Michigan Farm Bureau supports the Farm Produce Insurance Authority (FPIA) which protects producers’ interests when selling their products.
Farmers need maximum payment assurance for commodities delivered. Many parties suffer when a receiver — whether a closed-cooperative, regular cooperative, or commercial company — becomes insolvent or declares bankruptcy. The impact on farmers is significant because of the perishability and seasonality of many commodities.
We support:
- PA 198 of 2013, updates to the Grain Dealers Act that provided assurance that growers receive a priority lien position and full payment for commodities delivered.
- Farm Bureau working proactively with the Michigan Department of Agriculture and Rural Development to expand the FPIA to include fruit and vegetable crops, and creating an appropriate funding mechanism.
- Exploring all possible options, including amending the Uniform Commercial Code, to ensure a fully secured position payment for commodities delivered.