Agribusiness, co-ops awarded
$28 million in USDA grants
SDA Rural Development
in December awarded
$28.7 million to promote
development of valueadded
products made
from U.S. agricultural commodities,
which USDA hopes will spur economic
growth in 40 states. Cooperatives
received 79 of the 184 grants.
“These grants will foster the development
of value-added projects to help
create the opportunity for economic
development and job creation in rural
areas,” Agriculture Secretary Ann
Veneman said. “The Bush
Administration is committed to providing
the necessary tools to help rural
businesses create jobs and improve the
quality of life for their communities.”
Authorized as part of the 2002 Farm
Bill, the Value-Added Producer Grants
provide an opportunity to refine agricultural
commodities and products to
increase their value in the marketplace.
Applications selected for funding
range from Planters Cotton Oil Mill
Inc. in Arkansas, which will receive
$497,000 to develop a feasibility analysis
and business plan for marketing and
manufacturing oilseed products (neutralized
dried soap stock), to
Massachusetts Woodlands Cooperative
LLC, which will receive $499,253 to
expand markets that focus on forest
stewardship, green certified materials
and other value-added forest products.
In support of President Bush’s
2001 energy plan, 29 applications
focusing on bio-mass and renewable
energy were selected to receive $4.3
million in grant funds. For example,
the Central Illinois Energy
Cooperative will use $250,000 as
working capital to operate its 30-million
gallon per year ethanol processing
and cogeneration facility.
Funding of selected applicants will
be contingent upon meeting the conditions
of the grant agreement.
Following is a list only of cooperatives
that received grants. A complete list of
the grant recipients can be found at
the USDA Rural Development Web
site at: http://www.rurdev.usda.gov.
