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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | December 9, 2022 03:01 PM |
|---|---|
| From: | Representative Dan K. Williams |
| To: | All House members |
| Subject: | Protection for Pennsylvania’s Grain Farmers |
| Pennsylvania currently has no regulations to provide indemnification coverage to farmers if a grain buyer goes out of business. The lack of protection not only exposes grain farmers to financial loss, but it also discourages farmers in surrounding states to conduct business in Pennsylvania. For example, two farmers recently lost thousands of dollars when a grain handler they enlisted to sell their grain went out of business and declared bankruptcy. I plan to introduce legislation that would establish an Agricultural Commodity Indemnity Fund (ACIF), which would reimburse farmers for losses incurred when a grain handler becomes insolvent. The ACIF would 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 fee would be discontinued when the fund accumulates $10 million and would reinstated only if the funds in the ACIF drop below $8 million. Grain farmers are part of the hard-working core of those who call our Commonwealth home. They deserve a sustainable future in the grain farming industry while providing quality grain products to Pennsylvanians. Please join me in helping to protect and support our grain farmers and agriculture community throughout Pennsylvania. |
Introduced as HB862