S.D. farmers could receive protection in grain buys

Responding to the varied effects of national economic downturn, the Department of Agriculture and the PUC have proposed legislation that would both protect South Dakota farmers and increase key fees.

In a move that appears to have been motivated by the mess farmers found themselves in after ethanol giant VeraSun filed for bankruptcy, the PUC wants grain buyers to have more bond coverage. The current $300,000 bonding cap would be replaced by a minimum $350,000 bond, escalating to $500,000 for anyone buying $100 million worth of grain annually. Beyond that, grain buyers would have to have an additional $25,000 bond for each $10 million of grain purchases.

“The goal is to have a high level of scrutiny on the financial soundness of those people who are out there buying grain from producers,” PUC Chairman Dusty Johnson says.

Argus Leader