27 co-ops among recipients of
$13 million in USDA Rural
Development VAPG funding
Agriculture Secretary
Ann M. Veneman in
mid-October announced
the approval of 97 Value-
Added Producer Grants
(VAPG), totaling more than $13.1 million,
in 34 states. Farmer-owned cooperatives
were awarded 27 of the grants.
The grants will help farmers and
ranchers increase their economic
opportunities through the development
of new products and markets for
agriculturally based products.
In support of President Bush’s 2001
energy plan, 16 percent of the proposals
selected will support biomass/
renewable energy-related ventures.
“The Bush administration continues to
place a high priority on creating new
sources of renewable and biomass
energy through such grant programs as
the value-added producer grant program,”
Veneman said. “Creating an
energy independent nation, through
utilization of our nation’s natural
resources, is a valuable investment in
America’s future.”
“These grants are critical to helping
America’s farmers and ranchers
increase markets for their commodities
and to increase their profitability,”
added Agriculture Acting Under
Secretary for Rural Development
Gilbert Gonzalez. “President Bush is
committed to helping more rural families
live the American Dream
through the creation of new business
ventures that employ more rural
Americans. This program is a significant
investment in the future of rural
families and communities.”
Authorized as part of the 2002 Farm
Bill, the VAPG program provides an
opportunity to refine agricultural commodities
and products to increase their
value in the marketplace.
Of the $13.1 million announced,
$2.1 million will fund 16 proposals
ranging from determining the feasibility
and creating a business plan for harnessing
wind energy in Colorado, to
determining the feasibility of marketing
ethanol from a 50-million-gallon,
dry-grind ethanol plant in Illinois, to
determining the feasibility of converting
dairy biogas into purity pipeline or
automotive quality fuel in Idaho.
VAPG is a highly competitive grant
program that attracted nearly 400
applications. An independent review
of applications is conducted to ensure
that selected proposals are scored
based on the criteria established in the
announcement of the funding availability.
Funding of selected applicants
will be contingent upon meeting the
conditions of the grant agreement.
Following is a list of the co-ops that
received a VAPG. A complete list of
the selected grant recipients can be
found posted on at the USDA Rural
Development Web site at:
http://www.rurdev.usda.gov.
USDA Rural Development’s mission
is to deliver programs in a way
that will support increasing economic
opportunity and improve the quality of
life of rural residents. As a venture capital
entity, Rural Development provides
equity and technical assistance to
finance and foster growth in homeownership,
business development and
critical community and technology
infrastructure.
