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This year is quickly coming to a close, and with the November election now in the rear view mirror, it’s time to look ahead to what is in store for 2025. January will bring about a lot of change, with new leadership in the White House, House, and Senate, as well as some new faces at the State Capitol. The 119th Congress will officially convene January 3 ( 2025 Congressional Calendar), and the 91st Iowa General Assembly will convene on January 13 ( 2025 Legislative Timetable).

Federal Level

At the federal level, we’re already seeing the next Administration naming nominees for different posts, and we anticipate the Senate to start quickly in the consideration of nominees that require confirmation hearings and votes. As of the writing of this post the Government still faces a funding deadline of December 20th, which we anticipate will be extended through early 2025, which means Congress will also need to address budget discussions early in the calendar. Additionally, at Landus we expect to be focusing on the following priority issues in DC this coming year:

• 199A DPAD Tax: The 199A pass-through tax provision is crucial for co-ops, benefiting farmer members significantly. With the credit set to expire at the end of 2025, Landus supports extending and making it permanent, like what was done with the corporate tax rate.

• Carbon Programs/Feedstock Compliance: Awaiting guidance on the 45Z tax credit effective January 1, 2025, Landus emphasizes the importance of American incentives driving demand for domestic agricultural products. Landus believes carbon programs should reward farmers for decarbonization and prioritize American feedstocks, as is outlined in the Farmer First Fuel Act.

• Farm Bill: While it’s looking more and more likely that Congress will do yet another short-term extension of the 2018 Farm Bill, meaning we will be starting yet again on Farm Bill negotiations in 2025. Landus supports modernizing the bill to reflect current farm economics, increasing reference prices in ARC/PLC programs, expanding funding for Rural Development, and allowing cooperatives to qualify for energy efficiency cost-share under the REAP program.

• Trade: Recognizing the need for market opportunities beyond domestic borders, Landus supports developing new and expanded trade agreements. Tariffs should be a tool of last resort due to potential retaliatory impacts, generally impacting agricultural products/commodities.

• Labor/H2A: The H2A program is vital for supplemental labor during planting and harvest seasons. Landus supports the current program and cautions against changes that would exclude individuals from participating legally.

Statehouse

At the statehouse, the downturn in the ag economy is likely to have an impact on the state budget. The Legislative Services agency recently put out updated revenue estimates, which are expected to be down about 5% from this past year. We anticipate a robust discussion about a variety of property tax reform proposals, as well as a variety of other topics. Additionally with the departure of Adam Gregg earlier this fall, we expect the Governor to name his successor to the Lt Governor post in December. Looking ahead, at Landus we expect to be focusing on the following priorities issues in Des Moines this coming year:

• Energy Oversight: Energy is one of the largest cost centers for our operations. Continually increasing utility rates significantly impact Landus and local farmers. Landus supports Integrated Resource Planning as a key tool to helping the state better review, plan, and deploy energy infrastructure, as well as increasing transparency and public input in utility rate determination.

• Infrastructure: With infrastructure being a major focus for Iowa's leadership, Landus supports increased funding for rural infrastructure, including water, roads, power, and broadband. This is crucial for both Landus operations and farmers across the state.

• Grain Indemnity Fund: Landus is involved in discussions about the state's grain indemnity fund, which provides a safety net for farmers. While we support the current structure, Landus is engaging in discussion about ways to modernize the fund to allow for some coverage of credit sale contracts in a manner that doesn’t undermine the operations of the current fund.

• Highway 5/65: Community leaders throughout the Des Moines metro region have been working for years on an interstate designation for Highway 5/65, south of Des Moines. Landus, along with other agricultural stakeholders, are heavy users of that stretch of road, especially with large equipment and heavy truck loads. Landus supports the designation only if viable, agreeable alternative routes for agricultural traffic are established.

• Emergency Services: Recognizing the importance of EMS in rural areas, Landus supports local efforts to designate EMS as an essential service, which would allow for local tax funding. This is vital for the safety and well-being of Landus employees, farmers, and rural communities.

Save the Date

Save the date, March 25th, for our spring legislative reception at the Landus office in Des Moines. If you have any questions or feedback, please reach out to Elizabeth.Thompson@landus.ag