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The 2026 Iowa legislative session officially adjourned on Sunday evening. The session included several policy and budget priorities important to Iowa agriculture and agribusiness, including water quality investments, property tax reform, and liability protection for greenhouse gas emissions.
Water Quality Funding and Infrastructure Investment
Under a water quality plan from Governor Reynolds and Secretary Naig, the legislature reprioritized existing funding streams to provide additional funding for water quality practices and financial assistance for drinking water and wastewater projects statewide. A notable component of this investment is a $25 million grant to Central Iowa Water Works to double nitrate removal capacity within the next three years. (HF 2771)
The legislature also continued its support for the Iowa Nitrogen Initiative, ensuring ongoing field trials that help guide nutrient management practices across the state. (SF 2484)
Property Tax Reform
Under the new property tax reform package, the assessment process for agricultural structures is changing. Starting Jan. 1, 2027, non-residential buildings on agricultural land will be excluded from land productivity and net earning capacity calculations. Instead, these structures will be assessed independently, using a valuation based on replacement cost minus depreciation and obsolescence. (SF 2472)
Climate and Greenhouse Gas Liability Protections
The legislature passed a new framework that establishes protections against civil or criminal lawsuits based on alleged climate effects from greenhouse gas emissions unless a specific environmental permit violation can be proven. These protections extend to agricultural retailers and related sectors. (HF 2527)
MAHA Legislation: Nutrition and Food System Focus
Make America Healthy Again (MAHA) legislation focused on food dyes and additives in school meals, extended application for USDA SNAP waivers, and increased nutrition education for physicians. Of note, the bill did not include provisions related to pesticides, treated seed, or seed oils, which has been a focus of MAHA legislation in other states. (HF 2676)
Grain Indemnity Fund Reform
The legislature also provided licensed grain dealers with the option to submit reviewed financial statements in lieu of an unqualified opinion audit. (SF 2465)
Looking Ahead: 2027 Policy Development
AAI committees will meet over the summer to begin shaping policy priorities for the 2027 legislative session. AAI member company employees can serve on a committee by emailing aai@agribiz.org, contacting the AAI office, or filling out a form online.
You also can support the Agribusiness Political Action Committee (Agribusiness PAC) to help raise awareness and amplify the voice of agribusiness in the legislature. Additional information is available online.
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