Ag policy: Iowa and beyond, what you need to know

Shay

Foulk: And it all comes down to this.

Jake

Swanson: 2 on, 2 out, bottom of the 9th.

Shay

Foulk: The Farmers lead by 1.

Jake

Swanson: Full count, here comes the play at the plate, and it's the Ag View Pitch!

Shay

Foulk: Welcome back everyone to another episode of the Ag View Pitch, and today we're joined with special guest Jake Swanson. How's it going today, Jake?

Jake

Swanson: Good, good, good to be with you, Shea.

Shay

Foulk: Yeah, I appreciate you taking the time. So I was wondering here to start off with if you can maybe just give us a little background on what it is you do and how you got there, and we'll jump into some key topics that I think will provide some value today.

Jake

Swanson: That sounds great, Shay. Well, like you said, I'm Jake Swanson. I work in the office of Iowa Governor Kim Reynolds. I serve as her agriculture policy advisor and also advise on other policy areas like energy and natural resources. I grew up on a family farm just east of Ottumwa. My family has farmed there for over 170 years, so I'd be the 7th generation involved in that operation. We're row crop, corn and soybeans, and then we've got a beef cattle herd as well. So definitely still get back to the farm when I can during harvest and planting season, and as much as I can on nights and weekends too. So very much still involved in Love it, grew up around it, very passionate about it.

So it's, it's just really been a great honor and privilege to work in the office of the governor where I can continue to advise on some of these policy areas and drive some of that change in the Iowa agriculture industry. A lot of things going on in Iowa agriculture, always exciting, lots of fun issues to work on. And part of the reason why I just, I love this job is because every day is a little bit different. There's always a lot of issues that we're working on, ultimately trying to make it better for everybody.

Shay

Foulk: That's awesome, and there certainly is a lot going on there in the industry. So how did you get to the role that you are today, and how long have you been working in that role?

Jake

Swanson: Yeah, well, I started in the governor's office last September, so I've just been here a few months and have really been baptized by fire. I tell you, we've had a steady run of all sorts of things going on in the governor's office. I previously worked at the Iowa Department of Agriculture and Land Stewardship, so just across the street from the state capitol building here in Des Moines, working in the office of former Iowa Secretary of Agriculture Bill Northey, and then was involved in that transition to now current Secretary of Agriculture Mike Naig.

And served as a policy advisor there as well and as the Secretary's legislative liaison, so representing the Iowa Department of Agriculture and Land Stewardship to the Iowa legislature, letting them know, working with legislators really on a daily basis on a variety of agriculture topics, keeping them informed of what the Secretary of Agriculture is up to, what the Iowa Department of Agriculture does, and how we provide value to Iowans. But yeah, before that, graduated from Iowa State's College of Agriculture and Land— or Agriculture and Life Sciences, fourth generation of my family to do that. And then finished up a master's degree afterwards in public health, and my thesis focused on highly pathogenic avian influenza, which at the time Iowa was going through an outbreak of avian influenza, one of the worst agriculture disease outbreaks in U.S. history.

So tried to keep it a relevant thesis topic and afterwards started in the office of the Secretary of Ag and I've just been rolling ever since.

Shay

Foulk: Well, that's great. I think we're definitely talking with the right person here for some perspective. So, you know, you and I were talking offline about 2 or 3 topics that might be pretty relevant to some of the producers listening out there. I was wondering, you know, can we just jump into a couple of those and see where that takes us?

Jake

Swanson: Yeah, absolutely. Well, one of the, one of the first topics I think that's very top of mind is what's going on with foreign animal disease and what we're seeing worldwide with African swine fever as it's really decimated the pig population in China, and just making sure that that never makes its way over here to the United States, especially not to the state of Iowa. Iowa's the number one producer of pork in the entire country. We're very proud of that, and it would be devastating if a disease like African swine fever or foot-and-mouth disease would ever make its way here to the state. So I know the Iowa Department of Agriculture and Land Stewardship has, has been working hard for the past several years on foreign animal disease preparedness.

They learned a lot of lessons from the avian influenza outbreak that hit around 2015, and and have been, have been really moving forward ever since. They've hired recently just a new veterinarian who's tasked with coordinating agriculture and ag security efforts for the department. He's done a fantastic job, and it's very important to Governor Reynolds as well. We've, in the governor's budget this year, increased funding for foreign animal disease preparedness. Essentially doubled what that funding stream looks like so the department can make sure that they've got the resources that they need to properly detect and respond to a disease outbreak should it ever make its way to the state of Iowa. Very, very top of mind issue for our producers. We're a big agriculture state here in Iowa, and certainly keeping a close eye on that one.

Shay

Foulk: Well, and I know right now on the worldwide stage, it's knocking on Germany's door. And there's huge concern there looking at the EU overall, at the pork production that comes out of Germany. So can you, can you speak a little bit more to specifically, you know, what, what does that look like if, you know, we unfortunately were to have that? And I think some people also have the question of, is it a question of if we get it more so as as when we get it. If that were to happen, what does that look like in the state of Iowa?

Jake

Swanson: Yeah, definitely. Looking closely at how African swine fever has made its way across Eastern Europe— Germany, I believe, is the EU's largest pork producer, and so that would certainly be devastating to some of those farm economies across the Atlantic there. If this were ever to make it over to the United States or even to the state of Iowa, It would be devastating for our economies, for our producers. We would essentially have markets, international markets, shut off to the state of Iowa essentially overnight. Countries take this very seriously, and they should. We do not want to see these diseases cross borders, cross the ocean, and unfortunately diseases like these don't respect those international borders, so it would be It truly would be devastating to the Iowa economy, especially since a large part of our economy is based on agriculture.

I tell you, we just— I cannot stress enough how important it is for producers here in the state to really be laser-focused on biosecurity protocols on their farms. Everybody has a role to play in preventing these diseases from making their way to the state.

Shay

Foulk: Absolutely, and hopefully, you know, some of the policy decisions being made there on the foreign animal disease that goes along with that, you know, are definitely moving in the right direction, and it sounds like they are. So let's talk a little bit, change course here. How about renewable fuels? What's going on on that end?

Jake

Swanson: Oh boy, I tell you, the EPA has certainly been one to watch. We've been continually disappointed by the EPA's use of small refinery exemptions. So exempting some of the larger oil refineries from blending homegrown renewable fuels. You know, recently, you know, within the last week, we saw the 10th Circuit U.S. Court of Appeals strike down the EPA's use of small refinery exemptions and saying that they have more or less abused that power to be granting those. So we were very excited in the state of Iowa to see that court decision, something that we knew all along. We continue to keep pressure on the EPA and to make sure that they're blending— to make sure that they're allowing for the blending of renewable fuels at that statutory limit. 15 billion gallons means 15 billion gallons.

And so We're keeping a lot of pressure on EPA there, making sure that we are standing up for a robust renewable fuel standard, because it's good for our economies here, especially in Iowa, where we're the number one producer of corn and soybeans, two of the major components of biodiesel and ethanol. Cannot stress enough how important it is that we stand up for a robust RFS, and that's something that I work on all the time.

Now, here in the state of Iowa, a couple of exciting things that we've been working on Last December, the governor signed an executive order requiring any diesel engine vehicle purchased by the state of Iowa must come with a note from the manufacturer that says, "This vehicle can use B20 biodiesel." And we're making sure that we're taking full advantage of that in our state fleet, which, keep in mind, would be all of the DOT snowplows that we're seeing, especially this time of year, and and all of the vehicles purchased by the State of Iowa. So something really exciting. Recently, actually just yesterday, we had the Dickinson County Board of Supervisors unanimously approve a county resolution that says essentially the same thing. Any diesel engine vehicles purchased by Dickinson County have to be able to use B20 biodiesel. So really excited to start seeing that across the way.

I think across the state, these— Dickinson County has certainly been a leader there. And it sounds like we've got a couple of other counties in Iowa that are working on similar resolutions. So very exciting. We've, you know, another program that we've got in the state of Iowa, our Renewable Fuels Infrastructure Program, allows cost share dollars to be used for retailers installing things like blender pumps and other renewable fuel infrastructure. The governor in her budget this year put an additional $2 million in the renewable fuels infrastructure program. So looking at a total of $5 million annually for that. And that, you know, will just continue to increase access to our homegrown renewable fuels. We're very proud to be the number one state for biodiesel and ethanol production. Happy to support those industries and happy to support our producers that help grow those renewable fuels.

So a lot of exciting things, you know, at the state level for our renewable fuels industry. We're continuing to watch what the EPA is doing and holding them accountable so that they will stop granting these completely ridiculous small refinery exemptions and just continue to support that industry.

Shay

Foulk: Yeah, and I've been watching those initiatives pretty closely. I think those are definitely wins for the state and Hopefully we can continue to get a good push there. So I think one of the questions that comes to mind with a lot of producers out there, whether in Iowa or in their states in general, is how do we actually affect, you know, ag policy?

Jake

Swanson: How do we tell our story?

Shay

Foulk: What can we do to better represent and, you know, help the farming community? So, you know, what does that look like in particular with the renewable fuels, but even on into other ag policy issues? I mean, is the Farm Bureau a great way to get involved with that? What else is out there that can truly help drive some of these ag policy decisions?

Jake

Swanson: Yeah, no, that is a great question, Shea. I think there's a couple of things that folks can do. One, never shy away from telling your story and from stand— and for standing up for your way of life. You know, it drives me nuts when we see a lot of activists that continually keep hitting on the agriculture industry. I think a lot of folks just simply don't understand what what we do as farmers and ranchers and producers across the state. Continue to tell that story. Never shy away from media interviews, from explaining to your neighbor why you're doing what you're doing. And don't shy away. Don't be afraid. You're doing the right thing. Farmers know what they're doing. My family's been doing it for 170 years. I think by that point we kind of know what we're doing and what we're talking about. Cannot stress that enough. But don't be afraid to reach out to your legislators too.

Everybody in the state of Iowa has got a representative, state representative and a state senator, and we've got great senators in Chuck Grassley and Joni Ernst and our congressional delegation as well and our U.S. representatives. Don't be afraid to invite the folks to your farm. Show them what you're doing. Explain why you're doing what you're doing and how it benefits the economy here in the state of Iowa. I think a lot of, a lot of times You know, I see state legislators here in Des Moines that they don't have an agriculture background. They didn't grow up raising cattle like my family did. They don't know the value of growing corn and soybeans and how much we contribute to the state of Iowa through every step in that value chain. I cannot stress enough how important it is to tell your story to legislators and anybody else that will listen. And stand up for what you're doing.

You've got nothing to be afraid of. That's what I continually tell producers. You're doing the right thing. You know what you're doing. And don't hesitate to share that with others.

Shay

Foulk: I think that's a great point. And sometimes we forget that we actually can make a difference on that front. So to wrap up some on the Renewable Fuels Act, I know you don't have a crystal ball, but what, you know, what are we seeing in the short term? And moving forward with this? Are we at a stall right now, or where does this go?

Jake

Swanson: Well, I'm internally optimistic. I think we're starting to make some traction with the, that recent court decision that I mentioned just a little bit ago. I'm optimistic that with some of these, you know, trade deals that we've recently seen signed, actually today the president is signing the USMCA trade agreement between Canada and Mexico and are quickly going to see that ratified. So I'm optimistic that we'll see markets respond positively to that. Boy, I tell you, it's, it's been a challenging year, certainly 2019, not one that we maybe want to remember, but very optimistic looking to 2020 with some of these trade agreements we've seen, with some of the traction we're making in the renewable fuels industry, you know, just have to continue to hold the EPA accountable there to make sure that they're upholding the Renewable Fuel Standard. Hey, I'm optimistic.

I think we've got a lot of opportunity in the Iowa agriculture industry, in our renewable fuels industry as well. And hopefully we'll continue to see some movement there.

Shay

Foulk: No, I think that's a good thing in agriculture in general. We are the eternal optimist, so that's right. I appreciate the feedback on that. So, you know, we had talked also offline here at some of the other things that are going on that the governor, governor is investing in in Iowa. Can you speak to some of that that's going on on your end?

Jake

Swanson: Yeah, well, something that I'm really excited about is the Governor's Invest in Iowa Act. This is something that Governor Reynolds talked about in her Condition of the State address earlier this month. We're looking at raising the sales tax by a penny, and coupled with that, we're seeing— we will reduce property and income taxes as well. So I want to make sure that that's clear. This would be a tax reduction package overall. But one thing that I'm spending a lot of I spend a lot of my time on here in the Governor's office is working on that legislation. We're looking at committing about $100 million to our state's water quality efforts. About $50 million or so of that, or in addition to that, would go toward conservation and outdoor recreation. This ultimately funds the outdoor recreation Trust Fund that Iowa voters created 10 years ago and finally funds that.

We've got a lot of exciting things here. We're looking at a net increase in funding for water quality of about $31 million dispersed through the Iowa Department of Agriculture and Land Stewardship, DNR, and the Iowa Finance Authority. We're looking at a net increase in funding for conservation and outdoor recreation of about $22.5 million. Again through IDALS, DNR, and the Department of Transportation. And a lot of exciting policy changes are going to go into this as well. Back in 2018, the Iowa legislature passed Senate File 512, and Governor Reynolds signed that into law as her first bill that she signed as a new governor, that really committed long-term funding for water quality. And this Invest in Iowa Act My piece that I'm working on really continues and ramps up that funding for water quality, which is something that we are really excited about.

But it also does a lot of other great things, like extending REAP, the Resource Enhancement and Protection Program, through to 2050. It codifies the Iowa Nutrient Reduction Strategy as the state's guide for improving water quality, and it makes sure that we're This legislation makes sure that we're spending those dollars in a way that further those goals, the nutrient reduction strategy, that prioritize and enhance our public use areas like our state parks and trails, and just a lot of other really exciting things. So this is something that I've been working a lot on just really since I started in the governor's office. I think there's a lot of interest from legislators to to have this conversation and hopefully we'll see this as one of the Governor's signature policy pieces across the finish line here in the 2020 Iowa legislative session.

For anybody listening, certainly encourage you to get involved, share your thoughts with us on what you'd like to see in that legislation and don't hesitate to reach out to your legislators too to let them know how important it is that we're supporting our farm and rural economies and how important it is to dedicate long-term funding for things like water quality and outdoor recreation. You know, and there's a heavy tax component to this as well. So we estimate that that 1% sales tax increase will generate about $540 million for the state of Iowa, and we'll see a— coupled with that, we will then be able to reduce our property taxes and reduce our income taxes. So all Iowans should see a pretty significant, at least a 10% cut in the taxes that they pay to the state. And especially for lower-income Iowans, could see up to a 25% reduction in the amount of taxes that they pay.

So I'm hoping to see a lot of support for this. I think it's a really exciting and pretty bold initiative that Governor Reynolds laid out in her Condition of the State. And something I'm very excited and very happy to be working on.

Shay

Foulk: That's great. I'm glad you brought up some of the water conservation things going on there. Obviously, some of the recent rulings on the Waters of the United States is top on some people's minds. And I think, you know, the Midwest states are really doing a phenomenal job at trying to get on the forefront of this. We don't want to be, you know, as regulated or— Absolutely. As closely scrutinized as out east when maybe there isn't some education following that. So I think it's phenomenal that the state is taking the initiative on our own and doing an effective job on water quality issues and looking at more moving forward there as well.

Jake

Swanson: Yeah, no, and I think, you know, it's not government's role to solve all of our problems. I want to make sure to emphasize that everybody has a role to play in water quality. Whether you've got a quarter-acre lot in town or a quarter-section out in a rural area, everybody has a role to play here. Keep in mind, there's so many things that you can do. There's a lot of funding available for anybody looking to add conservation practices to their lot in town or their farm. I really encourage everybody to take a look at what they can be doing, both in urban and rural areas, to help improve our water quality, something that's important to all Iowans. Great.

Shay

Foulk: So a couple of other topics that I want to hit on here real quick that we had talked about, hemp and noxious weeds. I know those are two things that are top in a lot of producers' minds.

Jake

Swanson: Sure.

Shay

Foulk: There's a lot of static out there. What's going on on the policy side? How does that affect us as we look at some of those issues moving forward?

Jake

Swanson: Yeah, absolutely. Well, I'll touch on noxious weeds just briefly first. That's something that we continue to see some weed resistance. So just encourage producers to be diligent about their control strategies there. I know that's something the Iowa Department of Agriculture and Land Stewardship is taking a hard look at. They're the regulatory agency for keeping our noxious weeds in check. On the hemp side, that's another policy area that I've spent a significant amount of time on. Kind of a new and more or less exciting program that we're looking at. The 2018 Farm Bill allows for the first time in, you know, gosh, 75 years for hemp to be grown legally as a, essentially as a commodity, treating it just like like we would any other commodity.

So the Iowa Department of Agriculture and Land Stewardship spent a lot of, a lot of time working on this policy area, especially last legislative session. The Iowa legislature voted favorably to approve the Iowa Hemp Act, which gives the Iowa Department of Ag and Land Stewardship the regulatory authority over hemp production grown in the state of Iowa. So a lot of different policy pieces there. The 2018 Farm Bill then said any state can, can develop a state plan for how they will regulate hemp in their state, but that plan must be submitted to USDA for their final approval on that. So I know the Iowa Department of Ag has submitted that state plan to USDA and is still awaiting feedback and comments and ultimate approval from USDA. So it's not yet legal in the state of Iowa to grow hemp, but I think it will be somewhat soon for the 2020 growing season. So definitely take a look at that.

Would also add that, you know, I don't know that hemp by any means is going to be a silver bullet for anybody, but it could be, you know, another opportunity for producers if that's something they're interested in. I would just encourage anybody taking a look at that to Make sure that you've got a seller or a buyer lined up before you start to grow it. Make sure that there is a market available and do your homework, do your research. Make sure that you know what you're doing, you've got the equipment necessary, the labor to put towards planting and harvesting. And again, reach out to the good folks at the Iowa Department of Ag if you've got any questions along the way as far as what that regulatory programs will look like. But, you know, again, something that's new and definitely exciting for a lot of folks in the state.

Shay

Foulk: Great, I appreciate you touching on that. You know, I'm really enjoying the conversation here. I appreciate all the positive feedback. You know, anything else you want to hit on kind of before we wrap up here? I know you got a lot of different things going on there that directly affect farmers and producers, so anything else that's on your mind that we haven't touched on yet?

Jake

Swanson: Well, Shay, I think we touched on a lot of the big points. It's just, it's been a real treat for me to be on with you here. I'm going to be headed up to visit with some legislators later today about the Governor's Invest in Iowa Act. So I've got a full day here ahead of me. But, you know, I just really want to thank all your listeners for what, for what they do to make our agriculture industry truly the best here in the United States and North America. It's a really exciting time to be in agriculture. I'm just tickled to death to be here in the governor's office doing what I'm doing and just really appreciate the opportunity. So thanks again, Shea, for having me.

Shay

Foulk: Absolutely. And if there is, you know, someone that wants to reach out and follow up or get involved, you know, more in their ag policy, what are some good points of contact there? I know you mentioned a few times calling your legislators and things like that. Where's the best resource for them to look into that?

Jake

Swanson: Yeah, well, there's a variety of different resources there. Definitely reach out to your legislators, invite them to your farm, show them what you're doing. Touch base with them while they're voting on a lot of different legislation that can impact your livelihood. Feel free to stop by the Capitol here and meet with our team in the Governor's office. Always happy to visit with folks about what they're doing in the ag industry and how we can help from a regulatory standpoint. A lot of great folks in state government here between the Department of Natural Resources, the Department of Agriculture and Land Stewardship and Secretary Mike Naig's office. Definitely be in touch. A lot of other great state agencies, a lot of exciting things going on. Continue to reach out to anybody if you need help or assistance with something. We are here to serve. Public service is very important.

Don't hesitate to reach out if you've got questions or if we can help you with something.

Shay

Foulk: Jake, it's been my pleasure as well. I appreciate the time and hopefully be talking with you here soon.

Jake

Swanson: Yeah, absolutely, Shay. Always appreciate the opportunity.

Shay

Foulk: And thank you everyone for listening. We will catch you next time on the Ag View Pitch. Thanks for joining us on today's episode of the Ag View Pitch. As always, you can reach out to us at cbarron@agviewsolutions.com. agviewsolutions.com or duanel@netins.net. We'll catch you next time on the Egg View Pitch.