(1) Subject to Section 75-46-27, claims for storage losses shall be paid at one hundred percent (100%) of the amount of loss of the claimant less any amount received by the claimant from any other source. The value of the grain, subject to the claim, shall be the market price of the grain as determined by the board as of the date of failure of the first purchaser licensee. The board may adjust the value of the grain, subject to the claim, if there is sufficient evidence on a warehouse receipt, scale ticket or other similar document showing the quality of the grain.
(2) (a) Subject to Section 75-46-27, claims for contract losses shall be paid at one hundred percent (100%) of the amount of loss of the claimant less any amount received by the claimant from any other source, including the sale of the grain to another entity. The board shall use the purchase price set forth in the contract for sale to determine the amount of loss. If a specific purchase price amount is not set forth in the contract, the board in its discretion may establish the price of grain to be used to determine claims amounts. In making this determination, the board may consider such factors as it deems are relevant, including, without limitation, normal marketing practices, the need to make timely payments and the risk of harm to producers if payments are delayed due to having to await a future price determination.(b) A claim for a contract loss shall not be approved by the board if the claimant engaged in conduct or practices that differ from generally accepted marketing practices within the grain industry to an extent the claimant’s actions have substantially contributed to the claimant’s loss.(c) A failed first purchaser licensee may not file a claim for payment from the fund for any loss associated with a grain warehouse owned, in whole or in part, by the licensee or a person that is a grain dealer owned, in whole or in part, by the licensee.(d) Payments from the Grain Indemnity Trust Fund shall be available for storage and contract losses incurred with respect to crops produced after January 1, 2027.
(a) Subject to Section 75-46-27, claims for contract losses shall be paid at one hundred percent (100%) of the amount of loss of the claimant less any amount received by the claimant from any other source, including the sale of the grain to another entity. The board shall use the purchase price set forth in the contract for sale to determine the amount of loss. If a specific purchase price amount is not set forth in the contract, the board in its discretion may establish the price of grain to be used to determine claims amounts. In making this determination, the board may consider such factors as it deems are relevant, including, without limitation, normal marketing practices, the need to make timely payments and the risk of harm to producers if payments are delayed due to having to await a future price determination.
(b) A claim for a contract loss shall not be approved by the board if the claimant engaged in conduct or practices that differ from generally accepted marketing practices within the grain industry to an extent the claimant’s actions have substantially contributed to the claimant’s loss.
(c) A failed first purchaser licensee may not file a claim for payment from the fund for any loss associated with a grain warehouse owned, in whole or in part, by the licensee or a person that is a grain dealer owned, in whole or in part, by the licensee.
(d) Payments from the Grain Indemnity Trust Fund shall be available for storage and contract losses incurred with respect to crops produced after January 1, 2027.