McKinney, 010716 INAGO, AGO 2016-3

• Case Date: January 07, 2016
• Court: Indiana

Mr. Ted McKinney AGO 2016-3 Official Opinion 2016-3 Indiana Attorney General Opinions State of Indiana Office of the Attorney General January 7, 2016          Mr. Ted McKinney          Director          Indiana State Department of Agriculture          One N. Capitol Ave., Suite 600          Indianapolis, IN 46204          RE: Illinois Grain Elevators Participating in Indiana's Grain Indemnity Program          Dear Director McKinney:          You requested an opinion from the Office of the Attorney General (OAG) regarding the following issues:          1. Are Illinois grain elevators that buy grain from Indiana farmers eligible to participate in Indiana's Grain Indemnity Program? If so, which transactions?          2. Does a situation where grain hauled to Illinois where agreements as to price are consummated at the elevator constitute a sale in Indiana?          3. What about when representatives of the Illinois grain elevators travel to Indiana farms to solicit agreements with farmers or merely direct advertising materials to Indiana farmers?          4. Does a transaction and agreement completed over the phone constitute a sale in Indiana?          ANALYSIS          According to Ind. Code § 26-4-4-1, "The Indiana grain indemnity fund is established for the purpose of providing money to pay producers for losses incurred due to the failure of a grain buyer or warehouse operator licensed under IC 26-3-7." The fund is financed by premiums that producers pay to buyers when a sale takes place. See Ind. Code § 26-4-4-4 and Ind. Code § 26-4-4-6. According to Ind. Code § 26-4-4-4, [t]he producers of grain shall be charged a producer premium equal to two-tenths percent (0.2%) of the price on all marketed grain that is sold in Indiana." Buers then submit the premium to the Indiana Grain Indemnity Corporation's Board to finance the fund. See Ind. Code § 26-4-4-6.          Ind. Code § 26-4-1-16 says a farmer can participate in the program if he or she is "a producer who has never requested a refund under IC...