Changes to the Indiana grain buyers law went into effect July 1, and while the new law includes few changes that directly affect farmers, it does impact current and future grain buyer licenses.

Passed with little opposition by the 2025 Indiana General Assembly, Senate Enrolled Act 461 gives the Indiana Grain Buyers and Warehouse Licensing Agency (IGBWLA) less ambiguity and agency discretion surrounding license revocations and facility failures, according to the Indiana State Department of Agriculture.

Revocation of a license means that a grain bank, buyer, warehouse or buyer-warehouse in Indiana can no longer operate. This can be due to a variety of reasons including bankruptcy, violation of Indiana Code, acting contrary to Indiana Code or a variety of other reasons.

For farmers, the new law doesn’t make many changes. Farmers are still required by law to sell any grain stored on deferred pricing at a licensed grain facility within the crop year. This equates to Aug. 31 for the previous year’s crop of corn and soybeans and May 31 for wheat.

The main effect of the law on farmers is if their current grain buyer loses their license. Once a license has been revoked, the licensee must cease doing business immediately.  Farmers will be notified that the claims process has begun, and a public hearing will be held.

In the event of a license revocation (formerly known as a “facility failure”), farmers will still be paid from the Indiana Grain Indemnity Fund if they have their receipts and grain was delivered within the confines of the law. The new law specifies that farmers must prove that storage fees were paid to claim 100% from the indemnity fund.

For licensed grain buyers, the biggest change is that under the old law, IGBWLA had some enforcement discretion. However, the new law contains very specific and regulated requirements of grain buyers and their facilities.

“If a licensee does not meet requirements set forth in the new law, they will lose their license,” ISDA said. “If a deficiency is found, the new law sets forth clear timelines and next steps for both the agency and the licensee.”

More information on the new law, the Indiana Grain Buyers and Warehouse Licensing Agency and the Indiana Grain Indemnity Fund can be found at in.gov/isda/divisions/indiana-grain-buyers. The full text of Senate Enrolled Act 461 can be found by visiting iga.in.gov and putting “461” in the search box.