Iowa Grain Indemnity Fund to Close September 1

The Iowa Grain Indemnity Fund Board voted Thursday to wind down the assessment on grain sold to Iowa-licensed grain dealers, as well as the participation fees for Iowa-licensed grain dealers and warehouse operators, on September 1, 2025. The Iowa Department of Agriculture and Land Services (IDALS) announced the decision.

Created by the Iowa Legislature in 1986 during the farm crisis to provide financial protection to farmers, the Grain Indemnity Fund (GIF) covers farmers with grain on deposit in Iowa-licensed warehouses and grain sold on a cash basis to state-licensed grain dealers.

In the case of a failure of a state-licensed grain warehouse or grain dealer, the GIF pays farmers 90% of a loss on grain — to a maximum of $300,000 per claim.

The assessment was reinstated September 1, 2023, after the fund fell below its statutory threshold of $3 million due to grain facility failures in 2021 and 2022. Under existing law, the assessment must remain in effect for at least a full year and must also remain active until the fund’s board votes to suspend the collection of fees or the monetary fund reaches a balance of $8 million.

The fund’s second year of collections started September 1, 2024, and will continue through August 31, 2025.

The balance of the fund, as of April 16, is $10.17 million. This exceeds the $8 million threshold without counting the final two quarters of collections — which will cover cash sales of grain made in March, April, and May, and June, July, and August.

The Iowa Department of Agriculture and Land Stewardship’s Grain Warehouse Bureau regulates and examines the financial solvency of grain dealers and grain warehouse operators to protect Iowa farmers. More information can be found on the Iowa Department of Agriculture and Land Stewardship’s website.