2025 General Assembly should be active as lawmakers debate its biannual budget  - Indiana Corn and Soy

2025 General Assembly should be active as lawmakers debate its biannual budget 

By Steve Howell, Senior Director of Industry Affairs for ISA and ICGA 

Indiana Soybean Alliance (ISA) and Indiana Corn Growers Association (ICGA) staff are geared up and ready to fight for issues crucial to Indiana corn and soybean farmers. One of our more important efforts is representing our members at the Indiana Statehouse to make sure legislation is advanced by our lawmakers that is good for our industry. 

As you are probably aware, General Assembly sessions during odd-numbered years are considered “long sessions” or “budget sessions” since the biannual budget is drafted and passed in these years. 

As of this writing, the 2025 Session of the Indiana General Assembly is in full swing. There are several bills important to both ICGA and ISA members. 

The broad range of topics we will track closely this session include a biofuels incentive bill, efforts to protect groundwater accessibility for agriculture, changes in the structure of certain government agencies, and proposals to reduce the property tax burden on farmers. 

State Rep. Dave Heine (R-New Haven) and State Sen. Brian Buchanan (R-Lebanon) have filed companion bills, HB 1127 and SB 254 respectively, to incentivize fuel retailers to offer higher blends of biofuels. These bills, if passed, will bring a much-needed boost to Indiana’s corn and soybean farmers. 

The legislation will provide a 5 cent per gallon income tax incentive for fuel retailers who offer gasoline fuel blends higher than E10. Incentives for diesel fuel blends begin at 5 cents for B5 with additional bumps of 10 cents for B10 and 18 cents for B20 and above. 

According to a recent study by ABF Economics, these incentives will boost biofuels adoption and increase Indiana corn and soybean farmers’ income by $117.8 million. 

Farmers aren’t the only beneficiaries of increased biofuels demand. Consumers will realize fuel cost savings of $11.9 million and an additional 677 Indiana jobs will be supported. Additionally, the ripple effect of this incentive will also add $104 million to Indiana’s GDP, according to the ABF study. 

ICGA and ISA farmer leaders have put a lot of work into promoting these biofuels incentives. Now we need all members to contact your legislators and ask for their support and get this done for farmers. 

With the recent concerns surrounding the use and availability of groundwater, we will support bills to protect ag water wells for irrigation and livestock production. Additionally, increased groundwater monitoring is needed to understand the amount of water available for all users. Access to better, more complete data to understand aquifer volumes and replenishment capabilities is vital to managing this important resource. 

There are bills that would change the structure of state government including the Indiana State Department of Agriculture. We will follow these bills closely and support efforts to provide better service to farmers. 

During the past few years, we have seen unsustainable, double-digit increases in property tax bills on the farm. Relief is needed and we will support bills that provide that relief. Efforts include changes to the capitalization rate, update elements of the net income elements of the farmland tax formula. 

Posted: January 16, 2025

Category: ICGA, Indiana Corn and Soybean Post - January 2025, ISA M&P, Membership and Policy, News

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