(Photo: Iowa Soybean Association / File Photo)
Ankeny, Iowa – Soybean farmers remain optimistic on the future of ag policy as the 2025 Iowa Legislative session adjourned early this morning. Priority areas of interest this session included modernizing the Grain Indemnity Fund, protecting access to safe and essential chemistries, ensuring the future of seed oils in school nutrition and more.
“We were encouraged to see lawmakers take notice and action on several issues important to Iowa farmers during the session,” said Brent Swart, president of the Iowa Soybean Association (ISA) and farmer from Spencer. “Policy isn’t a spectator sport, and while we’re pleased to see progress made at the statehouse and continued advocacy from farmers, there’s much more work to be done.”
Amid low commodity prices, tightening margins, and ongoing trade conversations, Iowa farmers welcomed key ag policy wins and opportunities ahead, including:
Passed: Modernizing the Grain Indemnity Fund
The Grain Indemnity Fund bill passed the House and Senate and now awaits the governor’s signature, providing necessary safety net revisions to repay farmers in the event of grain elevator or co-op failure. If signed into law, the fund will now offer a 75% payout on non-deferred payment credit sale contracts and increases the individual payment cap from $300,000 to $400,000. Previously, the fund covered only cash sales up to 90%. There was a strong farmer consensus to modernize the fund and extend coverage.
The fund, which originated in the 1980s as a result of the Farm Crisis, has historically triggered a ¼-cent per bushel assessment when going below the $3 million threshold (with a cap of $8 million). While the $3 million floor had not been previously increased, the volume and value of Iowa grain has risen dramatically. In recent years, various elevator and co-op failures have demonstrated a need to modernize the fund. This legislation will increase the floor and ceiling to $8 million and $16 million – a move that aligns with ISA’s policy priorities. In addition, the fund will cover specialty crops at their respective commodity price (not a premium).
Failed: Pesticide Labeling Bill
The Pesticide Labeling bill (SF394) passed the Iowa Senate on March 26 in a 26-21 vote. However, it was not brought forth in the House this session. This legislation was aimed at protecting farmers’ access to safe and essential chemistries like glyphosate.
Labels on herbicides that farmers depend upon are strictly regulated under federal law administered by the Environmental Protection Agency (EPA). Human toxicology studies underpinning glyphosate registration, however, found that glyphosate, when used as directed, is not carcinogenic. Because of that finding, it’s illegal under federal law for Bayer to label their product as “potentially” or “likely” carcinogenic. To do so, officials say, would violate their federal registration. It’s estimated that RoundUp is used on 73% of soybean acres and 60% of corn acres in Iowa.
ISA supports limiting civil lawsuits against manufacturers of glyphosate due to failure to warn. While this bill did not make it to the finish line this year, ISA will continue to support legislative and regulatory efforts to protect safe and essential chemistries like glyphosate.
Failed: Banning Margerine in Schools
HF 212 would have banned the use of seed oils and margarine in meals and beverages sold and made by schools, limiting demand for soybean oil and increasing costs on a safe and nutritious component of the human diet for families and school districts. Notably, ISA was against this legislation and continues to engage on this issue – stressing the importance of protecting consumer choice, seed oil benefits and maintaining market access for soybean farmers.
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.
“We thank Iowa lawmakers for their efforts this session, and look forward to working closely with them on opportunities to better position Iowa farmers in the future,” said Swart. “We also extend thanks to ISA Advocate members for engaging with their local elected officials and speaking out on issues important to our industry.”