The Iowa Department of Agriculture and Land Stewardship announced it is channeling more than $5.2 million into 24 projects aimed at bolstering Iowa’s food supply chain. The funding comes from the United States Department of Agriculture’s (USDA) Resilient Food Systems Infrastructure (RFSI) grant program.
Designed to strengthen the backbone of the food supply chain, RFSI builds resilience by developing and expanding markets for Iowa’s small farms and food businesses.
“As more Iowans are looking for local food options and turning to Choose Iowa to find them, the Resilient Food Systems Infrastructure Program and other initiatives at the Iowa Department of Agriculture and Land Stewardship are helping to strengthen supply chains and build the infrastructure behind that food production,” said Iowa Secretary of Agriculture Mike Naig. “By enhancing processing capacity and reinforcing distribution networks, we’re creating more robust pathways for Iowa farmers and small businesses to bring their high-quality Iowa food and ag products to market. 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.”
According to a release, the Department issued two types of grant opportunities: larger infrastructure grants and smaller equipment-focused grants, both requiring cost-share contributions from applicants.
A competitive selection process drew 60 eligible applications, with 24 projects chosen for their potential to strengthen the middle of the supply chain through improved processing, aggregation, and distribution.
Many of the selected initiatives target expanding wholesale markets, including schools, hospitals, colleges, and early care facilities, while also improving access to grocers and intermediary markets like food hubs and post-harvest processing centers.
A significant portion of the funding – $997,040 – is earmarked to enhance Iowa’s wholesale food hubs through the Iowa Hub-to-Hub Network.
In collaboration with the Iowa Food Hub Managers Working Group, formed in 2015 by Iowa State University Extension and Outreach, the initiative will implement new software, standardize operational procedures, and host a Middle of the Supply Chain Buyer and Supplier Summit.
These efforts aim to build stronger connections between local food producers and buyers while driving innovative improvements to Iowa’s food system infrastructure. A dedicated supply chain coordinator will also work to identify new market opportunities for food hubs and producers statewide.
Administered by the Iowa Department of Agriculture and Land Stewardship with operational support from Iowa Valley Resource Conservation and Development, the program also collaborates with Practical Farmers of Iowa and Iowa State University Extension and Outreach.
RFSI Infrastructure Grants
Infrastructure Grants range from $100,000 to $1 million and a cost-share match is required. These grants are used to fund capital investments such as construction and equipment. Several Corridor businesses received infrastructure funding:
Kalona Creamery– Kalona
– RFSI Infrastructure Grant: $478,282.10
– Matching Funding: $534,931.90
Kalona Creamery partners with 67 family-owned dairies across Iowa to source milk, which it processes and distributes to retailers and food distributors both within the state and throughout the region. With the support of grant funding, the company plans to invest in critical dairy processing equipment to expand its organic product line.
This project aims to increase processing capacity while maintaining strong market opportunities for Iowa’s small dairies. The initiative will also enhance access to locally produced dairy products.
Local Harvest CSA– Solon
– RFSI Infrastructure Grant: $100,000.00
– Matching Funding: $33,576.39
Local Harvest CSA plans to enhance an existing farm building, creating a licensed warehouse for frozen vegetables and adding climate-controlled storage for frozen, refrigerated, and dehydrated products. The upgrades will not only expand their capacity to process and store larger quantities of crops but also position the facility to serve as a shared resource for other producers, offering frozen warehouse space and a licensed processing facility.
These improvements will enable Local Harvest CSA to better meet the needs of institutional markets, particularly local schools, by ensuring a reliable supply of locally grown and processed produce.
NewBo City Market– Cedar Rapids
– RFSI Infrastructure Grant: $458,767.90
– Matching Funding: $783,533.90
NewBo City Market in Cedar Rapids will undergo renovations to add a second-floor processing kitchen and aggregation storage space. These upgrades will significantly enhance the capacity to store, process, and sell Iowa-grown agricultural products.
In addition to the physical improvements, NewBo will leverage its programmatic business development services and training programs to foster purchasing agreements between farmers and small businesses. This initiative aims to create new value-added markets, supporting local producers and driving economic growth in Iowa’s agricultural sector.
RFSI Equipment Grants
Equipment Grants range from $10,000 to $100,000, and the state required a 10% match. These grants can only fund equipment, which may be new, used or refurbished. The following Corridor projects received equipment grant funding:
Buffalo Ridge Orchard– Central City
– RFSI Equipment Grant: $71,425.80
– Matching Funding: $7,936.20
Buffalo Ridge Orchard is set to enhance its fruit washing and packing line with the addition of a bin dumper, fruit sizing equipment, and other efficiency-boosting upgrades. These improvements will streamline the processing of apples and pears, enabling the orchard to meet increased demand and expand availability to wholesale customers.
Camp Creek Organic Produce– Kalona
– RFSI Equipment Grant: $90,000.00
– Matching Funding: $10,000.00
Camp Creek Organic Produce will purchase two delivery trucks for their food hub. Their current delivery vehicles are more than 20 years old, and these new box trucks will allow for more reliable deliveries and expansion of the routes serving more customers in central and southern Iowa.
Fireside Winery– Marengo
– RFSI Equipment Grant: $74,083.50
– Matching Funding: $8,231.50
Driven by requests from wholesalers, Fireside Winery will add a canning line to provide consumers with an additional way to purchase their wine. The company plans to invest in equipment to produce wine in aluminum cans, offering a more portable alternative to traditional bottles. This initiative aims to attract new customers and boost demand. Additionally, the project is expected to create expanded market opportunities for farmers producing grapes, rhubarb, honey, and dandelions.
Grimm Family Farm– Williamsburg
– RFSI Equipment Grant: $50,071.50
– Matching Funding: $5,563.00
Grimm Family Farm plans to enhance its delivery operations with the purchase of a refrigerated delivery system to ensure the quality and safety of their potatoes and dry beans. As the only supplier of dry beans in Iowa, the farm currently relies on a non-refrigerated, multi-purpose vehicle for deliveries to schools and food hubs. This system leaves products vulnerable to dust, heat, and other contaminants, compromising food safety and the cold chain.
To address these challenges, Grimm Family Farm will invest in a slide-in refrigeration unit and a suitable truck. This upgrade will enable them to maintain the cold chain during deliveries, ensuring higher food safety standards. Additionally, the new system will support larger deliveries and an expanded service area, increasing access to their high-quality dry beans and potatoes across a broader geographic region.
To see a complete list of grant recipients, visit https://iowaagriculture.gov/news/24-resilient-food-system-projects.
