Produce at a grocery store. (Photo by Cami Koons/Iowa Capital Dispatch)
A bill to create grocery reinvestment and local food processing grant programs advanced Thursday from the Iowa House of Representatives.
House File 1032 aims to help rural areas of the state retain grocery stores and expand local food systems with the goal of preventing rural food deserts.
Rep. Shannon Latham, R-Sheffield, said rural grocery stores are often just “one freezer breakdown or one cooler breakdown away from having to close their doors.”
“This bill can help bridge the gap between local producers, processors and consumers,” Latham said.
Through the grocery reinvestment program, existing or new grocery stores could apply for funds to expand capacity, upgrade utilities, purchase equipment or technology and cover professional costs.
Recipients must provide matching funds and financial assistance could not exceed $100,000. Grocery chains with 10 or more stores would not be eligible.
The bill also creates a program for local food processing grants that would expand the availability, access, efficiency and capacity of local food processing in a community.
The local food processing grant program would have $100,000, or 10% of the total allocated fund, annually to award to eligible local processing projects that source goods from more than one Iowa farm.
Earlier versions of the bill, House File 59, and House File 550, included an appropriation of $2 million, from the general fund, to the programs.
This section was not in the version of the bill that passed on the floor. Advocates of the bill said they have been told by lawmakers that an appropriation is expected, though it likely won’t be the full amount from the initial bill.
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Amendments
The bill had three proposed amendments, the first of which was introduced by Rep. Austin Harris, R-Moulton, to amend the definition of a rural grocery store.
“The intent of this bill is to make sure that our rural areas, that are more prone to be food desert areas… are able to take advantage of this program,” Harris said.
The amendment, which was adopted, expands the definition of an eligible rural grocery store to a business where 50% of the retail space, or 30% of revenue, relate to general line food retail.
Harris said this would account for grocery stores that share space with other businesses, like a fuel stop or a diner, as is common in rural towns.
The second amendment, brought forth by Rep. J.D. Scholten, D-Sioux City, did not pass, but would have addressed the “real problem” of price discrimination by distributors who favor corporate stores.
“For decades, we’ve had out-of-state corporations undercut local grocers — that’s the problem,” Scholten said.
Scholten said it would stop suppliers from giving preferential pricing to established corporate stores over local grocers.
“This will allow your local grocer to play on an even field,” Scholten said.
Latham recommended a “no” vote on the amendment because she did not have an opportunity to speak with the office of the attorney general or other noted offices in the amendment. The amendment failed 58-31.
The final amendment, brought forth by Rep. Chad Ingels, R-Randalia, moved the local processing element of the bill under the purview of the Iowa Department of Agriculture and Land Stewardship, instead of Iowa Economic Development Authority, where the rest of the program is managed.
The amendment would also prioritize funding for local facilities that process goods from three or more Iowa farms, participate in the Choose Iowa program or sell to a rural grocery store.
Rep. Ken Croken, D-Davenport, said all of the amendments made the “good bill better and better.”
HF 1032 passed with no dissenting votes and moves to the Senate.