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Gov. Reynolds allocates $100M in CARES Act funding for Iowa agriculture

The state is allocating funds to seven different programs, providing grants to farmers for biofufels and even animal disposal.

DES MOINES, Iowa — Gov. Kim Reynolds announced Tuesday that $100 million of CARES Act relief funds will go to different agricultural programs to assist farmers, producers and industries as the coronavirus pandemic continues. 

Seven Iowa programs will receive the funding, according to a release from the governor's office

“Iowa is at the foundation of our global food supply chain and the epicenter of the renewable fuels industry,” Reynolds said in the release. 

“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. Today’s investment reflects the critical role Iowa’s ag industry has in our state's overall economic recovery.” 

Programs will be administered by the Iowa Economic Development Authority (IEDA) and the Iowa Department of Agriculture and Land Stewardship (IDALS). 

Applications for IDALS programs are being accepted starting Tuesday. IEDA will start accepting applications Monday, Aug. 31.

Here's the breakdown of where that money will go: 

Iowa Lifestock Producer Relief Fund — $60 million

The state will utilize the IEDA's existing small business relief program infrastructure to provide grants up to $10,000 for livestock producers. These grants will work as capital to stabilize livestock producers.

This program will be administered by the IEDA. 

More information can be found by clicking/tapping here.

State Biofuel Grant Program — $15.5 million

Reynolds' office says biofuels producers were excluded from receiving aid under other parts of the CARES Act. This program will provide relief to those producers based on gallons produced.

The IEDA will also administer this program through their existing small business relief program. Grants are capped at a maximum of $750,000 per producer. 

Renewable Fuel Retail Recovery Program — $7 million

Iowa Secretary of Agriculture Mike Niag and Reynolds introduced the Renewable Fuel Retailer Recovery Program on Tuesday. The program will receive $7 million in CARES Act funds. 

This program will help fuel retailers recover from lost demand caused by COVID-19, according to a release from Niag's office. It's administered by the Iowa Department of Agriculture and Land Stewardship (IDALS). 

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Iowa Beginning Farmer Debt Relief Fund— $6 million

The Iowa Beginning Farmer Debt Relief Fund will provide eligible beginning farmers with a long-term debt service payment of up to $10,000 to be paid directly to their lender. 

This program is also administered by the IEDA under the existing small business recovery grant program. 

Meat Processing Development and Expansion Progam— $2 million

This program is set up to aid small meat processors in Iowa by expanding processing capacity across the state to meet protein demand. It's being administered by IDALS

Farm Produce and Protein Program— $500,000

This program provides grants to schools that buy produce and other local crops and protein sources. It also supports local fruit and vegetable growers to expand their capacity.

It's designed to help specialty ag producers in Iowa as well as the schools that purchase them. IDALS is administering the program. 

Iowa Disposal Assistance Program— Up to $9 million

The disruption of the meat supply chain due to the coronavirus pandemic continues to impact Iowa's meat producers. Many were forced to euthanize and dispose of livestock because of the lack of market access. 

This program, initially announced in May, provides direct payments to producers to recover from those expenses. It's also administered by IDALS

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RELATED: Gov. Reynolds seeking Secretarial Disaster Designation from USDA Secretary Sonny Perdue

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