Iowa Keeps Thousands of Jobs at a Hefty Cost
The state of Iowa has lost in its attempt to be home to the agriculture headquarters for two giant companies that are merging. However, thousands of jobs will be staying in the Hawkeye state at a cost of millions.
The agricultural headquarters of DuPont and Dow Chemical will be located in Wilmington, Delaware. I know that's not exactly the agriculture mecca of the United States, but is the current home to DuPont's corporate headquarters.
Even though Iowa won't be getting the headquarters, it will keep 2,600 jobs in Johnston. Ten percent of the workforce in the central Iowa town has been laid off, but DuPont executives have promised no further layoffs.
Those jobs have a cost to Iowa: $17 million in incentives. Two-million of it comes from a forgivable loan from the state and $14 million in tax credits. The Iowa Economic Development Authority approved the $16 million today with an additional $1 million expected to come from the city of Johnston at a meeting this afternoon.
The $17 million in incentives equates to more than $6,500 for each job at the Johnston facility. It seems like a huge number until you consider the economic impact of that many people losing their jobs.
The new Dow-Dupont agriculture company would be the largest in the U.S., passing Monsanto Co. The $130 billion merger of Dow and Dupont is expected to be finalized later this year.
[via Des Moines Register]