October 17 Iowa Economic Round-up: Iowa’s Revenue Falls
Iowa’s economy has been ranked the worst in the country. President Trump’s own Bureau of Labor Statistics has put Iowa 49th in economic growth and 48th in personal income growth. Even Republicans concede Iowa is in a “recessionary economy.” Leaders at the Federal Reserve have warned that Iowa’s economy is particularly vulnerable to Republican tariffs and ongoing trade disputes.
Reports are in, and Iowa’s state revenue is projected to fall by almost a billion compared to the previous year. Our agriculture industry is experiencing a downturn at the same time. Here’s what Iowans have been reading this week:
Iowa’s revenues to drop by $800 million from last year amid tax cuts
“They have thrown the state into a fiscal death spiral,” Iowa Democratic House Leader Brian Meyer said. “And that death spiral is a result of their corporate tax cuts, vouchers and tax cuts for the wealthy in this state.”
Estimated Iowa tax revenue to dip by 9 percent | The Gazette
“The majority party’s plan is to bleed our reserves dry to pay for their giveaways,” state Senator Janet Petersen said on the press call. “The billion-dollar hole they created in the state budget is ongoing, but our reserve funds aren’t. How long will Iowa taxpayers be asked to foot the bill for the majority party’s economic mismanagement?”
Federal tax cuts add to Iowa’s revenue decline, causing the state to dig deeper into reserves | Iowa Public Radio
Senate Democratic Leader Janice Weiner of Iowa City said Republicans didn’t plan for the current situation. “Our economy is shrinking,” she said. “Our revenues are collapsing. We are spending more than we’re taking in.”
Is Iowa at risk of a recession? Numbers, economists present mixed bag
In June, a WalletHub study claimed that Iowa’s economy was last in the nation, attributing slow growth to low activity in all of the following: Startup activity, GDP growth and number of non-farm payrolls, which refers to goods, construction and manufacturing companies.
As Iowa soybean farmers continue a record harvest, a trade war with China spells financial hardship for farmers – The Daily Iowan
Iowa soybean farmers are harvesting what the Iowa Farm Bureau says could be a record crop this year, with an expected 53 bushels per acre. But Verne Hosek, who lives outside Fairfax, isn’t optimistic about making money this year.
Iowa farmers face losses, given high costs, China’s soybean boycott
Given average corn and soybean yields, Iowa farmers could lose about $100 an acre, data show. Corn, trading around $3.75 a bushel in Iowa, the largest corn-producing state, is about 50 cents per bushel below break-even, based on Iowa State University’s estimated production costs. Iowa is the second-largest producer after Illinois of soybeans, which at $9.40 a bushel are going for about $1.75 less than what they cost to grow, data shows.
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