PRESS RELEASE

United States Department of Agriculture Rural Development
1303 SW First American Place, Suite 100, Topeka, KS 66604-4040
V
OICE (785) 271-2700, FAX (785) 271-2708, TTY (785) 271-2767, WEB www.rurdev.usda.gov/ks

For Immediate Release- October 24, 2002

Contact- Harold Alford (785) 271-2702

Kansas USDA Rural Development Announces $2.8 Million In Grants To
Fund Value-Added Products and Distance Learning & Telemedicine.

October 23, 2002 - Topeka, KS. – Kansas Rural Development State Director Chuck Banks announced $2,815,655 in grant funds that will bring new economic opportunities and job creation to rural Kansas.

The funds are part of the Rural Business-Cooperative Service Value-Added Agricultural Product Market Developments grants and Rural Utilities Service Distance Learning and Telemedicine grants announced by Agriculture Secretary Ann Veneman this week.

"These projects will bring new opportunities for developing alternative energy sources as well as create other value-added agricultural products that provide real investment in our rural communities," said Veneman.

State Director Chuck Banks stated that "These grants will provide important investments in the areas of energy and value-added development where the agricultural sector continues to be a leader in forging new solutions. Investing in our schools and hospitals helps families and creates new jobs in these rural areas."

State Director Banks reported the following Kansas recipients, grant amounts, and purpose:

21st Century Grain Processing, Manhattan, Kansas, $500,000 for working capital to expand flour milling into hard white wheat and expand their market for flour and food grade corn.

Padonia Grain Farmers, Inc., Reserve, Kansas, $50,750 to conduct a feasibility study and develop a business plan for segregating and marketing high protein corn in domestic feed markets.

Cooperative Agricultural Services, Inc., Grinnell, Kansas, $500,000 for working capital for operation of soybean crushing facility.

Jewell County Sunflower Processing, Randall, Kansas, $41,000 to conduct a feasibility study for a sunflower processing plant, and to develop a business plan.

Western Plains Energy, LLC, Quinter, Kansas, $290,615 to finance start-up cost for a 30-million gallon ethanol plant near Oakley.

American White Wheat Producers Association, Atchison, Kansas, $218,710 for a feasibility study and business plan development for processing hard white wheat into heavy bran for use in breakfast cereals and specialty breads.

East Kansas Agri-Energy, LLC, Garnett, Kansas, $450,000 to finance start-up expenses of a 20-million gallon ethanol plant near Garnett.

U.S. Premium Beef, Ltd., Kansas City, Missouri, $500,000 to conduct a feasibility study and business and development plan for acquisition of a majority ownership interest in the Farmland National Beef Packing Company.

Barton County Community College, Great Bend, Kansas, $69,550 to develop an interactive television (ITV) system for distance teaching and learning designed to improve both the quality of instruction and to increase the variety of courses offered to high school and college students in rural central Kansas. A potential 40,350 residents 19 and older could benefit from services including adult education, business and industry training, and lifetime learning. It is expected that the project will also provide access to improved educational opportunities to 5,427 children and youth (K-12) who are enrolled in the school districts where the hub site and end-user sites are located.

Hays Medical Center, Hays, Kansas, $195,000 to purchase teleradiology equipment for 11 rural critical access hospitals in exceptionally rural areas of northwest Kansas and one hospital in south central Nebraska. Over 16,000 patients will be served by this project.

Funding of individual recipients will be contingent upon meeting the conditions of the grant agreement.

For additional economic development information, you may log onto the Kansas Rural Development website at: www.rurdev.usda.gov/ks, or e-mail the Agency at 2002farmbillRD@ks.usda.gov