DES MOINES, Iowa (KELO.com) — Iowa Gov. Kim Reynolds announced Tuesday she will use $100 million in federal pandemic relief aid to help farmers and ag industries recover from related market disruptions.
“Iowa is at the foundation of our global food supply chain and the epicenter of the renewable fuels industry,” Reynolds said in a statement.
“COVID-19 and a devastating derecho dealt a major blow to everything from the demand for ethanol to the supply of meat on grocery store shelves. But just as important are the livelihoods of thousands of Iowa farm families, agricultural industries and the communities they support,” added Reynolds, who is scheduled to address the Republican National Convention remotely Tuesday night. “Today’s investment reflects the critical role Iowa’s ag industry has in our state’s overall economic recovery.”
Reynolds leads one of the nation’s top agricultural states. Iowa is the nation’s top producer of corn, hogs, eggs and ethanol, and much of its $16 billion in exports is related to agriculture.
Agriculture Secretary Mike Naig, who recently toured areas damaged by high winds in an Aug. 10 derecho, said the aid will help farmers in a year that has brought trade wars, pandemic disruptions, low prices and the recent storm, which flattened a third to half of the corn crop.
“The programs funded by the CARES Act will help our farmers, renewable fuels retailers and producers, and small meat processors respond to market disruptions and continue on the road to recovery,” Naig said in a statement.
Debi Durham, director of the Iowa Economic Development Authority and the Iowa Finance Authority, in a statement said Reynolds’ decision to use CARES Act money to help farmers rebound from the economic fallout from the pandemic will be a key to the recovery.
Agricultural products are a big part of Iowa’s $16 billion in annual exports of manufactured goods and ag products.
“The critical assistance Gov. Reynolds announced today will support the continuation of Iowa’s long-standing legacy of agricultural excellence in our communities and throughout the world,” Durham said in a statement.
Monte Shaw, executive director of the Iowa Renewable Fuels Association, said the $15.5 million set aside to help the biofuels industry is a “much-needed lifeline.” The industry cut production by 50% in the early part of the pandemic as demand dropped sharply.
“Even today fuel use has not returned to normal and biofuels producers are struggling to simply break even. IRFA members from across the state are deeply grateful for Gov. Reynolds’ leadership as they work to recover from the financial blow wrought by the pandemic.”
Here is how the money will be split:
- $60 million — Iowa Livestock Producer Relief Fund: Using the Iowa Economic Development Authority’s existing small business relief program infrastructure, this program will provide grants of up to $10,000 to eligible producers of pork, beef, chicken, turkeys, dairy, fish or sheep to serve as working capital to stabilize livestock producers. (Administered by IEDA)
- $15.5 million — State Biofuel Grant Program: Biofuels producers were excluded from receiving aid under other parts of the CARES Act; this program will provide relief to those Iowa ethanol and biodiesel producers based on gallons produced. Grants will also be awarded through IEDA’s existing small business relief program and are capped at a maximum grant of $750,000 per producer. (Administered by IEDA)
- $7 million — Renewable Fuel Retail Recovery Program: Supports a program that helps expand retail fueling infrastructure for higher blend renewable fuels, including E15 or higher biodiesel B11 or higher. (Administered by the Iowa Department of Agriculture and Land Stewardship, or IDALS)
- $6 million — Iowa Beginning Farmer Debt Relief Fund: Beginning farmers were affected disproportionately by the pandemic-related economic slowdown. This program will provide eligible beginning farmers with a long-term debt service payment of up to $10,000, to be paid directly to their lender. (Administered by IEDA)
- $2 million — Meat Processing Development and Expansion Program: Designed to aid small meat processors, this program is focused on expanding processing capacity across the state to meet protein demand. (Administered by IDALS)
- $500,000 — Farm Produce and Protein Program: This program is designed to help specialty ag producers in Iowa as well as the schools that purchase their produce. (Administered by IDALS)
- Up to $9 million — Iowa Disposal Assistance Program: Many farmers had to kill livestock due to meatpacking disruptions. This program will offer payments to cover related expenses. (Administered by IDALS)
Producers can apply for IEDA-administered programs at iowabusinessrecovery.com beginning on Aug. 31 and can apply for IDALS-administered programs at iowaagriculture.gov/grants beginning Aug. 25.
(Perry Beeman with the Iowa Capital Dispatch contributed this report. It first appeared in the ICD here. It is used with permission.)
Comments