Gov. Kim Reynolds ecstatic over Iowa’s $1.9 billion surplus, federal payments to farmers

“The December REC projections, a slight increase from the October projections, are a direct reflection of the fiscally conservative agenda we’ve put into practice—returning tax dollars to Iowans coupled with responsible spending centered on growth. The State of Iowa ended Fiscal Year 2025 with a $1.9 billion ending balance and reserve funds full. As of this year, Iowans are pocketing more of their hard-earned money by paying a low 3.8% flat tax on their income. This has resulted in less tax revenue, just as we anticipated and prepared for by building the state’s Taxpayer Relief Fund to more than $4B.

While some uncertainty remains in the international trade landscape, recent soybean purchases from China and USDA assistance for farmers will benefit Iowa’s agriculture economy. As we prepare for this legislative session, my focus remains on working with the legislature to maintain fiscal discipline and reduce property taxes for Iowans.”

Earlier this week, President Donald J. Trump alongside U.S. Secretary of Agriculture Brooke L. Rollins, U.S. Secretary of the Treasury Scott Bessent, Senate Agriculture Committee Chairman John Boozman (AR), Senator Deb Fischer (NE), Senator John Hoeven (ND), Representative Austin Scott (GA), and farmers from Arkansas, Iowa, Indiana, Kansas, Louisiana, Pennsylvania, Ohio, and Texas today announced the U.S. Department of Agriculture (USDA) will make $12 billion available in one time bridge payments to American farmers in response to temporary trade market disruptions and increased production costs that are still impacting farmers following four years of disastrous Biden Administration policies that resulted in record high input prices and zero new trade deals. These bridge payments are intended in part to aid farmers until historic investments from the One Big Beautiful Bill Act (OBBBA), including reference prices which are set to increase between 10-21% for major covered commodities such as soybeans, corn, and wheat and will reach eligible farmers on October 1, 2026.

Of the $12 billion provided, up to $11 billion will be used for the Farmer Bridge Assistance (FBA) Program, which provides broad relief to United States row crop farmers who produce Barley, Chickpeas, Corn, Cotton, Lentils, Oats, Peanuts, Peas, Rice, Sorghum, Soybeans, Wheat, Canola, Crambe, Flax, Mustard, Rapeseed, Safflower, Sesame, and Sunflower. FBA will help address market disruptions, elevated input costs, persistent inflation, and market losses from foreign competitors engaging in unfair trade practices that impede exports. Farmers who qualify for the FBA Program can expect payments to be released by February 28, 2026.