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Agriculture Today

Texas producers say no to statewide grain indemnity fund

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January 16, 2013 | 4,566 views | Post a comment


AUSTIN -- The Texas Department of Agriculture (TDA) announced Jan. 2 that Texas grain producers have voted against the establishment of a producer assessment to self-insure against financial risks associated with selling or storing grain. TDA certified all the ballots, and the final results were 507 in favor of establishing the fund and 1,171 against.

A total of 1,678 valid ballots were certified by TDA and Texas Secretary of State officials based on the U.S. Department of Agriculture’s records of certified grain producers. By law, the proposal had to receive at least two-thirds of the total votes to pass.

The referendum was important for grain producers to have the opportunity to decide, through an impartial, electoral process, whether the risk of financial loss from placing grain on storage deposit with a grain warehouse is significant enough to create an insurance indemnity program.

In 2011, the Texas Legislature passed legislation to create the Texas Grain Producer Indemnity Board. The board established policies surrounding the implementation of the program and TDA was tasked by the Legislature to conduct the referendum.

The Texas Grain Producer Indemnity Board was scheduled to hold a meeting on Jan. 4.

For more information about the Texas Grain Producer Indemnity Board, visit www.texasgrainindemnity.org.

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