Grain Licensing and Regulation
The Grain Regulation Branch is responsible for administering inspections to ensure that producer grain and contractual agreements are secured and stable. The licensed grain business's financial and accounting records are audited to ensure that the farmers of the Commonwealth are being paid for their grain commodities. Anyone who buys or stores grain from producers is required to license.
The licensee is required to deduct 1/4 percent (.0025) of the value of grain purchased from producers. This assessment is paid to the Kentucky Grain Insurance Fund which provides insurance coverage to the participating producers in the case of a failure. At present, the Indemnity Fund is above the required $3 million; therefore, the 1/4 percent (.0025) is not being collected.