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SSB 1131

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 provisions.

2025-2026 Regular Session

Iowa bill establishes mandatory fees on grain dealers and warehouse operators to fund an indemnity program reimbursing farmers for losses from business failures.

Committee report approving bill, renumbered as SF 608.
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Bill Summary · SSB 1131

Legislative bill overview

SSB 1131 establishes a fee structure for Iowa grain dealers and warehouse operators to fund the grain depositors and sellers indemnity fund, which compensates farmers and grain sellers for losses. The bill provides mechanisms for collecting these fees and processing claims for reimbursement to protect agricultural stakeholders from financial losses due to dealer or warehouse failures.

Why is this important

Iowa is a major grain-producing state, and farmers frequently store grain with dealers and warehouse operators. This fund protects sellers from catastrophic losses if these businesses fail, become insolvent, or mishandle grain—providing crucial financial security in a sector vulnerable to operational and market disruptions.

Potential points of contention

  • Fee structure and burden: Grain dealers and warehouse operators may view the required fees as an unfair cost transfer, potentially arguing these should be absorbed by industry or passed to farmers through higher storage rates
  • Coverage limitations: Disputes may arise over what losses qualify for reimbursement, how claims are evaluated, and whether the fund adequately reimburses full losses or only partial compensation
  • Fund adequacy: Questions about whether fee levels will generate sufficient reserves to cover major industry failures or if the fund could become insolvent during agricultural crises

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

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