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Legislative Action Center
Farm Bill
The U.S. House Ag Committee wrapped up its Farm Bill Field Hearings on April 20, 2012, in Dodge City, KS. It was the final hearing held to listen directly to producers on the ground and gather input in advance of writing the 2012 Farm Bill. Members heard from producers of a variety of commodities and beef about the tools they need to continue to produce a safe and affordable food and fiber supply. CPAT Director and current Southwest Council of Agribusiness President Dee Vaughan of Dumas, Texas, was among the witnesses. To listen to the hearing in its entirety, click here. Access Vaughan's written testimony, as well as other witnesses' by visiting the House Ag Committee website here.
Texas Grain Indemnity Fund
Quick Links on the Fund
General Information: An overview of the Fund
Texas Grain Indemnity Fund Law
The Fund at a Glance
Gov. Rick Perry has signed landmark legislation that will allow Texas grain producers to vote on whether to create and pay for a self-insurance program that will cover their losses when they are not paid for grain they deliver to a buyer or a storage facility.
Rep. Larry Phillips of Sherman and Sen. Craig Estes of Wichita Falls introduced the legislation after a series of grain elevator financial failures in recent years resulted in millions of dollars in losses to Texas grain producers who were not compensated for their stored or contracted grain.
The Texas legislation was modeled after successful indemnification programs that have operated for decades in more than a dozen other major grain producing states.
If approved by producers in a referendum, an indemnification fund will be created and financed by a small assessment deducted from a producer’s proceeds when grain is sold. Grain buyers will withhold the assessments from the sales and remit the assessments to the fund each quarter. If a grain producer suffers a loss when a grain elevator has a financial failure or a grain buyer fails to pay for delivered grain, the producer can file a claim with the fund to recover up to 90 percent of the value of the grain lost. The program will apply to transactions involving corn, soybeans, wheat and grain sorghum.
After the law becomes effective on September 1, 2011, the Agriculture Commissioner will appoint a nine-member board with representatives from grain producers, storage facilities and grain buyers to conduct the referendum and oversee operations of the indemnification fund.
The board will adopt procedures and set a date for the producer referendum. Producers will have 90 days notice before the referendum is held. The cost of the referendum will be paid by producer organizations.
Quick Links to Your Legislature
U.S. Legislature
United States House of Representatives
U.S. House of Representatives Committee on Agriculture
U.S. Senate Committee on Agriculture, Nutrition and Forestry
Texas Legislature
Texas House of Representatives Committee on Agriculture and Livestock
Texas House of Representatives Committee on Natural Resources
Texas Senate Committee on Agriculture and Rural Affairs
Texas Senate Committee on Natural Resources
