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Changes in grain fund among 2017 Indiana legislative wins
By STAN MADDUX
Indiana Correspondent
 
 INDIANAPOLIS, Ind. — Farmers didn’t get everything they wanted in this year’s Indiana General Assembly session, but there were plenty of victories.
 
The biggest, perhaps, was a bill generating $6.7 billion annually in extra road funding, with about 30 percent of that going toward local roads and bridges. Other high-ranking achievements include changes in coverage provided by the Indiana Grain Indemnity Corp. (IGIC).
 
 Justin Schneider, senior policy advisor and counselor with Indiana Farm Bureau, said grain producers worried about coverage can expect relief from passage of House Enrolled Act 1237. The IGIC, funded by a 0.2 percent premium on the gross value of all grain marketed to licensed grain buyers during active collection periods, gives coverage on grain lost from an explosion or some other failure at any Indiana licensed grain elevator. Schneider said coverage on grain stored at an elevator was extended from 12 to 15 months. In addition, any grain held for shipping out of state will be covered as long as it’s stored at an Indiana elevator.
 
Previously, he explained grain sold to an out-of-state buyer but lost at an Indiana elevator typically was not be covered, but the law pertaining to that situation was a bit fuzzy.
 
The change is in response to a shrinking number of buyers and those remaining being out of state at a time when the amount of Hoosier grain shipped elsewhere has gone up dramatically. “This just makes it clear that it’s all covered,” said Schneider. Ed Sheldon, director of the Indiana Grain Buyers and Warehouse Licensing Agency, said the fund is an important safety net for farmers and since its inception in 1995 there have been close to $9 million in reimbursements.
 
“With this new law in effect, we want to make sure that Indiana’s grain farmers are aware and understand  how these changes could impact their operation,” saidSheldon, adding producers may opt out of the program at any time and request a refund.
 
However, if they do that, they are no longer a participant in the program and will not be covered if a licensed grain buyer or warehouse fails. H.E.A. 1237 specifies that producers who claimed a refund during the first collection period in the 1990s are once again protected by the program and do not need to petition the board for re-entry.
 
Producers receiving a refund during the second collection period after July 1, 2015, are not covered. They must submit a petition to the board for reinstatement of coverage and be approved before coverage is restored, he said. Schneider said other victories included Purdue University receiving $69 million in bonding for its Agriculture & Biological Engineering program, and $250,000 awarded for Indiana Grown. This is first time funding has been set aside in the budget for Indiana Grown, started in 2012 by the Indiana State Department of Agriculture to promote the sale of more Hoosier-raised farm products.
 
No funding existed until about two years ago, when dollars were redirected from other existing sources. Ever since, Indiana Grown has taken off, with major retailers like Marsh and Kroger carrying products from local growers and major events including an Indiana Grown presence to further promote the initiative. An Indiana Grown logo on an item helps to distinguish it from other store products. “Now, they have an opportunity to really expand the program. We just feel like this can take it to the next level,” said Schneider.
 
He said one major disappointment was expansion of broadband to unserved rural areas not getting through the legislature. A committee will be formed, though, to examine how to get around obstacles now preventing it from reaching other areas of the state.
 
Schneider said the problem for farmers without access to broadband is major due to use of technology continuing to grow and the government preferring to do business over the internet.
 
“We got farmers who have to download their data on flash drive, then go meet somebody who’s going to crunch the data and meet them halfway,” he pointed out. 
5/4/2017