Iowa is preparing a big, splashy bid to land the headquarters of the Corteva Agriscience seed spinoff, including introducing legislation that potentially would give the Indianapolis company large incentives to once again call Johnston home.
Debi Durham, Iowa’s economic development chief, says Iowa needs incentives targeting global corporate headquarter projects so it can better compete with other states, including Indiana, that already have perks in place.
“Iowa makes perfect sense for the seed headquarters to be here. But we don’t want to take anything for granted,” Durham said in an interview in her Des Moines office. “We’re fighting for this.”
Corteva, a $51 billion seed and ag chemical giant, already employs about 3,000 people in Johnston and nine seed production and research facilities across Iowa. And the company’s roots in Iowa are deep: Once-independent Pioneer Hi-Bred International, which became the core of Corteva’s seed division through a series of business moves, is marking its 100th anniversary in Johnston this year.
“Having the decisionmakers in your state is key,” Durham said, citing choices such as where companies make future capital and employment investments, support for local civic and cultural groups and education and quality-of-life initiatives like improving parks and trails.
The opportunity comes as Corteva prepares to divide its seed and crop protection operations into separate companies.
Iowa is taking an unusual approach to recruiting the seed spinoff HQ, Durham said, with a very public bid for the project. Bolstering efforts started by Johnston, the state and its partners launched a website touting Iowa and the city’s business climate, educational and workforce strengths and recreational opportunities.
“We want the existing Corteva employees to know the state’s all in,” Durham said. “We’re going to do everything in our power to make sure their jobs are still here — and I don’t think they’re in jeopardy.”
Corteva’s “commitment to the state is very, very strong. But we also want them to know we’re fighting for this headquarters as well,” she said.
State proposes incentives for new, retained high-paying corporate jobs
Corteva officials said during a Wednesday, Feb. 4, call with analysts that it’s on track to separate its seed and crop protection businesses by the second half of 2026. The company’s board voted in October to split the two businesses, saying both will gain a “stronger strategic and operational focus.”
Corteva CEO Chuck Magro said on the call that the company expects to announce the name of the seed spinoff, now referred to as SpinCo, in the first half of 2026, as well as the new CEO and executive team for the crop protection business, now referred to as New Corteva.
The spinoffs likely will happen in the fourth quarter, said Magro, whom the company named in October to lead the new seed business.
Durham said the Corteva headquarters project is unique because it’s unlikely to have a large capital investment that typically comes with company relocations and expansions. Johnston was Pioneer’s seed headquarters until 1999, when the chemical giant Dupont, which partnered with it two years earlier, purchased the remaining 80% of the company it didn’t already own.
DuPont and Dow Chemical Co. announced they were merging in 2015, then spun off three companies, including Corteva in 2019. Iowa and Indianapolis, which had a Dow seed and crop protection business, competed fiercely to keep their large operations and claim the headquarters.
In 2016, Iowa offered Corteva $17 million in incentives; Indiana offered $23 million; and Wilmington, Delaware, Dupont’s longtime home, offered up $9.6 million. Wilmington won, and Johnston and Indianapolis became business centers.
In 2018, Indianapolis had given the seed protection company $30 million in incentives, and Corteva unexpectedly moved to the city in 2022 without renewing the competition.
To better compete this time around, the Iowa Economic Development Authority has worked to introduce a bill in the current legislative session. Senate Study Bill 3103 would provide tax credits for high-paying corporate jobs for advanced manufacturing, bioscience, insurance and finance, technology, and research and development companies locating headquarters to Iowa.
Under the bill, companies would receive tax credits up to:
The legislation says the credits must be applied to the company’s Iowa tax bill the first year. Any money over that amount may be refunded or applied to the next year’s tax liability.
The legislation also would extend through 2030 MEGA — Iowa’s Major Economic Growth Attraction program — which provides incentives for companies making more than $1 billion in capital investment.
The headquarters incentives for Corteva could be hefty, based on company data: For example, 15% of just the top seven Corteva executive salaries in 2024 would equal $5.5 million.
Corteva and other companies also may qualify for additional incentives like loans, grants and other tax breaks offered under Iowa’s other economic development programs, the state said.
Other than Indianapolis, it’s unclear which cities and states may be in the running for Corteva’s seed spinoff headquarters, Durham said.
Corteva’s 2022 move to Indianapolis was made without Iowa — or other states — getting a chance to compete, she said.
“I have to say we were a bit surprised by that,” she said. “It was strange. We thought we’d at least have a conversation about that. … But this time is different.”
Seed spinoff wants to be advanced genetics powerhouse
Durham said she, Gov. Kim Reynolds and Johnston Mayor Paula Dierenfeld met with Magro in November when he visted the Johnston campus. They talked with the CEO and other executives about changes in Iowa’s tax climate, with cuts to the state’s top corporate tax rate; public and private investments made in recreational and water trails, parks and other amenities in central Iowa; and nearly $560 million in airport improvements that will make getting in and out of Des Moines easier.
Durham said officials anticipate the spinoff will become an advanced genetics powerhouse, although it’s unclear exactly what that entails. “That’s a good takeaway for us,” she said, because Iowa has the bioscience heft to help the company reach its goals.
The state has a tremendous pipeline of graduates and workers in science, technology, engineering and math and also a strong record of attracting talented workers when needed, she said. And it’s home to bioscience companies with products that range from seed, pharmaceuticals and medical devices to renewable fuels and biochemicals.
With that outlook, Durham said, she doubts the new Corteva seed spinoff will include the traditional Pioneer name, a popular pitch by online commenters. It’s understandable since Henry A. Wallace, an Iowa native who served as U.S. vice president and secretary of agriculture, founded what became Pioneer Hi-Bred Corn Co. on 40 acres near Johnston in 1926.
“This is about the future,” she said. “Whatever the company’s vision looks like, we have to make the case that Iowa can meet those expectations.”
Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com.
This article originally appeared on Des Moines Register: Econ development chief says Iowa ‘all in’ on landing Corteva seed HQ
Reporting by Donnelle Eller, Des Moines Register / Des Moines Register
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