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SF 608

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date and applicability provisions.

2025-2026 Regular Session

Creates an indemnity fund for grain sold under credit-sale contracts; pays sellers up to 90% of eligible losses (max $300,000 per claim), funded by dealer/warehouse fees and rules.

Signed by Governor.
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Bill Summary · SF 608

Summary — SF 608 (Signed 2025)

Status: Enacted (signed by Governor May 27, 2025)
Subject: Regulation of grain marketing; fees and claims under the Grain Depositors and Sellers Indemnity Fund

Purpose

SF 608 revises how grain marketed under credit-sale contracts (including deferred-payment and deferred-pricing arrangements) is treated for indemnity purposes, establishes fee assessments to fund an indemnity program, clarifies payment and contract rules for licensed grain dealers, and sets procedures for payment of claims to reimburse sellers and depositors for covered losses.

Key provisions

  • Definitions (Code §203.1)

    • Adds explicit definitions for “deferred‑payment contract” and “deferred‑pricing contract.”
    • Clarifies that the statutory meaning of “credit‑sale contract” and related terms supersedes private contract terms.

  • Payment timing and methods (Code §203.8)

    • Requires a licensed grain dealer to pay sellers either upon delivery, on demand, or—if no demand is made—no later than 30 days after delivery (subject to department rules about scheduled payments).
    • Limits how long a dealer may hold a seller’s check (no more than five days after issuance) and directs the Department to adopt rules for payment by check and electronic funds transfer.

  • Licensing, audits, and financial reporting (Code §203.3; §203.15)

    • Continues requirement that licensed dealers submit annual financial statements accompanied by an audited (unqualified) CPA opinion, with limited exceptions for CPA review reports.
    • Allows the Department to require additional financial statements when necessary.
    • Requires pre‑notice to the Department by dealers intending to use credit‑sale contracts and recordkeeping/numbering of contract forms.

  • Indemnity fund coverage and claims (new/203D provisions referenced)

    • Treats grain sold under credit‑sale contracts as “purchased grain,” removing an exclusion so sellers may file claims for losses caused by dealer breaches of such contracts.
    • Loss valuation generally equals the sales price less amounts recovered by other remedies; unpriced grain follows existing unpriced valuation rules.
    • Claim payments: sellers are generally entitled to 90% of an eligible loss, capped at $300,000 per claim. The fund can defer payments if monies are insufficient. Subrogation rights apply; sellers must assist the Department/board to secure subrogation.
    • Repayment claims: same 90%/cap/deferral/subrogation framework; a five‑year expiration applies to repayment claims and required claimant cooperation/documentation for payment.

  • Fees and assessments (203D-related)

    • Licensed grain dealers purchasing grain under credit‑sale contracts are subject to indemnity fund fees: a participation fee and a per‑bushel fee.
    • Licensed warehouse operators are assessed a participation fee.
    • Licensees may remit the participation fee in one installment with license renewal or in four installments.
    • Fee assessments for credit‑sale transactions begin Sept. 1 of the first assessment quarter under §203D.3A.

  • Rulemaking and implementation

    • Directs the Department of Agriculture and Land Stewardship (DALS) to adopt emergency rules to implement the Act within 30 business days of the Act’s effective date.
    • Provides transitional guidance for repayment losses incurred prior to July 1, 2025: the end of the claim period for such repayment losses is August 29, 2025 (as provided by amendment language).

Who is affected

  • Sellers/depositors of grain (farmers, producers) — gain indemnity coverage for certain credit‑sale losses and entitlement to partial reimbursement.
  • Licensed grain dealers — face stricter payment timing, recordkeeping and reporting requirements, and new indemnity fees.
  • Licensed warehouse operators — subject to participation fee.
  • Iowa Department of Agriculture and Land Stewardship and the indemnity board — responsible for rulemaking, claim adjudication, and fund administration.

Timeline / Procedural notes

  • Bill introduced March 13, 2025; enacted and signed May 27, 2025.
  • Emergency rules required within 30 business days of the Act’s effective date.
  • Fee assessments for credit‑sale transactions begin Sept. 1 of the first assessment quarter as specified in the Act.
  • Transitional deadline for certain pre‑July 1, 2025 repayment losses: Aug. 29, 2025.

For full statutory language and cross‑references, see amended Code sections in Chapter 203 and the newly referenced 203D indemnity provisions.

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

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