Grant Opportunities for Iowa Farmers and Small Businesses

By Cami Koons

In a significant move to boost local agriculture, the Iowa Department of Agriculture and Land Stewardship (IDALS) has announced the opening of applications for cost-share grants aimed at farmers, small businesses, and nonprofit organizations. These grants are designed to improve various aspects of agricultural processing, equipment, facilities, training, food safety, and continuing education.

Financial Support for Value-Added Projects

Iowa producers who focus on locally made and raised products are eligible to receive up to $25,000 in matching funds for each project under the Choose Iowa program. This initiative offers farmers and small businesses an excellent opportunity to enhance their operations and product offerings.

As part of its mission, Choose Iowa includes a network of over 300 farmers, businesses, and nonprofit organizations dedicated to selling Iowa-made goods. The program is supported and promoted by the state, emphasizing local produce and products.

Recent Successes and Future Goals

In April 2023, IDALS had awarded 33 value-added grants to producers, which require a one-to-one match from recipients. This collaborative effort resulted in a total investment of $1.3 million for value-added enhancements in various sectors. Projects funded include storage systems, well and irrigation improvements, automated bagging equipment, and on-farm sales systems.

Iowa Secretary of Agriculture Mike Naig remarked that the funding from Choose Iowa is crucial in helping farmers and small businesses capitalize on the growing demand for local Iowa products. He stated, “These value-added grants make it possible for innovative projects to move from dream to reality, whether that’s expanding processing capacity, upgrading equipment, or creating new customer-ready products.”

Funding Allocation and Future Prospects

For the fiscal year 2025-2026, the Iowa Legislature allocated $500,000 specifically for the value-added grants, with an additional $500,000 designated for dairy innovation grants to assist local dairies with necessary infrastructure and training improvements. Since 2022, IDALS has funded a total of 100 projects under the Choose Iowa value-added grant program, contributing a sum of $1.6 million to support local agricultural enterprises.

Application Process

Farmers, small business owners, and entrepreneurs interested in applying for the grant can find more information and the application process online. All applications must be submitted before noon on January 16, 2026, with grant recipients expected to be announced in the spring.

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