As a result of Governor Reynolds signing House File 666 yesterday, the reinstatement of fees on grain sold to or deposited at Iowa-licensed grain dealers and warehouses as part of the Iowa Grain Depositors and Sellers Indemnity Fund (Grain Indemnity Fund) will now start on September 1, 2023, instead of July 1, 2023.
On April 27, the board that oversees the Grain Indemnity Fund voted, as required by Iowa law, to reinstate the fees beginning on July 1. House File 666 contained a provision that moved the reinstatement date from July 1 to September 1. The bill passed the Iowa Senate 48-0 on May 2 and the Iowa House 93-0 on May 3.
Created by the Iowa Legislature in 1986 during the Farm Crisis to provide financial protection to farmers, the Grain Indemnity Fund covers farmers with grain on deposit in Iowa-licensed warehouses and grain sold to state-licensed grain dealers. In the case of a failure of a state-licensed grain warehouse or grain dealer, the Fund will pay farmers 90 percent of a loss on grain up to a maximum of $300,000 per claimant. Over the history of the Grain Indemnity Fund, more than $19 million in claims have been approved to more than 1,500 grain producers. The Fund has generated approximately $9 million in assessed fees, which were last collected in 1989. Interest income, combined with the Fund’s ability to recover losses from defunct grain dealers and warehouses, has provided additional revenue.
Source: iowaagriculture.gov
Photo Credit: GettyImages-giovanni1232
Categories: Iowa, Crops, Government & Policy