The document outlines a grant program to provide up to $100,000 for planning activities and $300,000 for working capital to help independent agricultural producers and harvesters enter into value-added activities. Eligible applicants include independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority controlled business ventures. The grants require at least 50% matching funds and can be used for activities like feasibility studies, marketing plans, business plans, operating costs, and inventory financing.

1. SMALL FARM FAMILY CONFERENCE
November 2, 2011

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TO PROVIDE COMPETITIVE
GRANTS TO HELP INDEPENDENT
AGRICULTURAL PRODUCERS AND
HARVESTERS
ENTER INTO VALUE-ADDED
ACTIVITIES

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 ~ $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. PLANNING
WORKING CAPITAL
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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. (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.  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.

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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

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 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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 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. 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
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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.
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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
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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. 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
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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
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