Pouring corn grain into tractor trailer after harvest
Luckey Farmers participates and deposits into the Grain Indemnity Fund. The Ohio Legislature originally created the Grain Indemnity Fund in 1983 to reimburse farmers when a grain handler becomes insolvent. The law requires licensing of all grain handlers, who pay a 1/2 cent per bushel fee on grain handled to maintain a minimum balance in the indemnity fund. In the case of a grain handler’s financial failure, a farmer is reimbursed 100% for open storage grain in the elevator and 100% of the first $10,000 of a loss for future contracts, delayed price and basis transactions, with 80% reimbursement beyond the first $10,000 of loss. The legislature raised the indemnity fund’s required minimum balance to $15 million in 2013.
As of July 1, 2016 Luckey Farmers will not be required to collect the ½ cent bushel indemnity fee, as the fund has reached its required threshold balance of $15 million. Therefore, new bushels delivered to Luckey Farmers after July 1, 2016 will not incur the ½ cent fee.
If you have any questions, please contact Jim or Katie at 419-849-2711.
