your financial future.


Keep Your Records

    The Indiana Grain Indemnity Corporation's board may request some proof of the payment of premiums to the fund during the claims validation process. Producers should keep records of all their payments in case of a failure.


Collections

    Premium collections ceased, as provided by law, on July 1, 1998, when the fund exceeded ten million dollars. If the fund dips below ten million dollars, premiums collections will be reinstated until the fund exceeds fifteen million dollars.

    The Indiana Grain Indemnity Corporation's board consists of 13 members (ten voting) who represent farmers and grain, feed, and banking interests. The Grain Indemnity Program is administered by the board.

If you have questions or would like more information about the Indiana Grain Indemnity Program, phone (317) 232-1356.  

Voting Members of the Indiana Grain Indemnity Corporation Board

Appointed by the largest Indiana organization representing the interests of grain and feed dealers:
  • Mr. Ron Reichart
  • Mr. Michael J. Silver
Appointed by the largest Indiana organization representing general farm interests:
  • Mr. Herman Rettinger, Jr.
  • Mr. Don Vilwock
Appointed by the second largest Indiana organization representing farm interests:
  • Mr. William Tudor
Appointed by the largest Indiana organization exclusively representing the interests of corn producers:
  • Mr. Michael Shuter
Appointed by the largest Indiana organization exclusively representing the interests of soybean producers:
  • Mr. Jim Cherry
Appointed by the largest Indiana organization representing the interests of bankers:
  • Mr. Joseph F. Kessie
  • Mr. D. Grant Whaley
Appointed by the largest Indiana organization exclusively representing seed trade interests:
  • Mr. Robert D. Bischoff