Scott Syroka is a former Johnston city council member.

It’s unclear whether Koch Industries would avoid paying utility replacement taxes worth millions of dollars every year if it acquires OCI Global’s Iowa Fertilizer Company plant in Wever (Lee County).

According to Chuck Vandenberg’s February reporting for the Pen City Current, the Iowa Fertilizer Company plant’s current owner, OCI Global, paid between $2 to 3 million in utility replacement taxes in 2023 alone.

To understand why it’s unknown whether Koch Industries would be required to pay these taxes if it acquires the plant, we must look back in the history books.

After deregulation spread across the country in the 1980s, including in the electric and natural gas industries, the Iowa legislature responded in 1998 by passing Senate File 2146, the Property Tax Replacement and Statewide Property Tax Act.

Scott Syroka is a former Johnston city council member.

The U.S. Surface Transportation Board announced on February 29 it accepted Canadian National’s request to classify its proposed acquisition of Iowa Northern Railway as a “Minor” transaction. The federal regulator also established a procedural schedule going forward for interested parties to weigh in as the proposed acquisition undergoes review.

Canadian National had been facing opposition to its classification request from entities like Canadian Pacific Kansas City and the National Grain and Feed Association. Both had called for the Surface Transportation Board to classify the deal as a “Significant” transaction when being reviewed for consideration.

While on its face the classification decision may appear as a setback for those who oppose the deal due to increased consolidation of the rail industry and its potential for further abuses of monopoly power, the 9-page decision by the Surface Transportation Board makes clear that no final determination has been made.

Quaker Oats plant in Cedar Rapids, photographed by David Harmantas (Shutterstock).

Scott Syroka is a former Johnston city council member.

Attorneys for Canadian Pacific Kansas City submitted a 59-page filing to the U.S. Surface Transportation Board on February 26 regarding the proposed acquisition of Iowa Northern Railway by Canadian National.

The Canadian Pacific Kansas City filing highlights the proposed deal’s “national importance” and cites “competitive concerns of significant magnitude” in calling for the Surface Transportation Board to classify Canadian National’s takeover attempt of Iowa Northern as a “Significant” transaction rather than the “Minor” transaction status that Canadian National has sought.

The distinction matters because “Minor” transactions aren’t subject to the same regulatory requirements as “Significant” transactions—meaning the public would have less access to information and less time to review the deal.

State Auditor Rob Sand has asked federal regulators to block Koch Industries’ planned acquisition of OCI Global’s Nitrogen Iowa fertilizer plant in Lee County.

In a January 30 letter to Federal Trade Commission Chair Lina Khan and Assistant U.S. Attorney General Jonathan Kanter, who leads the Justice Department’s Antitrust Division, Sand noted tax incentives totaling some $550 million had supported building the plant, which “was pitched to taxpayers as a project that would encourage future competition and growth for the region.”

Scott Syroka highlighted the problematic sale in a Bleeding Heartland post last month. That article detailed how then Governor Terry Branstad’s administration orchestrated a package including $300 million in federal tax giveaways related to a flood relief program, $133 million in local tax abatements from Lee County over twenty years, and $112 million in state tax credits or forgivable loans.

The auditor’s letter argued that a sale to Koch Industries would likely increase fertilizer costs for farmers. It would also negate the original intent of the deal; the idea that Koch wouldn’t own the new plant justified “the massive commitment of tax dollars in the first place.” Sand said he agreed with comments Branstad made to reporters in 2013, asserting that the Koch brothers “don’t want the competition,” whereas Iowans “want competition.”

Sand is the first Iowa statewide official to contact federal officials about the sale, which OCI Global announced in December.

Governor Kim Reynolds with her predecessor Terry Branstad in photo originally published on Reynolds’ official Facebook page in September 2020

Scott Syroka is a former Johnston city council member.

Antitrust regulators should block the proposed sale of OCI Global’s Iowa Fertilizer Co. plant in Wever (Lee County) to Koch Industries. The deal would be outrageous, but we must look back to fully understand why.

HOW IOWA TAXPAYERS HELPED FUND OCI’S FERTILIZER PLANT IN WEVER

Then-governor Terry Branstad and Lieutenant Governor Kim Reynolds offered nearly $550 million in tax giveaways to OCI’s predecessor, Orascom, to build the plant prior to its 2017 ribbon cutting.

That included $133 million in local giveaways such as Lee County property tax abatement over twenty years. Another $112 million in state giveaways like corporate tax credits and forgivable loans. And an estimated $300 million in federal tax giveaways from the get-go thanks to the Iowa Finance Authority approving Orascom for $1.2 billion in Midwestern Disaster Area bonds created by Congress after the 2008 floods.

The U.S. Senate completed its work for the year on December 22, when senators approved an omnibus bill to fund the federal government through the end of the current fiscal year on September 30, 2023.

The bill allocates $1.7 trillion in federal government spending ($858 billion for the military, and $772 billion in non-defense spending). The Washington Post broke down the funding by appropriations area.

The legislation also provides $44.9 billion more in aid to Ukraine, and $40.6 billion for disaster aid. It changes some Medicaid rules, which will preserve coverage for many new mothers and children. It also includes some policies not related to federal spending, such as reforms to the Electoral Count Act, workplace protections for pregnant or breastfeeding employees, and a ban on installing TikTok on government-owned devices.

Eighteen Republicans joined the whole Democratic caucus to pass the omnibus bill. Iowa’s Senators Chuck Grassley and Joni Ernst were among the 29 Republicans who opposed the bill on final passage (roll call). But they supported some amendments added to the bill on December 22, as well as several GOP proposals that failed to pass.

C.J. Petersen is a “dirt road Democrat” and rural organizer.

In the 1987 movie Wall Street, Gordon Gekko quipped that “Greed, for lack of a better word, is good.” Since that time, the American family farm—defined by farm economist and researcher Alicia Harvie as a farmer “who makes the management decisions, provides the bulk of the labor on the farm, and looks to make all or most of their living from farming,” has been on the decline.

Corporate agriculture revenues have been on the rise, reaching record profits even amidst a once-in-a-century global pandemic. Lax enforcement of antitrust laws in the agricultural sector of the economy has harmed family farms and led to the corporate consolidation of the industry, resulting in increased costs and the hollowing out of rural communities.

Zach Simonson is chair of the Wapello County Democrats. He works in city planning and is a Masters in Public Policy student at the University of Northern Iowa. -promoted by Laura Belin

Someone smarter than me will come up with a name for this moment in the development of streaming media. In last couple of weeks alone, two of the world’s largest companies launched their own platforms with Apple TV+ and Disney+. Those platforms join Netflix, Hulu, Amazon Prime Video, Starz, CBS, HBO and Showtime. Walmart, Comcast and WarnerMedia are expect to announce their own platforms in the coming months, each with exclusive content and other gimmicks.

It’s going to make you long for the days of cable.

Iowa Attorney General Tom Miller was one of 16 state attorneys general to file a federal antitrust lawsuit yesterday against Apple Inc. and three major U.S. publishers. The complaint alleges that the publishers and Apple conspired to raise prices on electronic books, causing consumers to be overcharged by more than $100 million. The U.S. Department of Justice filed a similar lawsuit against Apple and two publishers in a different federal court.