WEEK 6: 2020 LEGISLATIVE SESSION
State
This week was the first funnel of the legislative session and our grain lien language is effectively dead for the session. To have survived the funnel, our bill would have had to pass through the full committee (tax/spending bills don't have to meet the funnel deadline). We'll continue to keep an eye on what's happening, since bills are not completely dead until the legislature adjourns for the year.
GRAIN LIEN LEGISLATION
  • HSB500, Grain Lien: Did not pass funnel
  • HF2047, Grain Lien, Time Limit + Central Filing: Did not pass funnel
GRAIN INDEMNITY: Alive, passed out of committee with amendments
  • HF2198/SSB3151, Grain Indemnity Fund Expansion
  • Amendment provided in subcommittee that would only cover Deferred Payment contracts, not all credit-sale contracts, a second amendment would provide for a study of the program before expansion
  • We are supportive of the study, although we have concerns about an expansion of the grain indemnity fund
  • DYK? The state of North Dakota has a fund specifically for credit sale contracts
  • Run by their Department of Ag since July 2019 (must maintain funds between $3-6 million)
  • Only farmers that use credit sale contracts pay into this fund (at .02% of contract price), with 80% coverage (maximum claim per occurrence = $350,000, therefore maximum pay out is $280,000)
  • Last collection happened in 2008 and their fund is currently ~$4.5 million

FUTURE OF IOWA
  • SF2313/HF2384, Future Ready Iowa: Alive, passed out of committee
  • Expands Apprenticeship Opportunities Program
  • Encourages businesses to invest in child care infrastructure and matching grants
  • Creates a pilot program to assist older students in earning a high school diploma while developing technical skills
  • Requires K-12 computer science and allows online learning
  • Expands Last-Dollar Scholarship eligibility

  • SSB3116/HSB657, Invest in Iowa Act: Alive, taxes = funnel proof
  • Increases sales tax by one cent
  • 3/8 cent to Natural Resources and Outdoor Recreation Trust fund
  • Reduces individual income taxes: 2021 top rate is 7.48%, in 2023 (if revenue targets are met) that rate moves to 5.5%
  • State general fund covers more mental health to reduce property taxes for individuals and businesses

Find your state legislators HERE .
Federal

1) SECTION 199A: New Treasury Regulation Proposed
  • The new regulation would cut non-patronage income from the cooperative tax deduction calculation
  • NCFC Summary of the cooperative impact HERE
  • Senator Ernst and her team are supportive of maintaining 199A as it's been since 2004
  • There's work to be done with Senator Grassley
  • If you can reach him directly, please do so and communicate the specific impact to your farmers
  • This has been in place since 2004
  • Estimated impact to Iowa's grain cooperatives
  • Data does not include dairy or regional cooperatives
  • $7,560,000-10,027,500 more paid in federal taxes across the state
  • This money would go back to our rural communities in the form of new/updated infrastructure and/or patronage to our farmer-members
Sen. Chuck Grassley: 202-224-4120
DC Office #s
Sen. Joni Ernst: 202-224-3254

Rep. Abby Finkenauer: 202-225-2911
Rep. Dave Loebsack: 202-225-6576
Rep. Cindy Ax ne: 202-225-5476
Rep. Steve King: 202-225-4426
Katie P. Hall
Director of Government Affairs
khall@iowainstitute.coop
C: 712-269-9838
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