Capitol Notebook: Iowa Business Council issues positive economic outlook

Iowa businesses say they’re optimistic and project positive sales, capital spending and employment in the next six months.

The Iowa Business Council recently released its third-quarter Economic Outlook Survey of members, which shows an overall positive economic outlook.

The survey registered an overall economic outlook index of 56.67, an increase of 1.41 points from the previous quarter, but still down by more than 3 points from the historical average of 60.38. An index measure above 50 points is considered positive.

Sales expectations increased 2.11 points, capital spending expectations increased 2.3 points and employment expectations were essentially flat. All three categories, though, were positive.

“While employment expectations have cooled for two straight quarters, capital expenditures have rebounded from the second quarter,” Iowa Business Council Chair Phil Jasper, president of Raytheon, said in a news release.

“The capital expenditure increase is significant as Iowa’s leading business leaders project increasing investments in equipment, technology and other assets to increase growth and opportunity in Iowa despite continued trepidation in the national economy.”

Notably, concerns relating to inflation fell out of the top three primary business concerns for the first time since 2021. It was replaced by concerns relating to an unfavorable domestic economy as the primary challenge facing Iowa businesses.

An unfavorable business climate (national supply chain, infrastructure, and federal regulations) and workforce attraction and retention rounded out the top three primary concerns, with both categories being cited by 45 percent of Iowa business executives surveyed.

The Economic Outlook Survey has been completed by Iowa Business Council members on a quarterly basis since 2004. To review previous Economic Outlook Surveys, visit iowabusinesscouncil.org/news/eos.

Iowa Farmers Union president faults Congress for farm bill expiration

  Buy Photo

Iowa Farmers Union President Aaron Lehman this week called out members of Congress for going on recess until after the November election while letting the farm bill expire, creating an indefinite lapse in program support for Iowa growers and livestock producers.

"Farmers and consumers need a strong farm bill, and they need it now,“ Lehman said in a statement.

The comprehensive package of legislation that sets agriculture and food policy is supposed to be updated every five years. But partisan gridlock got in the way last year, forcing Congress simply to extend the 2018 bill another year. That extension expired Monday.

The delay upends some U.S. Department of Agriculture farm conservation and trade promotion programs while setting up potentially bigger and costlier disruptions beginning next year.

Without another extension or passage of a new farm bill, farmers would see commodity policies revert to permanent law with controls on production and costly price supports adopted in the 1930s and 1940s.

New enrollment in some USDA conservation programs and trade promotion programs that help producers diversify their exports will be halted, according to an outline from the Congressional Research Service.

Most of the expiration’s effects won’t be felt until the beginning of next year, when authorization for subsidy programs revert back to 1938 and 1949 farm bills, or what’s known as “permanent law.”

Other programs, such as crop insurance and food assistance programs, are permanently authorized and not affected by expiration, according to the Congressional Research Service.

Two key issues that remain to be negotiated are funding for the Supplemental Nutrition Assistance Program (SNAP) and how to distribute Inflation Reduction Act climate funding.

Democrats are concerned about a funding calculation that would limit the "Thrifty Food Plan" formula, which calculates SNAP food assistance benefits. Republicans are using the limits to offset other spending in the bill.

Such a proposal would reduce future spending by tens of billions of dollars over the next decade, according to the nonpartisan Congressional Budget Office. Democrats have called it a cut and made clear that any reductions in SNAP spending would cross a red line.

”In the meantime, farmers go to harvest this fall not knowing what will happen next,“ Lehman said. ”Badly needed updates in price supports, crop insurance, conservation investments, nutrition programs and competition measures all have to wait.

“We wait because Republican House leadership and the House Ag Committee have not accepted a healthy nutrition program to feed hungry Americans — even as we brag about our bountiful agriculture system. We deserve more bipartisan cooperation from representatives who say they support farmers.”

Eastern Iowa U.S. Rep. Ashley Hinson, of Marion, co-led a majority of the House Republican Conference in a letter to House GOP Leadership reaffirming their commitment to advancing a farm bill.

The letter — signed by 140 GOP House members, including all of Iowa’s House members — noted that farmers, ranchers and producers still are living under outdated policies from the 2018 farm bill.

  Buy Photo

U.S. Rep. Randy Feenstra, R-Iowa, in a statement issued Monday, said House Republicans’ proposed legislation would strengthen crop insurance, increase reference prices, double funding for trade programs and include protections “to keep our farmland away from China and our foreign adversaries.”

“Between low commodity prices and declining farm income, we must pass the Farm Bill to deliver certainty and relief for our producers and Iowa agriculture,” Feenstra said.

Reynolds orders flags lowered for anniversary of Hamas attack on Israel

  Buy Photo

Gov. Kim Reynolds ordered all flags in Iowa to be lowered to half-staff on Monday to honor the lives lost in last year’s terrorist attack on Israel.

Monday is the anniversary of the Oct. 7 Hamas attack on Israel that killed 1,200 Israelis and at least 40 Americans, and triggered the still-ongoing war in Gaza. Seven known American hostages are still being held by Hamas.

The flag lowering comes as tensions have continued to ramp up in the Middle East. Following an Israeli airstrike on Beirut last week which killed longtime Hezbollah chief Hassan Nasrallah, Iran on Tuesday responded by launching nearly 200 ballistic missiles at Israel, most of them intercepted by Israel's missile defense systems. Hamas and Hezbollah are both proxies of Iran.

“The hearts of Iowans go out to the innocent Israeli families and American citizens killed by Hamas. Iran and its terrorist proxies continue to attack as Israeli forces fight to protect their people against the forces of evil,” Reynolds said in a statement. “Iowa stands, as it always has, with Israel."

Flags will be flown at half-staff on the State Capitol Building and on flag displays in the Capitol Complex. Flags also will be at half-staff on all public buildings, grounds and facilities throughout the state.

Individuals, businesses, schools, municipalities, counties and other government subdivisions are encouraged to fly the flag at half-staff as a sign of respect.