Iowa Soybean Association applauds passage of ‘big, beautiful bill’

Photo: Iowa Soybean Association

The Iowa Soybean Association heralded the passage of the “One Big Beautiful Bill Act” by the U.S. House July 3.

The sweeping package delivers generational wins for soybean farmers through federal tax-code reforms, farm safety-net improvements and biofuel incentives.

President Donald Trump signed the legislation July 4.

“Passage of this legislation signifies a huge win for Iowa’s 37,000 soybean farmers and consumers,” said Brent Swart, ISA president and soybean farmer from Spencer.

“We thank the Trump administration and Iowa’s congressional delegation for taking action on priority issues that will have long-term benefits for Iowa farmers and place us in a better position to succeed,” he said.

Included in the bill were several high-priority wins for soybean farmers, including:

• Strengthened section 45Z clean fuel production credit, an essential tool for supporting biofuels, including biodiesel made from soybeans. The final bill reflects several of ISA’s top priorities including extension of 45Z through 2029, removal of indirect land-use change (ILUC) penalties, and a new restriction ensuring only feedstocks sourced from the U.S., Mexico and Canada qualify for the credit.

• Increased small biodiesel producer credit to 20 cents per gallon, supporting local biodiesel plants and boosting market access for Iowa-grown soy.

• Long-term stability and permanent tax relief to farmers, raising the estate tax exemption to $15 million per individual, locking in the section 199A deduction, and boosting the soybean reference price to $10 per bushel in 2025 with annual inflation adjustments beginning in 2031.

• Enhanced agriculture-risk coverage program and beginning farmer and rancher benefits for crop insurance are also expanded.

• Doubled funding for USDA’s market-access program and foreign market development, creating new global demand channels for Iowa commodities.

“For farmers passing family farms to sons and daughters, the estate-tax reform helps secure our generational legacy," Swart said. “We deeply appreciate the work of soybean farmers who are ISA advocate members for engaging with their elected officials on these issues. Offering their opinions and support helped make this pro food and farming policy a reality.”

A strong biodiesel market helps farmers weather difficult economic conditions.

Biodiesel and renewable diesel production support 10 percent of the per-bushel price of U.S. soybeans.

For Iowa farmers, the biodiesel industry supported $1 per bushel in 2024 and $598 million in overall value.