Iowa Producers May be Eligible for New Grants Funded by $100 Million from CARES Act

August 26, 2020 | Kristine A. Tidgren

On August 25, 2020, Governor Reynolds announced that she was allocating $100 million of Iowa CARES Act relief funds to new agricultural programs created to offset the impact of COVID-19 on farmers and renewable fuel businesses. Several of these programs are administered by the Iowa Economic Development Authority (IEDA) and the others are administered by the Iowa Department of Agriculture and Land Stewardship (IDALS). The requirements of these programs, as well as the rapidly approaching application deadlines, are detailed below.

Iowa Economic Development Authority Programs

The following three programs are administered by the Iowa Economic Development Authority: the Iowa Livestock Producer Relief Fund, the Iowa Beginning Farmer Debt Relief Program, and the Iowa Biofuels Relief Program. The contact phone number for these three IEDA programs is 877-317-8909.

Iowa Livestock Producer Relief Fund

The IEDA has posted a helpful FAQ here.

The Governor appropriated $60 million toward an Iowa Livestock Producer Relief Fund. This program will provide eligible livestock producers with grants up to $10,000 to be used as working capital to continue operations.  The actual grant amount, which will be determined based upon program demand, will be announced following the close of the application period.

Application Details

Eligible producers may apply for this program, beginning August 31, 2020, through September 14, 2020.

Livestock producers are eligible to apply for a grant from either the Iowa Beginning Farmer Debt Relief Fund or the Iowa Livestock Producer Relief Fund, but not both. Applicants may seek assistance only once, either as an individual or as a member of an agricultural entity.  

Eligibility

To be eligible for a grant, producers must meet all of the following criteria:

  • Adjusted Gross Income of $750,000 or less
  • Two-thirds or more of annual gross income from farming
  • Raises the following type of livestock:
    • Turkeys
    • Swine
    • Sheep
    • Fish
    • Dairy cattle
    • Chickens
    • Beef cattle
  • Must have a combined total of 40 animal units or more of one or more of the livestock types listed above on any one day of the applicant’s choice between January 1  and March 31, 2020 (Animal units are defined by Iowa Code §459.102)
  • Must have experienced an involuntary loss of income after March 17, 2020, due to the COVID-19 public health emergency

Eligible Contract Growers

Contract growers may be eligible if:

  • The contract was in place between January 1 and March 31, 2020, and was reduced, changed to the grower’s detriment, delayed or canceled (this factor may be met if the change or cancellation is currently under dispute). OR
  • They do not own livestock, but the contract allows the grower to have a risk in the livestock and have a share of the livestock available for marketing.

Iowa Beginning Farmer Debt Relief Fund

The IEDA has posted a helpful FAQ here.

The Governor has allocated $6 million toward a COVID-19 Iowa Beginning Farmer Debt Relief Fund. This program is designed to provide beginning farmers with a long-term debt service payment of up to $10,000, to be paid directly to their lender.

Application Details

Beginning farmers may begin applying on August 31, 2020, until funds are exhausted.

Beginning farmers are eligible to apply for a grant from either the Iowa Beginning Farmer Debt Relief Fund or the Iowa Livestock Producer Relief Fund, but not both. Applicants may seek assistance only once, either as an individual or as a member of an agricultural entity.  

Eligibility

  • Net worth must be below $682,000.
  • Must have long-term agricultural debt in the beginning farmer’s or entities’ name.
  • Farm must be located in Iowa.
  • Debt must have an original term of 10 years or greater.
  • Must have experienced an involuntary loss of income after March 17, 2020, due to the COVID-19 public health emergency.

Documentation Requirements

The application will require lender certification, including financial statements, debt service details, and documentation for the beginning farmer or agricultural entity.

Payment Details

Payments for approved beginning farmers will be made to the lender and applied directly to the beginning farmer’s annual debt service payment.

Iowa Biofuels Relief Program

The Governor allocated $15.5 million to the Iowa Biofuels Relief Program. This program will provide short-term cash flow assistance to Iowa-based biodiesel and ethanol companies negatively impacted by COVID-19.

Application Details

Applications for this program run from August 31, 2020 through September 14, 2020. Producers of ethanol and biodiesel are eligible for a payment of $0.0225 per gallon produced between January 1 - March 31, 2020.

Grant awards cannot exceed $750,000, but specific amounts will be dependent upon program demand.  Biofuel producers must use the grant money for reimbursing purchased feedstock.  Each ethanol producer or biodiesel company can submit only one application, regardless of the number of Iowa production plant locations it has.

Eligibility

To be eligible, ethanol and biodiesel production companies:

  • Must have plants located in Iowa. 
  • Must have produced at least 500,000 gallons of biofuel between January 1 and March 31, 2020.
  • Must have experienced revenue losses due to price damage on produced gallons of biofuel, the idling of plants or other curtailment of production on or after March 17, 2020, as a result of COVID-19.

Iowa Department of Agriculture and Land Stewardship Programs

The following programs are administered by IDALS: the Meat Processing Expansion and Development Program, the Local Produce and Protein Program, the Iowa Disposal Assistance Program, and the Iowa Renewable Fuel Retail Recovery Program. The details of these programs are reviewed below.

Meat Processing Expansion and Development Program

This $2 million program comprises three grant options: the business improvement grant, the direct marketing grant, and the tuition grant. It is designed to provide aid to small meat processors to expand capacity across the State. Those with questions regarding this program may contact Mason Bleam, program administrator, at 515-281-7808 or maison.bleam@iowaagriculture.gov.

Business Improvement Grant

The business improvement grant reimburses meat and poultry processors, in an amount up to $50,000, for the cost of purchasing or upgrading equipment. The expenses must be spent to allow the facility to increase its processing capacity to accommodate increased demands arising from COVID-19. These upgrades may help a custom-exempt slaughter plant prepare to become an official plant, or they may help an official plant make upgrades necessary to qualify for the Cooperative Interstate Shipment program.

Applicants must represent (1) an official or custom-exempt slaughter and processing plant that is licensed and inspected by IDALS, (2) a federally-inspected plant with 25 or fewer full-time employees, or (3) an Iowa-accredited meat science education program. The expenses must be incurred between March 1 and Dec. 1, 2020.

Applications must be submitted by September 7, 2020.

Direct Market Grant

The direct marketing grant is designed to reimburse livestock producers, in an amount up to $2,000, for a portion of the cost to produce materials, develop services, or purchase equipment to help transition to a direct-to-consumer sales strategy. This could include developing an online sales platform, an alternative sales plan, or another project that would allow a farm to continue selling meat products during the COVID-19 pandemic.

This grant is available to producers that direct-market fewer than 200 livestock or 2,000 poultry per year. The expenses must be incurred between March 1 and Dec. 1, 2020.

Applications must be submitted by September 7, 2020.

Tuition Grant

The grant is designed to reimburse owners or employees of state-inspected and licensed meat and poultry establishments who attend and successfully complete a Hazard Analysis Critical Control Point (HACCP) training program offered by an accredited program in meat sciences. The training must begin on or after September 8, 2020, and must end by December 1, 2020.

Applications must be submitted by September 7, 2020.

Local Produce and Protein Program

This $500,000 program is designed to help specialty agricultural producers in Iowa, as well as the schools that purchase their produce. It comprises three types of grants. Tammy Stotts may be contacted at tammy.stotts@iowaagriculture.gov or 515-281-7657 with any questions regarding the grant applications.

Equipment Grant for K-12 Schools

Under this $160,000 program, Iowa K-12 schools can apply to be reimbursed for some of the costs associated with purchasing kitchen equipment and supplies to allow the food service program to offer more fresh produce and protein from Iowa producers. Examples of eligible equipment would include food sealer machines, coolers, dicers, single portion containers, and grab-and-go food supplies. To be eligible for this grant, the school must also apply for the local food sub-grant.

Program funds will be divided among approved K-12 schools. Each approved applicant may receive up to $5,000, depending upon the number of applicants. Expenses must be incurred between March 1 and December 1, 2020.

Applications must be submitted by September 7, 2020.

Local Food Grant for All Iowa Schools, Colleges, Universities & Early Care Centers

This (up to) $220,000 program provides grants to approved Iowa schools, including K-12, colleges and universities and early care centers. Successful applicants will be reimbursed for a portion of the costs to purchase produce and protein from local farmers. At least half of the funds must be used to purchase fruits and vegetables. Produce, liquid and shelled eggs, and dairy products (excluding liquid milk) must be purchased directly from local producers, food hubs or food auctions. Meat and poultry products must be processed in-state or by a USDA-inspected meat locker.

These grant funds will be divided among approved Iowa schools. Expenses must be incurred between March 1 and December 1, 2020.

Applications must be submitted by September 7, 2020.

Equipment Grant for Producers and Food Hubs

This $110,000 program provides fruit and vegetable growers and food hubs with grants to purchase equipment or supplies needed to increase capability to sell products to schools, early care centers, and colleges and universities to help meet the demand brought about by COVID-19. Examples of eligible purchases include refrigerated trucks, cold storage units, and boxes and packaging equipment. Producers must be willing to sell to schools and enroll in the Farm to School directory to be eligible.

Grant money will be divided among approved producers and food hubs. Each approved applicant may receive $5,000 to $10,000, depending on the number of approved applicants. Expenses must be incurred by December 1, 2020.

Applications must be submitted by September 7, 2020.

Iowa Disposal Assistance Program

An additional (up to) $9 million has been directed to the Iowa Disposal Assistance program, the program initiated in May to provide direct payments to producers to recoup expenses associated with the euthanization and disposal of livestock caused by lack of market access. Additional details on these funds has not been released.

Iowa Renewable Fuel Retail Recovery Program

Retail Operation Grant

This $7 million grant program is designed to assist retail operators of motor fuel dispensing sites or fueling stations that have suffered business interruptions or income losses because of COVID-19.  The funds must be used for a renewable fuel project planned or begun between March 1 and December 30, 2020. Funds from the program will be awarded to retail businesses that are dispensing, or have plans to dispense, ethanol blends of E15 or higher, for biodiesel blends of B11 or higher, and for biodiesel terminal facilities.

Projects considered can include (but are not limited to) expenses incurred for the construction, installation, upgrade, and retrofit of equipment associated with the sale of renewable fuels. Replacement equipment must dispense a higher percentage blend of ethanol or biodiesel than the existing equipment. Adding new equipment to an existing site is permissible.

The program seeks to make 40 percent of funds available for applicants owning 10 or fewer retail fueling dispensing sites (and owning at least one) and 60 percent of funds available for applicants owning more than 10 fuel sites. IDALS will begin reviewing applications on Monday, September 14, 2020. If funds remain on October 1, 2020, those funds will be available to all retailers outside of the targeted assistance goals, and the program may be revised as needed to effectively use remaining funds.

Retail operators of motor fuel dispensing sites and fueling stations that have had business income losses and business interruptions due to COVID-19 are eligible to apply.

Applications should be submitted by September 14, 2020.