MississippiSB 26312026 Regular SessionSenateWALLET

The Mississippi Grain Indemnity Act; establish.

Sponsored By: Neil S. Whaley (Republican)

Signed by Governor

Agriculture

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 2 costs, 2 mixed.

Stronger bonds and licensing for grain businesses

Starting July 1, 2026, grain warehouses must carry a bond based on capacity: $0.25 per bushel for the first 1,000,000 bushels, $0.20 for the next 1,000,000, and $0.15 above 2,000,000, with a $15,000 minimum and $1,000,000 maximum; the Commissioner can require more. Grain dealers must post a bond equal to 10% of last year’s total dollars paid to producers, rounded to the nearest $1,000, with a $25,000 minimum and $100,000 maximum; new dealers may use an estimate, and the Commissioner can require more. Dealer licenses are issued or renewed yearly, end 90 days after the last day of the applicant’s fiscal year on July 1, must be posted in the main office, with certificates posted where grain is bought and carried in trucks or trailers.

How farmers get paid after failures

When the Commissioner announces a failed buyer, you must file the board’s claim form within 90 days. Include your written sale or storage deal, receipts or scale tickets, and sign under oath. Claims from deferred purchases are not allowed, and failed buyers cannot claim. Starting January 1, 2027, approved storage or contract losses pay 100% of your loss minus any money you already received. Stored grain is valued at the market price on the failure date (adjusted for quality if the board finds evidence). Contract losses use the contract price or a board-set price. If all eligible claims are larger than the fund, payments are prorated and later fees cannot top up past shortfalls. If a dealer does not pay, you must also send written notice to the Commissioner within 160 days (270 days for deferred pricing) to keep bond rights and file a bond claim; recoveries go to the trust fund if you are fully paid. You can ask the board to reconsider within 30 days and appeal to chancery court within 30 days.

New Grain Indemnity Board and oversight

The law creates a seven‑member Grain Indemnity Board chaired by the Commissioner on July 1, 2026. It also creates a Grain Indemnity Trust Fund in the State Treasury, funded by assessments, interest, appropriations, and bond proceeds. The fund can only pay claimants and board costs. Admin costs are capped at $200,000 a year, or $500,000 while claims are being handled, and the board must report costs by December 1 each year. The board can set rules, the State Auditor can audit records anytime, and the Commissioner will run a confidential toll‑free hotline to report missed payments or fraud.

Buyers must collect and remit fees

Starting January 1, 2027, first purchaser licensees must deduct the assessment from the producer’s price, show it on the invoice, and send the fee to the Department by the 20th of the next month. You must keep a ledger for each deduction (date, from whom, and amount) and submit it with the payment. Beginning July 1, 2026, the Commissioner can revoke your license if you fail to collect and send the fees on time.

Farm fee and opt out rules

Starting January 1, 2027, you pay a 0.2% fee on covered grain sold to a first purchaser. The board stops fees when the fund reaches $25 million. It restarts fees if the fund is under $25 million, or likely below $20 million at fiscal year end; if fees restart midyear, they keep going through year end. You can opt out by March 1 on the department form; you become ineligible to claim starting January 1 of that year and may get a refund if the fee was already taken. To reenter, you must ask the board, pay missed fees plus interest, and wait 90 days after approval to be eligible. After fees restart, a new claimant or a reentering producer cannot opt out for five years. These opt-out rules take effect July 1, 2026.

Sponsors & Cosponsors

Sponsor

Neil S. Whaley
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 173 • No: 0

House vote • 3/4/2026

Passed

Yes: 121 • No: 0

Senate vote • 2/10/2026