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.