Starting Sept. 1, the Iowa Grain Depositors and Sellers Indemnity Fund, more commonly known as the Grain Indemnity Fund, will reinstate fees on grain sold to or stored with Iowa-licensed grain dealers and warehouses. This fund serves as a cost-effective insurance policy for Iowa farmers, protecting them from storage-related financial losses. The fund was established in 1986 to aid farmers during the Farm Crisis and covers grain deposited in licensed warehouses and grain sold to authorized dealers in Iowa. If a dealer or warehouse fails, the fund compensates farmers up to 90% of their grain loss, with a cap of $300,000 per claimant. After several storage companies folded recently, the fund’s balance is expected to be around $384,000 after approved claims are settled. If the fund drops below $3 million, fees for dealers and warehouses, along with a quarter-cent per bushel assessment, will be reinstated, starting Sept. 1, and lasting for at least a year as per the law. These fees, which only apply to cash sales, will continue until the board decides to suspend them or until the fund balance reaches $8 million. The Iowa Department of Agriculture and Land Stewardship’s Grain Warehouse Bureau manages the Grain Indemnity Fund and collaborates with industry stakeholders for fee implementation. The fund’s members are appointed by the Governor and confirmed by the Iowa Senate. Additional information can be found using the links included below.
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https://iowaagriculture.gov/grain-warehouse-bureau/grain-indemnity-fund-coverage
https://iowaagriculture.gov/grain-warehouse-bureau
https://iowaagriculture.gov/grain-warehouse-bureau/iowa-grain-indemnity-fund-board
