(Radio Iowa) – Iowa dairy farmers planning to invest in new technology or expanded processing can now apply for state grants to finance part of their projects. Iowa Agriculture Secretary Mike Naig says the Dairy Innovation Grant Program is part of a broader effort to expand the amount of local food available to Iowa consumers.

“And, in the course of doing that, provide Iowa farmers with more market opportunities,” Naig says. The state is awarding a million dollars in grants to expand processing at meat lockers around the state this year. Now, Naig’s agency is accepting applications for part of the 750-thousand dollars lawmakers set aside for grants to dairy farms with fewer than 50 employees.

“To increase on-farm dairy processing opportunities like cheese, butter, yogurt, frozen yogurt — those type of things,” Naig says, “but also to allow those dairy farmers, especially the smaller farms, to also invest in some technology, some equipment that would help them drive down their labor costs as well.” Naig expects may of the grant applications to be from dairy farmers planning to buy robotic milking systems, but he says there’s a lot of new technology out there to enhance production.

“There are systems now that you can put around the cattle’s necks so you can track their eating and when they’re milking and what their productivity is and track their health,” Naig says. According to the Iowa State Dairy Association, there are nearly 800 dairy herds in Iowa — and over 200-thousand dairy cows. Naig says there are some large-scale dairy operations in the state, but this program is for smaller operations.

“Consumers are more interested than ever before in buying local and so if you can source milk or cheese, yogurts — those types of products from your own farm that’s certainly what consumers are looking for,” Naig says, “but it also gives those farms an opportunity control their own destiny, capture some margin, generate some value of the milk that’s coming off their farm by processing it there and selling it direct to consumers.”

The maximum cost-share grant will be 100-thousand dollars. The grants may not be used to cover start-up costs, advertising, salaries or to pay off debt. The deadline to apply is February 9th.