LINCOLN, NE – With harvest in full swing, Nebraska Farm Bureau is reminding farmers of recent changes in the state law regarding what they need to do to protect their interests when selling or storing grain, in the event of financial failure by a grain dealer or grain warehouse.
“There’s a lot going on at harvest, but it’s important farmers don’t forget to do their due diligence in securing the protections offered to them under Nebraska Public Service Commission (NPSC) regulations,” said Jay Rempe, Nebraska Farm Bureau vice-president of governmental relations.
Farmers who sell grain have no recourse to a grain dealer’s security posted with the NPSC unless they meet specific requirements. The changes in state law deal with the timing of when farmers must act to secure such protections.
“To receive NPSC protections, farmers need to demand payment from the grain buyer within 15 days after the date of the last shipment of any contract. They also need to cash or negotiate any check or draft issued as payment for the grain within 15 days after issuance,” said Rempe. “The other caveat to protecting themselves is that a farmer must notify the NPSC within 15 days after an apparent loss if they want to be covered under the terms of the grain dealer’s security.”
Similarly, farmers who store grain need to also meet specific requirements to receive NPSC protections.
“In order to be covered by the NPSC required securities of a grain warehouse, farmers need to secure a post-direct delivery storage position within 15 days after the last shipment of any contract,” said Rempe.
Prior to the changes in state law, farmers had 30 days to take similar actions to ensure protections for both the sale and storage of grain. The change in the timing of when farmers must take action were made to improve business practices and help speed up the discovery of grain dealer and grain warehouse insolvency issues.
“The changes in state law took effect Aug. 30, but it’s easy for things to fall through the cracks at harvest when farmers are so focused on getting crops out of the field,” said Rempe.
The Nebraska Farm Bureau Federation is a grassroots, statewide organization dedicated to supporting farm and ranch families and working for the benefit of all Nebraskans through a wide variety of educational, service and advocacy efforts. More than 60,000 families across Nebraska are Farm Bureau members, working together to achieve rural and urban prosperity as agriculture is key to fueling Nebraska’s economy. For more information about Nebraska Farm Bureau and agriculture, visit nefb.org.