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Value-Added Producer Grant
Reserved Funds Options
Mid-Tier Value Chains Projects

At the applicant’s request and as stated in their application materials, applications will be considered for Reserved Funding for projects that propose to develop Mid-Tier Value Chains. As part of their main proposal, these applicants must provide the following additional documentation to demonstrate that they meet the definitions and eligibility for Mid-Tier Value Chain, and Local and Regional Supply Network, in this single category. Applicants may only submit one application to the VAPG program.

• Local and Regional Supply Network – An interconnected group of food-related business enterprises through which food products move from production through consumption in a local or regional area of the USA.
• Mid-Tier Value Chain for VAPG –Local and/or regional supply networks that link independent producers with businesses and cooperatives that market value-added agricultural products in a manner that:
  
  A.   targets and strengthens the profitability and competitiveness of small and/or medium-sized farms and ranches that are structured as a family farm; and
  B.   obtains agreement from an eligible Agricultural Producer Group (APG), Farmer or Rancher Cooperative (COOP), or Majority-Controlled Producer-Based Business Venture (MCPBBV) that is engaged in the value-chain on a marketing strategy.
  
  To compete for Mid-Tier Value Chain reserved funds, applicants must provide the following additional documentation. These additional pages will not count towards the proposal’s page limitation constraints. The application must:
  
  
  1. include a statement indicating the applicant’s intention to compete in the Mid-Tier Value Chain Reserved Funding option;
  2. demonstrate that the project proposes development of a Local or Regional Supply Network of interconnected food-related business enterprises¹ through which food products move from production through consumption in a local or regional area of the USA, including a description of the network, its component members, and its purpose;
  3. describe at least two alliances, linkages or partnerships within the value chain that link independent producers with businesses and cooperatives that market Value-Added Agricultural Products in a manner that benefits Small or Medium-Sized Farms or Ranches that are structured as a Family Farm, including the names of the parties and the nature of their collaboration;
  4. demonstrate how the project, due to the manner in which the VA product is marketed, will increase the profitability and competitiveness of at least two eligible Small or Medium-Sized Farms or Ranches that are structured as a Family Farm²;
  5. document that the eligible APG/COOP/MCPBBV applicant organization has obtained at least one agreement with another member of the supply network that is engaged in the value chain on a marketing strategy; OR that the eligible Independent Producer applicant has obtained at least one agreement from an eligible APG/COOP/MCPBBV engaged in the value-chain on a marketing strategy³;
  6. demonstrate that the applicant currently owns and produces more than 50% of the raw agricultural commodity that will be used for the value-added product that is the subject of the proposal; AND
  7. demonstrate that the project will result in an increase in customer base and an increase in revenue returns to the applicant producers supplying the majority of the raw agricultural commodity for the project.
  
  [Note 1: Examples of food-related business enterprises are Agricultural Producers, processors, distributors, wholesalers, retailers, consumers, and entities that organize or provide technical assistance for development of such networks.]
  
  [Note 2: The application should include sufficient documentation to confirm that the benefitting Small-Medium Family Farms or Ranches meet these definitions in the NOFA.]
  
  [Note 3: For Planning Grants, examples of agreements may include letters of commitment or intent to partner on marketing, distribution or processing; and should include the names of the parties with a description of the nature of their collaboration. Independent Producer applicants must provide documentation to confirm that the APG/Coop/MCPBBV partnering entity meets program eligibility definitions in 7 CFR 4284.3. In this context, the applicant IP’s APG/COOP/MCPBBV partnering entity does not need to supply any of the raw agricultural commodity for the project.]
  
  [Note *: The Agency recognizes that, in a supply chain network, a variety of raw agricultural commodity and value-added product ownership and transfer arrangements may be necessary. So, applicant ownership of the raw agricultural commodity and value-added product from raw through value-added is not required, as long as the proposal can demonstrate an increase in customer base and an increase in revenue returns to the applicant producers supplying the majority of the raw agricultural commodity for the project.]