Grain Indemnity Fund
In May 2025, Iowa Governor Kim Reynolds signed a bill modernizing the state's Grain Indemnity Fund, which protects farmers if a grain elevator or co-op fails. The updated law expands coverage to include 75% payouts on credit sale contracts (excluding deferred payments) and raises the individual payout cap from $300,000 to $400,000. Previously, only cash sales were covered at 90% of the contract's value.
The Iowa Soybean Association (ISA) supported the changes, noting they strike a balance between expanded coverage and fund sustainability. The fund now has a minimum balance of $8 million, with an assessment triggered if it falls below that amount, and a new maximum of $16 million, reflecting the growing volume and value of Iowa grain.
The fund, created in the 1980s during the farm crisis, was updated after recent elevator failures highlighted its limitations. ISA’s Advocacy Committee led the legislative effort, ensuring thoughtful revisions that maintain fairness and financial responsibility.
Foreign Land Ownership
Senate File 2204, signed into law in the 2024 Legislative Session, builds upon Iowa’s long-standing leadership in foreign land ownership law. For decades, the state has had laws restricting foreign ownership to 320 acres or less, unless those groups owned farmland prior to 1980.
The expanded law heightens fines for entities which violate the reporting requirements. Previously a $2,000 maximum fine per violation, the new law fine will increase the fine to $10,000 per violation for foreign landowners who fail to report holdings every two years. For foreign entities which fail to register initial ownership, a fine up to 25% of the county average land value can be assessed—, a significant increase. A crucial change in aiding enforcement, the new law grants the state attorney general subpoena power to investigate potential violations.
This ownership transparency bill comes as there is increased scrutiny of Chinese investment in American farmland. Consistent with the state’s policy of increased oversight and reporting of foreign- owned agricultural land, ISA registered in favor of the Foreign Land Ownership bill.
Iowa Renewable Fuel Infrastructure Program
The Renewable Fuels Infrastructure Fund provides financial assistance to owners or operators of a retail motor fuel site or a biodiesel terminal who wish to convert their equipment to dispense renewable fuels, store renewable fuels, or both. The Renewable Fuel Infrastructure Board reviews and approves the grants provided by the Fund. The Department of Agriculture and Land Stewardship (DALS) provides administrative support to the Board.
The program has been wildly successful since its creation in 2006. In fact, there have been so many applicants that the biodiesel program has had a backlog as more retailers seek to sell increased amounts of soy-based biodiesel. To help fund the growing pipeline of infrastructure requests, in 2024 the biodiesel project funding cap was increased from $1.25 million to $1.75 million allowing for at least 10 more projects to be funded each year.
This was a joint priority of ISA and Iowa Biodiesel Board, as this successful program has long been oversubscribed.
Iowa Biofuel Access Bill
ISA, and the Iowa Biodiesel Board, alongside hundreds of farmers, Advocate members, and industry partners, successfully supported and helped deliver the governor-backed Iowa Biofuel Access Bill in 2022. The legislation builds upon the state’s existing and successful suite of tax credits encourages the sale of higher blends of biodiesel through an incentive-based approach. The bill also expands E15 access across the state and makes significant investments in cost-share opportunities for fuel retailers to upgrade biofuel infrastructure.
Conservation and Water Quality
On behalf of Iowa soybean farmers, ISA will continue serving as a consistent and reliable source of information, data and policy analysis for the governor’s office, IDALS and other principal agencies and organizations; working to secure long-term, dedicated conservation and water quality funding to protect natural resources and farmer livelihoods for generations to come.
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