Have three points of contact. The IGBWLA works to maintain three touch points with each licensed grain elevator every year. Those points of contact are conducting an annual audit, testing the moisture meter and reviewing the yearly renewal of the license.

No speculating. Ayers explains that he focuses very hard to make sure the elevator’s positions are in balance every single day. When you have a large amount of delayed pricing — or DP — for grain that may not be physically at the elevator, it can be difficult to stay in balance. “When you handle millions of bushels, it is a lot for one person to manage,” Ayers says. “When you have bushels not covered on the board or sold, you could be in a speculative position.” However, Ayers avoids that position by ensuring everything lines up every day. “We’ve mitigated risk by keeping our position in balance,” he adds.

Conduct independent audits. Some larger grain elevators in the state may have lenders who require an independent audit separate from the one being conducted by the IGBWLA. Ayers says that his lender does not require their own audit, but he still shares the agency’s audit with the lender to keep everyone on the same page. Ayers is working with the Agribusiness Council of Indiana to make changes that would allow the agency to use a lender’s audit as its official audit. This would free up some resources at the agency.

Maintain DP grain sell-by date of Aug. 31. In 2021, the IGBWLA began requiring a “sell-by” date of Aug. 31 for DP grain. This prevents farmers from placing grain on DP for several years. Ayers says it works to protect farmers’ grain under the law of the Indiana Grain Indemnity Corp. if an elevator fails. “I’m not always in favor of someone having their hand in how I’m supposed to run my business, but at the same time, I can certainly understand why this is a suggested date,” Ayers says.

Close relationships with growers. Both Ayers and Smith agree that maintaining friendly relationships with growers helps elevators focus on those growers. Farmers should regularly communicate with folks at their elevator and feel comfortable asking questions. “There are some things that the grower could certainly ask, such as, ‘When was the last time you were audited?’” Smith says. “I probably wouldn’t advise a grower to lead with that question, but just ask questions. Have an open line of communication.”