MI SB0888

Establishes an administrative premium charged to producers based on a percentage of net proceeds from farm produce sales, collected by licensees and deposited into the farm produce insurance fund to reimburse the director for producer security activities and grain dealer regulation.

Creates a 10-member board of directors to govern the Farm Produce Insurance Authority, with representation from general farmers, commodity-specific producers (corn, soybean, dry bean, wheat), agricultural lenders, and grain dealers, with the Director of Agriculture serving as nonvoting chairperson.

Revises fund investment requirements to allow investment in corporate and municipal bonds (up to 45% of fund), common or preferred stocks (up to 11.25% of fund), and money market mutual funds, in addition to existing permitted investments in government securities and deposit accounts.

Limits administrative expense allocations to $500,000 annually for processing refunds, enforcement, record-keeping, verification costs, and management fees, with legal services and expenses paid separately from the fund.

Maintains producer premium requirements at no more than 0.2% of net proceeds until the fund reaches $5,000,000, with collection obligations suspended once the fund exceeds $5,000,000 and reinstated if it falls below $3,000,000 or upon licensee failure.