By Andi Anderson
Iowa has updated its grain industry regulations following the passage of Senate File 608, a law designed to modernize the state’s Grain Depositors and Sellers Indemnity Fund. This change has brought about new audit requirements for grain dealers, prompting businesses and certified public accountants (CPAs) to adjust quickly.
The Iowa Society of CPAs (ISCPA) has been actively working with other stakeholders to explain the impact of the law, particularly focusing on the challenges created by short compliance deadlines.
The Iowa Department of Agriculture and Land Stewardship (IDALS) has now finalized the administrative rules needed to enforce the new law. These rules are officially in effect and include specific timelines and procedures for meeting audit requirements.
A key part of the updated rules is a temporary extension policy for submitting audited financial statements. From July 1, 2025, to June 30, 2026, grain dealers who cannot provide a financial statement with an unqualified audit opinion on time may apply for a 12-month extension.
To qualify for this extension, dealers must submit a financial statement reviewed by an Iowa CPA, along with an affidavit confirming financial compliance or stating their intention to file a supplemental bond. They must also provide monthly financial reports to IDALS throughout the extension period.
It is important to note that this extension is only available during the transition phase until June 30, 2026. After that, unless the law is amended, the extension option will no longer be allowed.
The new rules are intended to ease the adjustment period for grain dealers while ensuring the financial safety of the industry. As one official stated, “The extension offers time for compliance but still maintains financial accountability.”
These updates mark a significant step in modernizing Iowa’s agricultural financial practices, aiming to balance regulatory needs with industry realities.
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Categories: Iowa, Government & Policy