Legislation under review

April 2, 2025

By Jeff Hutton

A handful of ag-related bills are still under review in the Iowa Legislature, which is scheduled to adjourn in roughly a month.

Iowa Soybean Association’s (ISA) Katie Hall and Megan Decker recently highlighted the status of some of these bills.

Pesticide labeling

The Pesticide Labeling bill (SF 394) passed the Iowa Senate last week in a 26-21 vote. According to Hall and Decker, this legislation helps protect farmers’ access to safe and essential chemistries like glyphosate. Crop protection labels are strictly regulated by the Environmental Protection Agency (EPA). The human toxicology studies underpinning the glyphosate registration found that glyphosate, when used as directed, is not carcinogenic.

Due to that finding, it’s illegal under federal law for manufacturers to label glyphosate as a “potentially” or “likely” carcinogenic. Hall, ISA’s senior director of advocacy, says to do so would violate its federal registration. Yet, manufacturers are being sued for failing to include the incorrect warning on their labels.

“ISA supports limiting civil lawsuits against manufacturers of glyphosate due to failure to warn,” she says. “We support all efforts to protect farmers’ access to safe and essential chemistries.”

Grain Indemnity Fund

The House Grain Indemnity Fund Bill (HF 508) that mirrors ISA’s position, passed the Ways and Means subcommittee last week. ISA has registered its favor of the bill which includes:

• Increasing the floor and ceiling to $8 million and $16 million, respectively;
• Protections of credit sale contracts, while keeping the total liability in check by omitting coverage of deferred payment contracts;
• Specialty soybeans and corn be paid out at the respective commodity price (not a premium); and
• Statutory restrictions against using the fund to pay for the fund’s administration.

The Senate, meanwhile, passed its version of the Grain Indemnity Fund Bill (SF 608) out of the Ways and Means Committee in mid-March, which includes all credit sale contracts.

ISA officially remains undecided on SF 608.

“We support modernizing the fund and extending coverage to credit sale contracts, but we believe excluding deferred payment credit sale contracts is the right approach. This strikes a balance - expanding coverage while maintaining the fund’s sustainability. Including deferred payments would significantly increase liability, potentially depleting the fund if a single co-op fails,” says Decker, ISA’s manager of advocacy.

Repeal of Forest and Fruit Tree Property Tax Exemptions

ISA is supportive of all three bills related to the repeal of the forest and fruit tree tax exemptions.

“We are concerned that the misuse of this program shifts the tax burden from exempt landowners to those in the rest of the country,” says Hall. “Broad enrollment of acres in certain southern counties of the state has begun to materially impact county budgets. The bills proposed this session provide a step in the right direction.”

Those bills include:

SF 17: A bill for an act modifying provisions governing the taxation of forest reservations and fruit-tree reservations and including effective date and retroactive applicability provisions. Status: Passed subcommittee on March 19. 

HF 634/SF 219: An act relating to forest and fruit-tree reservations and providing a fee. Status: The senate version passed the subcommittee on March 25.

Banning margarine in schools

HF 212 would ban the use of margarine and the use of seed oils in meals and beverages sold and made by schools, limiting demand for soybean oil and increasing costs to families and schools. This bill would restrict access to a safe, nutritious, and essential component of diets and one that has been proven to reduce chronic disease risk and improve overall health. 

Decker and Hall say seed oils, like soybean oil, are crucial sources of healthy, essential fats.

“Despite recent claims suggesting potential risks, scientific evidence consistently supports the role of vegetable oils like soybean oil in promoting cardiovascular health and reducing the risk of chronic conditions,” says Hall. “As a soybean producer, your product plays a key role in feeding our future generations and should be protected for use in school meals.”

This bill passed out of the House Education Committee and could now be taken up on the House floor. ISA is registered against this bill and continues to share with legislators the importance of this market for soybean farmers and for protecting consumer choice.

“We support the proposed amendment that would allow schools to utilize healthy, locally produced oils like soybean oil,” Decker says.

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