The Iowa Grain Indemnity Fund Board has voted to end assessments on grain sold to Iowa-licensed grain dealers, as well as the participation fees for licensed grain dealers and warehouse operators, effective Sept. 1.
According to a release, the assessment was originally reinstated on Sept. 1, 2023, after the fund’s balance dropped below the statutory threshold of $3 million, following multiple grain facility failures in 2021 and 2022. Iowa law requires the assessment to remain in place for at least one full year and continue until the board votes to suspend it or until the fund reaches $8 million.
The second year of collections began on Sept. 1, 2024, and will continue through Aug. 31. As of April 16, the fund’s balance stands at $10,173,347.80 – well above the required $8 million threshold. This total does not yet include the final two quarters of assessments, which cover grain sales from March through August.
Established by the Iowa Legislature in 1986 during the Farm Crisis, the Iowa Grain Depositors and Sellers Indemnity Fund provides financial protection to farmers. The Fund covers 90% of a farmer’s loss – up to $300,000 per claimant – in the event of a failure of a state-licensed grain warehouse or dealer.
The Iowa Department of Agriculture and Land Stewardship’s Grain Warehouse Bureau oversees the financial solvency of grain dealers and warehouse operators and administers the Indemnity Fund. Members of the Board are appointed by the Governor and confirmed by the Iowa Senate.
For more information, visit the Iowa Department of Agriculture and Land Stewardship’s website.
