State-Funded Iowa Pet Food Plant Announces Layoffs Less Than Three Years After It Received Incentives

An Iowa pet food manufacturer that received $1.5 million in state incentives to create jobs is now preparing to lay off 41 workers, raising questions about how Iowa’s economic development programs respond when hiring plans fall short.

Independence Premium Foods, located in Independence, notified the state that it will eliminate 41 positions effective Aug. 9, according to Iowa’s Worker Adjustment and Retraining Notification (WARN) website. The layoffs come less than three years after the Iowa Economic Development Authority (IEDA) awarded the company financial assistance through its High Quality Jobs program.

Replacing Lost Jobs

The company took over the former Blue Buffalo pet food plant after General Mills closed the facility in 2023, eliminating 211 jobs. Independence Premium Foods invested approximately $14.8 million in the plant and projected it would eventually create 229 jobs. Based on those commitments, the IEDA approved $1.5 million in direct financial assistance in November 2023.

Whether the company will be required to repay any of those incentives remains unclear. The IEDA did not respond to questions from the Des Moines Register regarding whether the layoffs could trigger repayment provisions under the state’s incentive agreement.

Company Cites Customer Reduction

CEO Mary Helen Horn attributed the layoffs to a reduction in orders from the company’s primary customer. According to Horn, Independence Premium Foods currently relies heavily on a single customer whose declining production volume has forced the workforce reduction.

She said the company is actively pursuing additional customers to diversify its business and return to growth. “We’re really optimistic about our future,” Horn told the Register. “We really believe in our facility and what it can offer the marketplace.”

The company is also working with the IEDA to revise the timeline associated with its original job-creation commitments.

Iowa Manufacturing Continues to Struggle

The announcement adds to a difficult year for Iowa manufacturing. According to WARN filings, Iowa manufacturers have announced more than 1,000 layoffs in 2026.

Among the largest is Whirlpool Corporation, which plans to eliminate nearly 630 jobs at its Middle Amana facility next year after cutting another 250 positions in 2025.

Overall, Iowa companies announced 656 layoffs in June, the highest monthly total in a year.

Our Take

Economic development incentives are designed to encourage investment and create jobs, but they also carry an obligation to protect taxpayers. Business conditions can change, particularly for manufacturers dependent on a small number of customers. Not every setback represents a failed project.

At the same time, transparency is essential. Iowans deserve to know whether companies that receive public incentives are meeting their commitments, what accountability measures exist when those commitments change, and how the state determines whether incentive agreements should be modified, extended, or repaid.

Those answers help ensure that economic development programs remain focused on creating long-term jobs while maintaining public confidence in how taxpayer dollars are invested.