Four distinct activities are considered value-added: a change in the physical state or form of the product (such as milling wheat into flour); the production or marketing of a product in a manner that enhances its value, as demonstrated through a business plan (such as organic production); the physical segregation of an agricultural commodity or product in a manner that results in the enhancement of the value of that commodity or product (such as an identity preserved marketing system); the term value-added also includes using any agricultural product or commodity to produce renewable energy on a farm or ranch (an example is collecting and converting methane from animal waste to energy).

A total of $240 million was made available by the 2002 Farm Bill to be utilized over 6 years via annual Notice of Solicitation Announcements.

$100,000 maximum amount for planning grant and $300,000 for working capital grant. Smaller grant requests receive priority points.

Each dollar of grant funds require a minimum match of one dollar in non-federal funds (in-kind contributions are allowed).

Visit...University of Nebraska-Lincoln Food Processing Center's web page at www.fpc.unl.edu for helpful templates to complete an application.

Locate And Contact...Your nearest USDA Rural Development Office.