Reinstatement of the Grain Indemnity Fund Assessment in Iowa moved to September 1st
As a result of Governor Kim Reynolds signing House File 666, the reinstatement of fees on grain sold to or deposited at Iowa-licensed grain dealers and warehouses as part of the Iowa Grain Depositors and Sellers Indemnity Fund will now start September 1st, 2023, instead of July 1st, 2023. Created by the Iowa Legislature in 1986 during the Farm Crisis to provide financial protection to farmers, the Grain Indemnity Fund covers farmers with grain on deposit in Iowa-licensed warehouses and grain sold to state-licensed grain dealers.
In the case of a failure of a state-licensed grain warehouse or grain dealer, the fund will pay farmers 90 percent of a loss on grain up to a maximum of 300-thousand dollars per claimant. Due to claims made to the Grain Indemnity Fund within the past two years, the balance of the fund has fallen below 3-million dollars. After all approved claims have been paid the fund is expected to be about 377-thousand dollars. Current law requires that if the fund falls below 3-million dollars, the Grain Indemnity Fund Board must reinstate participation fees for grain dealers and warehouses as well as a quarter of one cent per bushel assessment that can be passed on to producers beginning September 1st.
