Secretary Naig Welcomes Applications for Third Year of Choose Iowa Dairy Innovation Grants
Program supports on-farm dairy processing and labor-saving technology
DES MOINES, Iowa (Mar. 2, 2026) - Iowa Secretary of Agriculture Mike Naig today announced that applications are now open for the third year of Choose Iowa Dairy Innovation Grants. The program welcomes eligible dairy farmers and processors to apply for cost-share funding that supports on-farm dairy processing and labor-reducing technologies, helping bring more locally produced dairy products to Iowa consumers. The grant program is administered by Choose Iowa within the Iowa Department of Agriculture and Land Stewardship.
Since the grant’s launch, 35 dairy projects have been awarded funding, helping to leverage approximately $6.34 million in total on-farm investment. These projects have expanded processing capacity, supported adoption of labor-saving technologies, and brought more Iowa-made dairy products to market. The continued interest in these competitive grants reflects the expanded value-added dairy production happening across Iowa and the commitment of producers to invest in innovation.
“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.”
“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,” said Robert Horst, President of the Iowa State Dairy Association and a farmer from Bristow. “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 program offers competitive matching grants of up to $100,000 per project. A one-to-one financial match is required. Eligible projects may include investments in pasteurization equipment, processing and packaging systems, labeling equipment, robotics, automated feeding systems, herd health monitoring technology, and other labor-saving or value-added innovations. Grant funds are not eligible to cover start-up costs, advertising or public relations expenses, salary, wages or benefits, existing debt, or expenses incurred prior to grant approval.
The legislative intent of the grant program is to assist smaller dairies and farmers. Eligible applicants must be located in Iowa, employ fewer than 50 employees, be in good standing with all pertinent regulatory agencies, and be permitted and inspected by the Iowa Department of Agriculture and Land Stewardship.
Applications must be submitted through the online portal on the Choose Iowa website and are due by 12:00 p.m. CST on April 17, 2026. Grant recipients are expected to be announced in June 2026. Full details about the cost-share grant program, including eligibility requirements, scoring criteria, and matching fund requirements, are available at ChooseIowa.com. Questions may be directed to chooseiowagrant@iowaagriculture.gov.