$4.5 million public dollars in Iowa go to subsidizing factory farms

Members of Iowa Citizens for Community Improvement support closing tax loophole through H.F. 186, and demand public money be used for the public good

Des Moines, IA – According to fiscal services at the Iowa State Capitol, counties are losing at least $4.5 million dollars in revenue through property tax exemptions to the factory farm industry. Factory farms are benefiting from a tax law loophole that makes their manure pits exempt from property taxation. This preferential property tax treatment shifts the property tax burden onto neighboring small farmers and rural residents.

Representative Sharon Steckman (D-Cerro Gordo) has introduced a bill, H.F. 186, that would close the manure pit tax exemption loophole. If this bill passed at least to $4.5 million public dollars would be available to counties across the state.

Members of Iowa Citizens for Community Improvement support closing this tax loophole. According to members of Iowa CCI public dollars should be used for the public good, for fixing up roads torn up by factory farms or funding public institutions like hospitals. In Hardin County where there are over 250 factory farms, hospitals can no longer afford to deliver babies. If this property tax loophole was closed, more existing money could go to things such as infrastructure, and hospitals.

 “Instead of subsidizing large corporate factory farms, we should be using this money to support public education,” said Shannon Walker an Iowa CCI member from Wright County, “Our kids, especially in rural communities, are in schools that are underfunded. Let’s use public dollars to help them and not a 22-billion-dollar industry.”

H.F. 186 has been assigned to the Environmental Protection committee but has not been assigned to a sub-committee. Chair of the Environmental Protection committee Rep. Dean Fisher (R-Tama) is single-handedly responsible for stopping this bill.

“Iowa has over 750 impaired waterways. Factory farm manure spills are responsible for fish kills, and industrial agriculture is responsible for pollution of our water,” said Larry Ginter an Iowa CCI member, retired family farmer, and constituent of Rep. Fisher, “It’s already costing us millions of dollars to clean up our water, why are we subsidizing an industry that is causing the pollution? Rep. Fisher is clearly pandering to some of the worst polluters in the livestock industry.”

Research & policy analysis group, Food & Water Watch found that over the past three decades, the Iowa counties that sold the most hogs and had the largest farms had:

  • declining county wide incomes,
  • slower growth in median household income, and
  • declining numbers of local businesses compared to the statewide average

Members of Iowa Citizens believe in a better system of agriculture that works for farmers, workers, eaters and the environment. This system would put more farmers on the land and focus on creating vibrant rural communities by keeping the profits in rural communities not extracting them like corporate Ag.

According to Iowa Citizens for Community Improvement members, the first step toward a better system of agriculture is a moratorium on new or expanding factory farms. Thousands of Iowans are calling for a moratorium and 1 in 4 counties have passed a resolution calling for a moratorium, local control, and/or stronger permitting standards for factory farms.

A moratorium bill, H.F. 203, has also been introduced by Rep. Steckman. H.F. 203, is also assigned to the Environmental Protection committee, and is being stonewalled by Rep. Fisher.

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