INDIANAPOLIS (July 18, 2023) - The Indiana State Department of Agriculture (ISDA) would like to make Hoosier grain farmers aware that if they sold grain on a deferred pricing (DP) agreement before July 1, 2021, the licensed grain buyer who purchased the grain must pay the farmer for that grain before Jan. 1, 2024.

On April 29, 2021, Governor Eric J. Holcomb signed into law House Enrolled Act 1483. This act established new statutory requirements within the Indiana Grain Buyers and Warehouse Licensing and Bonding Law (Ind. Code § 26-3-7) for grain purchased using a deferred pricing agreement. The Indiana Grain Buyers and Warehouse Licensing Agency, a division of ISDA, asks grain farmers to make note of the January 1, 2024 deadline, as payment for this specific deferred priced grain will be coming.

This law does not affect any grain sold on a deferred pricing (DP) agreement on or after July 1, 2021. Beginning on July 1, 2022, licensed grain buyers were no longer allowed to keep grain on a deferred pricing (DP) agreements for any length of time that extends beyond the crop year.

This law was created to mitigate the amount of old grain in licensed grain buyers’ facilities and on the market.

ISDA and the Indiana Grain Buyers and Warehouse Licensing Agency encourage producers to talk to their grain buyers today to learn more about how their companies will be implementing these pricing and payment procedures. Producers are also encouraged to seek advice from their own legal counsel, accountants, creditors and other trusted financial professionals to help better prepare their farming business for any potential changes in their grain marketing practices.

For more information on what a crop year is, a Q&A about House Enrolled Act 1483 or more helpful information for farmers, please click here.

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