USDA Rural Development Value-Added Producer Grant

1
USDA Rural Development Value-Added Producer Grant

• Dan Johnson
• Business-Cooperative Specialist
• [phone] Ext. 112
• dan.johnson_at_nv.usda.gov

2
The Purpose

• To assist independent agricultural producers in
  developing value-added activities.

3
Program Funding

• Fiscal Year 2005 Funding was 14.3 Million in
  competitive funds.
• Similar amount expected for Fiscal Year 2006

4
Application Process

• Funding Announcement
• 60 day application period (varies from year to
  year)
• Eligibility determination
• Completeness Check
• Scoring

5
Eligibility

• Applicant
• Product
• Activity
• Other

6
Applicant Eligibility

• Independent Producer
• Farmer or Rancher Cooperative
• Agricultural Producer Group
• Majority-Controlled Producer-Base Business Venture

7
Product Eligibility

• Change in Physical State (i.e. fruit to jam,
  steer to meat)
• Differentiated production or marketing (i.e.
  organic)
• Product segregation (identity preserved)
• Farm-based renewable energy production

8
Activity Eligibility

• Planning Activities
• Feasibility Study
• Business Plan
• Marketing Plan

9
Activity Eligibility

• Working Capital
• Labor
• Inventory
• Advertising
• In general, applicants must demonstrate that the
  activity has not been in operation for more than
  two years

10
Other Eligibility

• Proposed project must be completed by the end of
  the next calendar year.
• Sufficient information must be supplied to
  determine eligibility
• Responsive to the submission requirements
• One application per applicant
• Either Planning or Working Capital not both

11
Grant Amounts

• The lesser of
• 50 of eligible project cost or
• Planning
• 100,000
• Working Capital
• 150,000

12
Cost Sharing or Matching

• Matching funds are required.
• Must be at least equal to grant request.
• Must not be from another Federal Source.
• May be third-party in-kind contribution.

13
Resources

• Ag Marketing Resource Center
• http//www.agmrc.org/agmrc
• USDA Rural Development Value-Added Site
• http//www.rurdev.usda.gov/rbs/coops/vadg.htm

14
(No Transcript)
15
Resources

• University of Nevada Cooperative Extension
  Service
• http//www.unce.unr.edu/

16
Cooperative Development

• Technical Assistance
• Board Training
• Publications
• http//www.rurdev.usda.gov/rbs/pub/NEWPUB.htm

17
Questions?

• Thank you for your interest.