The board that oversees the Iowa Grain Depositors and Sellers Indemnity Fund voted, as required by Iowa law, to reinstate fees on grain sold to or deposited at Iowa-licensed grain dealers and warehouses beginning July 1. The Grain Indemnity Board and the Iowa Department of Agriculture and Land Stewardship are following the process and fee schedule as required in Iowa Code 203D.
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% of a loss on grain up to a maximum of $300,000 per claimant. Over the history of the Grain Indemnity Fund, more than $16 million in claims have been paid 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.
