Iowa’s Grain Indemnity Fund must be modernized to reflect changes in how farmers market their grain since the fund was created nearly 40 years ago, Farm Bureau members from across Iowa emphasized in face-to-face meetings with legislators last week at the Iowa Capitol.

The fund currently doesn’t cover credit sales contracts, such as deferred payment and price-later contracts, which represent nearly 40% of commercial sales in the state.

“We always use deferred payment contracts. The days of cash sales are few,” said Corey Tweeten, a Wright County Farm Bureau member.

Credit sale contracts are an important risk management tool that allow farmers to market their grain and utilize tax management strategies in a way that best suits their...