Mississippi 2022 Regular Session

Mississippi Senate Bill SB2002

Introduced
1/6/22  
Refer
1/6/22  
Engrossed
2/8/22  
Refer
2/24/22  

Caption

"Mississippi Grain Producer Indemnity Act"; enact.

Impact

The Act mandates that a fund is to be maintained that will provide compensation to grain producers affected by financial failures of grain dealers and warehouses. The Mississippi Grain Indemnity Fund Board will oversee this fund, which will be financed through a small assessment of 0.02% of the market price per bushel of grain purchased. This mechanism aims to ensure funds are available to compensate producers quickly after a loss, thereby stabilizing the agricultural economy during turbulent financial scenarios. Further, the Act stipulates that once the fund reaches a threshold of $20 million, assessments against producers may be suspended until the fund balances drop below this level again.

Summary

Senate Bill 2002, known as the Mississippi Grain Producer Indemnity Act, aims to provide financial indemnification for grain producers in Mississippi against the failures of grain dealers and warehouses. The bill establishes the Mississippi Grain Indemnity Fund, which will serve to compensate producers for financial losses in the event of a dealer's or warehouse's insolvency. By creating this fund, the bill seeks to enhance the economic stability of the agricultural sector in Mississippi, particularly for grain producers who are vulnerable to market fluctuations and business failures within the supply chain.

Sentiment

The sentiment around SB2002 is marked as supportive among agricultural stakeholders, who see it as a vital safety net for grain producers. By providing a structured reimbursement process, it directly addresses concerns about the fallout from grain dealer bankruptcies, which can devastate small producers. However, there may be opposition from some sectors that view government intervention as excessive or fear that assessments could become burdensome on producers, especially small-scale farmers. These points of contention highlight the ongoing debate regarding the balance between state support and market independence.

Contention

Notably, the bill has provisions for automatic compensation to producers who experience losses due to dealer failures. However, it also includes clauses that allow for the adjustment of compensation amounts based on the fund's available balance, leading to potential disputes over claim amounts. Furthermore, it places the Commissioner of Insurance in a crucial role, as they will approve required surety bonds for dealers, raising questions about regulatory oversight effectively balancing industry needs against consumer protection.

Companion Bills

No companion bills found.

Previously Filed As

MS HB1389

"Mississippi Grain Indemnity Act"; enact.

MS SB2479

Mississippi grain warehouse and grain dealers licensure law; revise and combine into grain handler license.

MS HB363

Mississippi Department of Agriculture and Commerce; technical amendments related to certain powers and duties.

MS HB1840

Relating to the creation and functions of the Texas Grain Producer Indemnity Board.

MS SB1232

Relating to the creation of the grain producer indemnity fund.

MS SB0461

Grain indemnity.

MS SB2516

Grain producer compensation for financial loss in 2021; authorize Commissioner of Agriculture to pay.

MS HB2504

Relating to the operation and functions of the Texas Grain Producer Indemnity Board.

MS SB1099

Relating to the operation and functions of the Texas Grain Producer Indemnity Board.

MS HB1419

Grain indemnity.

Similar Bills

MS HB1389

"Mississippi Grain Indemnity Act"; enact.

MS SB2516

Grain producer compensation for financial loss in 2021; authorize Commissioner of Agriculture to pay.

MS HB363

Mississippi Department of Agriculture and Commerce; technical amendments related to certain powers and duties.

MS SB2157

Agriculture; grant the Commission of Agriculture and Commerce investigative powers and amend related procedures.

MS SB2479

Mississippi grain warehouse and grain dealers licensure law; revise and combine into grain handler license.

MS SB3033

Appropriation; Agriculture and Commerce, Department of.

MS SB3036

Appropriation; Agriculture and Commerce, Department of.

MS SB3013

Appropriation; Agriculture and Commerce, Department of.