What is the small grain checkoff?
KRS.247.5061 - It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of small grains shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of small grains in promoting and stimulating, by utilization research, market maintenance and expansion, and education, the increased use and sale, domestic and foreign, of small grains and small grains products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of small grains and small grains products to market.
What is the amount of the assessment?
The assessment is one-fourth of one percent (.0025) of the gross marketed price of the small grain (any type of cereal grain other than corn) due to a producer for the sale of the small grain.
What is gross marketed price?
The gross marketed price is the payment due to a producer after normal price discounts such as deductions for moisture, test weight, and foreign matter have been calculated. Otherwise, it is based on the actual value of the small grain itself at the time of sale.
Does the assessment apply to small grains produced outside of Kentucky but marketed in Kentucky?
Yes. The assessment applies to any sale or transaction when a small grain is purchased as the first point of sale from the producer in Kentucky. The assessment does not apply to a non-producer transaction such as a sale from dealer to dealer.
When a small grain is delivered for sale and payment to the producer is made at a later date, when is the assessment deducted?
The assessment is deducted from the purchaser payment at the time of payment to the producer. Therefore, if a small grain is received and full payment is delayed or partial payment is made, the assessment based on the partial payments is made at the time of the actual payments.
Can a producer that has an assessment deducted obtain a refund?
Yes. This assessment is not a tax but a voluntary investment to promote their product. A small grain producer can apply for a complete refund within thirty (30) days of the sale.
How and where can a producer obtain a refund form?
Refunds must be requested in writing and sent to:
Kentucky Small Grain Growers Association
PO Box 90
Eastwood, KY 40018
The full Kentucky Revised Statute regarding Assessment for Small Grain Promotion can be found online at https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38417.
For more information, please contact Laura Knoth at 1-800-326-0906 or laura@kysmallgrains.org.
