Iowa lawmakers have approved a measure to delay the reinstatement of a fee on grain sales that would replenish the state’s Grain Indemnity Fund. The fund, created in response to the 1980s farm crisis, provides compensation to farmers when grain dealers fail to pay them for their grain or when they are unable to recover stored grain from licensed warehouses. The fund’s balance has dwindled below the $3 million minimum threshold required to trigger the mandatory reinstatement of a quarter-cent-per-bushel fee on initial sales of grain, which is typically paid by grain producers.
The legislation unanimously adopted by both the House and Senate would postpone the reinstatement of the fee from July 1 to September 1. The delay is intended to give grain dealers more time to adjust their procedures to collect the fee. They will be required to make quarterly payments to the state. Iowa Governor Kim Reynolds is expected to sign the bill into law.
The fund has been on a steady decline for years, and with the pending payouts to farmers who suffered losses from a soybean dealer’s bankruptcy last year, the need for the fund has become even more pressing. The delay in reinstating the fee is a temporary reprieve for grain producers and dealers, who will have more time to prepare for the upcoming changes.
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Categories: Iowa, Government & Policy