CHAPTER 52
MARKETING
CHOOSE IOWA PROMOTIONAL PROGRAM
21—52.1(159) Definitions.
“Department” means the Iowa department of agriculture and land stewardship.
“Food item” means any of the following:
	1.	A perishable item derived from an agricultural commodity, or processed from an agricultural commodity, that is fit for human consumption.
	2.	Honey produced from bees in a managed beehive.
“Iowa farm” means land in this state used to produce an agricultural commodity.
“Member” means a person who has applied for and been accepted to participate in the choose Iowa promotional program.
“Process” means to prepare a food item in a manner that allows it to be fit for human consumption.
“Processor” is a membership classification that means a person preparing a food item in a manner that allows it to be fit for human consumption.
“Producer” is a membership classification that means a person growing, raising, or harvesting agricultural commodities in the state of Iowa.
“Retailer” is a membership classification that means a person engaged in the business of selling agricultural products to consumers, including food service and restaurants.
“Wholesaler” is a membership classification that means a person engaged in the business of selling agricultural products to retailers.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.2(159) Product qualification.
	52.2(1) Authority of determination. The department has the sole authority in determining the eligibility of a product for participation in the program.
	52.2(2) General product qualifications. Except as specified in this chapter, products must meet or exceed the following criteria:
	a. 	Fresh produce and commodities bearing the choose Iowa logo shall be 100 percent grown or raised in Iowa.
	b. 	Meat and meat products bearing the choose Iowa logo shall be derived from animals born, raised, and finished in Iowa. Slaughter and processing must take place in a state- or federally inspected plant within the state of Iowa.
	c. 	Dairy products bearing the choose Iowa logo shall be derived from animals in Iowa. Processing must take place in a state-inspected plant within the state of Iowa.
	d. 	Eggs bearing the choose Iowa logo shall be derived from animals in Iowa.
	e. 	Apicultural products produced by honey bees, including honey, wax, pollen, and propolis, bearing the choose Iowa logo shall be 100 percent of Iowa origin. Processed honey shall be 80 percent of Iowa origin.
	f. 	Beer bearing the choose Iowa logo shall be brewed in Iowa and contain at least one Iowa agricultural product, such as Iowa malt, hops, or soluble remnant, excluding water.
	g. 	Wine bearing the choose Iowa logo shall contain a minimum of 75 percent Iowa grapes.
	h. 	Spirits bearing the choose Iowa logo shall be distilled in Iowa and contain at least one Iowa agricultural product, excluding water.
	52.2(3) Exceptions. The department has the authority to establish product qualification requirements specific to individual products and commodities by written order.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.3(159) Application for membership.
	52.3(1) Application requirement. Persons interested in becoming a member in the choose Iowa promotional program shall do so by making application to the department. New applications may be submitted at any time throughout the year.
	52.3(2) Application review and compliance verification. The department, upon receipt of an application, will verify the applicant’s compliance with this chapter and approve or deny the application. The department will notify the applicant in writing of the approval or denial.
	52.3(3) Duration of membership. Membership is on an annual basis, coinciding with the calendar year beginning January 1 and ending December 31.
	52.3(4) Membership revocation and termination. Program membership may be revoked if the member company:
	a. 	No longer meets the qualifications for membership;
	b. 	Violates any applicable statute or rule;
	c. 	Violates any agreement between the department and the member company;
	d. 	Acts in a manner that may damage the reputation of the program.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.4(159) Fees.
	52.4(1) Membership fees. Membership fees will be listed in the membership application and will be charged at the following rates:

Producer	$100	
Processor	$100	
Wholesaler/distributor	$100	
Retailer	$100	
Supporting organization	$100	
	52.4(2) New member fees. New member agreements issued during the program year will be assessed at 100 percent of the annual fee regardless of when an application for membership is submitted.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.5(159) Approval for use of logo. Members who wish to use the choose Iowa logo on packaging, labels, flyers, promotional materials, or any other materials that will be viewed by the public must submit a proof of text and design to the department for approval. Requests for approval must be submitted to the department not less than five working days prior to the proposed date of use. Written approval from the department for logo use must be issued prior to use of the logo.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.6(159) Self-certification. All members shall self-certify that all products marked with the choose Iowa logo meet the qualification criteria as set forth in this chapter. Self-certification is subject to verification through the application and compliance processes.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.7(159) Compliance.
	52.7(1) Authority of department. The department may enter upon the premises of any member to examine any records or materials necessary to ensure compliance with these rules.
	52.7(2) Random compliance inspection. The department may annually perform random compliance inspections.
	52.7(3) Samples. Upon request of the department, a member shall provide samples of the labels, packaging, merchandising, and promotional materials featuring the choose Iowa logo.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.8(159) Violations. Any person found in violation of these rules is subject to termination of membership privileges.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.9 to 52.19  Reserved.
This division is intended to implement Iowa Code section 159.29 as amended by 2022 Iowa Acts, House File 2581.
VALUE-ADDED AGRICULTURE GRANT PROGRAM
21—52.20(159) Definitions. For purposes of this division:
“Agreement” means a contract for financial assistance under the program describing the terms on which the financial assistance is to be provided.
“Applicant” means a person applying for assistance under the program. This includes but is not limited to an individual, business, agricultural cooperative, nonprofit organization, or local government.
“Department” means the Iowa department of agriculture and land stewardship.
“Grant” means an award of assistance with the expectation that, with the fulfillment of the conditions, terms and obligations of the agreement with the department for the project, repayment of funds is not required.
“Program” means the value-added agriculture grant program established under this chapter.
“Project” means an activity or activities undertaken by the applicant to be carried out to meet the goals of the program.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.21(159) Eligibility.
	52.21(1) Eligible applicants. To be eligible for a grant under the program, an applicant shall meet all of the following requirements:
	a. 	Be an individual, business, agricultural cooperative, nonprofit organization, or local government.
	b. 	Be in good standing with the state of Iowa.
	c. 	Currently reside or conduct business in Iowa.
	52.21(2) Eligible projects. To be eligible for a grant under the program, a project shall:
	a. 	Increase sales of Iowa agricultural products by increasing production capacity or expanding market access for value-added projects.
	b. 	Not be in progress until a grant is awarded.
	c. 	Be completed in 12 months or less.
	d. 	Be conducted in Iowa.
	52.21(3) Ineligible expenses. The following items are not eligible expenses under the program:
	a. 	Equipment and infrastructure for meat processing;
	b. 	Infrastructure for renewable fuels;
	c. 	Expenses incurred prior to the awarding of a grant;
	d. 	Start-up costs including but not limited to inventory, license fees, or working capital;
	e. 	Advertising, public relations, or entertainment costs;
	f. 	Employee benefits and wages;
	g. 	Paying off existing debt, related collection costs, or legal costs;
	h. 	Paying off existing fines, penalties, or settlements from failure to comply with any applicable law or regulations.
	52.21(4) Grant amount and terms.
	a. 	The maximum amount of financial assistance awarded to an eligible applicant under the program shall not exceed $25,000.
	b. 	An applicant must demonstrate the ability to provide matching support for the project on a one-to-one basis. The matching financial support shall be from private sources.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.22(159) Application and review process.
	52.22(1) The department will establish a uniform application process and make information about applying available on its website.
	52.22(2) Applications will only be accepted during the times established by the department. Late submissions will not be accepted.
	52.22(3) A scoring committee established by the department will review and evaluate applications based on the scoring criteria described in rule 21—52.23(159).
	52.22(4) The department, after considering the recommendations made by the scoring committee, will determine which applications to fund and how much should be awarded to each applicant. The department has final decision-making authority on requests for financial assistance for the program.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.23(159) Scoring criteria.
	52.23(1) Application scoring. A scoring committee will be established by the department to evaluate applications on a scale of 0 to 100. Projects receiving a score below 70 will not be considered.
	52.23(2) Scoring criteria. The department will use the following criteria to evaluate each application:
	a. 	The extent to which the project addresses the goals of the program to increase the sale of Iowa agricultural products, increase market access, diversify markets, or increase processing capacity: 25 points.
	b. 	The extent to which the project benefits Iowa including the potential to impact many farmers, both short-term and long-term impacts, and the possibility of creating jobs and investments: 20 points.
	c. 	The ability of the applicant to demonstrate sound business management, financial aptitude, and stability: 15 points.
	d. 	The sufficiency of the project’s budget and financing structure: 15 points.
	e. 	The sufficiency of the project’s proposed work plan and timeline including a detailed description of the steps the applicant will take to complete the project as well as estimated dates: 15 points.
	f. 	The extent to which measurable objectives can be determined that demonstrate the proposed project’s benefit to the agriculture community: 10 points.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
21—52.24(159) Disbursement of funds. The department will disburse funds for a project only after an agreement has been executed between the applicant and the department and all applicable conditions for disbursement have been met, including the submission of documentation pertaining to the eligible expenditures. Disbursement of funds under the agreement will be on a reimbursement basis for expenses incurred by the applicant.
[ARC 6552C, IAB 10/5/22, effective 11/9/22]
This division is intended to implement 2022 Iowa Acts, House File 2560.
[Filed ARC 6552C (Notice ARC 6433C, IAB 7/27/22), IAB 10/5/22, effective 11/9/22]