By Andi Anderson
In Iowa, agriculture and manufacturing have formed a powerful partnership, working together to drive economic growth and prosperity.
Agriculture brings crops and livestock to the state, while manufacturing provides machinery, bio-refineries, and food processing facilities that add value to these raw materials, boosting Iowa’s economy and making it a leading force in both sectors.
Each year, these industries compete as major contributors to the state’s gross domestic product, both remaining essential for Iowa's economic future.
Historically, manufacturing in Iowa began with simple tools like self-cleaning plow blades, designed to make farming more efficient. Today, Iowa’s manufacturing sector is much more advanced, producing technology and infrastructure that support and enhance agricultural productivity.
This mutual growth has evolved over decades, supported by policies that encourage value-added agricultural ventures, such as bio-refineries that process corn and soybeans locally. This approach ensures that economic value remains in Iowa, fostering local job creation and wealth retention.
Former policymakers once lamented seeing Iowa’s crops shipped down the Mississippi River as raw exports, viewing it as a missed opportunity to retain wealth within the state.
Since then, Iowa has become a major hub for bio-refining and food production, driven by investments from farmers, manufacturers, and government initiatives that support value-added agriculture.
Property investment is vital to sustaining this economic model, as taxes from these assets provide essential funding for local governments. However, rising property taxes could risk Iowa’s competitive edge, as higher taxes may make other regions more attractive to businesses.
The new 91st General Assembly, following recent elections, has expressed a commitment to property tax reform, a step the Iowa Association of Business and Industry (ABI) supports to ensure these essential sectors are treated fairly and foster growth.
Through strategic tax reform, policymakers have the chance to encourage economic expansion, supporting both agriculture and manufacturing as critical drivers of Iowa’s prosperity. Together, these sectors build a robust economy that benefits the entire state.
Photo Credit: gettyimages-zoran-zeremski
Categories: Iowa, General