Dairy farmers have two extra weeks to apply for the Choose Iowa Dairy Innovation Grant Program, thanks to an extension granted by The Iowa Department of Agriculture and Land Stewardship.
The grant program, authorized by the Iowa Legislature in 2023, aims to help smaller farmers and dairies increase on-farm dairy processing, reduce labor costs, and expand the selection of Iowa dairy products.
The grant will match up to $100,000 per project and is inspired by other recent Iowa cost-share grant programs, including the Choose Iowa Value-Added Grant and the Butchery Innovation and Revitalization Program, both of which are also aimed at increasing the availability of local food and boosting local processing capacity. The program has an initial overall budget of $750,000.
“The Choose Iowa Dairy Innovation Grant Program will help Iowa dairy farms cost-share the addition of new on-farm processing equipment or labor-saving technology, both of which will ultimately lead to the availability of more Iowa dairy products for consumers to enjoy,” said Secretary of Agriculture Mike Naig. “Because this highly competitive grant will create more markets, more consumer choice, and more economic opportunities in rural Iowa, it should come as no surprise that the initial interest from dairy farmers has been very promising. This two-week deadline extension will ensure more farmers can gather the information they need to get a strong application submitted by February 23.”
The application window will be open from Feb. 9 at 12:00 p.m. to Feb. 23 at 12:00 p.m.
The cost-share grants can help dairies invest in pasteurization equipment, processing vats, packaging and labeling products, robots, health monitoring, automated feeding systems or cleaning assistance. Excluded from the program funds are start-up costs, advertising, public relations, salary/benefits/wages, existing debt or any expenses incurred prior to the award.
The following examples are potential scenarios that would be eligible for the cost-share grant:
- Farmer A wants to purchase a $120,000 rotary cup filling machine to fill yogurt. Farmer A requests $60,000. Farmer A must have $60,000 of his own funding with either personal cash or financing to match.
- Farmer B is purchasing health monitoring equipment for his herd for $65,000. Farmer B is requesting $32,500. Farmer B must have $32,500 in funding with cash or financing for the match.
- Farmer C is purchasing two robotic milkers for $380,000. Farmer C can apply for up to $100,000. Farmer C must provide the remaining $280,000 to receive $100,000.
To be eligible for the grant, applicants must be located in Iowa, have fewer than 50 employees, be in good standing with relevant regulatory agencies, and have been permitted and inspected by the Iowa Department of Agriculture and Land Stewardship.
Full details about the cost-share grant program, including financial matching requirements, application, eligibility and scoring are available on the Choose Iowa website.
Applications should be submitted through the online portal on the Choose Iowa website and are due by 12:00 p.m. on Friday, Feb. 23, and grant recipients will be announced in April. Questions about the Choose Iowa Dairy Innovation Fund Grant Program may be directed to Choose Iowa Director Beth Romer at chooseiowagrant@iowaagriculture.gov.
