By Andi Anderson
The Iowa Grain Indemnity Fund Board has officially voted to end assessments and participation fees tied to the Grain Indemnity Fund starting September 1, 2025.
This decision comes after the Fund reached a balance of over $10.17 million, surpassing the required $8 million threshold.
The assessment was reinstated on September 1, 2023, after the Fund’s balance dipped below $3 million, primarily due to grain facility failures in 2021 and 2022.
According to state law, the assessment must remain in effect for at least one full year and until the Fund recovers to the mandated level. The second year of fee collections began September 1, 2024, and will conclude on August 31, 2025.
The Fund, established in 1986 during the Farm Crisis, provides financial protection to Iowa farmers. It covers 90 percent of losses, up to $300,000, for grain held in Iowa-licensed warehouses or sold on a cash basis to Iowa-licensed grain dealers, in case of dealer or warehouse failure.
The Grain Warehouse Bureau of the Iowa Department of Agriculture and Land Stewardship oversees the Fund’s administration and regularly inspects the financial condition of grain dealers and warehouse operators to ensure stability in the sector.
The Board’s vote to stop collections reflects strong fund recovery and ongoing commitment to farmer protection. More details on the Grain Indemnity Fund and its management are available on the Iowa Department of Agriculture and Land Stewardship’s official website.
With this change, farmers and industry participants can look forward to continued security without the added cost of fund assessments beyond August 2025.
Photo Credit: gettyimages-shotbydave
Categories: Iowa, Rural Lifestyle