Week 10-March 13-17

Grain Indemnity Fund Update

With the failures of several private grain elevators in the state, the Grain Indemnity Fund administered by the Iowa Department of Agriculture and Land Stewardship (IDALS) has been a talking point across the ag industry for a few months now. IIC has been involved with conversations with IDALS and other stakeholder groups before session started and during session as we as an industry try to find the best, most efficient way to fund this producer protection fund while also maintaining business as close to normal as possible. There have been several legislative bills that want to deal with this issue in a few different ways.

HF 666 is the IDALS department bill. This bill contains changes to law that IDALS sees as being helpful to them for a functioning agency. This bill contains multiple sections of language IIC worked with IDALS on such as extending credit sale contract lengths to 15 months and making warehouse receipts on open storage grain optional when a producer requests the receipt. The latest amendment to this bill was last week when an amendment was accepted to the bill to push the start date on the assessment for the indemnity fund from July 1 to September 1 to give IDALS and the industry a little more time to do education for producers and dealers on the fund. This language changes nothing about the assessment or pay out rates or the overall fund levels. This bill passed both the House Agriculture committee and the House Ways & Means committee. IIC is supportive of the bill entirely.

SSB 1205 was filed this past Monday night and a subcommittee was held on Wednesday afternoon. This bill fundamentally changes the funding sources, payouts, and levels of the indemnity fund. It changes the levels of the fund to a floor of $10 million and a cap of $20 million and increases the payout maximum to $600,000. Rather than a producer assessment taken only on cash sales, this bill would instead take 25% from the corn and soybean checkoffs annually and move it to the indemnity fund until the fund is full. It also changes the rates grain dealers pay to the fund. Currently, grain dealers and warehouses would pay a participation fee of .0014 cents per bushel of grain to make sure elevators have a little skin in this fund. SSB 1205 would eventually phase out this participation fee but also starts a .25 cent per bushel assessment on grain dealers that is phased out over the next 2 years. Currently, this is the rate of assessment that would be collected on producer cash sales. This bill passed out of subcommittee 2-1. IIC is registered against this bill and spoke against it in subcommittee as it creates more fees on grain dealers when the grain indemnity fund is meant to be a producer protection fund.

Please reach out to Rebecca if you have questions about either of these bills. 

IIC bill declarations

This list is the positions IIC has taken on various bills at the statehouse following our Policy Resolutions voted on at the 2022 annual meeting.

HF 131 (Formerly HSB 35) & SSB 1099 Credit Union updates- FOR

This bill makes updates to credit union regulations in Iowa including allowing credit union boards to compensate directors. Right now, credit unions are the only cooperative that is expressly prohibited from compensating directors. HF 131 passed House 86-3.

HF 206 (Formerly HSB 67) Aboveground storage tanks property tax- FOR

Expressly states aboveground storage tanks of any size that are not attached are not assessed or taxed as real property. Passed House 92-6. In Senate Ways & Means.

SF 315 (formerly SSB 1107) & HF 338 Raw Milk- AGAINST

Allows for on farm sale of unpasteurized milk and milk products. SF 315 passed Senate State Government committee. HF 338 did not pass funnel.

HF 201 (formerly HSB 114) & SF 228 (formerly SSB 1114) Trucker tort reform- FOR

SF 228 amended to cap recovery for non-economic damages at $2 million. HF 201 eligible for floor debate. SF 228 passed Senate 30-19.

HF 666 (formerly HF 277 & HSB 113) & SF 311 (formerly SSB 1115) IDALS department bill- FOR

Allows state licensed warehouses to issue warehouse receipts on open storage grain only if requested by depositor. Federal warehouses already have this. Amended to allow credit sale contracts to be written for 15 months rather than 12. HF 666 extends start date on the Grain Indemnity Fund to Sept. 1. HF 277 passed House Ways & Means committee. SF 311 passed Senate Ag committee.

HCR 9 & SCR 5 Interstate weight limits- FOR

House and Senate resolutions encouraging US Congress to increase weight limits on Iowa interstates to 96,000 for 7 axle vehicles. HCR9 passed House 97-0, SCR5 passed Senate Transportation committee.

SF 527 All-systems permit- FOR

Makes changes to the all-systems overweight permit passed last session. Makes roads under local jurisdiction that are part of the permit be connected to state highways. Makes hard surfaced farm-to-market roads part of the permit unless county has a valid reason for a section of road to be exempted. States that a permitted vehicle can use the most direct route from the load site to the nearest permitted road. Passed Senate 48-0.

HSB 230 Grain excise tax- UNDECIDED/MONITORING

Eliminates the excise tax grain dealers pay on grain handled. Passed subcommittee.

SSB 1205 Grain indemnity fund changes- AGAINST

Discussed above. Passed subcommittee 2-1.

News this week

How have last year's tax cuts affected Iowa's state revenue? What the numbers show

Economic impact of Iowa casinos tops one billion dollars

State’s new drought plan seeks to increase monitoring and proactive mitigation

Pipeline companies say they’ll cover upgrades to emergency equipment, training

Capitol Notebook: Senate Republicans plan $8.5B state budget

Please reach out to Rebecca with any questions or comments.

Office: 515-292-2667

Cell: 712-363-4397

rboyer@iowainstitute.coop