Week 8: Legislative Session

WEEK 8: 2020 LEGISLATIVE SESSION

State

Thank you to everyone that was able to attend our legislative events this week and thank you to Land O'Lakes for your continued commitment to supporting the Institute and sponsoring these events.

Tuesday night we heard from Secretary of Ag, Mike Naig and Director of the DNR, Kayla Lyon. Wednesday morning we held a breakfast for our legislators and met with smaller, targeted groups of Ag/Rural legislative leadership to discuss our priorities further. Thank you to legislators, congressional representatives from Senators Ernst and Grassley's offices, and cooperative members that took time to connect and engage.

If you have any feedback from the meetings, please reach out to Katie Hall (712-269-9838) so we can continue to improve content and increase member engagement.

Secretary Mike Naig discusses IDALS' support of the grain lien issue, ethanol expansion and a focus on conservation.

Director of the DNR, Kayla Lyon, talks about conservation, water quality and working together for the future of Iowa.

FUTURE OF IOWA

SSB3116/HSB657, Invest in Iowa Act: SUPPORT, SUBCOMMITTEE Held
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

SF2313/HF2384, Future Ready Iowa: SUPPORT, SUBCOMMITTEE Held
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

HF2575, Broadband Grant Tax Exemption: SUPPORT, SENT TO THE SENATE
House vote: 96 for, 0 against, sent to the Senate
This specifies that companies receiving grants for broadband expansion will not be taxed on those grants-- retroactive to cover grants received last year

GRAIN INDEMNITY FUND

SF2367/HF2566, Study of the Fund: SUPPORT, SENT TO THE SENATE
House vote: 97 for, 0 against, sent to the Senate and attached to companion bill
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

Find your state legislators HERE .

Pictured below: Cooperative members meeting with Governor Kim Reynolds.

From L to R around the table: Ron Balek: Viafield Board Member, Jake Hamlin: CHS, Matt Wohlman: Land O'Lakes, Governor Reynolds, Brett Bell: Landus, Brian Bailey: Heartland, Liz Hobart: GROWMARK, James Nygren: Farm Credit Services of America, Neal Keppy: River Valley Co-op Board Member.

Federal :

Continued Focus...

SECTION 199A: New Treasury Regulation Proposed

A meeting with Governor Reynolds this week offered some new opportunities and avenues of communication to elevate the issue
The new Treasury regulation would cut non-patronage income from the cooperative tax deduction calculation
NCFC Summary of the cooperative impact HERE
Still work to be done with Senator Grassley
If you can reach him directly, please do
Communicate the impact to your farmers and that 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