The failure of a grain dealer can send shockwaves through the agricultural industry, leaving producers and other stakeholders reeling from financial losses. To help navigate these complex issues, the National Agricultural Law Center (NALC) is hosting a webinar that will delve into the intricacies of grain dealer statutes, which serve as a crucial safety net for producers when these failures occur.
Grain dealer statutes are state-level regulations that govern businesses purchasing grain from producers. While these laws often share a common structure, they can differ significantly from one state to another in the protections they offer. This variability can have substantial implications for producers, as highlighted by recent high-profile cases.
In Arkansas, the collapse of Turner Grain Merchandising, Inc. resulted in a $5.9 million loss for farmers who delivered rice for export but never received payment. Although a jury initially ruled in favor of the farmers, the Arkansas Supreme Court later overturned the decision, leaving the farmers without recourse. Similarly, in Mississippi, the bankruptcy of Express Grain Terminals, LLC, led to millions in losses for farmers. The company’s CEO was sentenced to 10 years in prison for fraud, further emphasizing the risks associated with grain dealer failures.
These cases underscore the importance of grain dealer statutes in maintaining economic stability within the agricultural industry. Ross Pifer, director of the Penn State Center for Agricultural and Shale Law, will lead the upcoming webinar, providing an overview of these statutes and their role in protecting producers. The webinar, titled “An Overview of State Grain Dealer Statutes in the United States,” will be part of the NALC Webinar Series, which focuses on current legal and policy issues affecting agriculture.
During the webinar, Pifer will discuss common features of grain dealer statutes, such as bonding, indemnity funds, licensing, auditing, liens, and penalties. He will also explore how states differ in their implementation of these attributes and touch upon grain warehouse statutes, which often work in conjunction with grain dealer statutes. This information is vital for producers, lenders, input suppliers, and other stakeholders who may be affected by grain dealer failures.
The webinar is open to the public and free of charge. It will be held on Wednesday, June 18, at 11 a.m. Central/Noon Eastern. Interested parties can register online at nationalaglawcenter.org/webinars/grain-dealers. This event presents an excellent opportunity for those in the agricultural industry to gain a deeper understanding of grain dealer statutes and their role in protecting producers from financial losses.