Iowa Gov. Kim Reynolds announced on Aug. 25 that she has allocated approximately $100 million in relief funds from the federal Coronavirus Aid, Relief and Economic Security Act for a range of agricultural programs to offset the impact of COVID-19 on farmers, producers and agricultural industries. 

“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,” Reynolds said. “But just as important are the livelihoods of thousands of Iowa farm families, ag 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.” 

The derecho, with hurricane-force winds, swept through 57 central and eastern Iowa counties Aug. 10, damaging an estimated 14 million acres of crops. About three dozen counties were hardest hit, with about 6 million acres of corn and soybeans affected. The massive storm also damaged Iowa grain elevators and on farm storage bins, twisting and smashing the facilities. 

Drought burning up crops 

Farmers had already been suffering financially from reduced demand because of the pandemic, while increasing drought this summer continues to reduce crop yield potential. USDA reported Aug. 27 the drought now covers 60% of Iowa. Nearly all of the rest of the state is considered abnormally dry with only a few pockets of Iowa escaping both the drought and the derecho. The U.S. Drought Monitor’s latest map, issued every Thursday, shows 13 west-central counties remain in extreme drought. 

Iowa exported more than $16 billion in manufactured goods and agricultural products to 199 countries last year alone. The $100 million in new assistance announced by the governor on Aug. 25 will help provide needed support for Iowa agriculture. 

“This has been a tough year for the ag community,” said Iowa Secretary of Agriculture Mike Naig. “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.” 

How funds allocated 

The $100 million is part of Iowa’s share of the $2 trillion CARES Act, which Congress approved in March. Here’s how the $100 million will be allocated: 

$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. IEDA administers the fund.

$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. IEDA administers the program.

$7 million, Renewable Fuel Retail Recovery Program. Announced previously, this funding supports a program that helps expand retail fueling infrastructure for higher blend renewable fuels, including E15 or higher, and B11 or higher. IDALS administers the program. 

$6 million, Iowa Beginning Farmer Debt Relief Fund. COVID-19 has negatively and disproportionately impacted a large number of beginning farmers in Iowa, creating the potential for longer-term generational damage to Iowa agriculture. 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. IEDA administers the fund. 

$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. IDALS administers the program. 

$500,000, Farm Produce and Protein Program. This innovative program is designed to help specialty ag producers in Iowa, as well as the schools that purchase them. In addition to supporting local growers of fruits and vegetables to expand their capacity, it provides grants to schools that buy produce and other local crops and protein sources. IDALS administers the program. 

Up to $9 million, Iowa Disposal Assistance Program. The disruption to the meat supply chain due to COVID-19 forced producers to euthanize and dispose of livestock due to lack of market access. This program, announced initially in May, provided direct payments to producers to recoup those expenses. IDALS administers the program. 

Producers can apply for IEDA-administered programs at iowabusinessrecovery.com beginning Aug. 31. They were able to begin applying for IDALS-administered programs Aug. 24 at iowaagriculture.gov/grants.