Amid all the negative economic news surrounding agriculture over the past 24 months, there was a dose of much-needed good news last week with reports that an Italian ag equipment manufacturer plans to open its new U.S. headquarters in central Iowa.

The Iowa Economic Development Authority approved a $500,000 forgivable loan and $300,000 in tax refunds to help ADR Axles build a 54,000-square-foot manufacturing facility in Perry, a $14.6 billion investment.

ADR Axles, based in Milan, makes axles, braking systems and suspensions for ag and industrial equipment. The Perry location is near several existing and potential customers including John Deere, Massey Ferguson, Case IH, Kinze Manufacturing and Bazooka Farmstar. 

It’s a shot in the arm for Perry, which lost its largest employer last year when Tyson Foods shut down its meatpacking plant, resulting in the loss of about 1,200 jobs. 

A Farm Bureau economic analysis showed that layoffs affecting 4,000 jobs in production agriculture and adjacent industries between Jan. 1, 2024, and Sept. 18, 2024, resulted in the loss of $1.5 billion in gross domestic product and a $100 million loss to the state and local tax base. The impact has only risen since then, as layoffs continued over the past seven months. 

The ADR Axles announcement, along with a planned groundbreaking later this year for a Daisy Brand dairy products facility in Boone, shows that agriculture continues to attract businesses to Iowa. 

Just as our state’s fertile soil lured early settlers to Iowa nearly 200 years ago, agriculture continues to attract businesses to Iowa as a place for economic opportunity.