WASHINGTON, Nov. 25, 2013 – Agriculture Secretary Tom Vilsack today announced the availability of nearly $10.5 million in U.S. Department of Agriculture (USDA) grants to help agricultural producers enter into value-added activities designed to give them a competitive business edge.
“U.S. agriculture is responsible for millions of American jobs – both directly and indirectly,”
Vilsack said. “Supporting farmers and related businesses strengthens rural economies and helps fuel innovation and product development. It’s also an important part of USDA programs that link farmers to their communities, and it underscores the many benefits of local and regional food systems.”
The funding is being made available through the Value-Added Producer Grant program. Grants are available to help agricultural producers create new products, expand marketing opportunities, support further processing of existing products or goods, or to develop specialty and niche products. They may be used for working capital and planning activities. The maximum working capital grant is $200,000; the maximum planning grant is $75,000.
Eligible applicants include independent producers, farmer and rancher cooperatives, and agricultural producer groups. Funding priority is given to socially disadvantaged and beginning farmers or ranchers, and to small- to medium-size family farms, or farmer/rancher cooperatives.
The Value-Added Producer Grant program is one of many USDA programs that support the development of strong local and regional food systems as part of the Know Your Farmer, Know Your Food initiative. Launched in 2009, the initiative strengthens ties between agricultural producers and their local communities, helping meet growing consumer demand and creating opportunities for small business development. Initiatives like this create new income opportunities for farmers, generate wealth that will stay in rural communities, and increase access to healthy, local foods in underserved communities. All of these actions boost local economies.
Today’s announcement comes as more than 1,400 communities nationwide gear up to support Small Business Saturday, a day dedicated to championing small businesses on one of the busiest shopping weekends of the year. This year’s Small Business Saturday is Nov. 30.
Rural Development is encouraging applications from Tribal organizations as well as applications that support regional food hubs. Applications supporting value-added activities related to bio-based products are also encouraged.
Since 2009, the Obama Administration has provided agricultural producers with almost $80 million in Value Added Producer Grant assistance that has supported more than 600 innovative, value-added projects.
In Fiscal Year 2012, for example, the Wisconsin Food Hub Cooperative, in Dane County, received a $150,000 grant for working capital to operate the food hub. The hub makes it easy for the retail, institutional, and foodservice sectors to buy locally; and helps local farmers by providing them with the opportunity, through marketing, sales, aggregation, and logistics, to access wholesale markets they could not access easily before.
Additional examples of how VAPGs assist local and regional food producers are available on the USDA Know Your Farmer, Know Your Food Compass, which is searchable by zip code and key word.
Grant applications are due by Feb. 24, 2014. More information about how to apply is available on page 70260 of the November 25 http://www.gpo.gov/fdsys/pkg/FR-2013-11-25/pdf/2013-28175.pdf Federal Register, or by contacting any USDA Rural Development state office.
Secretary Vilsack said that today’s announcement is another reminder of the importance of USDA programs such as the Value-Added Producer Grant program for rural America. A comprehensive new Food, Farm and Jobs Bill would further expand the rural economy, Vilsack added, saying that’s just one reason why Congress must get a comprehensive Bill done as soon as possible.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.
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