(Radio Iowa) – The Iowa House has unanimously voted to create a grant program to help grocery stores buy new equipment, update technology or utilities and make other improvements. Representative Shannon Latham of Sheffield says the number of food deserts is growing in Iowa. “In fact, the number of independent grocers has decreased by 15% in Iowa in the past decade,” Latham said, “and this decline is more staggering in rural Iowa where more than 40% of grocery stores have closed in communities with populations less than 1000.”

Latham says the proposed Iowa Grocer Reinvestment Fund could offer grants of up to 100-thousand dollars that would have to be matched by a grocery store owner.  “Profit margins are extremely thin for small grocery stores,” Latham said, “so some of them could be just one freezer breakdown or one cooler breakdown away from having to close their doors.” Representative Austin Harris of Moulton says the bill defines what a grocery store is to ensure small town “country stores” could qualify for a grant.

“It has to be at least 50% of retail space dedicated to traditional grocery shopping or 30% of revenues from the store comes from the grocery,” Harris said. “I know a lot of towns in my district and other parts across the state, their little town has a grocery store, but it’s not just a grocery store. It’s also a diner or something else.” Representative J-D Scholten of Sioux City says the bill is a step in the right direction, but more must be done to address unfair competition.

“For decades we’ve had out of state corporations undercut local grocers. That’s the problem,” Scholten said. “The Walmarts, the Dollar Generals have come into Iowa and economically bullied our local grocery stores.” The bill also calls for state grants for grocers to process and sell locally raised meat and produce. Representative Latham says studies show obesity rates are lower in areas where people have access to a grocery store. “Not only do they provide nutritious food for residents, but these businesses add to our local economies…and they play an important role in connecting local residents with people outside their homes.”

The bill sets up the grant programs, but House leadership says a decision on how much money to set aside for these grants hasn’t been made yet.