Applications are now open for the third year of the Choose Iowa Dairy Innovation Grants, as announced by Iowa Secretary of Agriculture Mike Naig. The program is designed to provide cost-share funding for dairy farmers and processors in Iowa, supporting on-farm dairy processing and technologies that reduce labor needs. The grants aim to increase the availability of locally produced dairy products for consumers in the state.
Since its inception, 35 projects have received funding from the grant program, resulting in about $6.34 million in total investment on farms. These funds have been used to expand processing capacity, implement labor-saving technologies, and bring more Iowa-made dairy products to market.
“With applications now open for the third round of Choose Iowa Dairy Innovation Grants, we are encouraging dairy farmers across Iowa to explore new opportunities in on-farm and small-scale dairy processing. These grants help producers add value to what they already do so well by creating more Iowa-made dairy products for consumers to enjoy,” said Secretary Naig. “We are seeing strong growth and momentum through Choose Iowa, and grants like this are helping connect that demand with opportunities on the farm. By investing in innovation and processing capacity, we are strengthening Iowa’s dairy industry and increasing the availability of local foods and beverages for families across our state.”
Robert Horst, President of the Iowa State Dairy Association and a farmer from Bristow, commented: “The Choose Iowa Dairy Innovation Grants are giving dairy producers an incentive to step into new opportunities, especially those who are new to value-added ventures. By offering that support, the grant program empowers farmers to grow their businesses, strengthen local partnerships, and create a lasting difference in their communities.”
The competitive matching grants offer up to $100,000 per project with a required one-to-one financial match from recipients. Eligible uses include investments in pasteurization equipment, packaging systems, labeling equipment, robotics, automated feeding systems, herd health monitoring technology, or other innovations that save labor or add value. The funds cannot be used for start-up costs, advertising or public relations expenses, salaries or wages, existing debt payments or any costs incurred before grant approval.
Applicants must be located in Iowa with fewer than 50 employees and must meet all regulatory requirements set by the Iowa Department of Agriculture and Land Stewardship (IDALS). All applicants need permits and inspections from IDALS.
Applications should be submitted through the online portal at ChooseIowa.com by 12:00 p.m. CST on April 17, 2026. Grant recipients will be announced in June 2026. Full details about eligibility requirements and scoring criteria can also be found at ChooseIowa.com.
The Iowa Department of Agriculture and Land Stewardship manages programs related to animal health oversight as well as conservation initiatives aimed at supporting agricultural productivity while protecting resources such as soil and water. It also provides services including licensing for grain dealers and educational outreach on pesticide use.
