What is in this article?:
- 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.
Is this just another tax?
No! The indemnity fund is designed to protect producers, and ensures they will be paid for their grain in the event of a financial failure of a grain buyer. There is also a provision for assessments to be returned to producers.
As a livestock producer, does this cost me money? And why should I support this program?
Producers of corn, sorghum, wheat and soybeans are the only ones that will pay the assessment, and they are the only ones afforded the protection of the program. This is a program where producers will build a fund to protect themselves in the event of a financial failure of a grain buyer.
Few grain farmers in Texas produce their crops without the protection of multi-peril crop insurance. Two consecutive years of drought have made it abundantly clear that crop insurance is a crucial part of a farmer’s risk management strategy.
But risk does not end at the farmgate. Once a grain producer delivers his crop, his crop insurance no longer covers losses.
And current bond requirements are inadequate to offer the kind of protection grain farmers need. Many have lost significant amounts of income over the past few years to bankruptcy and other calamities over which the producer had no control. The indemnity fund, according to supporters, is designed to protect farmers after the grain leaves the farm.
Grain producers may obtain mail-in ballots at Texas AgriLife Extension Service county offices or from the Texas Department of Agriculture.