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07/24/2024 08:01 PM
Pennsylvania House of Representatives
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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: April 5, 2022 03:37 PM
From: Representative Dan K. Williams
To: All House members
Subject: Protection for Pennsylvania’s Grain Farmers
Pennsylvania currently has no regulations to provide any indemnification coverage to farmers if a grain buyer goes out of business. This lack of protection not only exposes its grain farmers to financial loss, but it also limits farmers in surrounding states from wanting to do business in Pennsylvania. One example of this recently occurred when two farmers lost thousands of dollars when the dealer that they enlisted to sell their grain went out of business and declared bankruptcy. Therefore, I plan to introduce legislation that would protect farmers from grain handlers who become insolvent.

Under this bill, a special fund known as the Agricultural Commodity Indemnity Fund (ACIF), will be created to reimburse farmers if a grain handler fails or becomes insolvent. The ACIF will be funded by: (1) a ½ cent per bushel fee paid by farmers selling or storing grain with licensed grain handlers, and (2) annual grain handler license fees. The per-bushel assessment will be discontinued once the fund reaches $10 million, and the assessment will not be reinstated unless the fund drops to $8 million.
The PA Department of Agriculture will administer this law, including establishing and issuing handler licenses and fees, enforcing statutory liens against failed handlers, reviewing handler financial statements to ensure solvency, and adjudicating claims seeking indemnification. Several states offer similar safeguards.
This legislation is supported by the Pennsylvania Farm Bureau and is based on laws adopted in other states. Please join me in sponsoring this legislation.

Introduced as HB2564