USDA Rural Development invests $11.5 million in 13 projects to advance economic development and expand the sale of renewable fuels in Iowa

(Des Moines, Iowa, April 7, 2026) - U.S. Department of Agriculture Rural Development Iowa State Director Mike Sexton today announced the Agency is investing $11.5 million in 13 projects to advance economic development, promote value-added agricultural enterprises, support manufacturing and expand the sale of renewable fuel in Iowa.

"Iowa is a manufacturing powerhouse, and USDA is an integral partner in supporting business access to capital and industrial services," said 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."

USDA Rural Development's Business Programs provide financial backing and technical assistance to stimulate business creation and growth. The programs work through partnerships with public and private community-based organizations and financial institutions to provide financial assistance, business development, and technical assistance to rural businesses.
Project details:

• Iowa State University's AgMRC center received a $1,400,000 grant through the Agricultural Marketing Resource Center Grants program to provide independent producers and processors with critical information needed to build successful value-added agricultural enterprises through the www.agmrc.org website. The center's resources and events are also intended to support independent producers and processors who are submitting Value-Added Producer Grants applications. The center serves a national, value-added agricultural audience through its web platform and relationships with other land-grant universities and other technical assistance providers from across the country.

The following six loans were made through the Rural Economic Development Loan and Grant program and total $5,952,000. The purpose of this funding program is to provide rural economic development.

• Corn Belt Power Cooperative received a $952,000 loan to provide a pass-through loan to Kinetic Technologies LLC. This project will enable the manufacturing business to construct a new facility in Algona, in Kossuth County, Iowa. This project is expected to create eight new jobs.

• Central Iowa Power Cooperative received a $1,000,000 loan to provide a pass-through loan to Continental Manufacturing Chemist Inc. in Huxley, in Story County, Iowa. This project will purchase equipment and software to help expand the company's custom packaging business. This project is expected to create 100 new jobs.

• Southern Iowa Electric Cooperative Inc. received a $1,000,000 loan to provide a pass-through loan to TSM Holding LLC/M3 Fabrication LLC. This project will purchase new powder coating equipment and construct a 56,000 square foot building expansion to house the company's powder coating processes in Bloomfield in Davis County, Iowa. This project is expected to create 10 new jobs.

• Heartland Power Cooperative received a $1,000,000 loan to provide a pass-through loan to A to Z Drying Inc., a manufacturing plant located in Osage, in Mitchell County, Iowa. This project will help purchase a 234,200 square foot production and warehouse facility to help the company expand its customized spray drying business. This project is expected to create 19 new jobs.

• Osage Municipal Utilities received a $1,000,000 loan to provide a pass-through loan to A to Z Drying Inc., a manufacturing plant located in Osage, in Mitchell County, Iowa. This project will help the company purchase a 234,200 square foot production and warehouse facility to expand its customized spray drying business. This project is expected to create 19 new jobs.

• North West Rural Electric Cooperative received a $1,000,000 loan to provide a pass-through loan to Hemp Agra LLC. This project will purchase equipment for the industrial hemp processing facility in Rock Valley, in Sioux County, Iowa. The equipment will process raw hemp into components that will be used in the construction, textiles, composites, and pet care industries. This project is expected to create 20 new jobs.

The following six grants were made through the Higher Blends Infrastructure and Incentive Program and total $4,174,131. The investments will create infrastructure to expand the sales and use of renewable fuels. The purpose of this funding program is to assist owners of transportation fueling and fuel distribution facilities in expanding the sale and use of ethanol and biodiesel.

• Rainbo Oil Company received a $589,648 grant. This project will retrofit eight E15 dispensers, install four E15 dispensers, eight B20 dispensers, two ethanol storage tanks, and one biodiesel storage tank across five fueling stations located in Iowa. Station locations impacted by this grant are Delhi in Delaware County, Iowa, and four stations in Dubuque in Dubuque County, Iowa. This project is projected to increase the amount of biofuel sold by 576,909 gallons per year.

• Multi-County Oil Co. received a $411,108 grant. This project will install two E15 dispensers, two E85 dispensers, two B20 dispensers, one ethanol storage tank, and one biodiesel storage tank at two fueling stations located in Iowa. Station locations impacted by this grant are North English and Keswick in Keokuk County, Iowa. This project is projected to increase the amount of biofuel sold by 710,345 gallons per year.

• C&D Car Wash LLC received a $411,000 grant. This project will install three E15 dispensers, one B20 dispenser, one ethanol storage tank, and one biodiesel storage tank at one fueling station in Bellevue in Jackson County, Iowa. This project is projected to increase the amount of biofuel sold by 305,193 gallons per year.

• Butler Truck Oasis LLC received a $573,375 grant. This project will install four E15 dispensers, four E85 dispensers, and five B20 dispensers at one fueling station in Shell Rock in Butler County, Iowa. This project is projected to increase the amount of biofuel sold by 1,720,424 gallons per year.

• Prime Stop Inc. received a $238,500 grant. This project will install three E15 dispensers and one ethanol storage tank at one fueling station in Melbourne in Marshall County, Iowa. This project is projected to increase the amount of ethanol sold by 148,992 gallons per year.

• Molo Petroleum LLC received a $1,950,500 grant. This project will install 30 E15 dispensers, six B20 dispensers, four ethanol storage tanks, and four biodiesel storage tanks at seven fueling stations. Station locations impacted by this grant are in Eldridge, Bettendorf, and Davenport in Scott County, Iowa; Hiawatha in Linn County, Iowa; Dubuque in Dubuque County, Iowa; and East Moline in Rock Island County, Illinois. This project is projected to increase the amount of biofuel sold by 2,781,800 gallons per year.

To learn more about these programs, contact John Ferrell, Business Programs Director in Iowa, at [email protected].

For more information on USDA Rural Development investments in rural America, visit the Rural Data Gateway. The Rural Data Gateway is an online tool that strengthens USDA Rural Development partnerships with rural people, entrepreneurs, government officials and Congress by making investment data accessible to the public.

Learn more online at www.rd.usda.gov, subscribe to GovDelivery updates, and follow us on X at @RD_Iowa.

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