Indiana Task Force Recommends Cabinet-Level Secretary of Agriculture and Expanded Role for Indiana State Department of Agriculture ahead of 2027 Budget Session

At a Glance

• On October 13, 2026, Indiana's Agricultural Promotion and Regulation Task Force approved, by a 13-1 vote, a final report with 18 recommendations to the General Assembly for reorganizing how the state promotes and regulates agriculture.
• The headline recommendation asks the General Assembly to consider recommending that the governor create a formal agriculture "vertical" in the executive branch. It would be led by a cabinet-level secretary of agriculture appointed by, and reporting directly to, the governor. Under this structure, the Indiana State Department of Agriculture (ISDA) would be removed from the oversight of the lieutenant governor.
• The report also recommends moving timber buyer licensing, forestland programs, and produce safety inspection to ISDA; keeping the Office of Indiana State Chemist, Egg Board, and Creamery Licensing Board at Purdue University; and increasing funding for animal health, grain licensing, Indiana Grown, and agricultural economic development.
• The General Assembly will decide during the 2027 budget session whether to legislate. Agribusinesses, timber and forest products companies, produce growers, livestock producers, and grain dealers should assess the potential impact and consider engaging now, while bills and appropriations are being shaped.

On October 13, 2026, Indiana's Agricultural Promotion and Regulation Task Force (Task Force) held its final meeting and approved a final report to be submitted to the Indiana General Assembly ahead of the 2027 budget session. The report contains 18 findings and recommendations that, if adopted, would significantly restructure how Indiana's roughly $35 billion agriculture sector interacts with state government.

This alert summarizes the Task Force's recommendations, highlights the key points of debate, and discusses potential implications for businesses operating in or investing in Indiana agriculture.

Background and Legislative Context

The Task Force was established by IC 2-5-53.5, through HEA 1003 (2026), and operates under the direction of the Indiana Legislative Council. It was charged with studying, among other topics, whether changes are needed to ISDA or to any other state entity that promotes, regulates, or advises on agriculture; whether turning ISDA into a regulatory agency would compromise its advocacy role for the industry; and how the state's various agricultural entities relate to one another, including any regulatory gaps or overlaps. The Task Force was also directed to evaluate whether agricultural functions currently administered by Purdue University should be transferred to other state entities.

Today, ISDA operates under the purview of the Office of the Lieutenant Governor. Agricultural regulatory functions are spread across multiple agencies, including the Indiana Department of Natural Resources (DNR), the Indiana Department of Health, the Indiana Department of Environmental Management, and several offices housed at Purdue University.

The Task Force met three times during the 2026 legislative interim: on July 28, September 2, and October 13, 2026. It heard testimony from industry associations, farmers, state agencies, Purdue-based regulatory programs, and the Governor's Office. At its final meeting, the Task Force amended the draft report and approved it by a vote of 13-1.

Overview of the Recommendations

The most significant recommendation, Recommendation 18, provides that the General Assembly should consider recommending that the governor create a formal agriculture vertical within Indiana's executive branch. That vertical would contain all agriculture-related agencies and would be led by a cabinet-level secretary of agriculture who is appointed by and reports directly to the governor. Although some press coverage has described the contemplated position as elected, the final report text describes an appointed position. The recommendation is also framed in advisory terms: it asks the General Assembly to "consider recommending" this structure, not to create it directly.

The remaining recommendations fall into several categories:

• Agency transfers to ISDA: Move the timber buyers licensing program, the classified forest and wildlands program, and private forestland management from DNR to ISDA. Move produce safety inspection from the Indiana Department of Health to ISDA, while ensuring Indiana keeps its "Path C" state status with the US Food and Drug Administration.
• Purdue-based offices: Keep the Office of Indiana State Chemist, the Indiana State Egg Board, and the Creamery Licensing Board at Purdue University, with each retaining its current functions. Stakeholders had warned that a transfer could jeopardize federal funding channeled through the university.
• Expanded ISDA authority: Create a new Local Foods division within ISDA; consider giving ISDA the authority, duty, and funding to manage conservation easements; establish in statute ISDA's duty to support the Indiana FFA Association; and codify a seat for the ISDA director on the Indiana Economic Development Corporation (IEDC) Board.
• Funding increases: Increase funding for the Indiana Grain Buyers and Warehouse Licensing Agency (with augmentation authority), the Board of Animal Health (to retain employees), the Animal Disease Diagnostic Laboratory, the livestock market reporting program, Indiana Grown promotion and marketing, and agriculture-related staffing in proportion to the sector's economic impact.
• New programs and tax measures: Consider a state-based loan repayment program for veterinarians and veterinary technicians; support family farm succession planning and incentives for younger farmers; establish a dedicated fund within ISDA for agricultural economic development; and consider lowering the circuit breaker cap on agricultural structures and developing additional tax exemption strategies for farmers.

Points of Debate

Rep. J.D. Prescott (R-Union City), who also serves on the House Ways and Means Committee, cast the lone vote against the report. He favored earlier language asking the General Assembly only to "continue discussions" with stakeholders, and he said the Task Force should focus on efficiencies rather than "creating more government." He also signaled that Ways and Means and the Appropriations Committee will scrutinize every ISDA funding request. ISDA Director Don Lamb said the department has been preparing budget numbers and has a plan for its Ways and Means presentation. The Task Force did not estimate the cost of its recommendations.

Timing also remains unsettled. At the September 2 meeting, Task Force Chair Rep. Mike Aylesworth (R-Hebron) suggested the secretary of agriculture position begin in 2032, after Governor Mike Braun's current term. Several industry representatives pushed to act during the 2027 session, and others suggested enacting the change now but implementing it after the 2028 election. The Governor's Office noted that defining the boundaries of an agriculture agency is difficult because agriculture intersects with environment, commerce, education, and other areas.

Implications for Agricultural Businesses

If enacted, the recommendations could consolidate regulatory touchpoints that are now spread across several agencies. Timber buyers, sawmills, loggers, and classified forest landowners would face the most direct change, since their licensing and forestland programs would move from DNR to ISDA. Produce growers and food companies would deal with ISDA, rather than the Department of Health, for produce safety inspections. Consolidation may streamline compliance over time, but businesses should expect transition issues, including new agency contacts, revised procedures, and possible changes to fees or forms.

Livestock, poultry, and dairy producers could benefit from added funding for the Board of Animal Health, the diagnostic laboratory, and veterinarian recruitment, which state officials have tied to staffing vacancies and disease-response capacity. Grain buyers and warehouse operators could see changes in how their licensing agency operates, including potentially more staff, faster service, or more frequent examinations, if the agency receives additional funding and augmentation authority, which would allow it to spend dedicated revenue above its appropriation. Agribusinesses considering expansion or new locations in Indiana could gain from a cabinet-level secretary of agriculture, an ISDA seat on the IEDC Board, and a dedicated economic development fund. The proposed tax measures could also reduce property tax costs for farm structures.

However, significant questions remain. These include whether the General Assembly will legislate during the 2027 session, how a new executive-branch structure would be funded and staffed, which agencies would ultimately fall within the agriculture vertical, and when any changes would take effect. Because many of the recommendations depend on appropriations, the outcome of the 2027 budget process will be critical. Businesses should consider identifying which of their Indiana licenses, permits, inspections, and incentives may be affected; developing positions on specific recommendations; and coordinating engagement with trade associations, Task Force members, and budget committee members before bills are filed.

Other Relevant Developments

The Task Force report comes amid other state actions affecting Indiana agriculture. In late September 2026, Governor Braun signed Executive Order 26-34, which temporarily allowed farmers to use tax-free, red-dyed diesel in all farm-operation vehicles, including pickups, semis, and grain trucks, when used for agricultural purposes. The order was set to run until early November 2026. Farm groups welcomed the relief during harvest but asked for an extension through the winter hauling season and for guidance on returning to regular diesel, since dye residue can remain in tanks and on-road vehicles may be tested. Businesses should confirm the order's current status before relying on it.

At the federal level, Indiana farm groups continue to press for congressional action on the Farm Bill, including year-round sales of E15 fuel, which industry groups say could significantly increase demand for corn.

A Note on Timing

The Task Force approved its final report on October 13, 2026, before the November 3 general election. The election shifted the makeup of the General Assembly: Democrats broke the Republican supermajority in the Indiana House and picked up seats in the Senate, according to unofficial results. The recommendations therefore reflect the priorities of the outgoing legislature. With new House leadership, possible changes to committee chairs, and a larger Democratic caucus, the 2027 General Assembly may take a different view of which recommendations to pursue, how to fund them, and how quickly to act. Clients should not assume that any recommendation will move forward as proposed. They should watch for early signals from new legislative leadership as the session approaches.

For More Information

The Task Force's final report, meeting minutes, and meeting video are available on the website.

For further information, you may contact the authors or the firm's Indiana state relations team. This team will continue to monitor the 2027 legislative session, related budget proceedings, and further agency developments in the coming months.