Equipping Iowa farmers with the tools they need to succeed

Agriculture is a capital-intensive industry. From buying fertilizer, seed, feed, and pesticides to purchasing new machinery, Iowa farmers and producers must maintain a tight budget to turn a profit and feed our country and the world.

For new and beginning farmers, the task of budgeting is even more difficult as some look to buy farmland, which has increased in value by over 300 percent in the last 20 years. Regrettably, thanks to poor policymaking in Washington, D.C., these input costs have only increased as inflation makes everything more expensive and supply-chain bottlenecks limit supply while demand persists. In today’s economy, our farmers need access to capital at affordable rates to be successful, and, as farming has evolved, they require the newest precision agriculture technology to remain productive and profitable.

Last year, I had the opportunity to attend the Farm Progress Show in Boone, Iowa. This annual agriculture exhibition showcases the newest advancements in agricultural technology and welcomes hundreds of thousands of visitors from across the United States and around the world. As I toured every industry tent and spoke to innovators and producers, I was struck by the vast selection of precision agriculture equipment, which has the unlimited potential to lower costs for our producers, make farming operations more efficient, and lessen the time-consuming nature of agriculture. However, the investment in this cutting-edge technology is prohibitive for too many family farmers who can’t afford expensive new technology. That’s a problem that requires a resolution.

When I returned to our nation’s capital for votes a few weeks later, I proposed a solution. I introduced legislation — the Precision Agriculture Loan Program Act — which would establish the first-ever federal precision agriculture loan program in the U.S. Department of Agriculture’s Farm Service Agency and provide our producers with low-interest loans to purchase precision agriculture technology. Under my bill, farmers can access loans up to $500,000 between three and 12 years in length at interest rates of less than 2 percent. These low rates will spur investment in precision agriculture tools that will help our young, beginning, and smaller farmers feed and fuel our country and the world.

According to industry estimates, precision agriculture tools can provide significant return on investment for producers and simultaneously improve agricultural productivity and profitability. This technology can improve fertilizer efficiency by 14 percent, herbicide efficiency by 15 percent, water usage by 21 percent, and overall farm productivity by 6 percent. Tools like precision irrigation can save enough water to fill 750,000 Olympic-size swimming pools and investments like fleet telematics and auto guidance can save farmers considerable fuel expenditures. Additionally, precision equipment like robotic milkers and modern parlor systems have helped Iowa dairy producers market more milk and deliver their product to consumers faster and cheaper. Working with my colleagues on the House Agriculture Committee, I am confident that my legislation will provide farmers with the financial incentive to make a long-term, beneficial investment in their business.

When Iowans elected me to Congress, I pledged that I would be the strongest voice for agriculture in our nation’s capital. Leveraging my positions on both the House Agriculture Committee and the House Ways and Means Committee, I work every day to advance policies that grow our rural economy, support our producers, and lower costs for our agricultural industry. Equipping our farmers with the capital they need to purchase precision agriculture technologies is just another tool that we can deploy to help our farming community thrive.

This op-ed was originally published in the Fort Dodge Messenger on June 28.