Grain agency would check shortages and review depositors’ claims

The grain agency would inspect and audit a business when it learns of a possible shortage. The process covers depositors and licensed grain businesses that may lack grain they owe. If a shortage may exist, the director would hold a preliminary meeting. The agency would hold a claims meeting if the director decides a financial guarantee or cash deposit should be used to pay claims. If enacted, this process would take effect July 1, 2026.

The grain agency director may require risk warnings above sellers’ signatures on covered contracts. The main warning covers contracts to buy grain from producers, except flat price and seed production contracts. If the director requires it, seed production contracts would carry a separate warning that farmers may lack state loss coverage if the contractor keeps ownership of both the seed and its products. If enacted, these notice rules would take effect July 1, 2026.

An administrative judge would award a claimant reasonable lawyer fees they incurred, if any. This applies to grain claimants seeking administrative review of the director’s orders. The claimant must petition for review of the grain director’s order and have incurred reasonable lawyer fees. The review request must be made no more than 15 days after the findings are served. If enacted, the fee rule would take effect July 1, 2026.

Indiana’s inspector general would receive complaints alleging violations by the grain agency director. The complaints must allege that the director violated state rules for licensing and bonding grain buyers and warehouses. If enacted, this provision would take effect July 1, 2026.