What is in this article?:
- Texas Grain Producer Indemnity Board indemnity fund program FAQ
- Who pays the assessment and how is it collected?
- Can I get a refund?
- Is this just another tax?
- Texas grain farmers have more than one election to consider this fall.
- Grain indemnity fund vote is scheduled for Nov. 19 through Dec. 7.
- The indemnity fund creates an insurance policy that protects grain farmers in the case of elevator or other grain buyer failure.
After harvest and delivery, crop insurance no longer covers grain.
Who pays the assessment and how is it collected?
The “first point of sale” grain buyer will collect the assessment when producers sell their grain, and remit to the TGPIB.
What about the administrative cost to the buyer for collecting the assessment?
Grain buyers will be compensated through an administration fee that will be set by the TGPIB for costs associated with collecting and remitting the assessment.
What if the grain buyer does not collect the assessment?
Producers must take responsibility to assure the assessment has been deducted.
Producers who sell to grain buyers who do not collect the assessment and remit it to the TGPIB are not eligible for indemnification of financial loss.
How much protection will my participation provide?
Indemnity rate is set a 90 percent. The TGPIB will establish a fund to mitigate up to 90 percent of the financial losses suffered by producers of corn, sorghum, wheat and soybeans when grain buyers fail to pay for grain.
How will the fund’s balance be determined?
The TGPIB annual budget 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.
Who controls the funds?
The fund is managed by the TGPIB. This money will not be a part of the Texas General Fund, and can only be used for the indemnity fund program.
How do I file a claim; what is the process?
If a producer suffers a loss he will submit/file a claim to the TGPIB along with documentation proving delivery of the grain and the loss incurred. The TGPIB will review the claims, and, upon validation of claim, the producer may receive up to 90 percent of the value of the grain.
All rights to any funds which may be recovered in a settlement relative to the loss, up to the indemnity paid to a producer, will be transferred to the TGPIB as a requirement in the settlement of the claim.