The Iowa Food Cooperative, a critical hub for connecting local farmers to consumers, is facing serious financial pressure after major federal food access programs were cut. Programs like Local Food for Schools (LFS) and Local Food Purchase Assistance (LFPA) provided millions in purchasing power that directly supported Iowa’s producers—roughly $11.3 million worth.

The loss of this funding doesn’t just hit co-ops—it sends a shockwave through Iowa’s local ag economy. Farmers who had secured wholesale contracts through these programs are now left scrambling. Food banks and school systems, which counted on fresh, locally grown produce, are forced to pivot. And for many small- to mid-sized farms, this disruption could threaten the very model they’ve built their business on.

So, what’s the takeaway? Diversity matters. Relying too heavily on one customer type—even a government-funded one—can leave your farm exposed to policy shifts you can’t control. This is the moment to ask hard questions:

— What portion of your income is tied to grants or subsidized buyers?
— How resilient is your pricing structure when demand shifts?
— Are there gaps in your go-to-market strategy?

We get it—navigating all of this while still running a farm isn’t easy. But you don’t have to rebuild your plan alone.

If these cuts have you on unstable ground, let’s rebuild your base. Reach out to our team if you’re rethinking your revenue streams or worried about what happens when outside funding disappears. We’re here to help you create a stronger, more self-sustaining farm business model.