Gov. Reynolds Directs CARES Acts Funds to Iowa Biofuel Producers and Renewable Fuel Retailers


Via Flickr

Gov. Kim Reynolds announced Tuesday that $100 million of CARES Act funds will go to several agricultural sectors in Iowa.

Iowa is directing $15.5 million in grants to biofuel producers and $7 million to renewable fuel retailers. Both sectors suffered during the early stages of the pandemic when demand for gasoline dropped, and renewable fuel producers did not receive any funds directly through the CARES Act at that time, according to Iowa Public Radio.

Monte Shaw, executive director of the Iowa Renewable Fuels Association, says that he is grateful for the funds since as much as half of Iowa’s ethanol production came to a halt during the worst stages of the pandemic. He hopes that the money will give producers more time to recover and help prevent plants from being permanently closed. As of this week, production has resumed to around 85 to 95 percent of capacity.

Reynolds directed the remaining funds to livestock programs, new farmers, meat processors, fruit and vegetable growers and the schools that buy their produce from local growers.

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