Capitol Notebook: State awards JBS’ new Perry plant $12M in tax benefits

DES MOINES — A new, $135 million, 150,000-square-foot sausage production plant in Perry received $12 million in tax benefits from the state’s economic development agency Friday.

The Iowa Economic Development Authority approved the benefits package as part of its High Quality Jobs program.

JBS USA announced last month its plan to build what it is calling a “state of the art” food production plant in Perry. The plant is expected to create 250 jobs within the first three years of operation and eventually employ 500, according to the state.

Of the first 250 jobs, 57 will have a salary of $31.10 per hour.

The tax benefits were announced Friday almost exactly one year after Tyson Foods closed its pork processing plant in Perry. That closure impacted nearly 1,300 jobs.

In a statement, Iowa Gov. Kim Reynolds called the new JBS plant “tremendous news for Perry and the entire state of Iowa.”

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“This investment by JBS reflects confidence in Iowa’s workforce, our strong agricultural economy, and our commitment to growing vibrant communities,” Reynolds said in the statement. “At a time when Perry has faced real challenges, this investment brings renewed hope and opportunity for the hardworking families who call this community home.”

Headquartered in Greeley, Colo., JBS also has operations in Council Bluffs, Marshalltown and Ottumwa, and employs more than 5,300 Iowans, according to the state.

Iowa unemployment rises slightly

Iowa’s unemployment rate rose by 0.1 percent in May, to 3.6 percent, according to the latest data from the state’s workforce agency.

The small unemployment rate increase came despite 3,900 Iowans joining the labor force, according to Iowa Workforce Development.

The national unemployment rate held steady at 4.2 percent from April to May.

Gazette-Lee Des Moines Bureau

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