Bioenergy, dairy producers among
recipients of $14.6 million in VAPGs



griculture Secretary Mike Johanns has announced the selection of 171 applications from 42 states to receive over $14.6 million under USDA Rural Development’s Value Added Producer Grant (VAPG) program. “These grants will create jobs and improve financial returns for growers and farm families across rural America,” said Johanns. “These funds assist agricultural producers in marketing their products and enhance opportunities for the development of alternative fuels from renewable energy sources, part of President Bush’s comprehensive national energy policy.”

Since 2001, the Bush Administration has committed over $115 million to support value-added agricultural investments, including more than 110 energy related projects. Value-Added Producer Grants may be used for planning activities, such as feasibility studies or business plans, or to provide working capital for marketing value-added agricultural products and for farm-based renewable energy projects.

Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. Value-added products are created when a producer takes an agricultural commodity, like milk or vegetables, and processes or prepares it in a way that increases value to consumers. For example, in Nebraska, an on-farm dairy processing plant that manufactures a Hispanic line of cheeses will receive funding to prepare a marketing plan and design promotional materials and bilingual labels.

A Mississippi cooperative will receive a grant to process and market frozen, processed blueberries. The Wisconsin Soybean Marketing Board will receive a grant to determine the viability of marketing biodiesel made by a producer-owned soybean processing plant. Businesses and producers in California, Delaware, Illinois, Indiana, Iowa, Kansas, Mississippi, Missouri, Nebraska, Ohio, Oregon, Washington and Wisconsin will receive grants to assess the feasibility of marketing ethanol and biodiesel, or other types of renewable energy. A total of 32 energy-related grants were awarded this year. A complete list of the grants is available on the USDA Web site at: http://www.rurdev.usda.gov/.












November/December Table of Contents