MN HF3186

Establishes a grain credit contract indemnity program administered by the commissioner of agriculture to compensate producers who suffer losses from grain buyers' breach of voluntary extension of credit contracts, with maximum payments of $650,000 or 80 percent of amount owed per breach.

Increases bonding requirements for licensed grain buyers, ranging from $10,000 for those with gross annual purchases of $100,000 or less to $600,000 for those exceeding $24,000,000, with existing licensees required to comply by July 1, 2017.

Eliminates sales tax on grain bins and establishes a 2.0 percent gross receipts tax on grain bin retailers beginning fiscal year 2019 if the indemnity account falls below $2,000,000, with tax revenues deposited into the grain contract indemnity account.

Dedicates $2,500,000 of sales tax revenue from chapter 297A taxes to the indemnity account in fiscal year 2016, with up to $2,500,000 annually for fiscal years 2017-2018 if the account remains below $6,000,000.

Applies the indemnity program to voluntary extension of credit contracts in default on or after January 1, 2015, with producers having 180 days (or 90 days for prior defaults) to file claims with the commissioner.