value-added producer grant program
DESCRIPTION
Talk given by Laurette Tucker at 2011 Small Farm Family ConferenceTRANSCRIPT
VALUE-ADDED PRODUCER GRANT PROGRAM
SMALL FARM FAMILY CONFERENCENovember 2, 2011
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PURPOSE
TO PROVIDE COMPETITIVE
GRANTS TO HELP INDEPENDENT
AGRICULTURAL PRODUCERS AND HARVESTERS
ENTER INTO VALUE-ADDED
ACTIVITIES
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HIGHLIGHTS(FY 2011)
~ $37 Million Nationally Competitive Grant Funds
RESERVED FUNDS:-10% Beginning Farmer/Rancher or Socially Disadvantaged Farmer/Rancher-10% Mid Tier Value Chain
PRIORITY POINTS: for Beginning Farmer Rancher, Socially Disadvantaged Farmer Rancher, Operators of Small or Medium-Sized Family Farms, Mid-Tier Value Chain projects and Farmer or Rancher Cooperatives
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COMPONENTS OF THE PROGRAM
PLANNING
WORKING CAPITAL
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PLANNING(Maximum grant $100,000)
Economic activities to determine the viability
of a potential value-added venture, including:
- feasibility studies,
- marketing plans,
- business plans and legal evaluation
Funds can not be used for planning or studies
associated with building as construction or
building plans.
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WORKING CAPITAL(Maximum grant $300,000)
Grants can be used to pay for operations prior to
obtaining sufficient cash flow from operations
such as:
- salaries, utilities and other operating costs;
- financing inventories;
- purchasing office equipment, computers, and supplies
- financing other related marketing or working capital activities necessary to allow producers to better compete in domestic or international
markets for value-added products.
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APPLICANT ELIGIBILITY
Independent Producer
Agricultural Producer Group
Farmer or Rancher Cooperative
Majority Controlled Business Venture
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is a producer of agriculture commodities or agricultural harvesters (such as fisherman) who produce more than 50% of the raw commodity of product to which value would be added
Producers can NOT produce under contract with any organization other than their own.
Independent Producer
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is an entity representing independent producers or harvesters such as a State or National Commodity group or a producer trade organization
Agricultural Producer Group
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Farmer or Rancher Cooperative is a business incorporated
under state cooperative statues, that is 100% farmer or rancher owned from which benefits are derived and distributed equitably on the basis of use by each of the farmer or rancher owners
Must be in good standing in the state of incorporation
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Majority Controlled Business Venture
is an entity where the majority of the number of owners must meet the definition of independent producer and where the majority of the financial interest and voting is held by those meeting the definition of independent producer
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PRODUCT ELIGIBILITYUnder any of the following value-added
definitions, the customer base must be expanded and a
greater portion of the revenue must be available to
the producer
change in physical state
organically produced (as evidenced in a business plan)
physically segregated in a manner that results in the enhancement of the value of the commodity
ag commodity that is a source of renewable energy
locally-produced agricultural food product
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MATCHING ELIGIBILITY Matching funds of at least 50% of total
project costs are required.
Match must be spent at a rate equal to or greater than grant funds.
Match must be provided by the applicant or a third-party in the form of cash or in-kind funds.
Match must be spent on eligible purposes and must be from eligible sources.
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APPLICATION PROCESS Deadlines normally announced in an annual
funding notice and that date is yet to be determined for FY 2012
Paper applications submitted to RD State Office in applicant’s state
Electronic applications submitted through grants.gov
Applications receive two reviews and the applicant’s score is an average of these
Administrator of Business Programs makes awards
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PROJECTS FUNDED
Anaerobic Digester – (renewable energy) dairy waste to energy
Milk – to cheese, to butter, to yogurt, ice cream
Grapes - wine, jams and jellies Locally marketed fruits and
vegetables Corn - spirits Berries – jam and jellies Pork, Beef, Fish – specialty cuts of
meats, fillets
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ADDITIONAL RESOURCES
VA FAIRS Virginia Foundation for Agriculture, Innovation and Rural Sustainability
Chris Cook, Executive Director804-290-1111
Know Your Farmer, Know Your Foodhttp://www.usda.gov/wps/portal/usda/knowyourfarmer?navid=knowyourfarmer
AgMRCAgricultural Marketing Resource Center
www.agmrc.org
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CONTACT INFORMATION
Laurette Tucker, 434.392.4906, ext. 125
USDA Rural Development 1606 Santa Rosa Road, Suite 238
Richmond, VA 23229