Over $25 Million Allocated to Iowa Projects Through USDA Funding

By Cami Koons

Through several programs and funding cycles associated with the U.S. Department of Agriculture and its Rural Development office, rural and agricultural communities in Iowa have been awarded millions of dollars over the past month. 

These programs funded clean energy projects, community development, safety, and the middle of the food supply chain in Iowa. 

$18.3 Million in Clean Energy Projects

The Iowa director for USDA Rural Development, Theresa Greenfield announced the latest round of Rural Energy for America Program (REAP) funding Nov. 14. 

The majority of the 195 projects funded were solar array installations, with one ethanol facility funded and several wind turbine projects. 

REAP funding is available to rural small businesses and agricultural producers for projects that increase access to clean energy. 

The USDA highlighted several awarded projects in a news release, including a solar array installation on a hog and pig farm in Hancock County that will replace 96% of the operation’s business energy use annually. Bottlebrush Swine LLC received a $259,281 grant to install the arrays at its operations near Garner and Ventura. 

The ethanol manufacturer Elite Octane LLC received a $500,000 grant for a more efficient oil recovery system that is expected to save over 10 million kilowatt hours per year and around $913,582, annually for the company, located in Atlantic. 

Another grant awardee, Greg Popkes, won a $295,000 grant to install wind turbines that are expected to replace more than half of the energy used on his pig and hog farms in Rock Rapids, George, and Sioux Center, according to the full list of REAP awards. 

 “All these projects funded today shine a light on how to fulfill the promise of reliable, renewable clean energy for Iowans,” state director Theresa Greenfield said in the press release.

This announcement comes not long after another five projects were awarded REAP funding in October. Since the program started, it has invested more than $2.7 billion in rural energy projects across the country, with a large portion of its funding coming from the Inflation Reduction Act. 

According to the USDA Rural Development portal, the next deadlines for grant applications are Dec. 31 and March 31, 2025. 

Rural Development Community Funding

The USDA Rural Development program awarded $2.7 million toward 12 rural projects around housing, small businesses, cooperatives, public safety and community. 

Greenfield announced the awarded funding and said in a press release the department is “removing barriers to economic growth by advancing locally driven plans and projects.” 

“USDA is here with programs designed to help rural communities obtain essential services such as fire trucks, emergency sirens, and affordable housing,” Greenfield said.

Allamakee-Clayton Electric Cooperative received a loan for $2 million to expand an existing feed mill in Allamakee County, as part of the Rural Economic Development Loan and Grant program. 

The Region XII Council of Governments received a $129,972 grant to help revitalize 16 very low-income homes in Audubon, Carroll, Crawford, Greene, and Sac counties. The funding comes from the Housing Preservation Grants program and will “eliminate” health and safety hazards for the homeowners. 

A $199,952 Rural Cooperative Development grant went to the University of Northern Iowa to provide technical assistance to employee-owned cooperatives that support small businesses in rural Iowa. 

The City of Grant received nearly $47,000 in grant funding to purchase a grass-fire truck for the city, and the City of Deloit received a $22,000 grant to purchase, install and operate an outdoor warning siren, which the city has lacked for several years, according to the press release.

Other funding came from the Rural Business Development Grants program to update the shared kitchen in the Community Foundation of Greater Muscatine’s business incubator program, and expand a revolving loan fund for emerging businesses in the City of Hawarden. The two projects are expected to create 15 new jobs with grant amounts of $97,000 in Muscatine and $140,000 in Hawarden.

Finally, the Nov. 25 announcement included five Economic Impact Initiative Grants totaling more than $150,000 and benefiting the cities of Keosauqua, Chariton, Morley, Postville, and Marne. The project will help with winter road preparations, personal protective equipment, vehicles, warning sirens and other needed equipment for first responders. 

$5.2 Million to Food Supply Chain Projects

The Iowa Department of Agriculture and Land Stewardship announced it was investing in 24 Iowa projects with more than $5.2 million through the USDA Resilient Food Systems Infrastructure, or RFSI, grant program.

Iowa Secretary of Agriculture Mike Naig said in the Nov. 26 announcement the funding would create “more robust pathways for Iowa farmers and small businesses to bring their high-quality Iowa food and ag products to market.” 

Naig said the funding will help to “strengthen supply chains and build the infrastructure” behind local food production, which will also benefit Iowans looking to source Iowa-grown food. 

“As a result, these projects and logistical investments will ultimately help enhance our supply chains, create jobs in rural communities and grow Iowa’s economy,” Naig said in the release.

The awarded grants fell in two categories, infrastructure grants that require a cost-share match and equipment grants that require a 10% match from applicants. 

Four projects were awarded infrastructure grants totaling more than $1.5 million. 

Two of the grants will help facilitate the purchase and installation of new equipment at Iowa Corn Processors in Glidden and Kalona Creamery in Kalona, which will allow both companies to expand their processing capacities. 

NewBo City Market in Cedar Rapids received a $458,767 grant to add a second-floor processing kitchen and storage. The renovation will be completed with the business incubator and event center’s $780,000 in matching funds. 

Local Harvest CSA in Solon received a $100,000 grant to help expand its frozen vegetable storage, which will help grow the Community Supported Agriculture’s ability to serve schools. 

Twenty projects received grant funding for equipment in values ranging from $10,000–$100,000. 

The winning applicants will put funds toward delivery trucks, fruit washing equipment, refrigerators, freezers, bottling lines, canning lines, labeling equipment, a nutcracker, a butter processor for sweet cream and other equipment pertaining to the middle of the food chain. 

Just shy of $1 million of the total funding was invested to increase the capacity and distribution of Iowa’s wholesale food hubs. The funding will implement new software and updated operating procedures, facilitate a supply chain coordinator and host a summit to build relationships between local food buyers and producers. 

The press release said IDALS received more than 60 eligible applicants for grants.

Secretary Naig announced Monday the department had opened applications for Choose Iowa Value-Added Grants, which will match local producers up to $25,000 to add things like processing or packaging to their operations. 

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