MN SF3161

Establishes a grain credit contract indemnity program administered by the commissioner of agriculture to award indemnity payments to producers who suffer losses from licensed grain buyers or public grain warehouse operators breaching voluntary extension of credit contracts.

Increases bonding requirements for licensed grain buyers, ranging from $10,000 for those with annual purchases of $100,000 or less up to $600,000 for those exceeding $24,000,000, with compliance deadline of July 1, 2017 (or July 1, 2018 with commissioner approval for financial hardship).

Eliminates sales tax on grain bins effective July 1, 2018, and establishes a 2.0 percent gross receipts tax on grain bin retailers beginning fiscal year 2019 if the indemnity account balance falls below $2,000,000.

Caps indemnity payments at the lesser of $650,000 or 80 percent of the amount owed under the defaulted contract, with claims prorated if funds are insufficient.

Deposits $2,500,000 in general sales tax revenue to the indemnity account in fiscal year 2016, with up to $2,500,000 annually deposited in fiscal years 2017-2018 until the account reaches $6,000,000.