Business : Secretary Naig Welcomes Applications for Choose Iowa Dairy Innovation Grants

Iowa Secretary of Agriculture Mike Naig today announced the availability of Choose Iowa Dairy Innovation Grants, and welcomed grant applications for projects that will increase on-farm dairy processing, reduce farm labor costs, and expand the availability of Iowa dairy products for consumers. The grant is administered by the Choose Iowa Program within the Iowa Department of Agriculture and Land Stewardship.

"By supporting Iowa dairy farms with innovative technologies that enhance production and processing, we are increasing the availability of locally produced dairy products for Iowa consumers. These competitive cost-share grants received strong interest during their first year of availability, and we once again want to identify and award the most innovative and creative dairy projects," said Secretary Naig. "Choose Iowa is all about connecting consumers with Iowa-grown, raised, and made products, and these grants will ultimately lead to new markets for farmers, expanded choices for consumers, and increased economic activity in our rural communities."

Now in its second year of funding, the program has $750,000 allocated for matching awards up to $100,000 per project. In the first year of the grant, Choose Iowa received requests totaling more than $2.6 million from 50 applications, a figure that is more than three times the available funding. Choose Iowa awarded 20 grants, which leveraged an overall total investment of more than $2.2 million.

"The Iowa State Dairy Association (ISDA) is encouraging Iowa dairy farmers to learn more about the Dairy Innovation Grant program. This grant program supports the Iowa dairy industry by promoting innovation, whether through dairy processing or implementing labor-reducing technologies on the farm. It also aims to provide Iowa consumers with more options to support local dairy," said the Iowa State Dairy Association on behalf of its membership. "Last year, we saw an overwhelming number of applicants who used this funding to expand their farm operations and make necessary updates. Farmers appreciate funding like this, and ISDA is always advocating for grant programs like this one and pushing for more funding to help more Iowa farmers seize opportunities."

The cost-share grants could, for example, help dairies invest in pasteurization equipment, processing vats, packaging and labeling products, robots, health monitoring, automated feeding systems or cleaning assistance. The program funds are not eligible to cover start-up costs, advertising, public relations, salary/benefits/wages, existing debt or any expenses incurred prior to awarding the grant.

The legislative intent of the grant is to assist smaller dairies and farmers. Successful applicants must be located in Iowa, have fewer than 50 employees, and be in good standing with pertinent regulatory agencies. Only dairies permitted and inspected by the Iowa Department of Agriculture and Land Stewardship are eligible.

Full details about the cost-share grant program, including financial matching requirements as well as the application, eligibility and scoring criteria 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 Wednesday, November 27. Grant recipients will be announced in March 2025. Questions about the Choose Iowa Dairy Innovation Fund Grant Program may be directed to Choose Iowa at chooseiowagrant@iowaagriculture.gov.