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SMALL FARM FAMILY CONFERENCE
November 2, 2011
2
TO PROVIDE COMPETITIVE
GRANTS TO HELP INDEPENDENT
AGRICULTURAL PRODUCERS AND
HARVESTERS
ENTER INTO VALUE-ADDED
ACTIVITIES
3
 ~ $37 Million Nationally Competitive
Grant Funds
 RESERVED FUNDS:
-10% Beginning Farmer/Rancher or Socially
Disadvant...
PLANNING
WORKING CAPITAL
4
(Maximum grant $100,000)
Economic activities to determine the viability
of a potential value-added venture, including:
- f...
(Maximum grant $300,000)
Grants can be used to pay for operations prior to
obtaining sufficient cash flow from operations
...
 Independent
Producer
 Agricultural
Producer
Group
 Farmer or
Rancher
Cooperative
 Majority
Controlled
Business
Ventur...
8
 is a producer of agriculture commodities
or agricultural harvesters (such as
fisherman) who produce more than 50%
of t...
9
 is an entity representing
independent producers or
harvesters such as a State or
National Commodity group or a
produce...
10
 is a business incorporated under state
cooperative statues, that is 100%
farmer or rancher owned from which
benefits ...
11
 is an entity where the majority of
the number of owners must meet
the definition of independent
producer and where th...
Under any of the following value-added definitions,
the customer base must be expanded and a greater
portion of the revenu...
 Matching funds of at least 50% of total project
costs are required.
 Match must be spent at a rate equal to or
greater ...
 Deadlines normally announced in an annual funding
notice and that date is yet to be determined for FY 2012
 Paper appli...
 Anaerobic Digester – (renewable energy)
dairy waste to energy
 Milk – to cheese, to butter, to yogurt, ice
cream
 Grap...
VA FAIRS
Virginia Foundation for Agriculture, Innovation and
Rural Sustainability
Chris Cook, Executive Director
804-290-1...
 Laurette Tucker, 434.392.4906, ext. 125
laurette.tucker@va.usda.gov
USDA Rural Development
1606 Santa Rosa Road, Suite 2...
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Value-Added Producer Grant Program

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Talk given by Laurette Tucker at 2011 Small Farm Family Conference

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Value-Added Producer Grant Program

  1. 1. SMALL FARM FAMILY CONFERENCE November 2, 2011
  2. 2. 2 TO PROVIDE COMPETITIVE GRANTS TO HELP INDEPENDENT AGRICULTURAL PRODUCERS AND HARVESTERS ENTER INTO VALUE-ADDED ACTIVITIES
  3. 3. 3  ~ $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
  4. 4. PLANNING WORKING CAPITAL 4
  5. 5. (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. 5
  6. 6. (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. 6
  7. 7.  Independent Producer  Agricultural Producer Group  Farmer or Rancher Cooperative  Majority Controlled Business Venture 7
  8. 8. 8  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.
  9. 9. 9  is an entity representing independent producers or harvesters such as a State or National Commodity group or a producer trade organization
  10. 10. 10  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
  11. 11. 11  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
  12. 12. Under 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 12
  13. 13.  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. 13
  14. 14.  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 14
  15. 15.  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 15
  16. 16. VA FAIRS Virginia Foundation for Agriculture, Innovation and Rural Sustainability Chris Cook, Executive Director 804-290-1111 Know Your Farmer, Know Your Food http://www.usda.gov/wps/portal/usda/knowyourfarmer?navid=knowyourfarmer AgMRC Agricultural Marketing Resource Center www.agmrc.org 16
  17. 17.  Laurette Tucker, 434.392.4906, ext. 125 laurette.tucker@va.usda.gov USDA Rural Development 1606 Santa Rosa Road, Suite 238 Richmond, VA 23229 17

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