The Iowa Department of Agriculture and Land Stewardship opened applications for its competitive grant program supporting local food and agricultural product development Dec. 1, with individual awards reaching $25,000.
The Choose Iowa Value-Added Grants provide matching funds to help agricultural producers, small businesses and nonprofit organizations enhance their farm products through processing, packaging and other improvements. Iowa Secretary of Agriculture Mike Naig said the program addresses growing consumer demand for locally sourced products while strengthening rural economies.
“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,” he said, in a release. “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.”
Eligible projects include investments in processing, equipment, packaging systems, facility upgrades, workflow improvements, sales and food safety enhancements. The program also covers workforce training and continuing education costs.
According to the release, meat and dairy processing ventures must apply through separate Choose Iowa programs specifically designed for those sectors.
The initiative has distributed nearly $1.64 million in state-funded cost share since 2022, supporting 100 projects and leveraging $5.6 million in total agricultural investment across Iowa to expand production and processing.
Iowa-based individuals, businesses and nonprofit organizations may apply, with smaller operations receiving priority consideration. The application window closes at noon on Jan. 16, 2026, with awards to be announced in spring 2026.
Applicants must provide matching funds equal to their grant request. Full program guidelines and the online application portal are available on the Choose Iowa website.
