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Friday, March 25, 2016

Grain Insurance Fund Protects Farmers

Recently Laura Knoth, KyCorn and Ky Small Grain Growers Executive Director, attended a meeting of the KY Grains Insurance Corporation BoardWith the Kentucky Grain Fund in place, grain farmers across the state of Kentucky are protected against failure of grain elevators and licensed businesses that purchase and store their grain in Kentucky. 
There are two different types of licenses; dealers and warehouses. Every grain business that is licensed is required to have a surety bond ranging from $1,500 to $1 million; reliant on the amount of business they conduct. If a grain business is unable to pay a farmer, the bond is resourced. The bond is used when the grain business is unable to pay the farmer.  When the bond is drained, the Grain Insurance Fund will take effect. Routine inspections and audits are conducted to ensure contractual agreements with producers are secured and stable and ensure that the farmers of the Commonwealth are being paid for their grain commodities.
"The Kentucky Grain Insurance Fund provides a safety net for Kentucky grain farmers," said Laura Knoth. "We appreciate the diligence that the KY Department of Agriculture has shown in managing this program for the protection of our farmers as they sell their grain."
The fund is overseen by the Kentucky Grain Insurance Corporation board of directors, which consists of nine members; Commissioner Quarles, Attorney General Andy Beshear, Auditor of Public Accounts Mike Harmon, and six other board members appointed by the commissioner. Of the six, two each represent the Kentucky Farm Bureau Federation, the Kentucky National Farmers Organization, and the Kentucky Feed and Grain Association.
The board met on March 9 to see that Its value has risen to nearly $5 million due to interest earned as well as 16 years of no payouts. The farmer-owned money is held by the Kentucky Office of Financial Management.
If a producer is unable to be paid for grain by a licensed Kentucky business, he or she should call the Grain Licensing and Regulation branch of the KDA's Division of Consumer and Environmental Protection at (502) 782-9207 and file a claim.

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