USDA Invests in Rural Projects for Growth

Apr 08, 2026
By Farms.com

Funding boosts agriculture manufacturing and renewable fuel use in Iowa

The U.S. Department of Agriculture (USDA) is supporting Iowa’s rural economy by investing $11.5 million in 13 projects aimed at strengthening agriculture, manufacturing, and renewable energy.

“Iowa is a manufacturing powerhouse, and USDA is an integral partner in supporting business access to capital and industrial services,” said U.S. Department of Agriculture Rural Development Iowa State Director Mike Sexton.

“President Donald J. Trump believes in rural America, and by expanding financing options through local co-ops and delivering entrepreneurial opportunities, USDA is moving that vison forward by helping Iowans prosper,” said Sexton.

Iowa State University’s AgMRC received $1.4 million to provide independent producers with information and resources for building successful value-added agricultural businesses. These tools also help producers apply for Value-Added Producer Grants.

Through the Rural Economic Development Loan and Grant program, six loans totaling nearly $6 million were awarded.

Notable projects include:

Kinetic Technologies LLC in Algona receives $952,000 for a new facility, creating 8 jobs.

Continental Manufacturing Chemist Inc. in Huxley with $1 million to expand packaging operations, adding 100 jobs.

TSM Holding LLC/M3 Fabrication LLC in Bloomfield receiving $1 million for a 56,000 sq. ft. expansion, creating 10 jobs.

A to Z Drying Inc. in Osage with $2 million combined loans for large production and warehouse expansion, creating 19 jobs.

Hemp Agra LLC in Rock Valley receives $1 million for industrial hemp processing equipment, adding 20 jobs.

Six grants through the Higher Blends Infrastructure and Incentive Program totaling $4.17 million will expand renewable fuel sales. Projects include installing E15, E85, and B20 dispensers and ethanol/biodiesel storage at stations across Iowa and Illinois. For example, Molo Petroleum LLC will add 30 E15 dispensers at seven locations, projected to increase biofuel sales by nearly 2.8 million gallons annually.

USDA’s investment programs provide funding, technical assistance, and business support to rural communities. These efforts help farmers, manufacturers, and fuel distributors thrive while creating local jobs.

Photo Credit: usda

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