Every year Texas grain producers must also entrust their livelihoods with the grain buyers and warehouses they do business with. When grain producers deliver the bounty of their crops to grain elevators, they expect those companies to fulfill their contractual obligation to remit timely payments or adequately maintain the grain in storage.
In light of a number of grain facility closures and financial failures across the state in recent years that resulted in millions of dollars in losses to Texas grain producers who were not compensated for their stored or contracted grain, this is a significant issue.
Bad User Agent Thanks to legislation introduced by Rep. Larry Phillips of Sherman and Sen. Craig Estes of Wichita Falls, and signed into law by Gov. Rick Perry, now producers have the opportunity to vote on whether to create and pay for a self-insurance program that will cover their losses when they are not paid for grain they deliver to a buyer or a storage facility.