Creating a grocer reinvestment program, a local produce processing grant program, and a grocer reinvestment and local food processing fund under the purview of the economic development authority, modifying the local food and farm program, and making appropriations

Under the bill, the economic development authority (authority) shall administer the grocer program for the purpose of awarding financial assistance to eligible grocery stores for projects located in this state including capital improvements, utility upgrades, equipment and furnishings, professional services, and technology. The bill allows the authority to establish the eligibility criteria for the grocer program by rule. The eligibility criteria must include compliance with any documents required to be filed with the secretary of state; an organizational structure that is either a sole proprietorship, partnership, limited liability company, corporation, cooperative, nonprofit organization, or nonprofit community development entity; ownership of ten or fewer grocery stores; the capacity to successfully complete the project and demonstrate a plan for sustainability; and the grocery store is located in a community with a population of 20,000 or fewer that is not contiguous to a city with a population of 40,000 or greater. In order to be awarded financial assistance pursuant to the bill, a grocery store must provide matching funds for the project that equal the amount of the financial assistance award. The bill specifies a financial assistance award shall not exceed $100,000. Under the bill, priority shall be given to projects that accept benefits under the United States department of agriculture supplemental nutrition assistance program, and special supplemental nutrition program for women, infants, and children; create or retain jobs; make efforts to procure and offer local foods for sale; and any other criteria determined by the authority. The authority is required to submit a report to the general assembly describing the activities of the grocer program by November 1, 2026, and each November thereafter, if applicable. The report shall include the geographic distribution of the projects, the identity of the applicants, and new investments or new jobs created. The bill also establishes the processing program. Under the bill, the authority shall administer the processing program for the purpose of awarding grants to Iowa-based entities to increase the availability of local produce processing. The bill defines both “local produce” and “local produce and processing”. The bill requires the authority to prioritize grants to entities that increase the availability, access, efficiency, or capacity of local produce processing. The bill prohibits grants to an entity unless the entity processes local produce from multiple Iowa-based farms. The bill establishes the fund under the control of the authority for the purpose of awarding financial assistance to eligible grocery stores under the grocer program and awarding grants to entities that increase local produce processing under the processing program. Commencing with the fiscal year beginning July 1, 2025, and each fiscal year thereafter, $100,000 of the annual appropriation, or percent of the moneys available in the fund on July 1, whichever is less, shall be allocated to the processing program created in the bill. DIVISION II. The bill changes the purpose and goals of the local food and farm program in Code chapter 267A to include the retailing of local food, and increasing the availability and viability of grocery stores in this state. DIVISION III. The bill appropriates $2 million each of the next two fiscal years (FY 2025-2026 and FY 2026-2027) from the general fund of the state to the fund to award financial assistance to eligible grocery stores under the grocer program, and to award grants to entities that increase local produce processing under the processing program.