Tennessee Grain Indemnity Fund reaches $10M
The Tennessee Grain Indemnity Fund has surpassed its minimum balance requirement of $10 million and will suspend assessments from grain producers.
In 1989, the Tennessee General Assembly passed a law creating the fund to protect grain producers against the financial failure of grain dealers and warehouses.
A referendum was held in which a majority of eligible Tennessee grain producers voted in favor of the assessment of one cent per bushel on soybeans and one-half cent per bushel on all other grain.
In 2011, the Tennessee General Assembly passed an amendment to the Tennessee Commodity Producer Indemnity Law increasing the minimum fund balance to $10 million.
That goal was reached this month. Assessments will be reinstated when the fund balance falls below $8 million.
Since the fund’s creation, $958,996 has been paid in claims to 76 producers for losses sustained as a result of a grain dealer or warehouse failure.