WEEK 7: 2020 LEGISLATIVE SESSION
State
This week was debate heavy-- with each chamber spending time discussing, voting on bills and sending approved legislation to the other chamber.
REMINDER: None of the GRAIN LIEN and CENTRAL FILING legislation survived the first funnel. We're still keeping an eye on things to make sure central filing language doesn't get tagged on to a different bill.
  • HSB500, Grain Lien Language
  • HF2047, Grain Lien, March 1st Date + Central Filing
  • SSB3078, Central Filing
GRAIN INDEMNITY FUND
  • SF2367/HF2566, Study of the Fund: SUPPORT, UNCHANGED
  • We are supportive of the study
  • 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: SUPPORT, UNCHANGED
  • 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: SUPPORT, UNCHANGED
  • 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

  • HF2575, Broadband Grant Tax Exemption: SUPPORT, UNCHANGED
  • This specifies that companies receiving grants for broadband expansion will not be taxed on those grants-- retroactive to cover grants received last year

Find your state legislators HERE .
Federal :
Continued Focus...
SECTION 199A: New Treasury Regulation Proposed
  • American Farm Bureau Federation sent Sec. Mnuchin a letter of support to maintain the tax structure as it's been since 2004
  • We have asked Sen. Ernst to send a letter of support to Sec. Mnuchin
  • The new Treasury regulation would cut non-patronage income from the cooperative tax deduction calculation
  • NCFC Summary of the cooperative impact HERE
  • 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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