INSIDE RURAL DEVELOPMENT
Rule changes should ease applying
for USDA co-op grant programs
By Peter Thomas, USDA
SDA Rural
Development’s
Cooperative Programs
experienced another successful
year in 2005, and I
hope your co-ops did too. As we begin
2006, I want to discuss some changes in
a couple of our funding programs
that help agricultural cooperatives
in rural America: the Value-Added
Producer Grant (VAPG) and
Rural Development Cooperative
Grant (RCDG) programs. Due to
increased Congressional support
for fiscal 2006, the VAPG program
was appropriated $19.5 million,
the RCDG program received
$4.5 million and an additional $1.5
million was appropriated to assist
minority producers.
Rural Development is making
changes to both programs in an
effort to make them more accessible
and to improve their overall
administration. These changes
were developed from applicant input,
which included surveys and teleconferences
regarding program requirements
and administration. Comments from
Rural Development field office employees
were also considered, as they work
directly with the program applicants.
One of the most immediate changes
in the Value-Added application process
is the opening of the application window.
The application window opened
Dec. 21, 2005, and will close March 31,
2006. Not only does this provide producers
with an extended application
period, the window was timed to meet
the demanding time schedule of agricultural
producers.
In past years, this process began during
the spring, with applications due
during the summer. However, this year
it was published during the winter,
when most producers are not in the
middle of their planting or harvesting.
For the first time ever, USDA Rural
Development has also established procedures
to allow applicants who submit
substantially complete applications by
the deadline to submit any forgotten or
incomplete items after the application
deadline. An electronic application template
is also available to assist applicants
in submitting a complete application.
Our goal is to have a significantly higher
percentage of completed applications,
ensuring that all eligible projects
have the opportunity to compete for
these critically important grants.
Based upon applicant feedback, we
also increased the maximum amount of
grant award for working-capital funds,
from $150,000 to $300,000. In addition,
a separate allocation of funds up to $1.5
million is available for grant requests of
$25,000 or less. These grants are
designed to assist agricultural producers
who need just a few dollars to aid in
their value-added venture.
Many of the same positive
changes made in the Value-Added program will be introduced
in the Rural
Cooperative Development
Grant program. Once again,
based upon applicant feedback,
we intend to open the
FY 2006 Rural Cooperative
Development Grant program
application process much earlier
in the fiscal year.
We will also introduce procedures
to allow applicants
who submit substantially
complete applications by the
deadline to submit any forgotten
or incomplete items after the
application deadline and will make an
electronic application template available.
Much of the duplication of program
requirements that appeared in previous
applications has been eliminated.
We believe these changes will significantly
improve the application process
and allow for the awarding of more
grants. As always, our state and national
office staffs are available to answer any
questions. Happy New Year, and best
wishes for a healthy and successful 2006.
