USDA Invests $12.6 Million to Increase Economic Opportunity in Rural Iowa
Counties impacted by cooperative funding include Appanoose, Butler, Carroll, Chickasaw, Monroe, Sioux and Winnebago
DES MOINES, Iowa, Nov. 22, 2023 – U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield today announced that the Agency is investing $12,154,700 in loans and $508,000 in grants to nine rural Iowa projects to spur economic development and catalyze rural prosperity through rural cooperatives. USDA is making the investments through the Rural Economic Development Loan and Grant program.
“Across the state, cooperatives provide quality goods and services to rural Iowans including support for health care, food, financial services, and electricity that impact the vitality of our rural neighborhoods,” said Director Greenfield. “Under the leadership of President Biden, Vice-President Harris, and Secretary Vilsack, USDA programs open doors to economic opportunities so that cooperatives and small rural businesses together can create new jobs, foster prosperity, and make rural Iowa communities thriving places to live.”
Today’s announcement is part of a larger national announcement detailing $1.2 billion in support for projects in rural America. A full list of projects from that announcement is available online.
Background: Rural Cooperatives
Cooperatives are businesses owned and controlled by the people who use them. Cooperatives differ from other businesses because they are member-owned and operate for the benefit of members, rather than to earn profits for investors.
USDA Rural Development offers a variety of financial assistance and services to assist rural businesses, including cooperatives and agricultural producers. For more information on cooperatives, visit USDA Rural Development Cooperative Services.
USDA Funded Iowa Projects:
-Chariton Valley Electric Cooperative Inc. received a $300,000 grant to help replenish a revolving loan fund. This project will provide the Monroe County Hospital in Albia with financing to expand the existing facility. This project will construct an addition to house a magnetic resonance imaging machine and renovate spaces in the radiology department and the acute-care wing. The project will create one new job, spur economic development, and promote the health and safety of residents in this rural Monroe County community.
-Chariton Valley Electric Cooperative Inc. received a $2,000,000 loan to fund a pass-through loan to Sedes Group LLC to purchase and install equipment for a startup business. This project will help provide a material flow system; an extruder; a cutter and feeder; a dryer/cooler; and a separator at a facility in Centerville, Appanoose County, Iowa. Sedes Group LLC is a Limited Liability Company which plans to develop animal feed and human-grade consumption products using organic and non-GMO soybeans. Once completed, the project is expected to increase employment opportunities for residents of this rural area and promote economic development.
-North West Rural Electric Cooperative received a $208,000 grant to help fund a pass-through loan to the city of Hawarden for vehicles and equipment. This project will purchase a fire truck, a ladder truck, and response equipment for the city's fire department. The project will spur rural economic development, improve fire and rescue operations, and promote the safety of residents in this rural Sioux County community.
-Butler County Rural Electric Cooperative received a $2,000,000 loan to fund a pass-through loan to PlantBased Innovations LLC. This project will enable the food-manufacturing business to expand operations by purchasing equipment to create new product lines at the facility in Fredericksburg, Iowa. Once completed, this project is expected to create new employment opportunities and to promote economic development in Butler County.
-Butler County Rural Electric Cooperative received a $1,804,000 loan to help fund a pass-through loan to Community Nursing Home, Inc., doing business as Clarksville Skilled Nursing and Rehabilitation Center, for facility renovations in Clarksville. This project will provide a new roof, a heating, ventilation and air conditioning system, a parking area, and sidewalks for the facility. Once completed, this project will improve medical services, spur economic development, and promote the safety of residents of this rural Butler County community.
-Raccoon Valley Electric Cooperative received a $1,520,000 loan to help fund a pass-through loan to Wernimont Welding, LLC for expansion in Carroll. This project will construct a new welding shop and purchase additional equipment. This project will create three new jobs and promote economic development in rural Carroll County.
-Raccoon Valley Electric Cooperative received a $ 830,700 loan to help fund a pass-through loan to Matt Meister Trucking Inc., an interstate freight hauling carrier. This project will construct a facility for the business in Breda. The project will create six new jobs and promote economic development in this rural Carroll County community.
-Corn Belt Power Cooperative received a $ 2,000,000 loan to help fund a pass-through loan to PlantBased Innovations LLC. This project will enable the food-manufacturing business to expand operations by purchasing equipment to create product lines at the facility in Fredericksburg, Iowa. Once completed, this project is expected to create 125 jobs and promote economic development in this rural community in Chickasaw County.
-Heartland Power Cooperative received a $2,000,000 loan to help fund a pass-through loan to A to Z Drying, Inc. This project will purchase and install drying equipment at the facility in Osage. The project will create 16 new jobs and promote economic development in Winnebago County.
Contact USDA Rural Development
USDA Rural Development has 11 offices across the state to serve the 1.3 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.
To learn more about investment resources for rural areas in Iowa, call (515) 284-4663 or visit www.rd.usda.gov/ia. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal, and high-poverty areas.
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USDA is an equal opportunity provider, employer and lender.
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