JOHNSTON, IOWA – When COVID-19 hit the United States and most Americans were opting to stay home as much as possible, Iowa biofuel producers were badly hurt by the decline in fuel demand. Today Iowa Governor Kim Reynolds announced the state is dedicating over $15 million of relief funding for Iowa renewable fuels producers, making Iowa the first state in the nation to provide direct aid to the biofuels sector.

“Governor Reynolds has provided a much-needed lifeline for Iowa’s renewable fuels producers,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “At its peak, the COVID-19 pandemic led to the idling of roughly 50 percent of Iowa’s biofuels production capacity. Even today fuel use has not returned to normal and biofuels producers are struggling to simply breakeven. IRFA members from across the state are deeply grateful for Governor Reynold’s leadership as they work to recover from the financial blow wrought by the pandemic.”

The relief funding will be awarded based on the number of qualifying gallons produced in the first quarter of 2020. IRFA continues to work with members of Congress on possible federal relief.

“We appreciate the work done by our federal legislative champions on language for the next COVID relief package,” Shaw said. “Ethanol and biodiesel producers across the country are suffering from suppressed fuel demand and still need comprehensive, in-depth relief from the federal government. Today’s action by Governor Reynolds will help Iowa’s biofuels producers keep going until Congress and the Trump Administration act.”

JOHNSTON, IOWA – Today Secretary Mike Naig unveiled the details of the $7 million Iowa Renewable Fuels Recovery Program that Iowa Governor Kim Reynolds first announced on June 30. The new program, which utilizes the state’s CARES Act funding, provides grants to Iowa fuel retailers that add E15, B11, and higher biofuel blends to their stations.

“IRFA members want to thank Governor Reynolds and Secretary Naig for seeing the many benefits biofuels provide to the state of Iowa and prioritizing their growth,” said Iowa Renewable Fuels Association Policy Director Nathan Hohnstein. “Iowa fuel retailers and biofuel producers have both been struggling under the weight of demand destruction from COVID-19. These grants will help retailers stay competitive by adding low-cost, home-grown biofuel blends and provide a demand boost for Iowa’s biofuels producers.”

These new grants are separate from Iowa’s existing biofuel infrastructure program, the Renewable Fuels Infrastructure Program (RFIP), and RFIP funds cannot be used on the same equipment or costs.

The program will provide up to $30,000 per approved project, and applicants may submit both ethanol and biodiesel-related applications for a single site for a maximum funding of $60,000 per site. Funds will be awarded to projects completed by December 30, 2020 or for purchasing equipment delivered by December 30, 2020 and installed at a later date. The retailer must commit to selling the qualifying biofuel blend for a minimum of 60 months. To provide flexibility, the 60-month commitment may begin anytime within 24 months of project completion.  Forty percent of the funds are being initially reserved specifically for Iowa’s smaller fuel retailers, those with ten fuel stations or less.

To apply for a grant or learn more about the new program visit: https://iowaagriculture.gov/grants

DES MOINES – Gov. Kim Reynolds announced today that she has allocated approximately $100 million of federal CARES Act relief funds for a range of agricultural programs to offset the impact of COVID-19 on farmers, producers and agricultural industries.

“Iowa is at the foundation of our global food supply chain and the epicenter of the renewable fuels industry,” said Gov. Reynolds. “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. But just as important are the livelihoods of thousands of Iowa farm families, agricultural 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.”

“Iowa exported more than $16 billion in manufactured goods and agricultural products to 199 countries last year alone,” said IEDA and Iowa Finance Authority Executive Director Debi Durham. “The critical assistance Gov. Reynolds announced today will support the continuation of Iowa’s long-standing legacy of agricultural excellence in our communities and throughout the world.”

“This has been a tough year for the agriculture community. I’m grateful that Gov. Reynolds has been a strong advocate for the farmers and agribusinesses in our state,” said 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.”

The allocations are as follows:

• $60 million — Iowa Livestock Producer Relief Fund — Using the Iowa Economic Development Authority’s (IEDA) 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. (Administered by IEDA)
• $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. (Administered by IEDA)
• $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 & B11 or higher. (Administered by IDALS)
• $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. (Administered by IEDA)
• $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. (Administered by IDALS)
• $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. (Administered by IDALS)
• 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. (Administered by IDALS)

Producers can apply for IEDA-administered programs at iowabusinessrecovery.com beginning on Aug. 31, 2020 and can apply for IDALS-administered programs at iowaagriculture.gov/grants beginning today, Aug. 24.

All of west central Iowa is currently under a moderate to extreme drought. The drought conditions are causing major concerns for both crop and livestock producers. To compound this situation the Derecho weather event has caused significant damage to crops and infrastructure across the area. To help address those concerns, Iowa State University Extension and Outreach will be hosting a Virtual Ag Coffee Meeting on September 9^th at 9:00 am. This event will be a live webinar presentation and have 11 in person viewing locations across West Central Iowa.

The meeting will be split into two segments with Mike Witt, ISU Field Agronomist, discussing the agronomic impacts of the drought and the Derecho. Specific agronomic topics that will be discussed are: harvesting downed corn strategies and expectations, managing fields that are unharvestable, ideas for residue and fall cover crop, grain quality and grain storage issues. Tim Christensen, ISU Farm Management Specialist, will be discussing the financial impacts and strategies for fall 2020. Specific farm management topics to be discussed are: crop insurance conversations, new USDA/FSA programs, considerations for handling drought and low yield crops with markets and handling farm stress. The meetings will last approximately 90 minutes.

The Virtual Farmers coffee will be a meeting that features both in person and virtual discussions. If you do not have internet access or would like to attend the meeting in person rather than home there are seats available at the 11 county extension offices. The speakers will be live via Zoom and able to answer question during and after the presentation. Each county office will be limited in their seating due to Covid-19 restrictions. Pre registration is required to attend the meetings in person and is on a first come, first serve basis. Walk-ins will not be accepted unless confirmed by individual county offices the day of the meeting. At home or virtual viewing of the meeting can be done by registering at the website www.aep.iastate.edu/coffee. This registration will provide you with a personal link to the meeting.