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Tennessee officials to halt grain producer fee after fund hits $10 million

Grain silos are seen on the Scoggins family soybean farm on Friday, July 21, 2017, in LaFayette, Ga. Last year, the farm's yield was badly impacted by an exceptionally dry summer, and this year's wet weather has also effected the amount of soybeans they could plant. Grain silos are seen on the Scoggins family soybean farm on Friday, July 21, 2017, in LaFayette, Ga. Last year, the farm's yield was badly impacted by an exceptionally dry summer, and this year's wet weather has also effected the amount of soybeans they could plant.

By Associated Press July 29, 2019 1 min read

NASHVILLE, Tenn. (AP) – Tennessee officials are halting a 30-year-old fee on grain producers because a fund has hit its $10 million minimum balance.

The state Department of Agriculture says state lawmakers in 1989 passed a law to create the Tennessee Grain Indemnity Fund to protect grain producers against financial failure of grain dealers and warehouses.

In a subsequent referendum, a majority of eligible Tennessee grain producers voted for an assessment of one cent per bushel on soybeans and one-half cent per bushel on all other grain.

Since the fund’s creation, nearly $960,000 has been paid in claims to 76 producers who suffered losses because of a grain dealer or warehouse failure.

The goal of $10 million was hit this month. The fees will be reinstated when the fund balance falls below $8 million.