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HB 1647

Mississippi Grain Indemnity Act; enact.

2026 Regular Session Introduced by Bill Pigott

Establishes compensation fund protecting Mississippi grain farmers from financial losses caused by dealer failures, insolvency, or fraud.

Referred To Agriculture
#agriculture
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Bill Summary · HB 1647

Legislative bill overview

HB 1647 enacts the Mississippi Grain Indemnity Act, which establishes a compensation program for grain producers who suffer losses from grain dealer failures, insolvency, or fraud. The bill creates a fund mechanism to protect farmers when licensed grain handlers are unable to fulfill their obligations to purchase or store grain.

Why is this important

Grain dealers often hold substantial farmer assets temporarily during harvest and storage periods. When dealers become insolvent or commit fraud, farmers can lose significant portions of their annual income with limited recourse. This indemnity program provides a safety net that protects agricultural livelihoods and stabilizes the grain supply chain.

Potential points of contention

  • Fund financing mechanism: How the indemnity fund will be capitalized and whether costs are borne by grain dealers (through licensing fees), farmers, or the state
  • Coverage limits: Questions about maximum claim amounts per farmer and whether coverage is capped in ways that may not fully protect larger operations
  • Eligibility criteria: Disputes over which types of losses qualify (storage, purchase price guarantees, etc.) and which farmers are eligible for claims
  • Administrative procedures: Concerns about claim processing timelines and whether the process adequately protects farmer interests during dealer bankruptcies

Compiled from official sources — confirm details with the bill’s official record.

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