Michigan Farm Bureau supports the Farm Produce Insurance Authority (FPIA) that protects the interest of producers when selling their products.
For commodities delivered, farmers need maximum payment assurance. When a receiver, whether they are a closed-cooperative, regular cooperative, or a commercial company, becomes insolvent or declares bankruptcy, many people suffer. The impact on farmers is more significant because of the perishability and seasonality of many commodities.
We support PA 198 of 2013, updates to the Grain Dealers Act that provided assurance that growers receive a priority lien position and full payment for commodities delivered.
We urge Farm Bureau to work proactively with the Michigan Department of Agriculture and Rural Development to expand the FPIA to include fruit and vegetable crops, and to create an appropriate funding mechanism.
We recommend exploring all possible options, including amending the Uniform Commercial Code, to ensure a fully secured position payment for commodities delivered.