The Golden Spread Agri-Business Hour


Listen weekday mornings from 5am-6am for the latest Agri-business news updates with James Hunt, Shannon Gray and Tony Klein. James, Shannon and Tony will keep you informed with Ag news headlines, featured stories, weather news and stock reports concerning Agri-business.

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IPM Coordinator Training

Texas A&M AgriLife Extension is offering a one-day training for integrated pest management coordinators on June 11 in Amarillo. The fee is $135. For more information and to register, go here

Another Chance For Proposed Fund

Another Chance For Proposed Fund

It’s typical for businesses to come and go. But, what happens when a grain company goes out of business? This has long been an issue for grain farmers, which is where the Texas Grain Producers Indemnity Board comes in. Vice Chairman for TGPIB Dee Vaughn said, “When a grain buyer becomes financially insolvent and is unable to pay for the grain, how do we mitigate that risk and do it in a very cost effective and efficient manner?”

To assist producers faced with such circumstances, TGPIB is coordinating an effort to conduct a statewide producer referendum for a proposed grain indemnity fund.

This is actually the second attempt to establish a grain indemnity fund in Texas. An earlier proposal was rejected by producers in a 2012 referendum. Vaughn told KGNC that the TGPIB listened to feedback from farmers about the original proposal, and the board believes it has put together an improved product this time.

 “What we were told by producers who opposed the original referendum is that it was too costly. The assessment that would be applied to the grain sale was too costly. And then also, there was even some concern that we were going to cover, at that time, 90 percent of the farmer’s loss in the event of a grain buyer failure.” Vaughn said some opponents of the earlier proposal felt a coverage rate at that level would encourage people to “do business with a risky guy simply because he pays a little bit more but is not financially solid.”

Vaughn said after hearing those comments, TGPIB went back to the drawing board and, “what we came up with is the ability to use insurance to help cover a lot of the cost and so we’re able to dramatically lower the cost from what we offered in 2012 in that referendum. Plus, we dropped the coverage from 90 percent down to 85 percent,” which will hopefully give producers more incentive to do business with companies that are more stable financially.

If the new proposal for a grain indemnity fund is approved by producers, Vaughn said “absolutely no taxpayer money” would be involved in funding the program. “It’s a producer program, it’s administered by producers, and it’s paid for by producers.”

The Texas Legislature has approved allowing a producer referendum on the revised proposal. The big question now becomes: When will there be a vote by producers? Vaughn said TGPIB hopes to present this to producers sometime within the next year. Before the referendum is conducted, Vaughn said there will be a statewide education effort to inform producers and grain buyers about how this proposed program would work and how much it would cost. 

Check Your Selections

As farmers continue adapting to the new farm bill, there is news from Texas Corn Producers concerning the Agricultural Risk Coverage Program. TCP is advising producers of corn and other commodities to check their farm program selections due to changes the Farm Service Agency has made to yields. For more information, go here


Farm Payment Limits Proposed

USDA has issued a proposed rule that would implement additional limits on farm payments made to non-farmers. For more information and to offer comments about the proposal, go here



KGNC Golden Spread Agribusiness Hour

The KGNC Golden Spread Agribusiness Hour is your daily opportunity to hear from agriculture newsmakers from around the region. The program airs Monday through Friday from 5 a.m. to 6 a.m. on KGNC-AM.

In addition to bringing you the insights of ag experts from around the High Plains region, our show also offers up-to-the-minute market information, veterinary news, wildlife reports, and features that explore the daily endeavor of those good people – the farmers and livestock producers – who provide us with the food and fiber we all need.

If you are unable to listen to the Agribusiness Hour live, remember you can hear recordings of past programs in podcast form by going here:

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