State legislation should prohibit speculation in the futures market by grain elevator owners and operators, except in the case of legitimate hedging. State legislation should also prohibit involvement by elevators in delayed or deferred pricing schemes.
Grain elevator operators should be required to submit more detailed financial information to the Kansas Grain Inspection Department. We support timely and in depth audits.
We support the acceleration of the receivership process for financially troubled elevators, with provision for a temporary receiver to be named insuring immediate supervision of a bankrupt elevator to guarantee that grain is protected while the courts appoint a permanent receiver.
We support farmers being given priority through “Farmers FIRST Lien” in elevator bankruptcy proceedings.
We oppose the grain warehouse trust fund concept funded by a checkoff assessed against grain sold by farmers.
We endorse a federal or state insurance program protecting any stored and/or priced grain for all state and federally inspected elevators, similar to the FDIC for banks.
Warehouse receipts and scale tickets shall be recognized as legal proof of ownership of grain, and should be guaranteed by the government.
We support similar protection for the sale of livestock through public auction.