INDIANAPOLIS – Licensed grain buyers have until the end of the year to pay for grain purchased from certain Indiana grain farmers who participated in the deferred pricing program, the Indiana State Department of Agriculture (ISDA) said recently.

The deadline only applies to Hoosier grain farmers who sold their grain on a deferred pricing agreement before July 1, 2021. The grain must be paid for before Jan. 1, 2024.

“We have diligently worked to remind licensed grain buyers and producers across the state of this deadline,” explained Regan Herr, ISDA communications director. “In addition to the most recent media release, ISDA has issued a reminder notice to licensed grain buyers and worked with industry partners to circulate this information through multiple communication channels.

“In 2021, ISDA created a communications toolkit that is available to grain buyers, farmer organizations, financial professionals, and the other interested members of the public to utilize and connect with their farmer customers about this law change.”

The law changed after Indiana Gov. Eric Holcomb signed House Enrolled Act (HEA) 1483 into law on April 29, 2021, ISDA said. Under the measure, new statutory requirements were established within the Indiana Grain Buyers and Warehouse Licensing and Bonding Law for grain purchased using a deferred pricing agreement, ISDA explained. The Indiana Grain Buyers and Warehouse Licensing Agency is a division of ISDA.

The law does not impact any grain sold on a deferred pricing agreement on or after July 1, 2021, ISDA noted. Starting July 1, 2022, the agency said licensed grain buyers were no longer allowed to keep grain on deferred pricing agreements for any length of time that extends beyond the crop year.

ISDA said the change was made to mitigate the amount of old grain in licensed grain buyers’ facilities and on the market.

Herr said ISDA doesn’t know how many Hoosier farmers who participated in the deferred pricing program still need to be paid for their grain. The agency also doesn’t know how much money might be owed to Hoosier grain farmers, she added.

Grain farmers could still be paid even if licensed grain buyers who purchased their grain miss the deadline to pay, Herr said.

“Payments are between the licensed grain buyer and producer,” she stated. “In the event a licensed grain buyer does not complete its payment obligations before the Jan. 1, 2024, deadline, the Indiana Grain Buyers and Warehouse Licensing and Bonding Law outlines certain enforcement actions ISDA may take until a licensed grain buyer complies with the statutory requirement.”

ISDA and the Indiana Grain Buyers and Warehouse Licensing Agency are encouraging producers to talk to their grain buyers as soon as possible to learn how their companies will be implementing these pricing and payment procedures. The agencies are also suggesting producers seek advice from their own legal counsel, accountants, creditors and other trusted financial professionals to help better prepare their farming business for any potential changes in their grain marketing practices.

For more information, including the definition of a crop year and answers to questions about HEA 1483, visit https://www.in.gov/isda/files/Grain-Buyers_2022_Law-Changes.pdf.