DES MOINES — Gov. Kim Reynolds has signed the bipartisan Iowa Farm Act, a wide-ranging agriculture and rural economic development package backed by Iowa Secretary of Agriculture Mike Naig.
Naig called the signing of the first-ever Iowa Farm Act “an important step forward for Iowa agriculture,” saying the bill reflects feedback he heard directly from farmers and rural communities across the state.
“The Iowa Farm Act reflects the priorities and feedback I’ve heard directly from farmers and rural communities across the state,” Naig said. “It expands opportunities for Iowa agriculture, reduces unnecessary regulatory burdens, and helps strengthen the long-term vitality of rural Iowa.”
SF 2465: Relates to agriculture, the Department of Agriculture and Land Stewardship, commodities, transportation, agricultural land, taxes and veterinary practice.
The legislation marks the first comprehensive agriculture policy package advanced by Naig’s office. It passed with support from both Republicans and Democrats in the Iowa Legislature, according to the Iowa Department of Agriculture and Land Stewardship.
The new law touches several major areas of Iowa agriculture, including farm zoning, agritourism, local food markets, tax relief, beginning farmers, rural veterinary care, foreign animal disease preparedness and state government efficiency.
One of the major business pieces of the bill is an update to Iowa’s farm zoning exemptions. The law clarifies that value-added processing, direct-to-consumer marketing, agritourism events and other farm-supporting operations can be included under Iowa’s farm exemption.
That could matter for farms looking to add new revenue streams beyond traditional crop and livestock production, including on-farm retail, events, food processing, educational visits and tourism-related activities.
The law also updates Iowa’s agritourism framework by broadening the definition of an agricultural experience. Supporters say that will reduce regulatory barriers and make it easier for farms to welcome visitors, customers and students.
Iowa’s Christmas tree farms are also specifically included in agritourism liability protections, giving those family-owned operations more certainty.
The law makes the Choose Iowa School Purchasing Pilot Program permanent, helping schools buy more Iowa-grown and Iowa-made food products. The Choose Iowa program has been used to promote local food, meat, dairy, produce and other agricultural products raised or produced in the state.
The bill also prioritizes young and beginning farmers in Choose Iowa grant programs, a move intended to help newer producers access capital and build viable farm businesses.
Another provision exempts the purchase of honeybees from sales tax, a benefit for Iowa beekeepers and honey producers. Supporters say the move could lower input costs while also supporting pollination services that are important to crops and specialty agriculture.
The law also attempts to address rural veterinarian shortages by exempting rural veterinarian loan repayment grants from state income tax. Rural veterinary access has become a growing concern in farm states, especially for livestock producers who need timely animal care and disease monitoring.
The Iowa Farm Act also includes provisions aimed at biosecurity and animal disease response. It safeguards producer confidentiality during a foreign animal disease or major disease outbreak, which supporters say could encourage early reporting and faster response.
The Department of Agriculture will also be authorized to lease space for storing foreign animal disease response equipment, improving the state’s ability to respond quickly if a major outbreak threatens livestock producers.
That issue has become especially important in recent years as poultry producers, cattle producers, hog farmers and state agriculture officials monitor threats such as highly pathogenic avian influenza and other animal disease risks.
The bill also modernizes agricultural equipment transportation standards, clarifies Grain Indemnity Fund language, expands flexibility for the Choose Iowa program, gives the IDALS Weights and Measures Bureau more flexibility in large-scale inspections and removes outdated language from Iowa Code.
The political significance is also notable. Agriculture remains one of Iowa’s most important economic engines, and the bill gives Reynolds and Naig a bipartisan win on farm policy at a time when farmers are watching input costs, commodity prices, labor needs, animal disease threats and rural business conditions closely.
Iowa agriculture remains a massive part of the state’s economy. Iowa Farm Bureau has cited a 2024 economic contribution study showing agriculture supports more than 385,000 jobs in Iowa and contributes $159.5 billion to the state’s economy. Iowa State University’s Center for Agricultural and Rural Development has projected that 2026 farm cash receipts of $38.5 billion would support about 175,000 jobs in the Iowa economy.
Naig said the legislation gives farmers more certainty and tools to plan for the future.
“This legislation positions Iowa agriculture for continued growth and success while ensuring farmers have greater certainty and tools to plan for the future,” Naig said.