The Choose Iowa Dairy Innovation cost-share Grant was created to assist Iowa dairies with their efforts to reduce labor and to increase on-farm processing of Iowa dairy products.
Donor Name: Iowa Department of Agriculture and Land Stewardship
State: Iowa
County: All Counties
Type of Grant: Grant
Deadline:04/17/2026
Size of the Grant: $10,000 to $100,000
Grant Duration: 1 Year
Details:
These cost-share grants leverage additional private investment and were created to assist Iowa farmers, businesses and non-profits with their efforts to increase or diversify their agricultural product offerings, expand markets and shorten the supply chain.
The Choose Iowa Dairy Innovation Grant awards financial assistance to eligible businesses engaged in projects that do one or more of the following:
- Expand or refurbish existing milk plants or establish a new milk plant.
- Expand or refurbish existing mobile dairy processing units or establish new mobile dairy processing units.
- Rent buildings, refrigeration facilities, freezer facilities or equipment necessary to expand dairy processing capacity, including mobile dairy or refrigeration units used exclusively for dairy processing.
- Incorporate methods and technologies that reduce farm labor associated with milk production and storage, including but not limited to the use of robotics and processes or systems that operate using computerized equipment or machinery.
Funding Information
- Available funding allocated for awarding to recipients in 2026-2027: $500,000.
- Maximum amount awarded per grant awardee: up to $100,000.
- The total amount of grant funding requested may not surpass $100,000 per applicant including both their on-farm processing and labor reducing technology requests.
- Applicants must provide a minimum of one-to-one (1:1) financial match from private sources such as cash, financing or other non-government grant funds for total project costs. In-kind contributions are not accepted.
- Example: An individual applying for a grant of $5,000 must provide at least $5,000 from other sources for a project total of $10,000.
Grant Period
Projects cannot be in progress before a grant is awarded and must be able to be completed in 12 months or less.
Eligible Projects
Projects must address at least one goal or more to:
- Create new jobs.
- Create or expand opportunities for local small-scale milk producers to market pasteurized milk and milk products under private labels.
- Provide greater flexibility or convenience for local small-scale farmers to have milk processed.
- Reduce labor associated with the on-farm production and storage of milk.
Examples include but are not limited to:
- On-farm processing equipment or infrastructure such as:
- Pasteurization equipment
- Processing vats
- Packaging and labeling equipment
- Labor reducing equipment or technology such as:
- Milking robots
- Health monitoring technology or activity systems
- Automatic feed systems
- Cleaning assistance tools
Eligibility Criteria
Applicants must:
- Be an individual, business, agricultural cooperative, non-profit organization or local government.
- Be in good standing with the State of Iowa.
- The business must not currently be in bankruptcy.
- Currently reside or conduct business in Iowa.
- The business must not have been subject to any regulatory enforcement action related to federal, state, or local environmental, worker safety, food processing, or food safety laws, rules, or regulations within the last five years.
- Business must be permitted by the Iowa Department of Agriculture and Land Stewardship or in the process of obtaining a permit.
- Project must be permitted activity.
- Not be an IDALS employee or immediate family member of an IDALS employee.
- Applicant must be able to provide a one-to-one (1:1) financial match for the grant. In-kind contributions not accepted.
- Membership in Choose Iowa brand program NOT required but encouraged.
- Business must employ less than 50 individuals.
For more information, visit Choose Iowa.
