The Ohio Indemnity Fund Protects Farmers

• Prior to the establishment of the Indemnity Fund on July 1, 1983, Ohio farmers lost approximately $8 million due to grain elevator bankruptcies and failures since 1968.

• The Indemnity Fund was created through a half cent per bushel assessment on grain marketed at licensed elevators in Ohio and collected from July 1, 1983, to December 31, 1985.

• The assessment is collected only if the fund drops below $4 million.  In the event of a licensed elevator insolvency, the farmer is reimbursed 100 percent for any grain stored in the elevator.

• Delayed price and basis transactions are reimbursed 100 percent of the first $10,000 of the loss and 80 percent of the remainder.    

• Claims to the Indemnity Fund are handled through ODA's Grain Warehouse Section and must be approved or disapproved by the Commodity Advisory Commission.

• Press Release:  May 17, 2006 - ODA Suspends the Indemnity Fund Fee Collection