indemnity_picLuckey 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.