Notice of Intended Action
Grain indemnity fund—board organization, operations and claims; civil penalties, rescind chs 93, 94; adopt ch 92
ARC 9454C
AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]
Notice of Intended Action
Proposing rulemaking related to the grain indemnity fund
and providing an opportunity for public comment
The Agriculture and Land Stewardship Department hereby proposes to rescind Chapter 92, “Participation in Grain Indemnity Fund”; to adopt a new Chapter 92, “Grain Indemnity Fund—Board Organization, Operations and Claims”; and to rescind Chapter 93, “Grain Indemnity Fund Board—Organization and Operations,” Chapter 94, “Claims Against the Grain Depositors and Sellers Indemnity Fund,” and Chapter 95, “Civil Penalties,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is proposed under the authority provided in 2025 Iowa Acts, Senate File 608.
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code chapters 203, 203C and 203D.
Purpose and Summary
This rulemaking implements changes that were made by 2025 Iowa Acts, Senate File 608.
Major updates include the following:
1.Transitional provisions for unqualified audit requirement.Between July 1, 2025, and June 30, 2026, grain dealers may receive an extension of up to 12 months to submit an unqualified audit opinion if they provide two items to the Department: a financial statement reviewed by a certified public accountant licensed in Iowa, and an affidavit stating that they either meet the financial requirements outlined in Iowa Code sections 203.3 and 203.15 or will file an additional bond to cover any deficiency. During the extension period, the grain dealer must submit monthly financial statements to the Department, including a balance sheet and income statement prepared in accordance with generally accepted accounting principles (GAAP) to demonstrate ongoing financial compliance.
2.Transitional provisions for bond in lieu of unqualified audit.Between July 1, 2025, and June 30, 2026, the Department may allow a grain dealer to continue issuing credit-sale contracts, even if the grain dealer has not provided an unqualified audit, by filing a $100,000 bond with the Department. The bond allowance was previously allowed by the Iowa Code and is intended to indemnify sellers against losses resulting from a breach of a credit-sale contract. This bond is in addition to any other bond required by law.
3.Acknowledgement of coverage forms.A licensed grain dealer who purchases grain using a credit-sale contract must obtain a signed acknowledgment form from the seller that explains the limited coverage available under the Grain Depositors and Sellers Indemnity Fund. The required notice informs sellers that while ordinary cash sales may be covered up to 90 percent (with a $400,000 cap), deferred-pricing contracts are only covered up to 75 percent, and deferred-payment contracts are not covered at all.For contracts executed between September 1, 2025, and July 1, 2026, the acknowledgment may be a separate document signed and dated by the seller, printed in a legible and reasonably sized font, and attached to both parties’ copies of the contract.Beginning July 1, 2026, the acknowledgment language must be incorporated directly into the contract, placed in bold text above the buyer’s and seller’s signatures.
The content from 21—Chapters 92 through 94 is proposed to be consolidated into a single chapter. 21—Chapters 93, 94, and 95 are proposed to be rescinded.
Additionally, some changes reflect updates required by Executive Order 10, removing rules that are duplicative of statute or outdated, reducing restrictive language, and consolidating chapters. Other minor edits are made throughout for clarity and readability.
Fiscal Impact
This rulemaking has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rulemaking, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 21—Chapter 8.
Public Comment
Any interested person may submit written comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on September 26, 2025. Comments should be directed to:
|
Colin Tadlock |
Public Hearing
No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rulemaking may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
Emergency Rulemaking Adopted by Reference
This proposed rulemaking is also published herein as an Adopted and Filed Emergency rulemaking (see ARC 9457C, IAB 8/6/25). The purpose of this Notice of Intended Action is to solicit public comment on that emergency rulemaking, whose subject matter is hereby adopted by reference.
Agriculture and Land Stewardship Department
- 502 E 9th St
- Des Moines, IA 50319
- (515) 281-5321
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Open For Comments
This notice is open for comments for 29 more day(s). If you'd like to comment, select or click the text you wish to comment on in the document, or click the button below to make a general comment about the document. Comments will be collected through 9/26/2025
NOTE: You can also click the text in the document to make comments about specific sections.
Official Document
- Grain indemnity fund—board organization, operations and claims; civil penalties, rescind chs 93, 94; adopt ch 92
- Published on 8/6/2025
- 94 Views , 0 Comments
- Notice of Intended Action
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 8/6/2025.
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