By AP/KWMU
Springfield, ILL. – A new law in Illinois offers some new protections to grain farmers. It updates the insurance program that protects them when grain elevators go bust.
Other changes to the Grain Code include doubling the minimum amount in the Grain Insurance Fund to $6 million. They also will increase regulation and oversight of grain elevators and boost criminal penalties for elevator operators who defraud farmers.
The new law grew from the failure of Ty-Walk Liquid Sales two years ago. That failure exhausted the $5 million in the insurance fund and forced the state treasury to come up with almost $4 million more.
The state will be repaid as the fund is replenished. The new program requires farmers and lenders to pay into the fund for the first time.