SB920 Summary

• Creates the Arkansas Grain Indemnity Law requiring grain buyers (defined as marketing agents or first persons taking grain delivery from farmers) to obtain licenses from the Arkansas Agriculture Department beginning December 1, 2015, and renew annually by December 1.

• Establishes grain purchase contract requirements including buyer and seller names, delivery terms, grain type and price, quality discount schedules, and payment terms (either within 10 calendar days of delivery or by January following contract execution), with weekly electronic load summaries and settlement sheets required for each payment.

• Creates the Arkansas Grain Indemnity Fund to reimburse grain sellers when grain buyers become insolvent, funded by 3% of grain assessments (soybeans, rice, wheat, corn, and milo) beginning January 1, 2016, with funds ceasing when the fund reaches $25,000,000.

• Transfers administration of grain assessments from the Director of the Department of Finance and Administration to the Secretary of the Arkansas Agriculture Department for all grain promotion boards (soybean, rice, wheat, and corn/grain sorghum).

• Establishes penalties including Class D felony charges for unlicensed grain buyer operations, $1,000 daily civil penalties for failure to self-report violations, and requires annual audits of grain buyers plus audits upon complaint receipt.