DES MOINES — The federal government is investing more than $19 million in rural Iowa projects aimed at expanding businesses, improving healthcare, strengthening emergency services and upgrading water systems, with several Northern Iowa organizations and communities positioned to see major benefits.
USDA Rural Development Iowa State Director Mike Sexton announced the funding July 10, saying the investments are intended to support economic growth while helping rural communities modernize essential infrastructure and recover from natural disasters.
“Economic development is vital to our rural Iowa counties and communities, especially places in northwest Iowa hit by flooding in 2024,” Sexton said. “Under the leadership of President Trump and Agriculture Secretary Rollins, USDA is helping modernize services and outfit facilities to recover from disaster, strengthen local infrastructure, and unleash economic prosperity for rural Iowa.”
One of the largest business investments is headed to Butler County, where Feldmeier Equipment Inc. in Shell Rock will benefit from two $1 million pass-through loans.
Butler County Rural Electric Cooperative received one $1 million loan, while Corn Belt Power Cooperative received another $1 million loan. Both loans will help Feldmeier purchase equipment for a business expansion project.
Feldmeier manufactures stainless-steel tanks and pressure vessels used by the food, beverage, brewery, pharmaceutical, dairy and cosmetic industries. The combined $2 million investment is expected to strengthen the company’s Northern Iowa manufacturing operation and support continued economic activity in Butler County.
Northwest Iowa will also receive funding tied to recovery from the devastating flooding of 2024.
The City of Spencer received a $142,000 Community Facilities grant to retrofit the Sioux Rapids Family Care clinic in Sioux Rapids. The funding will replace furniture, medical equipment and fixtures destroyed by flooding during the federally declared disaster.
USDA officials said the project will restore safe and efficient healthcare services for residents of the rural Buena Vista County community.
Other Northern Iowa investments include a $300,000 grant to Corn Belt Power Cooperative to replenish a revolving loan fund. The initial loan will help Kossuth Regional Health Center in Algona purchase equipment to modernize its radiology department and create one new job.
Algona Municipal Utilities also received a $300,000 grant for a revolving loan fund that will help finance additional equipment for the health center.
Readlyn Telephone Company received a $300,000 grant to establish a revolving loan fund. The first loan will help finance construction of a combined emergency services facility for the Readlyn Volunteer Fire Fighters Association in Bremer County.
The largest single investment announced was a $10.35 million loan to the Lyon & Sioux Rural Water System. The project will construct a new 800,000-gallon water tower and eight miles of piping, improving water service for more than 9,200 rural residents in Lyon and Sioux counties.
The City of Correctionville received a $651,000 grant and a $5.149 million loan to build a new well and water treatment plant. The project will also install a raw water main connecting the city’s current well to the new facility.
Elsewhere in Iowa, the City of Macedonia received a $223,000 emergency water grant to construct a new well, while Pathfinders Resource Conservation and Development Area Inc. received a $99,000 grant to provide technical assistance to small and emerging businesses in four southeast Iowa counties.
USDA officials said the revolving loan programs will continue producing economic benefits as the initial loans are repaid and the money is used again for future business and community development projects.
For Northern Iowa, the latest federal investment means new equipment for an expanding Butler County manufacturer, restored healthcare services near Spencer, improved medical technology in Algona and stronger emergency services in Bremer County.