WeVote
Log In

Bill

Bill

HF 999

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy, and including effective date provisions.

2025-2026 Regular Session

Iowa bill creates licensing requirements and indemnity fund for grain warehouses to protect farmers from losses due to operator bankruptcy or license revocation.

Withdrawn.
#bankruptcy #crops #farming #grain #graindealers #indemnity #marketing #warehouses
0
WeVote Research Nonpartisan
Bill Summary · HF 999

Legislative bill overview

HF 999 establishes a regulatory framework for grain warehouse operators and dealers in Iowa, requiring them to obtain licenses and maintain financial protections for grain depositors. The bill creates an indemnity fee system and indemnification mechanism to protect farmers and grain sellers from financial losses if a warehouse operator loses their license or declares bankruptcy.

Why is this important

Grain storage is a critical infrastructure for Iowa's agricultural economy, with farmers regularly depositing grain in warehouses for later sale. Without financial protections, farmers face significant risk if a warehouse operator fails—potentially losing their entire harvest's value. This bill aims to prevent catastrophic losses that could devastate farming operations and rural economies.

Potential points of contention

  • Cost burden on industry: Indemnity fees imposed on warehouse operators and grain dealers may increase operational costs, potentially passed to farmers through higher storage fees or lower grain prices
  • Adequacy of indemnification: Questions about whether the indemnity fund will be sufficiently capitalized to cover major bankruptcies or multiple simultaneous failures of large operators
  • Regulatory scope and enforcement: Debate over which entities should be covered, licensing requirements' stringency, and state agency capacity to effectively monitor and enforce compliance

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.