Applications are now being accepted under the USDA Rural Development National Value-added Producer Grant program from agricultural producers and eligible groups to process, enhance, and/or market their goods to increase business sustainability.
Value-added projects are those that process a raw product, enhance a commodity, physically segregate a commodity, create a locally-produced food, and establish farm-based energy operation or market an agriculture product. Examples include selling farm-raised meats, packing individual servings of fruits, separating of non-genetically-engineered soybeans, processing corn into bio-fuel, and developing a marketing campaign for a new winery.
Eligible applicants include agricultural producers and groups who actively grow, manage, and control at least 51 percent of a commodity. Farmer cooperatives, certain non-profit grower entities, and majority-controlled businesses are examples of groups who will be considered. Beginning, veteran farmer, socially-disadvantaged, operator of a small- or medium-sized family farm, cooperatives, mid-tier value chain project, and group applicants are eligible for priority points.
Grants are limited to $75,000 for planning purposes and $250,000 for working capital. This grant requires a dollar-for-dollar match in the form of cash or eligible in-kind contributions. Planning grants support third-party feasibility studies and marketing and/or business plan development. Operating grants may be applied to the cost of processing or marketing a product.
Certain restrictions apply to operating fund grants over $50,000. Land, buildings and equipment, grant preparation, research and development, engineering or architectural, agricultural production-related expenses are not eligible under the program.
The Notice of Solicitation of Application (NOSA) was published in the Federal Register on Aug. 29, 2017. Proposals are due Jan. 31, 2018. Applications materials including the NOSA, Applicant Tool Kit, links to required forms and other important application resources are available at: http://www.rd.usda.gov programs-services/value-added-producer-grants — Joanne Davidhizar, Michigan State University Extension, and Bobbie Morrison of USDA Rural Development
