Iowa Secretary of Agriculture Mike Naig announced plans on Tuesday to introduce the Iowa Farm Act, a comprehensive legislative package aimed at strengthening Iowa agriculture, expanding economic opportunities for farmers and positioning the state’s largest industry for long-term success.
Mr. Naig described the proposal as a response to both immediate pressures and future challenges facing Iowa agriculture.
“The Iowa Farm Act is about meeting today’s challenges while preparing for the future,” said Mr. Naig, in a release. He said the package reflects ideas gathered from farmers, agribusinesses and rural communities statewide and focuses on expanding economic opportunity, supporting beginning farmers, strengthening animal disease preparedness, delivering targeted tax relief and removing regulatory barriers.
If approved, the legislation would touch nearly every segment of Iowa agriculture, from livestock producers and grain handlers to agritourism operators and rural energy providers.
The proposal includes measures to modernize Iowa’s farm zoning exemptions, clarifying that value-added processing, agritourism activities and direct-to-consumer sales qualify as farm operations. It also updates the state’s agritourism framework, expands liability protections to Christmas tree farms and makes the Choose Iowa School Purchasing Pilot Program permanent to help connect schools with Iowa-grown food.
The bill also proposes targeted tax changes, including expanding the retired farmer rental income tax exemption to cover modern farm business structures, eliminating the grain excise tax paid by cooperatives and grain handlers, exempting honeybee purchases from sales tax and codifying that above-ground storage tanks under 91,000 gallons are not subject to property tax.
Workforce and succession issues are also addressed through provisions prioritizing beginning farmers in Choose Iowa grant programs and exempting rural veterinarian loan repayment grants from state income tax to improve recruitment and retention in underserved areas.
Animal health and biosecurity are another major focus. The legislation would strengthen Iowa’s ability to respond to foreign animal disease or major disease outbreaks by protecting producer confidentiality during response efforts and authorizing the Department of Agriculture and Land Stewardship to lease space for storing response equipment to speed deployment.
The Iowa Farm Act also includes a series of technical and regulatory updates intended to improve efficiency, including modernizing agricultural equipment transportation standards, increasing trucking gross weight allowances for dairy products, updating Grain Indemnity Fund language and providing additional flexibility in inspections conducted by the department’s Weights and Measures Bureau.
Mr. Naig said the package is designed to provide practical solutions while keeping Iowa agriculture competitive.
“It brings together ideas we have heard directly from farmers, agribusinesses and rural communities across the state,” he said. “I look forward to working with the Legislature and Gov. Reynolds to get this package enacted to show strong support for agriculture, the cornerstone of our state’s economy.”
As part of the department’s broader fiscal 2027 proposal, Mr. Naig is also requesting a 1.6% budget increase, totaling $1.335 million, to maintain operations related to animal health, food safety, consumer protection and water quality initiatives.
The Iowa Farm Act is expected to be considered during the 2026 legislative session.
