By Andi Anderson
Farmers rely on grain dealers to receive payment for the grain they sell, but problems can occur when a company is unable to meet its financial responsibilities.
A recent bankruptcy case has led to an important filing deadline for Iowa farmers who are owed money for grain they delivered earlier in the year.
A grain dealer based in Nebraska, which also operated elevator locations in western Iowa, has filed for Chapter 11 bankruptcy. The announcement means that farmers who sold grain to the company before November 17, 2025, and have not been paid, now have a limited time to seek financial protection.
According to the Iowa Department of Agriculture and Land Stewardship, these farmers have 120 days to submit a written indemnity claim. The final deadline to file is March 17, 2026, and all claims must be mailed to the state’s Grain Warehouse Bureau.
The Iowa Grain Indemnity Fund helps protect farmers when a licensed grain dealer cannot pay for grain that has already been sold. Through this program, eligible farmers can receive up to 90% of their loss, with a maximum payment of $400,000.
The fund is supported by farmers, who contribute a fee per bushel when the balance falls below a set level. The lower boundary was recently increased to $8 million to strengthen the program.
The fund was fully used in 2023 after a large bankruptcy case, but it has since recovered. The department reported that the fund currently holds about $12.6 million and does not expect that the recent bankruptcy claims will require the reinstatement of farmer-paid fees.
Bankruptcy filings showed that none of the company’s largest unsecured claims involve Iowa businesses. Some of the highest claims were linked to companies in Canada, Minnesota, and Kansas. The grain dealer previously had its license revoked in Nebraska for missed payments but later resolved those issues and regained its license.
The company has stated that it plans to continue operating during the bankruptcy process and intends to meet responsibilities to employees and suppliers while asset sales move forward.
Farmers seeking more information can find additional instructions online before submitting their claim. Acting promptly ensures that eligible farmers receive support through the state indemnity system.
Photo Credit: gettyimages-shotbydave
Categories: Iowa, General