Jay Rempe, at the Nebraska Farm Bureau, says once grain is delivered, farmers now have half the time to demand payment.
“They have to report a problem to the Public Service Commission or demand payment for that grain once it’s been delivered — that’s been shortened from 30 days to 15 days,” Rempe says. “Once they’re finished delivering on a contract, they have to demand payment within 15 days to be covered under any bond in case there’s a problem.”
Rempe says the shorter time frame also impacts stored grain.
“In terms of storing grain, the change there has been that you have to show you have a position in that elevator and that you have grain stored in that elevator,” Rempe says. “It used to be 30 days on that as well. That was changed to 15 days, too.”
Rempe says farmers need to be aware of the changes and be firm in their demands.
“When they deliver grain, if they don’t get paid or if they don’t demand payment right away, they’re basically an unsecured creditor,” Rempe says. “It’s just like giving that elevator an interest-free loan for a while. There is some bond protection but there are things you have to do to take advantage of that bond protection if you need it.”
The change in state law went into effect at the end of August, but with producers busy with harvest, it may’ve been overlooked. Rempe says if farmers have questions, they can call the Farm Bureau office, the State Public Service Commission or check with their attorney.
By Jerry Oster, WNAX, Yankton