Q&A: Wins for Rural America Signed into Law

Q&A: Wins for Rural America Signed into Law

With U.S. Sen. Chuck Grassley

Q: How did you leverage your leadership for alternative energy?

A: More than three decades ago, I helped launch Iowa's rise to dominance in alternative energy with the first-ever federal wind energy tax credit. Wind energy supports more than 9,000 jobs in Iowa and generates more than 60% of our state's electricity, making it the largest source of electricity in Iowa. During negotiations on the One Big Beautiful Bill, I fought tooth and nail to secure a 12-month runway that allows planned wind and solar projects to begin construction after the law's enactment. This victory prevented a devastating blow to alternative energy that would have stunted investment, innovation and production when there's growing demand for clean, affordable electricity. My efforts will help accelerate near-term growth in these projects to get them from the drawing board to installation and production while also providing the industry a sensible pathway to self-sustainability. It puts wind and solar on a level playing field with other technologies with respect to imported materials and components. Specifically, I led efforts to strike a punitive new tax on wind and solar projects that would have sunk domestic production and investment, as well as job creation here at home.

Q: What new measures will boost Iowa's renewable fuels industry?

A: Iowa's farm economy drives the state economy, employing nearly one in five Iowans in agriculture or ag-related industries. Family farmers across the state take pride in growing crops that feed and fuel the world. As a lifelong family farmer and tireless champion for the livelihoods and way of life for farm families, I brought the concerns of Iowa farmers to the policymaking tables during negotiations on the One Big Beautiful Bill. That includes expanding domestic markets for feedstock. The renewable fuels industry adds value to homegrown corn and soybean crops. I successfully fought to eliminate tax subsidies for renewable fuels produced from imported feedstocks, such as used cooking oil from China or tallow and sugar cane from Brazil. In 2023, the U.S. imported three billion pounds of used cooking oil that exploited tax incentives and clean fuel policies. The U.S. taxpayer should not foot the bill for subsidies that benefit foreign farmers at the expense of corn and soybean farmers from Iowa. Ensuring our nation's renewable fuel policies benefit American farmers was my top priority as I fought to improve and extend the Clean Fuels Production Tax Credit through 2029. I also successfully secured transition relief for small biodiesel producers who shut down operations during the previous administration due to a lack of workable guidance implementing this credit. Taken together, this is a victory for Iowa farmers and Iowa renewable fuel producers.

Q: What's in the new law for Iowa farmers?

A: Iowa farmers waited two years for Congress to update the five-year Farm Bill. High input costs for seed, fertilizer, fuel, machinery and rent were cutting into the bottom line, making it difficult for farming operations to make ends meet, let alone turn a profit. The farm safety net needed to reflect the double-digit increase to farm production costs. With President Trump's signature on July 4, the new law increases reference prices and boosts the effective reference price escalator for the 2025 through 2031 crop years. That raises the benchmark for farm payments, such as the Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs, to help ensure the farm safety net reflects higher input costs. The law also improves crop insurance for beginning farmers for the first decade of their operations, increasing the coverage level and affordability of certain crop insurance policies. Iowa's agrarian heritage is not only the backbone of our state's economy, it's a way of life. Iowans should not be punished for wanting to keep a family farm in the family. For nearly two centuries, Iowa families have handed the reins of their farming operation to their kids and grandkids. An unfair, punitive death tax would force sons and daughters to sell the family land to pay the federal estate tax liability. I've long championed efforts to repeal the death tax and was glad to support provisions in the new law that permanently boost the death tax exemption, raising it to $15 million for individuals and $30 million for couples. In addition, the new law provides critical investments in conservation, ag research, trade promotion and animal health to help fight disease outbreaks, such as New World screwworm (NWS), Highly Pathogenic Avian Influenza (HPAI) and African swine fever (ASF), to support livestock producers and protect the food supply.

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