Midwest state (7)
'midwest state' is the definition.
(I've seen this in another clue)
This is the entire clue.
(Other definitions for iowa that I've seen before include "part of United States" , "US state, three vowels" , "part of US" , "Midwest US state" , "State of USA" .)
(Other definitions for indiana that I've seen before include "State of southern US" , "State south of Lake Michigan" , "member of 2 [THE STATES]" , "State of central US" , "American state" .)