These days there is no such thing as loyalty to an employer. It's sad but true, companies are focused on the bottom line profit - even if that means outsourcing or forcing salaried employees to work 50 - 80 hour work weeks with no overtime. With that said, what you should do really depends on your situation. How marketable are you in finding other work? Do you need a full time job with benefits to provide for your needs?
You are wise to post your resume and keep your options open to a full time job elsewhere. My company has been laying off employees for 5 years now. The process is to hire back 20% of them as contractors so we don't have to pay benefits, bonuses or expenses. It's a numbers game. We know that they'll come back to work because if someone has worked for us for 5 or more years, chances are they're comfortable. They won't want to "hustle" for a new job, prove themselves and do the song and dance for a new employer. It's sad but trust me, we've gone through the propensity to leave calculations and in the end it's always profitable for the business to do this.
If you like your job then stay - if you have no commitments that require you to stay in your state and you're looking for adventure then it might be a good idea to consider relocation but that wouldn't be my first option. Relocation is expensive and what are you going to do in 6 months when the project ends and you're stuck in IA or FL? Or are they providing temporary housing for you for the duration of the contract? If the latter is true, then I'd go for it. You'll earn a boat load of hotel loyalty points that you can use for a personal vacation later on.
If the WI job turns out, make sure you find out if they pay a relocation package. Do you know the time frame for staffing that position? It would be in your best interest to find out so you can time your decision. Always go for the job with benefits so you can start building up your retirement investments.
You should ask the company you're with right now if there is any possibility that you can become a full time employee. THey obviously think you're a good worker or else they wouldn't ask you to stay on board for the rest of the contract. Just don't let them know that you're searching elsewhere because they'll cut you off on a second. Companies are fickle like that, when it comes time to cut contractors - we go first with the ones who either don't perform as well or who we know are already planning on leaving as soon as their meal ticket comes in.