USDA Invests Over $3.6 Million to Boost Rural Economic Development in Iowa

By Cami Koons

The U.S. Department of Agriculture (USDA) Rural Development has announced the allocation of more than $3.6 million through “pass through” loans and grants to local utilities aimed at supporting community businesses and emergency services across Iowa.

Henry Kummerer, Iowa’s Rural Development Deputy State Director, made the announcement on Thursday. The funds are set to make a significant impact in Butler, Carroll, Decatur, and Webster counties.

Funding Sources and Objectives

The funding originates from the USDA’s Rural Economic Development Loan and Grant program, which provides local utilities with the tools needed to set up revolving loan funds. These funds are intended for community projects that create or retain jobs. Notably, the loans issued to local utilities carry no interest.

Key Projects Funded

Among the noteworthy allocations, the USDA awarded $1 million each to Raccoon Valley Electric Cooperative and Corn Belt Power Cooperative. These funds are designated for Iowa Corn Processors to update their equipment and enhance the packaging line at their milling facility in Glidden. This initiative is expected to generate five new jobs, significantly contributing to Carroll County’s economic development.

In addition, Central Iowa Power Cooperative received a $1 million loan to support Industrial Hardfacing Inc., a manufacturing firm based in Lamoni. The funding will help the company expand its operations and create six new jobs, along with assisting in purchasing new equipment.

Supporting Local Healthcare

The USDA is also backing local healthcare initiatives with two grants of $300,000 each, aimed at establishing a dental practice in Fort Dodge. Dumont Telephone Company and Lehigh Valley Cooperative Telephone Association Inc. will utilize these grants to create a revolving loan fund to support Erika and Thaylan Bowman’s acquisition of the dental practice named White Oak Dental. This venture is set to enhance employment opportunities and improve dental care access in the region.

Emergency Services Development

Furthermore, an $83,333 grant has been allocated to Rockwell Cooperative Telephone Association to create a revolving loan fund to help finance a new fire department and emergency services facility in Bristow. The loan repayment will contribute to future business and community development loans, aiming to stimulate economic growth in Bristow and adjoining Butler County communities.

Community Impact

Kummerer emphasized the role of local utilities in fostering innovation and entrepreneurship within their communities. “Under the leadership of the Trump Administration, USDA is continuing to partner with co-ops to support job creation and promote economic development in rural Iowa,” he stated.

This significant investment marks a commitment to sustaining and nurturing the economic landscape in rural Iowa, paving the way for expanded opportunities and improved services for local residents.

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