Despite slowed expansion plans, Hy-Vee still intends to build more stores in the South, according to Progressive Grocer.

Why it matters: Hy-Vee is one of the largest employers in Iowa, hiring thousands of both retail and white-collar employees.

• But the grocery chain has also faced a slew of negative press in recent years following layoffs and controversial comments by former CEO Randy Edeker in 2022.

State of play: Inflation, construction and inventory-carrying costs have slowed expansion plans, CEO Jeremy Gosch told the Progressive Grocer.

• But its Cumming distribution center is expected to start receiving products in June, while the adjacent Fast & Fresh opens next month.
• Once the distribution center is open, expect Hy-Vee to expand its presence southeast to Tennessee, Indiana and Kentucky, Gosch said.

Yes, but: Don't expect Hy-Vee to build brick-and-mortar stores coast to coast.

• The company is focusing on its brands that don't have the Hy-Vee name, including online organic and natural foods service "WholeLotta Good" and "RedBox," which offers online health consultations and prescription deliveries.

The intrigue: The next big thing is retail media, Edeker, who will step down as Hy-Vee's executive board chair in July, told Progressive Grocer.

• Retailers like Hy-Vee sell advertising strategies to companies wanting to reach their customers. In turn, Hy-Vee gives them customer data, digital ads and in-store displays.
• That money will be used to help lower the price of groceries and some day, Edeker predicts that, "grocery will be eradicated, and groceries will almost be given away for media dollars."

What's next: Expect the company to keep experimenting after Edeker's departure, Gosch said.

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A one-of-a-kind program in Iowa pairs police officers with social workers to better respond to people experiencing mental health crises.

Why it matters: Iowans who commit crimes stemming from mental health issues are getting support more quickly rather than going to jail, Darci Alt, CEO of the Heart of Iowa Community Services, tells Axios.

State of play: In January 2022 the nonprofit created a program that pairs contracted social workers with police officers. Both are trained in crisis intervention.

• The team works full-time weekday shifts together and responds to dispatch calls that appear mental health-related.
• Heart of Iowa fully funds both positions through a grant from the state.

Zoom in: Waukee, Clive, Urbandale and West Des Moines are currently participating, with Guthrie County, Knoxville, Pella and Osceola joining this year.

By the numbers: Between July 2022 and November 2023, the program responded to 890 calls for service and helped divert 280 central Iowans from going to jail by instead providing mental health services.

• 98% of those people have stayed out of jail.

The big picture: The Des Moines Police Department has its own program where officers are replaced with counselors from Broadlawns on calls where mental health appears to be a factor. It has proved successful.

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Iowa's prison population shrank 1% between 2021 and 2022, according to the latest Justice Department data.

Why it matters: The downsizing comes as the U.S. overall combined state and federal prison population bumped up 2.1% — the first increase in almost a decade, a recent DOJ report found.

Zoom in: Iowa prison officials recently credited treatment programs as well as increased access to education and apprenticeships for lower recidivism rates.

Reality check: The U.S. prison population remains extremely high compared to the years before Nixon-era "war on drugs" and "tough on crime" politics took hold, Axios' Alex Fitzpatrick and Kavya Beheraj report.

• That includes Iowa, where there were fewer than 2,000 prisoners in 1978 and just under 8,500 in 2022.

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🚜 Iowa lost nearly 600,000 acres of farmland between 2017 and 2022, which agriculture advocates say is largely a consequence of urban sprawl. (WHO-13)

👮‍♀️ DSM police officers would receive between 3.75% and 4% in base wage increases in each of the next three fiscal years under a new union contract City Council will vote on tonight.

🐟 A buildup of ground nitrates that's likely linked with drought has primed Iowa for a massive increase in stream pollution. (Iowa Capital Dispatch)

⭐️ Today's headline maker: Emily Kessinger of DSM.

👋 Jason here. Last year I wrote about the aji charapita pepper plants that my friends John Sellers and Tom Helton started in their greenhouse.

• Now I'm giving two Axios DSM readers a chance to win one.

Catch up fast: The plants are native to Peruvian jungles.

• Their tiny orange peppers have a spicy, fruity kick and are among the most expensive in the world, per Missouri-based Rare Seeds.
• I've kept three of the plants in my house over winter and have enjoyed making chili and salsas with the peppers.

State of play: I only need one for this year's garden.

The challenge: Hit reply before Thursday at 5pm and send us some puns or quirky headlines we can use for our news roundup, "The Ear," in upcoming newsletters.

• We'll select the two we think are the most creative and schedule a time for you to pick up your plant near downtown.
• Winners will be announced next week!