Iowa Secretary of Agriculture Mike Naig announced Tuesday plans to introduce the Iowa Farm Act, a legislative package that aims to expand economic opportunities, deliver targeted tax relief and improve the efficiency of state government among other goals.

The legislation reflects priorities raised directly by farmers, agribusinesses and stakeholders, according to a news release.

“The Iowa Farm Act is about meeting today’s challenges while preparing for the future,” Naig said in the release. “It brings together ideas we have heard directly from farmers, agribusinesses and rural communities across the state.”

The package centers on five main areas: expanding farmers’ economic opportunities; targeted tax relief; supporting Iowa’s ag workforce; strengthening biosecurity to prevent against animal disease events; and improving efficiency.

Some of the proposed efforts in each area are:

Expanding farmers’ economic opportunities 

• Modernizing Iowa’s farm zoning exemptions to clarify that value-added processing, direct-to-consumer marketing, agritourism activities and events, and other farm-supporting operations are included under Iowa’s farm exemption.
• Strengthening Iowa’s agritourism framework by updating the definition of an agricultural experience to reduce regulatory barriers.

Targeted tax relief

• Protecting family farms and succession planning by expanding the retired farmer rental income tax exemption to include modern farm business structures such as partnerships, S corporations, trusts and estates.
• Reducing costs for grain businesses by eliminating the grain excise tax paid by cooperatives and grain handlers, supporting local elevators and a more uniformed tax system.
• Supporting growth in Iowa’s honey industry by exempting the purchase of honeybees from sales tax, reducing input costs for beekeepers and strengthening pollination services.
• Eliminating county-by-county uncertainty by codifying that above-ground storage tanks under 91,000 gallons are not subject to property tax.

Supporting Iowa’s ag workforce

• Prioritizing young and beginning farmers in Choose Iowa grant programs.
• Strengthening rural veterinary services by exempting rural veterinarian loan repayment grants from state income tax to improve recruitment and retention in underserved areas.

Strengthening biosecurity

• Safeguarding producer confidentiality during a foreign animal disease or major disease outbreak to encourage early reporting and rapid response without fear of public exposure.
• Authorizing the department to lease space for storing foreign animal disease response equipment, ensuring faster deployment and a more coordinated response.

Modernizing, improving efficiency

• Modernizing agricultural equipment transportation standards to improve safety and efficiency for ag equipment dealers and manufacturers.
• Increasing trucking gross weight allowances for dairy products, reducing hauling costs and improving market access.
• Clarifying Grain Indemnity Fund updates through technical clean-ups to improve readability and consistent application of the law.
• Providing flexibility to expand marketing opportunities and grow demand for Iowa-made, Iowa-raised and Iowa-grown food and agricultural products through the Choose Iowa program.

Leaders from several agricultural-related organizations, including the Agribusiness Association of Iowa, Iowa Pork Producers Association, Iowa Farm Bureau Federation and the Iowa Cattlemen’s Association expressed support for the Iowa Farm Act.

As part of the department’s broader fiscal year 2027 proposal, Naig is also requesting a 1.6% budget increase of $1.335 million to maintain essential operations in animal health, food safety, consumer protection and water quality initiatives that support Iowa farmers, consumers and rural communities.