The bill establishes a Grain Indemnity Account within the agricultural fund to protect producers financially in cases where grain buyers or public grain warehouse operators fail to pay for or redeliver grain. It introduces new definitions and procedures for filing claims, including eligibility criteria and payment limitations based on contract types and breach timing. Additionally, it outlines the responsibilities of grain buyers regarding financial statements and the collection of grain indemnity premiums, capped at 0.2% of the sale price of marketed grain. The bill also amends existing statutes to streamline the handling of contract breaches and claims, clarifying the commissioner's role in managing the account and allowing for the appointment of a trustee in default situations.

Moreover, the bill allows producers to opt out of the grain indemnity program and request refunds for premiums paid, with a written demand for a refund required within 12 months. The commissioner must process these refunds within 90 days if the account balance permits. The bill mandates that producers be informed about the refund process and conditions for reentering the program. It also includes a one-time transfer of $15,000,000 from the general fund to the grain indemnity account to ensure its solvency and repeals unnecessary sections of existing law. All provisions are set to take effect on July 1, 2023, aiming to enhance the program's functionality and ensure producers are well-informed about their rights and obligations.

Statutes affected:
Introduction: 223.17, 223.175, 223.19, 232.22
1st Engrossment: 223.16, 223.17, 223.175, 223.19, 232.22
1st Engrossment: 223.16, 223.17, 223.175, 223.19, 232.22