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Capitol Notebook: Iowa state ag leader Naig introduces sweeping ‘Iowa Farm Act’ bill
Also in the notebook, unemployment data is once again available after a one-month pause due to last year’s federal government shutdown
Gazette-Lee Des Moines Bureau
Jan. 7, 2026 5:44 pm
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DES MOINES — Expanding farm zoning exemptions, expanding the retired farmer rental income tax exemption, prioritizing young and beginning farmers in state grant programs, and making a local food purchasing pilot program permanent are among the measures in sweeping legislation proposed by Iowa Agriculture Sec. Mike Naig.
Naig introduced his proposed legislation — which he has named the “Iowa Farm Act” — this week, just ahead of the annual legislative session that starts Monday.
In an Iowa Department of Agriculture and Land Stewardship press release, the proposed legislation is described as a “first-of-its-kind, comprehensive legislative package designed to support Iowa farmers, strengthen rural communities, and position Iowa agriculture for long-term success.”
The proposed legislation would, according to the department:
- Improve flexibility in large scale inspections by allowing alternative inspection methods and scheduling discretion for the state;
- Clarify that value-added processing, direct-to-consumer marketing, agritourism activities and events, and other farm-supporting operations are included under Iowa’s farm exemption;
- Update the definition of an agricultural experience to reduce regulatory barriers and encourage farms to welcome more visitors, customers, and educational opportunities;
- Explicitly include Christmas tree farms in Iowa’s agritourism liability protections;
- Make the Choose Iowa School Purchasing pilot program permanent;
- Expand the retired farmer rental income tax exemption to include modern farm business structures such as partnerships, S corporations, trusts and estates;
- Eliminate the grain excise tax paid by cooperatives and grain handlers;
- Exempt the purchase of honeybees from sales tax;
- Exempt aboveground storage tanks smaller than 91,000 gallons from property tax;
- Prioritize young and beginning farmers in Choose Iowa grant programs;
- Exempt rural veterinarian loan repayment grants from state income tax;
- Safeguard producer confidentiality during a foreign animal disease or major disease;
- Provide flexibility to expand marketing opportunities and grow demand for Iowa-made, Iowa-raised and Iowa-grown food and agricultural products through the Choose Iowa program; and more.
The agency press release included statements of support for the proposed legislation from myriad state agriculture groups, including the Iowa Farm Bureau Federation, Iowa Soybean Association, Iowa Corn Growers Association, Iowa Turkey Federation, Iowa Cattlemen’s Association, Iowa State Dairy Association, and more.
“The Iowa Farm Act is about meeting today’s challenges while preparing for the future,” Naig said in the press release. “It brings together ideas we have heard directly from farmers, agribusinesses, and rural communities across the state.
“This package expands economic opportunities, supports the next generation, and strengthens our readiness to respond to animal disease threats. It also delivers targeted tax relief and removes unnecessary barriers that hold farmers back.”
Iowa unemployment rate declines as data returns
Iowa’s unemployment rate was 3.5 percent in November — down from 3.7 percent in September but up from 3.3 percent in the same month last year.
Unemployment data for the month of October is not available due to the federal government shutdown that lasted from Oct. 1 to Nov. 12, according to Iowa Workforce Development.
“November’s report is an indication that the increase we’ve seen over the last few months in labor force participation is translating to more people working,” Iowa Workforce Development Executive Director Beth Townsend said in an agency press release. “Led by gains in health services, wholesale trade, and construction, Iowa saw strong hiring nearly across the board in November and ended with 9,000 more jobs than the year before — a trend we hope continues in future reports.”
Iowans appointed to federal positions
Starlyn Perdue, a Pottawattamie County farmer, has been appointed as USDA’s State Executive Director for Farm Service Agency, and Hamilton County native Doug Hoelscher has been appointed to serve as Minister-Counselor to the U.S. Mission to the Food and Agriculture Organization of the United Nations.
Perdue, according to a USDA press release, will work to strengthen Iowa’s rural economy through workforce training and business development.
In a press release from the Iowa Department of Agriculture and Land Stewardship, Sec. Mike Naig said Hoelscher’s appointment means “Iowa agriculture will be well represented on the global stage.”
Iowa to receive $22 million to support road safety upgrades
Iowa will receive nearly $23 million in federal transportation and safety funding under the Infrastructure Investment and Jobs Act, according to an announcement from Iowa Republican U.S. Sen. Chuck Grassley.
The funding, awarded through multiple U.S. Department of Transportation programs, includes $17.4 million for Iowa projects under the Safe Streets and Roads for All program aimed at reducing roadway fatalities and serious injuries. Awards include $6.8 million for rural safety upgrades in Clay, Buena Vista and Pocahontas counties; $6 million to the City of Davenport for safety upgrades at three high-crash locations; and $4.6 million for regional safety studies and audits through the Des Moines Area Metropolitan Planning Organization.
Iowa also will receive $4.41 million through the High Priority Commercial Motor Vehicle program to support commercial vehicle enforcement, safety inspections and anti–human trafficking efforts led by the Iowa Department of Public Safety. An additional $570,000 was awarded to the Iowa Department of Transportation for innovative technology projects aimed at reducing truck- and bus-related crashes.
Another $518,134 will go to seven Iowa community colleges through Commercial Motor Vehicle Operator Safety Training grants to expand commercial driver’s license training programs in Davenport, Council Bluffs, Calmar, Waterloo, Ankeny, Fort Dodge and Ottumwa.
Grassley, who voted for the 2021 infrastructure law, said the grants will improve public safety, support Iowa’s economy and expand workforce training opportunities, particularly for truck drivers amid ongoing supply chain pressures.
Gazette-Lee Des Moines Bureau
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