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 Dear Neighbor,
Just a quick note regarding Minnesota’s relatively new Grain Indemnity Fund, which will apparently be utilized for the first time following the announced bankruptcy of a Nebraska grain firm. The Hanson-Mueller Co. filed this week and left between 1,000 and 5,000 creditors without payment. In Minnesota, the number is believed to be around 50, according to a spokesman for the Minnesota Department of Agriculture.
Our state’s indemnity program was passed during the 2023 session of the legislature, with $10 million put into the fund to compensate farmers when they are not paid for grain deliveries. If they receive money from the indemnity fund, they then sign over their right to payment from the company in bankruptcy proceedings and the state begins the process of recovering those payments.
With interest added to the original amount, the total currently in the indemnity fund is nearly $10.5 million. If the amount ever drops below $8 million, the Commissioner of Agriculture can require farmers to pay into the fund to build it back up again.
Have a good weekend and please stay in touch.
Sincerely,
Paul
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State Rep. Paul Anderson
2nd Floor, Centennial Office Building
658 Cedar St., St. Paul, MN 55155
[email protected]
(651) 296-4317 |
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