MN SF2218

Establishes a grain indemnity account in the agricultural fund to compensate producers when grain buyers or warehouse operators fail to pay for grain or redeliver stored grain.

Producers must pay a grain indemnity premium of up to 0.2 percent of grain sale proceeds, collected by grain buyers and submitted to the commissioner; premium collection pauses when account reaches $15,000,000 and resumes when it drops below $9,000,000.

Eligible producers can receive indemnity payments ranging from full value for cash sales to 25-75 percent of owed amounts for deferred payment and voluntary extension of credit contracts, with payment caps ranging from $250,000 to $750,000 depending on contract type and timing.

Producers may opt out of the program and request premium refunds within 12 months, but cannot participate in the program for 36 months after receiving a claim payment without reentry approval and repayment of refunded premiums plus interest.

Transfers $15,000,000 from the general fund to the grain indemnity account effective July 1, 2023, and establishes grain bond requirements of $100,000 for new grain buyer and warehouse operator licenses for their first three years.