USDA grants support
home-grown fuels
SDA Rural Development
is helping to stimulate
the rural economy by
providing matching
grants under its Value
Added Producer Grant program
(VAPG). Alternative energy projects--
including farmer-owned ethanol and
biodiesel plants-- have been major
beneficiaries, as the table on the following
pages shows.
The VAPG Program was authorized
by the Agriculture Risk Protection Act
of 2000 and was amended by the 2002
Farm Bill. Grants may be used for
planning activities and working capital
for marketing value-added agricultural
products and for farm-based renewable
energy.
Eligible applicants are independent
producers, farmer- and rancher-owned
cooperatives, agricultural producer
groups, and majority-controlled producer-based business ventures.
The maximum amount that can be
awarded is $500,000, and all VAPG
funds must be matched by an equal
amount of funds from the applicant or
a third party.
Applications for the 2004 program
closed on July 30, 2004. But interested
groups are encouraged to keep track of
details for the next round of funding
by periodically checking the VAPG
Web site at:
http://www.rurdev.usda.gov/rbs/coops/vadg.htm. About $13.2 million will be awarded in 2004.
For more information about the
program, please contact your USDA
Rural Development state office (contact
information is included on the
VAPG Web site, or by calling (202)
720-4323, then entering 1 at the
voice prompt).
You may also contact the USDA
Rural Development national office in
Washington, D.C., through e-mail:
cpgrants@usda.gov, or by phoning
Marc Warman at (202) 690-1431, or
Gail Thuner at (202) 690-2426.
