AGP Executive Report

Agriculture: Iowa soybean farmers face added pressure after China trade talks left raw soybeans out of tariff relief; the crop was worth about $6 billion last year. Farmers also report disappointing corn yields, while Iowa diesel averaged $6.04 a gallon. Manufacturing: Iowa’s planned $15 billion southeast steel mill, backed by up to $1.36 billion in state incentives, promises more than 1,700 permanent jobs. Separately, the Iowa Association of Business and Industry’s statewide manufacturing tour runs Oct. 13–24. Farm Competition: The FTC and USDA have opened an inquiry into equipment sales and repair practices, while USDA is also examining seed prices and licensing. Infrastructure: Overnight eastbound I-80 closures near the Southwest Mixmaster begin Oct. 11, with NE 29th Street closing Oct. 14 for bridge work. A public meeting Oct. 21 will present the preferred alternative for the U.S. 67 Centennial Bridge corridor. Energy: Iowa regulators rejected Summit Carbon Solutions’ request to consolidate pipeline dockets and schedule a hearing, though some phase-two filings remain undecided.

Steel Investment: Iowa approved up to $1.36 billion in incentives to lure Essar-backed Mesabi Metallics’ proposed $15 billion steel complex to Lee County, with 1,750 jobs promised. The deal faces scrutiny over the company’s unfinished, debt-ridden Minnesota project. Farm Costs: Gov. Kim Reynolds expanded temporary permission for dyed diesel on Iowa roads during harvest, but farmers and truckers say the measure offers little relief as fuel prices soar. Data Centers: Johnson County is weighing an extension of its data-center construction moratorium, while a proposed QTS facility in Clinton could bring an estimated $200 million in local benefits amid neighborhood concerns. Manufacturing: A new survey points to growth in Iowa manufacturing; separately, NICC received $656,000 to expand healthcare and manufacturing training.

Farm Fuel Costs: Gov. Kim Reynolds expanded Iowa’s temporary dyed-diesel relief to more farm products, waiving on-road penalties through February 2027. Farmers and truckers say the tax break may offer only limited relief from high fuel costs. Advanced Manufacturing: Ankeny approved an agreement for Accumold to expand, with groundbreaking planned, while NICC received $656,000 to expand healthcare and manufacturing training. Seed and Crop Research: USDA launched a $180 million seed initiative during a visit to Prairie City, aiming to sequence U.S. seed collections and investigate seed-industry competition. Steel Investment: Iowa approved up to $1.4 billion in incentives for a proposed $15 billion steel mill, but questions remain about the project’s site, jobs and delivery. Harvest Outlook: Wet weather has slowed Iowa’s harvest and raised grain-quality concerns, including sprouting corn and discolored soybeans. Forecasters expect a warmer, wetter fall and winter, which could complicate fieldwork and nutrient applications.

Steel Investment: Essar-backed Mesabi Metallics is promoting an $18 billion Midwest steel venture, including a proposed $15 billion complex in Lee County. Iowa approved up to $1.36 billion in incentives, but the project still faces site and contract questions, and critics warn promised jobs are not guaranteed. Manufacturing Growth: Ankeny approved a development agreement for Accumold’s $33.2 million, 50,000-square-foot expansion. The medical and electronics parts maker plans to add 150 jobs. Harvest and Fuel: Iowa has suspended penalties for using dyed diesel on public roads for certain farm-related hauling through February 2027, offering potential fuel savings as wet fields keep harvest progress behind average. Data Center Rules: Lee County is drafting regulations after community opposition halted a project and supervisors imposed a one-year construction moratorium. Workforce Training: Northeast Iowa Community College will receive more than $656,000 to develop short-term healthcare and manufacturing programs with regional employers.

Steel & Jobs: President Trump announced a $15B Mesabi Metallics steel mill near Fort Madison in Lee County, aiming for 7.5M tons of domestic steel annually and about 1,750 permanent jobs starting production around 2030. Iowa lawmakers are also moving to expand MEGA incentives tied to the project. Policy & Fuel Costs: Trump’s executive order and Iowa Gov. Kim Reynolds’ proclamation temporarily expand use of red-dyed diesel on qualifying roads, with officials saying it could cut costs for farmers and trucking during harvest. Ag Research: USDA launched a $180M Seed Sovereignty initiative to sequence U.S. seed collections and strengthen DOJ efforts into competition in the seed industry. Iowa Agriculture Watch: USDA’s weekly crop report shows corn maturity at 85% and soybean leaf drop at 81%, with fieldwork still limited by recent wet weather. Energy & Grid: Ames National Laboratory received $1.5M for rare-earth separation research, and DOE is set to visit southeast Iowa utility projects Oct. 8. Local Industry & Services: West Des Moines outlined an emergency flood plan, while Fayette’s ambulance service reported rising call volume amid budget pressure.

Industrial Investment Watch: Industrial SalesLeads says September brought 156 new industrial manufacturing projects across North America, with $100M+ projects up 37.5% month over month and Iowa landing 6 of the top-10 states. Energy & Power for Data Centers: Google is nearing a major nuclear power deal with Constellation Energy—3,590 MW contracted, tied to upgrades at multiple reactors—highlighting how AI-driven electricity demand is reshaping Iowa’s power conversations. Iowa Steel Incentives Timeline: Iowa has 60 days to exclusively negotiate a contract with Mesabi Metallics for a proposed $15B Lee County steel plant after lawmakers approved $1.3B in tax incentives; production is still targeted for 2030. Local Construction & Schools: Des Moines’ Studebaker Elementary broke ground on six new classrooms funded through the state’s SAVE program. Ag & Food Supply: A frozen berry recall linked to potential E. coli contamination expanded to additional Walmart and Trader Joe’s items, urging shoppers to check lot codes. Community Food Aid: Meals from the Heartland’s Hunger Fight in West Des Moines is set to pack 1.75M to 2M meals over five days with thousands of volunteers.

Data Centers & Local Planning: Linn County is recruiting 20–25 residents for a volunteer Data Center Advisory Committee as an 18-month pause on new data centers in unincorporated areas continues; applications are due Oct. 19, and the panel will review zoning rules affecting water, electricity, emergency services, roads and long-term land use. Renewables & Zoning: Dubuque County supervisors are weighing a temporary halt on new commercial solar projects while a new renewable energy ordinance is drafted, including possible rules for smaller projects up to 50 acres and new setback requirements. Harvest Watch: USDA reports Iowa farmers are still behind the pace—only 7% of corn is harvested and 5% of soybeans, with just 1.2 days suitable for fieldwork amid wet conditions. Conservation Tools for Farmers: Iowa State Extension launched an online Iowa Conservation Professionals Map to connect landowners with local conservation experts for site assessments, practice design, installations and funding guidance. Mississippi River Bridge: Iowa and Wisconsin DOTs say the IA 9/WIS 82 Lansing bridge is expected to open to traffic Nov. 6, ending the free car ferry service; work continues through winter and into spring 2027. Energy & Utilities: Muscatine Power and Water approved a 2027–2029 strategic plan and authorized a $3.6M condenser retube project plus a SCADA upgrade to boost reliability. Ag & Health: Community Health Partners is offering free flu shots for livestock workers in Sioux County, expanding access to anyone who farms or works with livestock. Steel Incentives Politics: Iowa lawmakers approved MEGA changes tied to the proposed $15B Mesabi steel plant, extending nearly $1.4B in tax incentives—supporters say it’s conditional on building, while opponents call it election-year politics.

Iowa Steel Incentives: Gov. Kim Reynolds signed a bill extending about $1.36B in tax incentives for Mesabi Metallics’ proposed southeast Iowa steel mill, after lawmakers approved the package in a special session; officials say payouts hinge on benchmarks, while critics question the size and secrecy of the deal. Renewables Fight in Rural Iowa: Iowa Farmers Union and other groups sued USDA over new REAP rules that they say effectively block solar funding and were applied retroactively, raising costs for farmers and rural businesses. Water Quality Work: Plymouth County conservation leaders outlined nitrate-focused cost-share programs—cover crops, no-till, and edge-of-field practices—to protect Iowa waterways. Dairy Leadership: Midwest Dairy CEO Corey Scott was named to lead the national dairy checkoff, starting Oct. 12. Ag Tech & Crops: Corteva’s split into two companies became official Oct. 1, with Iowa-based Vylor taking over seed and genetics. Food Safety: PepsiCo recalled about 122,000 cases of 28-ounce Gatorade in multiple states due to undeclared yellow dyes on labels. Livestock Markets: CME cattle futures slipped as cash trade stayed steady to lower, with slaughter recovery continuing.

Midterms Watch: With a month to go, political momentum is shifting as voters weigh cost-of-living pressure and the “six-year itch” narrative around President Trump. Iowa Education & Workforce: Iowa employers in Educational Services filed 430 H-1B petitions in 2025, with a 98.1% approval rate; top filers included the University of Iowa and Iowa State. Manufacturing & Energy: Iowa’s proposed $15B steel mill continues to drive state incentive debate, with Gov. Reynolds signing MEGA changes tied to the project. Food Safety: Alfalfa sprout recalls linked to E. coli and Salmonella have expanded to 76 illnesses across 16 states; frozen berry recalls also widened, including Trader Joe’s and Walmart lots. Community & Kids Tech: The Iowa Children’s Museum launched free library coding activities across Eastern Iowa via its Cracking the Code program. Local Business: Citizens First Bank named Kristine Wiersema branch manager for its new Morrison location.

Steel & Manufacturing: President Trump announced a $15B Mesabi Metallics steel plant in Iowa, pitching 1,750 permanent jobs and up to 6,000 construction jobs, with first production targeted for 2030. State Incentives: Iowa lawmakers also signed off on MEGA program changes and large tax incentives tied to the steel project, as local leaders weigh economic upside against costs and environmental concerns. Energy & Costs: A national gas-price drop of nearly 7 cents still leaves prices near record highs for the season, while diesel and energy pressures remain a recurring theme for producers. Ag & Food Safety: The FDA expanded a frozen-berry recall over possible E. coli contamination, including Great Value and Trader Joe’s products sold in Iowa. Industrial Safety: Firefighters responded to another blaze at AGP’s baghouses in Sheldon, following recent incidents at the same agricultural facility. Local Economy/Tech: A proposed QTS data center in Clinton, backed by Blackstone, is drawing debate over tax revenue versus noise and water impacts. Politics: Midterm coverage highlights Iowa as a key battleground where data-center policy and broader economic concerns could shape races.

Iowa Steel & Manufacturing: Iowa lawmakers and Gov. Kim Reynolds moved to expand and approve tax incentives tied to a proposed $15B Mesabi Metallics steel mill in southeast Iowa, with reports framing it as a major jobs and production boost for the region. Energy & Agriculture Costs: The U.S. diesel export ban talk cooled after a G7 agreement to release 100 million barrels of fuel stockpiles, while Iowa-area producers continue watching diesel prices closely. Local Business & Community: Clinton, Iowa residents are split over a planned QTS/Blackstone data center campus that could reshape the city’s tax base and raise concerns about water and noise. Weather & Operations: Drake University is dealing with record September rainfall in Des Moines, stressing campus systems as the water table rises. Iowa Transportation Safety: A motorcyclist was hospitalized after a crash in an I-380 construction zone in Linn County. Consumer/Health: Frozen berry recalls expanded after an E. coli outbreak linked to Walmart and Trader Joe’s products. Sports (Iowa): College GameDay returned to Iowa City for Ohio State week; Iowa fell to the Buckeyes, while Iowa State topped West Virginia in a high-scoring shootout.

Steel & Incentives: Gov. Kim Reynolds signed House File 2801 to raise Iowa’s MEGA tax-incentive ceiling, clearing the way for Mesabi Metallics’ proposed $15B steel mill in southeast Iowa—aimed at about 1,750 permanent jobs and thousands more during construction. Local Business & Community: Iowa Children’s Museum must leave its Valley West Mall spot by Oct. 24 and is seeking help for a quick move to its new West Des Moines location. Ag Diversification: Two Iowa farmers shifted from hogs to mushrooms, repurposing old livestock buildings into an artisan food operation. Water Quality & Farming Policy: Iowa Secretary of Agriculture candidate Chris Jones framed his campaign as a water-quality referendum, pushing crop diversification and support for beginning farmers. Energy & Jobs: A DOE loan supports the restart of Duane Arnold in Linn County, positioning nuclear as a jobs and reliability play for Iowa. Public Safety: A serious crash shut down I-35/I-80 in Clive, with drivers urged to use alternate routes. Tech Education: The Iowa Children’s Museum’s “Cracking the Code” brings no-computer coding activities to Eastern Iowa libraries this fall and winter.

Steel incentives in focus: Iowa lawmakers approved a bill to expand the MEGA tax incentive program for the proposed $15B Mesabi Metallics steel mill in Lee County, setting up nearly $1.4B in state tax incentives; the House passed 75-17 and the Senate 28-19, with Gov. Kim Reynolds set to sign. Cap questions and public pushback: An AP report says Mesabi wouldn’t build under the current 5% MEGA cap, prompting the special session; residents at the Capitol raised concerns about water, energy, and whether the project is truly “done.” Manufacturing pipeline: Dyersville-area students toured local manufacturers for Manufacturing Day, exploring engineering and behind-the-scenes roles. Data centers and local policy: Hampton’s planning and zoning commission advanced a data center policy for the city comprehensive plan, including language on cooling systems. AI governance ripple: OpenAI disclosed it collected non-public wildfire statistics from an Australian state service, prompting review and coordination with state cybersecurity officials. Local business safety: Iowa City’s Kitty Corner Social Club temporarily closed after a structural engineer deemed its space unsafe, with plans to reopen at a new location in early November. Flood response: Pottawattamie County asked residents to report flood damage online after Mosquito Creek overflowed.

Iowa Steel Incentives: Iowa lawmakers are set for a special session after Trump’s announcement of a $15B Essar-backed steel plant in southeast Iowa, with lawmakers weighing how much state tax support to approve as details on location and incentives remain thin. Flooding Disrupts Daily Life: Heavy rain has triggered flood warnings and school cancellations across parts of eastern Iowa, with minor flooding monitored along major rivers. Ag Secretary Race: Candidates for Iowa secretary of agriculture sparred on ethanol and water-quality approaches, but both backed more grass-fed cattle. Diesel Costs Hit Harvest: Diesel prices remain elevated, pushing farmers to seek relief options like red-dyed diesel rules for hauling. Workforce Pressure: Iowa employers, especially in manufacturing, are facing a growing “replacement” problem as most openings come from workers leaving rather than new job growth. Trade and Pork: A U.S.-China tariff framework includes pork relief, while the farm bill’s slow pace keeps uncertainty around producer programs. AI and Regulation: Iowa’s AG coalition is among those seeking information from OpenAI after a cybersecurity incident tied to an experimental model.

Data Centers & Local Control: Independent candidate Dave Bushaw backs a federal moratorium on new AI data centers, pointing to community impacts and calls for transparency as Iowa counties weigh ordinances. Ag Fuel Costs: In an Iowa PBS debate, Ag Secretary Mike Naig and challenger Chris Jones spar over diesel relief—Naig favors a temporary fuel-tax pause; Jones pushes broader moves to cut fossil-fuel dependence. Drug Pricing Accountability: State AGs, including Oregon’s Dan Rayfield and Illinois’ Kwame Raoul, seek court approval of a $400M Sandoz settlement tied to alleged generic-drug price-fixing and reduced competition. Renewables Funding Fight: Iowa Farmers Union and a solar coalition sue USDA over changes to REAP that they say make most solar projects ineligible, including retroactive impacts. Workforce & Training: Northwest Iowa Community College wins $385,427 to expand short-term workforce training in industrial maintenance and manufacturing design. Business Climate: Iowa employers report stable finances and a neutral economic outlook in ABI’s quarterly survey, with workforce/talent and healthcare costs topping concerns. Flood Response Logistics: U-Haul offers 30 days of free storage and U-Box use at 35 Iowa/Nebraska locations for flood-impacted residents. Manufacturing Pulse: New national reports show U.S. manufacturing activity expanding despite higher costs and supply-chain friction.

Steel & Manufacturing in Iowa: Sioux Honey Co-Op broke ground on a 665,000-square-foot expansion in Sioux City, adding a 440,000-square-foot production facility and a 225,000-square-foot warehouse, with partial operations targeted for Feb. 2027 and full production lines by summer 2028. Food & Ag Processing: Edible Garden is buying the Webster City, Iowa site for its Prairie Hills ready-to-drink manufacturing facility, shifting from tenant to owner to support scalable Farm-to-Formula production. Energy & Fuel Costs: The U.S. is pressing France and Germany to release diesel from emergency reserves, while warning of possible U.S. diesel export limits if prices don’t ease. State Incentives Politics: Iowa governor candidates are clashing over incentives for the proposed $15B southeast Iowa steel plant, with lawmakers set to vote in a special session. Local Infrastructure: Omaha Public Schools warned flooding and mudslides could disrupt bus routes and delays for thousands of students. Consumer & Health: Michigan AG Dana Nessel urged consumers to file claims tied to multistate generic drug price settlements. Data Centers & Zoning: Fort Madison planners continued work on ordinances that could regulate future data center and large industrial projects.