By Cami Koons
The Iowa Department of Agriculture and Land Stewardship announced Monday that applications were open to farmers, small businesses and nonprofits for cost-share grants to improve processing, equipment, facilities, training, food safety, continuing education and more.
Iowa producers of locally made and raised products are eligible for up to $25,000 in matching funds, per project, from the state as part of the Choose Iowa program.
Choose Iowa is a network of more than 300 farmers, businesses and nonprofit organizations selling Iowa-made goods. The program is sponsored and marketed by the state.
In April, IDALS awarded 33 value-added grants to producers. The grant requires a one-to-one match from recipients, which brought the 2025 investment total to $1.3 million for value-added improvements. Awarded projects included storage improvements, well and irrigation systems, automated bagging equipment, refrigeration and on farm-sale systems, according to the April release from IDALS.
Iowa Secretary of Agriculture Mike Naig said Monday in a news release Choose Iowa funding is helping farmers and small businesses “capture” the momentum building for local Iowa products.
“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,” Naig said. “I encourage farmers, small-businesses, and entrepreneurs to learn more and apply. Every successful Choose Iowa project strengthens our rural communities and gives consumers more access to the fresh and local products they are looking for.”
The Legislature allocated $500,000 for the value-added grants in 2025-2026 fiscal year. The Legislature also stipulated another $500,000 of the Choose Iowa total budget would go to the program’s dairy innovation grants, which similarly help local dairies with infrastructure and training improvement
Since 2022 IDALS has funded 100 projects with the Choose Iowa value-added grant program, with a total state investment of $1.6 million.
Applications for the grant, and additional instructions are available online, where they must be submitted before noon on Jan. 16, 2026. IDALS said recipients of the grants will be announced in the spring.
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