Grassley pushes Dow, DuPont on ag headquarters

WASHINGTON — Sen. Chuck Grassley pressed officials at Dow Chemical and DuPont to consider Iowa's deep role in agriculture and research as the companies consider where to put their new agricultural headquarters following their merger.

Grassley said he spoke Thursday with DuPont CEO Ed Breen, Dow CEO Andrew Liveris and an unnamed executive who will be leading the $18 billion agricultural company the conglomerates plan to spin off once their merger is complete.

The Iowa Republican, who is a farmer in Butler County, came away from the meetings believing the headquarters will likely end up in Iowa, where seed giant DuPont Pioneer has its agriculture operations in Johnston, or Indianapolis, home of Dow AgroSciences' ag chemical and seed operations.

“Where the corporate headquarters is is still up in the air, but I have a feeling that it’s very competitive for Iowa,” Grassley said in an interview Friday.

At one point Grassley said he asked the expected head of the agricultural unit where his office would be located, but the senator didn’t get an answer. "That tells me he didn't want to give me any bad news," he said.

Grassley emphasized to the executives the state’s role in agriculture — Iowa is the No. 1 corn, egg, pork and ethanol producer — and long history of agricultural research that dates back to around World War I. “If you really want your company to be an outstanding company, why wouldn’t you be putting the headquarters in the No. 1 agricultural state in the nation?” he said he told the executives.

Grassley, a member of the Senate agriculture committee and chairman of the prestigious Senate Judiciary Committee, said earlier this week that losing Pioneer’s presence in Iowa would be “a substantial blow to our state and show a lack of appreciation” for the work Pioneer has done. He is planning to send a letter to the Justice Department asking it to investigate the merger’s impact on competition in the agriculture sector and is considering holding a congressional hearing.

DuPont’s Breen told analysts Tuesday that while the two companies haven’t decided where the headquarters for the new company’s agriculture operations will be located, he expected an announcement in the next few weeks.

“It’s something we want to get out there, by the way for a whole bunch of reasons, but the No. 1 reason in my mind is for our employees so they understand and have some clarity on that,” Breen said. “We’re moving as fast as we can to get that announcement.”

Gov. Terry Branstad, Debi Durham, the state’s economic development leader, and others met with Breen and Liveris on Jan. 15 at the governor’s mansion. Since then Iowa’s Economic Development agency has been in regular contact with both companies.

Iowa and Indiana are both expected to offer lucrative financial incentives in an effort to sway Dow and DuPont to pick their state. Officials have been tight-lipped on details of the negotiations and what they have offered to woo the new company.

Tina Hoffman, a spokeswoman with Iowa Economic Development, said the state has discussed with the companies business programs, including tax credits and financial assistance. “There is no doubt we’re in a competitive situation, and we’re doing everything we can to talk about the advantages that Iowa brings to the table,” she said.

DuPont Pioneer employs about 2,840 workers in Iowa, mostly in Johnston. Pioneer, founded in Iowa by Henry A. Wallace in 1926, has been an important cog in the Iowa economy and symbolic of the state’s dominant position as a major U.S. producer of corn, soybeans, ethanol and other commodities.

Iowa: We want DowDuPont ag headquarters

Chad Hart, an Iowa State University agricultural economist, said what the packages look like will “play a very big role” in where the companies decide to go.

While the state not chosen is unlikely to lose its agricultural operations entirely, Hart said officials in Iowa and Indiana are cognizant that failing to get the headquarters means the departure of high-paying jobs and the loss of a long-term tenant. The decision will come down to money, he said, rather than the importance of agriculture.

“Money will be the bigger deal,” Hart said “Both choices are great, whether it’s Johnston or Indianapolis, that’s going to look fine from an ag perspective. We’re Iowa and we tend to think we’re ag, but I’m sure you could look at Indianapolis and they would tell you the same thing.”

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Contact Christopher Doering at cdoering@usatoday.com or reach him at Twitter: @cdoering