Iowa Senate Bill SSB1131

Iowa 2025-2026 Regular Session

• Introduced: 2/17/25
• Refer: 2/17/25

Caption

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.(See SF 608.)

Impact

One notable change brought forth by SSB1131 is the adjustment of the fees—specifically, a new participation fee and a per-bushel fee that licensed grain dealers must pay. These fees are calculated based on various factors such as the volume of grain purchased. The bill also introduces clearer timelines for claims to be submitted, encouraging quicker resolution for those seeking reimbursement from the indemnity fund. Such changes highlight a more structured approach to grain market regulation and support for sellers impacted by market volatility.

Summary

Senate Study Bill 1131 is a legislative effort aimed at regulating the marketing of grain within the state of Iowa. It establishes a framework for imposing fees on grain dealers and warehouse operators, which are meant to fund the grain depositors and sellers indemnity fund. This fund serves to reimburse sellers and depositors for losses incurred due to the failure of grain dealers or warehouse operators to honor their contractual obligations. Furthermore, the bill requires prompt claims submission within stipulated timeframes following the cessation of a license, effectively setting stringent conditions for fund access.

Contention

There are areas within the bill that may raise concerns among stakeholders. The requirement for indemnity claims to be filed within strict deadlines could be viewed as a potential hurdle for sellers, especially if they face challenges in documentation or processing. Additionally, the adjusted thresholds for waiving indemnity fees might affect smaller operators who could struggle with the increased financial burden during times of low market prices. Opponents of the bill may argue that these changes disproportionately affect smaller grain dealers, leaving them vulnerable in a crisis.

Justification

Proponents argue that SSB1131 is essential for protecting sellers within the grain market and for enhancing the overall integrity of agricultural operations in Iowa. By creating a more robust indemnity fund and enforcing accountability through fees, the bill aims to prevent future losses and bolster trust among market participants. Furthermore, the bill's provisions for emergency rule adoption by the Department of Agriculture indicate a proactive approach to managing unforeseen circumstances that could impact the grain industry.