If passed in December, a statewide crop insurance measure would provide additional protection for some grain sellers, but it also would force producers of wheat, corn, soybeans and sorghum to fund the insurance program — regardless of whether they voted for the measure. The Texas Grain Indemnity Fund referendum is the result of high-profile grain elevator failures in Texase, such as the 2009 collapse of an elevator in Sherman that cost farmers millions of dollars. If the measure is voted in, grain sellers will be insured against the devastating economic loss that can be incurred in the event of a grain elevator failure, said Ben Scholz, a North Texas wheat farmer and board member of the Texas Grain Producers Indemnity Fund. "I don't want to make it sound like (elevator failures) are a frequent deal, because they're not. But these things do happen and they can leave you in a predicament," Scholz said. When farmers sell their crop — in many cases to buyers with the ability to store grain in large silos — they generally don't get paid right away. The payment is deferred, and between the time of the sale and the time of payment, a grain buyer can go out of business because bankruptcy, legal trouble or other reasons. In such cases, farmers may not be reimbursed for the value of the siloed crop. The proposed crop insurance program would require producers of wheat, corn, soybeans and sorghum to pay an additional 0.02 percent of their grain value to elevators, which then would send the money to the state. Scholz said the fee money would not mingle with other funds in state coffers and would collect interest. Farmers also would have the ability to request a refund of money previously paid into the fund, he said. An informational campaign for the referendum has been rolled out by the industry groups supporting it, such as Corn Producers Association of Texas, Texas Wheat Producers Association and the Texas Farm Bureau. However, the last attempt to create a state agriculture insurance fund failed in 2012. In 2011, Gov. Rick Perry initially signed the bill allowing the referendum to take place. One of the original sponsors of the law was state Sen. Craig Estes (R-Wichita Falls). But a year later, farmers voted the measure down — Scholz said producers were not provided with enough information about the fund. "We lacked the exposure: what this fund can potentially do to protect a producer in the event of an elevator failure," he said. Only farmers who have produced grain in the past three years may cast a vote on the measure, which is not listed on the general election ballot in November. Voting can be done at county AgriLife extension offices or by mail. The referendum will be conducted Dec. 5-9. Source - http://www.timesrecordnews.com