[Federal Register: December 21, 2005 (Volume 70, Number 244)]
[Notices]
[Page 75780-75790]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de05-30]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Announcement of Value-Added Producer Grant Application Deadlines
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice of solicitation of applications.
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SUMMARY: The Rural Business-Cooperative Service (RBS) announces the
availability of approximately $19.475 million in competitive grant
funds for fiscal year (FY) 2006 to help independent agricultural
producers enter into value-added activities. Of this amount, $1.5
million is set aside for applicants requesting $25,000 or less. Awards
may be made for planning activities or for working capital expenses,
but not for both. The maximum grant amount for a planning grant is
$100,000 and the maximum grant amount for a working capital grant is
$300,000.
DATES: You may submit completed applications for grants on paper or
electronically according to the following deadlines:
Paper copies must be postmarked and mailed, shipped, or sent
overnight no later than March 31, 2006, to be eligible for FY 2006
grant funding. Late applications are not eligible for FY 2006 grant
funding.
Electronic copies must be received by March 31, 2006 to be eligible
for FY 2006 grant funding. Late applications are not eligible for FY
2006 grant funding.
ADDRESSES: You may obtain application guides and materials for a VAPG
at http://www.rurdev.usda.gov/rbs/coops/vadg.htm or by contacting your
USDA Rural Development State Office. You can reach your State Office by
calling (202) 720-4323 and pressing ``1''.
Submit completed paper applications for a grant to Cooperative
Programs, Attn: VAPG Program, Mail Stop 3250,
[[Page 75781]]
Room 4016-South, 1400 Independence Ave., SW., Washington, DC 20250-
3250. The phone number that should be used for FedEx packages is (202)
720-7558.
Submit electronic grant applications at http://www.grants.gov,
following the instructions found on this Web site.
FOR FURTHER INFORMATION CONTACT: Visit the program Web site at http://www.rurdev.usda.gov/rbs/coops/vadg.htm
, which contains application
guidance, including Frequently Asked Questions and an Application
Guide. Or you may contact your USDA Rural Development State Office. You
can reach your State Office by calling (202) 720-4323 and pressing
``1'', or by selecting the State Contacts link at the above Web site.
Applicants are encouraged to contact their State Offices well in
advance of the deadline to discuss their projects and ask any questions
about the application process.
SUPPLEMENTARY INFORMATION:
Overview
Federal Agency: Rural Business-Cooperative Service.
Funding Opportunity Title: Value-Added Producer Grants.
Announcement Type: Initial announcement.
Catalog of Federal Domestic Assistance Number: 10.352.
Dates: Application Deadline: You may submit completed applications
for grants on paper or electronically according to the following
deadlines:
Paper copies must be postmarked and mailed, shipped, or sent
overnight no later than March 31, 2006, to be eligible for FY 2006
grant funding. Late applications are not eligible for FY 2006 grant
funding.
Electronic copies must be received by March 31, 2006 to be eligible
for FY 2006 grant funding. Late applications are not eligible for FY
2006 grant funding.
I. Funding Opportunity Description
This solicitation is issued pursuant to section 231 of the
Agriculture Risk Protection Act of 2000 (Pub. L. 106-224) as amended by
section 6401 of the Farm Security and Rural Investment Act of 2002
(Pub. L. 107-171 (see 7 U.S.C. 1621 note)) authorizing the
establishment of the Value-Added Agricultural Product Market
Development grants, also known as Value-Added Producer Grants. The
Secretary of Agriculture has delegated the program's administration to
USDA's Rural Business-Cooperative Service.
The primary objective of this grant program is to help eligible
independent producers of agricultural commodities, agriculture producer
groups, farmer and rancher cooperatives, and majority-controlled
producer-based business ventures develop strategies to create marketing
opportunities and to help develop business plans for viable marketing
opportunities. RBS will competitively award grants to fund one of the
following two activities: (1) Planning activities needed to establish a
viable value-added marketing opportunity for an agricultural product
(e.g. conduct a feasibility study, develop a business plan, develop a
marketing plan); or (2) acquire working capital to operate a value-
added business venture that will allow producers to better compete in
domestic and international markets. In order to provide program
benefits to as many eligible applicants as possible, applications can
only be for one or the other of these two activities, but not both.
Applicants must limit their proposals to emerging markets. Grants will
only be awarded if projects or ventures are determined to be
economically viable and sustainable. These grants will facilitate
greater participation in emerging markets and new markets for value-
added products. No more than 10 percent of program funds can go to
applicants that are majority-controlled producer-based business
ventures.
Definitions
The definitions at 7 CFR 4284.3 and 4284.904 are incorporated by
reference.
Bioenergy Project--A Renewable Energy system that produces fuel,
thermal energy, or electric power from a Biomass source, other than an
anaerobic digester.
Biomass--Any organic material that is available on a renewable or
recurring basis, including agricultural crops; trees grown for energy
production; wood waste and wood residues; plants, including aquatic
plants and grasses; fibers; animal waste and other waste materials; and
fats, oils, and greases, including recycled fates, oils, and greases.
It does not include paper that is commonly reclycled or unsegregated
solid waste.
Farm or Ranch--Any place from which $1,000 or more of agricultural
products (crops and livestock) were raised and sold or normally would
have been raised and sold during the previous year.
Feasibility Study--An analysis of the economic, market, technical,
financial, and management feasibility of a proposed Project.
Project--Includes all proposed activities to be funded by the VAPG
and matching funds.
Renewable Energy--Energy derived from a wind, solar, biomass, or
geothermal source; or hydrogen derived from biomass or water using
wind, solar, biomass, or geothermal energy sources.
Venture--Includes the project and any other activities related to
the production, processing, and marketing of the value-added product
that is the subject of the VAPG request.
II. Award Information
Type of Award: Grant.
Fiscal Year Funds: FY 2006.
Approximate Total Funding: $19.475 million.
Approximate Number of Awards: 250.
Approximate Average Award: $78,000.
Floor of Award Range: None.
Ceiling of Award Range: $25,000 for set-aside grants; $100,000 for
Planning Grants; and $300,000 for Working Capital Grants.
Anticipated Award Date: August 31, 2006.
Budget Period Length: 12 months.
Project Period Length: 12 months.
III. Eligibility Information
A. Eligible Applicants
Applicants must be an independent producer, agriculture producer
group, farmer or rancher cooperative, or majority-controlled producer-
based business venture as defined in 7 CFR 4284, subpart A. If the
applicant is an unincorporated group (steering committee), it must form
a legal entity before the grant agreement can be signed. Please note
that a steering committee may only apply as an independent producer.
Therefore, the steering committee must be composed of 100 percent
independent producers and the business to be formed must be owned by
100 percent independent producers.
B. Cost Sharing or Matching
Matching funds are required. Applicants must verify in their
applications that matching funds are available for the time period of
the grant. Matching funds must be at least equal to the amount of grant
funds requested. Unless provided by other authorizing legislation,
other Federal grant funds cannot be used as matching funds. Matching
funds must be spent at a rate equal to or greater than the rate at
which grant funds are expended. Matching funds must be provided by
either the applicant or by a third party in the form of cash or in-kind
contributions. Matching funds must be spent on eligible expenses and
must be from eligible sources.
[[Page 75782]]
C. Other Eligibility Requirements
Product Eligibility: The project proposed must involve a value-
added product as defined in 7 CFR 4284, subpart A. There are four
categories of value-added. The first category is the incremental value
that is realized by the producer from an agricultural commodity or
product as the result of a change in its physical state. The second
category is the incremental value that is realized by the producer from
an agricultural commodity or product as the result of differentiated
production or marketing, as demonstrated in a business plan. The third
category is the incremental value that is realized by the producer from
an agricultural commodity or product as the result of product
segregation. The fourth category is the economic benefit realized from
the production of farm- or ranch-based renewable energy. Applicants
should note that a project meeting only the second category of value-
added must already have a business plan in place at the time of
application. The applicant must reference this business plan in the
application. Because of this requirement, projects meeting only the
second category of value-added will be ineligible to apply for a
planning grant. In order to be eligible under the fourth category, the
project must generate energy on-farm or on-ranch.
Activity Eligibility: The project proposed must specify whether
grant funds are requested for planning activities or for working
capital. Applicants may not request funds for both types of activities
in one application.
If the grant request is for planning activities, working capital
expenses are not eligible for funding. If more than 20 percent of the
total project cost (both grant and matching funds) for a planning
activities application is for working capital expenses, the entire
application will be determined to be ineligible and will not be
considered for funding. However, if an application with 20 percent or
less of working capital expenses is selected for funding, all working
capital expenses must be removed from the project and replaced with
eligible planning expenses or the amount of the grant award will be
reduced accordingly.
If the grant request is for working capital, planning activities
are not eligible for funding. If more than 20 percent of the total
project cost (both grant and matching funds) for a working capital
application is for planning activities, the entire application will be
determined to be ineligible and will not be considered for funding.
However, if an application with 20 percent or less of planning expenses
is selected for funding, all planning expenses must be removed from the
project and replaced with eligible working capital expenses or the
amount of the grant award will be reduced accordingly.
Applicants that propose budgets that include more than 10 percent
of total project costs that are ineligible for the program will be
ineligible and the application will not be considered for funding.
However, if an application with 10 percent or less of ineligible costs
is selected for funding, all ineligible costs must be removed from the
project and replaced with eligible activities or the amount of the
grant award will be reduced accordingly.
Applicants other than independent producers applying for a working
capital grant must demonstrate that the venture has not been in
operation more than two years at the time of application in order to
show that they are entering an emerging market.
Grant Period Eligibility: Applications that have a timeframe of
more than 365 days will be considered ineligible and will not be
considered for funding. Applications that request funds for a time
period ending after December 31, 2007, will not be considered for
funding.
Completeness Eligibility: Applications without sufficient
information to determine eligibility will not be considered for
funding. Applications that are missing any required elements (in whole
or in part) will not be considered for funding, except for exceptions
noted in the following paragraphs.
Multiple Grant Eligibility: An applicant may not receive more than
one grant in any one funding cycle. An applicant may submit multiple
applications, but if more than one application scores high enough to be
funded, only the highest ranked application will be funded.
Applicants who have already received a planning grant for the
proposed project cannot receive another planning grant for the same
project. Applicants who have already received a working capital grant
for a project cannot receive any additional grants for that project.
Please note that the Agency penalizes an applicant who is applying for
a planning grant when it has already received a planning grant or who
is applying for a working capital grant when it has already received a
working capital grant by deducting ten points from the applicant's
score under Section V.1.ix. and V.2.ix.
Current Grant Eligibility: If an applicant currently has a VAPG,
the grant period for that grant must be scheduled to expire by December
31, 2006.
IV. Application and Submission Information
A. Address To Request Application Package
If you plan to apply using a paper application, you can obtain the
application package for this funding opportunity at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.
If you do not have access to
the Internet, or if you have difficulty accessing the forms online, you
may contact your USDA Rural Development State Office. You can reach
your State Office by calling (202) 720-4323 and pressing ``1''.
Application forms can be mailed to you. If you plan to apply
electronically, you must visit http://www.grants.gov and follow the
instructions.
B. Content and Form of Submission
You may submit your application in paper or in an electronic
format. You may view the Application Guide at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.
It is recommended that
applicants use the template provided on the Web site. The template can
be filled out electronically and printed out for submission with the
required forms for a paper submission or it can be filled out
electronically and submitted as an attachment through Grants.gov.
If you submit your application in paper form, you must submit one
signed original of your complete application. The application must be
in the following format:
Font size: 12 point unreduced.
Paper size: 8.5 by 11 inches.
Page margin size: 1 inch on the top, bottom, left, and right.
Printed on only one side of each page.
Held together only by rubber bands or metal or plastic clips; not
bound in any other way.
Language: English, avoid jargon.
The submission must include all pages of the application.
It is recommended that the application is in black and white, and
not color. Those evaluating the application will only receive black and
white images.
If you submit your application electronically, you must follow the
instructions given at http://www.grants.gov. Applicants are advised to
visit the site well in advance of the application deadline if they plan
to apply electronically to insure that they have obtained the proper
authentication and have sufficient computer resources to complete the
application.
[[Page 75783]]
An application must contain all of the following elements. Any
application that is missing any element or contains an incomplete
element will not be considered for funding:
1. Form SF-424, ``Application for Federal Assistance.'' In order
for this form to be considered complete, it must contain the legal name
of the applicant, the applicant's Dun and Bradstreet Data Universal
Numbering System (DUNS) number (individuals and steering committees are
exempt), the applicant's complete mailing address, the name and
telephone number of a contact person, the employer identification
number (EIN) or social security number if the applicant is an
individual or steering committee, the start and end dates of the
project, the federal funds requested, other funds that will be used as
matching funds, an answer to the question, ``Is applicant delinquent on
any Federal debt?,'' the name and signature of an authorized
representative (if the signature is of anyone other than a stated owner
of the proposed venture, the application should include a signed
statement by either the owner(s) of the entity or the governing board
stating that the signature is made by an authorized person), the
telephone number of the authorized representative, and the date the
form was signed. Other information requested on the form may be
applicable, but the above-listed information is required for an
application to be considered complete. Please note that if the
applicant applies as a steering committee, it will be required to form
a legal entity and must report a DUNS number and an EIN prior to final
approval of the grant agreement.
You are required to have a DUNS number to apply for a grant from
RBS unless you are an individual or a steering committee. The DUNS
number is a nine-digit identification number, which uniquely identifies
business entities. Obtaining a DUNS number is easy and there is no
charge. To obtain a DUNS number, access http://www.dnb.com/us/ or call
(866) 705-5711. Additional information on the VAPG program can be
obtained at http://www.rurdev.usda.gov/rbs/coops/vadg.htm or contact
your Rural Development State Office. You can reach your State Office by
calling (202) 720-4323 and pressing ``1''.
2. Form SF-424A, ``Budget Information--Non-Construction Programs.''
In order for this form to be considered complete, the applicant must
fill out Sections A, B, C, and D. The applicant must include both
federal and matching funds.
3. Form SF-424B, ``Assurances--Non-Construction Programs.'' In
order for this form to be considered complete, the form must be signed
by an authorized official (if the signature is of anyone other than a
stated owner of the proposed Venture, the application should include a
signed statement by either the owner(s) of the entity or the governing
body stating that the signature is made by an authorized person) and
include the title, name of applicant, and date submitted.
4. Survey on Ensuring Equal Opportunity for Applicants. Submission
of this form is voluntary for non-profit applicants only. For-profit
applicants should not submit this form.
5. Title Page. The title page must include the title of the project
as well as any other relevant identifying information. The length
should not exceed one page.
6. Table of Contents. For ease of locating information, each
proposal must contain a detailed Table of Contents (TOC) immediately
following the title page. The TOC must include page numbers for each
component of the proposal. Pagination should begin immediately
following the TOC. In order for this element to be considered complete,
the TOC must include page numbers for the executive summary, an
eligibility discussion, the proposal narrative and its subcomponents
(project title, information sheet, goals of the project, work plan,
performance evaluation criteria and proposal evaluation criteria),
conflict of interest disclosure, certification of judgment,
verification of matching funds and certification of matching funds.
7. Executive Summary. A summary of the proposal, not to exceed one
page, must briefly describe the project, including goals, tasks to be
completed and other relevant information that provides a general
overview of the project. In this section the applicant must clearly
state whether the proposal is for a planning grant or a working capital
grant and the amount requested. In the event an applicant submits more
than one page for this element, only the first page submitted will be
considered.
8. Eligibility Discussion. A detailed discussion, not to exceed
four (4) pages, describing how the applicant meets the eligibility
requirements. In the event that more than 4 pages are submitted, only
the first 4 pages will be considered.
i. Applicant Eligibility. The applicant must first describe how it
meets the definition of an independent producer, agriculture producer
group, farmer or rancher cooperative, or a majority-controlled
producer-based business venture as defined in 7 CFR 4284, subpart A.
The applicant must apply as only one type of applicant.
If the applicant is an independent producer, the proposal must
demonstrate that 100 percent of the owners of the business applying
meet the definition of an independent producer. These owners must
currently own and produce more than 50 percent of the raw commodity
that will be used for the value-added product. The applicant must also
demonstrate that the product is owned by the producers from its raw
commodity state through the production of the value-added product. Note
that farmer or rancher cooperatives that are 100 percent-owned by
independent producers are not considered under the independent producer
category; these applicants must apply as farmer or rancher
cooperatives. Also, note that entities that contract out the production
of an agricultural commodity are not considered independent producers.
If the applicant is an agriculture producer group, it must state
its mission and demonstrate that its mission includes working on behalf
of independent producers. The applicant must also demonstrate that the
majority of its membership and board of directors are comprised of
independent producers. The applicant must identify (either by name or
by class) the independent producers on whose behalf the work will be
done. These producers must currently own and produce more than 50
percent of the raw commodity that will be used for the value-added
product. Note that applicants tentatively selected for a grant award
must verify that the work will be done on behalf of the independent
producers identified in the application. Also, note that entities that
contract out the production of an agricultural commodity are not
considered independent producers.
If the applicant is a farmer or rancher cooperative, the applicant
must reference the business' good standing as a cooperative in its
state of incorporation. The applicant must also explain how the
cooperative is 100 percent owned and controlled by agricultural
producers. If a cooperative is not 100 percent owned and controlled by
agricultural producers, it may still be eligible to apply as a
majority-controlled producer-based business venture, provided it meets
the definition in 7 CFR 4284, subpart A. If the applicant is applying
on behalf of only a portion of its membership, that portion must be
identified, and the applicant must demonstrate that all members in this
portion of its membership meet the definition of independent producers.
The independent producers must
[[Page 75784]]
currently own and produce more than 50 percent of the raw commodity
that will be used for the value-added product. Note that applicants
tentatively selected for a grant award must verify that the work will
be done on behalf of the independent producers identified in the
application. Also, note that entities that contract out the production
of an agricultural commodity are not considered independent producers.
If the applicant is a majority-controlled producer-based business
venture, the applicant must demonstrate that more than 50 percent of
the ownership and control is held by independent producers, or,
partnerships, LLCs, LLPs, corporations or cooperatives that are
themselves 100 percent owned and controlled by independent producers.
It is the Agency's position that the majority ownership must exist both
in terms of financial interest and in terms of the number of owners.
The applicant must state number of owners who are independent producers
and the number of owners who are not independent producers. The
applicant must also state the independent producers' financial interest
and the non-independent producers' financial interest. The applicant
must also demonstrate that independent producers have majority control
over the business. Majority control must be demonstrated through voting
rights on the governing body of the business venture.
The majority of voting rights must belong to independent producers
who currently own and produce more than 50 percent of the raw commodity
that will be used for the value-added product. Also, note that entities
that contract out the production of an agricultural commodity are not
considered independent producers.
ii. Product Eligibility. The applicant must next describe how the
value-added product to be produced meets at least one of the categories
in the definition of ``value-added'' as defined in 7 CFR 4284, subpart
A. Regardless of which category is met, the applicant must describe the
raw commodity that will be used, the process used to add value, and the
value-added product that will be marketed.
If the product meets the first category, the application must
explain how the change in physical state or form of the product
enhances its value. A change in physical state is only achieved if the
product cannot be returned to its original state. Examples of this type
of product include: Fish fillets, diced tomatoes, ethanol, bio-diesel,
and wool rugs.
If the product meets the second category, the proposal must explain
how the production or marketing of the commodity enhances the value-
added product's value. The enhancement of value must be quantified by
using a comparison with value-added products produced or marketed in
the standard manner. Examples of this type of product include: Organic
carrots, identity-preserved apples, and branded milk. Also, a business
plan that has been developed for the applicant for the project must be
referenced.
If the product meets the third category, the proposal must explain
how the physical segregation of a commodity or product enhances its
value. The enhancement of value should be quantified, if possible, by
using a comparison with commodities marketed without segregation. An
example of this type of product is non-genetically-modified corn.
Applicants should note that simply sorting produce or livestock by
grade is not sufficient to meet this definition. Applicants must
demonstrate that a physical barrier separates the commodity from
similar commodities during production, that the commodity will continue
to be separated during processing, and that the value-added product
produced will be separated from similar products during marketing.
If the product meets the fourth category, the proposal must explain
how the renewable energy will be generated on a farm or ranch owned by
the owners of the venture. Please note that the owners of the farm or
ranch must currently produce an agricultural commodity and the farm or
ranch must meet the definition of a farm or ranch as defined in the
``Definitions'' section of this notice. Applicants should also note
that ethanol and bio-diesel do not meet this definition unless the
energy is generated on a farm or ranch.
iii. Purpose Eligibility. The applicant must describe how the
project purpose is eligible for funding. The project purpose is
comprised of two components. First, the applicant must describe how the
proposed project consists of eligible planning activities or eligible
working capital activities. Second, the applicant must demonstrate that
the activities are directly related to the processing and/or marketing
of a value-added product. If the applicant is applying for a working
capital grant, it must reference a third-party, independent feasibility
study and a business plan that have been completed specifically for the
proposed Project. If the applicant is applying for a working capital
grant and it is an agriculture producer group, a farmer or rancher
cooperative, or a majority-controlled producer-based business venture,
it must demonstrate that its proposed venture has been in operation for
less than two years at the time of application, in order to show that
the applicant is entering an emerging market.
9. Proposal Narrative. The narrative, not to exceed 35 pages, must
include the following information. In the event that more than 35 pages
are submitted, only the first 35 pages submitted will be considered.
i. Project Title. The title of the proposed project must be brief,
not to exceed 75 characters, yet describe the essentials of the
project. It should match the project title submitted on the SF-424. The
project title does not need to appear on a separate page. It can be
included on the title page and/or on the information sheet.
ii. Information Sheet. A separate one page information sheet
listing each of the evaluation criteria referenced in this funding
announcement followed by the page numbers of all relevant material
contained in the proposal that address or support each criterion.
iii. Goals of the Project. A clear statement of the ultimate goals
of the project. There must be an explanation of how a market will be
expanded and the degree to which incremental revenue will accrue to the
benefit of the agricultural producer(s).
iv. Work Plan. The narrative must contain a description of the
project and set forth the tasks involved in reasonable detail. The
description should specify the activity, who will perform the activity,
during what time frame the activity will take place, and the cost of
the activity. Please note that one of the proposal evaluation criteria
evaluates the work plan and budget. Applicants should only submit the
work plan and budget once, either in this section or as part of the
work plan/budget evaluation criterion discussion.
v. Working capital applications must also include three (3) years
of pro forma financial statements, including an explanation of all
assumptions, such as input prices, finished product prices, and other
economic factors used to generate the financial statements. The
financial statements must include cash flow statements, income
statements, and balance sheets. Income statements and cash flow
statements must be monthly for the first year, then annual for the next
two years. The balance sheet should be annual for all three years. The
financial statements will not count as part of the 35 page limit for
the narrative section of the proposal.
vi. Performance Evaluation Criteria. Applicants applying for
planning grants
[[Page 75785]]
must suggest at least one criterion by which their performance under a
grant could be evaluated. Applicants applying for working capital
grants must identify their current customer base, their current revenue
accruing to independent producers, and the current number of jobs
existing for the venture. Working capital projects with significant
energy components must also report current capacity (e.g. gallons of
ethanol produced annually, megawatt hours produced annually). Working
capital grant applicants may also suggest additional performance
evaluation criteria for incorporation into the grant award. Any
suggested criteria are not binding on USDA. Please note that these
criteria are different from the proposal evaluation criteria and are a
separate requirement. Failure to address this criterion by the
application deadline will result in a determination of incomplete and
the proposal will not be considered for funding.
vii. Proposal Evaluation Criteria. Each of the proposal evaluation
criteria referenced in this funding announcement must be addressed,
specifically and individually, in narrative form. Failure to address
the appropriate evaluation criteria (planning grant proposals must
address planning grant evaluation criteria and working capital grant
proposals must address working capital grant evaluation criteria) by
the application deadline will result in a determination of incomplete
and the proposal will not be considered for funding.
10. Conflict of Interest Disclosure. If the applicant plans to
conduct business with any family members, company owners, or other
identities of interest using grant or matching funds, the nature of the
business to be conducted and the nature of the relationship between the
applicant and the identity of interest must be disclosed. Examples
include in-kind matching funds donated by the applicant's immediate
family and contracting with someone who has a financial interest in the
Venture for services paid by grant or matching funds. If the applicant
believes that no conflicts of interest exist with respect to its
proposed project, it must state that belief.
11. Certification of Judgment. Applicants must certify that the
United States has not obtained a judgment against them. No grant funds
shall be used to pay a judgment obtained by the United States. It is
suggested that applicants use the following language for the
certification. ``[INSERT NAME OF APPLICANT] certifies that the United
States has not obtained a judgment against it.'' A separate signature
is not required.
12. Verification of Matching Funds. Applicants must provide a
budget to support the work plan showing all sources and uses of funds
during the project period. Applicants will be required to verify
matching funds, both cash and in-kind. All proposed matching funds must
be specifically documented in the application. If matching funds are to
be provided by the applicant in cash, a copy of a bank statement with
an ending date within 30 days of the application submission is
required. The bank statement must show an ending balance equal to or
greater than the amount of cash matching funds proposed. If the
matching funds will be provided through a loan or line of credit, the
applicant must include a statement from the lending institution
verifying the amount available, the time period of availability of the
funds, and the purposes for which funds may be used. If the matching
funds are to be provided by an in-kind contribution from the applicant,
the application must include a signed letter from an authorized
representative of the applicant verifying the goods or services to be
donated, when the goods and services will be donated, and the value of
the goods or services. Applicants should note that only goods or
services for which no expenditure is made can be considered in-kind. If
the applicant is paying for goods and services as part of the matching
funds contribution, the expenditure is considered a cash match, and
should be verified as such. If the matching funds are to be provided by
a third party in cash, the application must include a signed letter
from that third party verifying how much cash will be donated and when
it will be donated. Verification for funds donated outside the proposed
time period of the grant will not be accepted. If the matching funds
are to be provided by a third party in-kind donation, the application
must include a signed letter from the third party verifying the goods
or services to be donated, when the goods and services will be donated,
and the value of the goods or services. Verification for in-kind
contributions donated outside the proposed time period of the grant
will not be accepted. Verification for in-kind contributions that are
over-valued will not be accepted. The valuation process for the in-kind
funds does not need to be included in the application, especially if it
is lengthy, but the applicant must be able to demonstrate how the
valuation was achieved at the time of notification of tentative
selection for the grant award. If the applicant cannot satisfactorily
demonstrate how the valuation was determined, the grant award may be
withdrawn or the amount of the grant may be reduced.
If matching funds are in cash, they must be spent on goods and
services that are eligible expenditures for this grant program. If
matching funds are in-kind contributions, the donated goods or services
must be considered eligible expenditures for this grant program. The
matching funds must be spent or donated during the grant period and the
funds must be expended at a rate equal to or greater than the rate
grant funds are expended. Some examples of acceptable uses for matching
funds are: Skilled labor performing work required for the proposed
Project, office supplies, and purchasing inventory. Some examples of
unacceptable uses of matching funds are: Land, fixed equipment,
buildings, and vehicles.
Expected program income may not be used to fulfill the matching
funds requirement at the time of application. If program income is
earned during the time period of the grant, it may be used to replace
other sources of matching funds if prior approval is received from the
Agency. Any program income earned during the grant period is subject to
the requirements of 7 CFR 3015, subpart F and 3019.24.
If acceptable verification for all proposed matching funds is
missing from the application by the application deadline, the
application will be determined to be incomplete and will not be
considered for funding.
13. Certification of Matching Funds. Applicants must certify that
matching funds will be available at the same time grant funds are
anticipated to be spent and that matching funds will be spent in
advance of grant funding, such that for every dollar of grant funds
advanced, not less than an equal amount of matching funds will have
been expended prior to submitting the request for reimbursement. Please
note that this certification is a separate requirement from the
verification of matching funds requirement. Applicants should include a
statement for this section that reads as follows: ``[INSERT NAME OF
APPLICANT] certifies that matching funds will be available at the same
time grant funds are anticipated to be spent and that matching funds
will be spent in advance of grant funding, such that for every dollar
of grant funds advanced, not less than an equal amount of matching
funds will have been expended prior to submitting the request for
reimbursement.'' A separate signature is not required.
[[Page 75786]]
C. Submission Dates and Times
Application Deadline Date: March 31, 2006.
Explanation of Deadlines: Paper applications must be POSTMARKED by
the deadline date (see Section IV.F. for the address). Final electronic
applications must be RECEIVED by Grants.gov by the deadline date. If
your application does not meet the deadline above, it will not be
considered for funding. You will be notified that your application did
not meet the submission deadline. You will also be notified by mail or
by e-mail if your application is received on time.
D. Intergovernmental Review of Applications
Executive Order (EO) 12372, Intergovernmental Review of Federal
Programs, applies to this program. This EO requires that Federal
agencies provide opportunities for consultation on proposed assistance
with State and local governments. Many states have established a Single
Point of Contact (SPOC) to facilitate this consultation. A list of
states that maintain an SPOC may be obtained at http://www.whitehouse.gov/omb/grants/spoc.html.
If your state has an SPOC, you
may submit your application directly for review. Any comments obtained
through the SPOC must be provided to Rural Development for
consideration as part of your application. If your state has not
established an SPOC, or you do not want to submit your application,
Rural Development will submit your application to the SPOC or other
appropriate agency or agencies.
You are also encouraged to contact your Rural Development State
Office for assistance and questions on this process. You can find the
Rural Development State Office in the telephone directory under the
Federal government listings, by calling (202) 720-4323 and selecting
option ``1'' or at http://www.rurdev.usda.gov/.
E. Funding Restrictions
Funding restrictions apply to both grant funds and matching funds.
Funds may only be used for planning activities or working capital for
projects focusing on processing and marketing a value-added product.
1. Examples of acceptable planning activities include to:
i. Obtain legal advice and assistance related to the proposed
venture;
ii. Conduct a feasibility analysis of a proposed value-added
venture to help determine the potential marketing success of the
venture;
iii. Develop a business plan that provides comprehensive details on
the management, planning, and other operational aspects of a proposed
venture; and
iv. Develop a marketing plan for the proposed value-added product,
including the identification of a market window, the identification of
potential buyers, a description of the distribution system, and
possible promotional campaigns.
2. Examples of acceptable working capital uses include to:
i. Design or purchase an accounting system for the proposed
venture;
ii. Pay for salaries, utilities, and rental of office space;
iii. Purchase inventory (not including delivery of a raw commodity
to the processing plant), office equipment (e.g. computers, printers,
copiers, scanners), and office supplies (e.g. paper, pens, file
folders); and
iv. Conduct a marketing campaign for the proposed value-added
product.
3. No funds made available under this solicitation shall be used
to:
i. Plan, repair, rehabilitate, acquire, or construct a building or
facility, including a processing facility;
ii. Purchase, rent, or install fixed equipment, including
processing equipment;
iii. Purchase vehicles, including boats;
iv. Pay for the preparation of the grant application;
v. Pay expenses not directly related to the funded Venture;
vi. Fund political or lobbying activities;
vii. Fund any activities prohibited by 7 CFR parts 3015 and 3019;
viii. Fund architectural or engineering design work for a specific
physical facility;
ix. Fund any expenses related to the production of any commodity or
product to which value will be added, including seed, rootstock, labor
for harvesting the crop, and delivery of the commodity to a processing
facility. The Agency considers these expenses to be ineligible because
the intent of the program is to assist producers with marketing value-
added products rather than producing agricultural commodities;
x. Fund research and development;
xi. Purchase land;
xii. Duplicate current services or replace or substitute support
previously provided;
xiii. Pay costs of the project incurred prior to the date of grant
approval;
xiv. Pay for assistance to any private business enterprise which
does not have at least 51 percent ownership by those who are either
citizens of the United States or reside in the United States after
being legally admitted for permanent residence; or
xv. Pay any judgment or debt owed to the United States; or
xvi. Conduct activities on behalf of anyone other than a specific
independent producer or group of independent producers. The Agency
considers conducting industry-level feasibility studies and business
plans that are also known as feasibility study templates or guides or
business plan templates or guides to be ineligible because the
assistance is not provided to a specific group of independent
producers.
F. Other Submission Requirements
You may submit your paper application for a grant to Cooperative
Programs, Attn: VAPG Program, Mail STOP 3250, Room 4016-South, 1400
Independence Ave. SW., Washington, DC 20250-3250. The phone number that
should be used for FedEx packages is (202) 720-7558. You may also
choose to submit your application electronically at http://www.grants.gov.
Final applications may not be submitted by electronic
mail, facsimile, or by hand-delivery. Each application submission must
contain all required documents in one envelope, if by mail or express
delivery service.
V. Application Review Information
A. Criteria
All eligible and complete applications will be evaluated based on
the following criteria. Failure to address any one of the following
criteria by the application deadline will result in a determination of
incomplete and the application will not be considered for funding.
Applications for planning grants have different criteria to address
than applications for working capital grants. Addressing the incorrect
set of criteria will result in a determination of incomplete and the
application will not be considered for funding. The total points
available for each set of criteria are 73.
1. Criteria for applications for planning grants are:
i. Nature of the proposed venture (0-10 points). Projects will be
evaluated for technological feasibility, operational efficiency,
profitability, sustainability and the likely improvement to the local
rural economy. Points will be awarded based on the greatest expansion
of markets and increased returns to producers.
ii. Qualifications of those doing work (0-10 points). Proposals
will be
[[Page 75787]]
reviewed for whether the personnel who are responsible for doing
proposed tasks, including those hired to do the studies, have the
necessary qualifications. If a consultant or others are to be hired,
more points may be awarded if the proposal includes evidence of their
availability and commitment as well. If staff or consultants have not
been selected at the time of application, the application should
include specific descriptions of the qualifications required for the
positions to be filled. Also, rather than attaching resumes at the end
of the application, it is preferred that the qualifications of the
personnel and consultants are discussed directly within the response to
this criterion. If resumes are included, they should be contained
within the narrative section of the application within the response to
this criterion. If resumes are attached at the end of the application,
those pages will be counted toward the page limit for the narrative.
iii. Commitments and support (0-10 points). Producer commitments
will be evaluated on the basis of the number of independent producers
currently involved as well as how many may potentially be involved, and
the nature, level and quality of their contributions. End user
commitments will be evaluated on the basis of potential markets and the
potential amount of output to be purchased. Proposals will be reviewed
for evidence that the Project enjoys third party support and
endorsement, with emphasis placed on financial and in kind support as
well as technical assistance. The applicant may submit up to ten
letters of support with the application. Additional letters will not be
considered for the purpose of evaluation this criterion. The applicant
should reference all additional support in the discussion of this
criterion, and have the additional support letters and commitment
letters available upon request. These documents will be requested at
the time of grant award. Failure to produce them shall result in the
withdrawal of the grant award. Points will be awarded based on the
greatest level of documented and referenced commitment.
iv. Project leadership (0-10 points). The leadership abilities of
individuals who are proposing the venture will be evaluated as to
whether they are sufficient to support a conclusion of likely Project
success. Credit may be given for leadership evidenced in community or
volunteer efforts. Also, rather than attaching resumes at the end of
the application, it is preferred that the leadership abilities are
discussed directly within the response to this criterion. If resumes
are included, they should be contained within the narrative section of
the application within the response to this criterion. If resumes are
attached at the end of the application, those pages will be counted
toward the page limit for the narrative.
v. Work plan/budget (0-10 points). The work plan will be reviewed
to determine whether it provides specific and detailed planning task
descriptions that will accomplish the Project's goals and the budget
will be reviewed for a detailed breakdown of estimated costs associated
with the planning activities. The budget must present a detailed
breakdown of all estimated costs associated with the planning
activities and allocate these costs among the listed tasks. Points may
not be awarded unless sufficient detail is provided to determine
whether or not funds are being used for qualified purposes. Matching
funds as well as grant funds must be accounted for in the budget to
receive points. Logical, realistic, and economically efficient work
plans and budgets will result in higher scores.
vi. Amount requested (0-1 points). One (1) point will be awarded
for grant requests of $50,000 or less. In addressing this criterion,
the applicant should simply state the amount requested.
vii. Project cost per owner-producer (0-2 points). This is
calculated by dividing the amount of Federal funds requested by the
total number of producers that are owners of the venture. The
allocation of points for this criterion shall be as follows: $1-$25,000
equals 2 points, $25,001-$50,000 equals 1 point, $50,001-$300,000
equals 0 points. The applicant must state the number of owner-producers
that are part of the venture. For independent producers, farmer and
rancher cooperatives, and majority-controlled producer-based business
ventures, the applicant must state the number of owners of the venture
that are independent producers and are also owners of the venture. An
owner cannot be considered an independent producer unless he/she is a
producer of the agricultural commodity to which value will be added as
part of this project. For agriculture producer groups, the number used
should be the number of producers represented who produce the commodity
to which value will be added. In cases where family members (including
husband and wife) are owners and producers in a Venture, each family
member shall count as one owner-producer.
Applications without enough information to determine the number of
producer-owners will receive 0 points for this criterion.
Applicants must be prepared to prove that the numbers and
individuals identified meet the requirements specified upon
notification of a grant award. Failure to do so shall result in
withdrawal of the grant award.
viii. Business size (10 points if the application meets the
criterion or 0 points if the application does not meet the criterion).
Applicants must demonstrate their amount of gross sales for their most
recent complete fiscal year. Applicants that have less than $100
million in gross sales will receive 10 points. Applicants that have
$100 million or more in gross sales will receive 0 points. For this
criterion, applicants should simply state the amount of gross sales for
their most recent fiscal year. Applicants that are start-up operations
and do not yet have a complete fiscal year should state so state in
their applications. These applicants will receive the maximum points
allowed for this criterion. Applicants that do not provide enough
information to determine gross sales will be awarded 0 points for this
criterion. If an applicant is tentatively selected for funding, the
applicant will need to verify the gross sales amount at the time of
award. Failure to verify the amount stated in the application will be
grounds for withdrawing the award.
ix. Number of grants (0 points if the application meets the
criterion or negative 10 points if the application does not meet the
criterion). Applicants must indicate whether they have received any
previous grants under the VAPG program since its inception in 2001.
Applicants who have already received a planning grant will receive
negative 10 points. Applicants who have not received a planning grant
will receive 0 points. Applicants that do not provide enough
information to determine if they have received previous grants will
receive negative 10 points for this criterion.
x. Presidential initiative of bio-energy (0 points if application
does not meet the criterion or 5 points if application does meet the
criterion). Those applications that have at least 51 percent of Project
costs dedicated to planning activities for a qualifying bio-energy
project will receive 5 points. If you believe this criterion is not
applicable, you must state that in your application. Partial credit
will not be given. Qualifying bio-energy projects are limited to on-
Farm or on-Ranch production of energy as defined in the ``Definitions''
section of this notice. Applicants that do not provide enough
information to determine if at least 51
[[Page 75788]]
percent of project costs are dedicated to a bio-energy component will
receive 0 points for this criterion.
xi. Administrator points (up to 5 points, but not to exceed 10
percent of the total points awarded for the other 11 criteria). The
Administrator of RBS may award additional points to recognize
innovative technologies, insure geographic distribution of grants, or
encourage value-added projects in under-served areas. Applicants may
submit an explanation of how the technology proposed is innovative and/
or specific information verifying that the project is in an under-
served area.
2. Criteria for working capital applications are:
i. Business viability (0-10 points). Proposals will be evaluated on
the basis of the technical and economic feasibility and sustainability
of the venture and the efficiency of operations.
ii. Customer base/increased returns (0-10 points). Describe in
detail how the customer base for the product being produced will expand
because of the value-added venture. Provide documented estimates of
this expansion. Describe in detail how a greater portion of the revenue
derived from the venture will be returned to the producers that are
owners of the venture. Applicants should also reference the financial
statements submitted. Proposals that demonstrate strong growth in a
market or customer base and greater value-added revenue accruing to
producer-owners will receive more points than those that demonstrate
less growth in markets and realized value-added returns.
iii. Commitments and support (0-10 points). Producer commitments
will be evaluated on the basis of the number of independent producers
currently involved as well as how many may potentially be involved, and
the nature and level and quality of their contributions. End user
commitments will be evaluated on the basis of identified markets,
letters of intent or contracts from potential buyers and the amount of
output to be purchased. Proposals will be reviewed for evidence that
the project enjoys third party support and endorsement, with emphasis
placed on financial and in-kind support as well as technical
assistance. The applicant may submit up to ten letters of support with
the application. Additional letters will not be considered for the
purpose of evaluation this criterion. The applicant should reference
all additional support in the discussion of this criterion, and have
the additional support letters and commitment letters available upon
request. These documents will be requested at the time of grant award.
Failure to produce them shall result in the withdrawal of the grant
award. Points will be awarded based on the greatest level of documented
and referenced commitment.
iv. Management team/work force (0-10 points). The education and
capabilities of project managers and those who will operate the venture
must reflect the skills and experience necessary to effect project
success. The availability and quality of the labor force needed to
operate the venture will also be evaluated. Applicants must provide the
information necessary to make these determinations. Proposals that
reflect successful track records managing similar projects will receive
higher points for this criterion than those that do not reflect
successful track records.
v. Work plan/budget (0-10 points). The work plan will be reviewed
to determine whether it provides specific and detailed task
descriptions that will accomplish the project's goals and the budget
will be reviewed for a detailed breakdown of estimated costs associated
with the proposed activities. The budget must present a detailed
breakdown of all estimated costs associated with the venture's
operations and allocate these costs among the listed tasks. Points may
not be awarded unless sufficient detail is provided to determine
whether or not funds are being used for qualified purposes. Matching
funds as well as grant funds must be accounted for in the budget to
receive points. Logical, realistic, and economically efficient work
plans and budgets will result in higher scores.
vi. Amount requested (0-1 points). One (1) point will be awarded
for grant requests of $75,000 or less. In addressing this criterion,
the applicant should simply state the amount requested.
vii. Project cost per owner-producer (0-2 points). This ratio is
calculated by dividing the amount of VAPG funds requested by the total
number of producers that are owners of the venture. The allocation of
points for this criterion shall be as follows: $1-$50,000 equals 2
points, $50,001-$100,000 equals 1 point, and $100,001-$150,000 equals 0
points. The applicant must state the number of owner-producers that are
part of the venture. For independent producers, farmer and rancher
cooperatives, and Majority-controlled producer-based business ventures,
the applicant must state the number of owners of the venture that are
independent producers and are also owners of the venture. An owner
cannot be considered an independent producer unless he/she is a
producer of the agricultural commodity to which value will be added as
part of this project. For agriculture producer groups, the number used
should be the number of producers represented who produce the commodity
to which value will be added. In cases where family members (including
husband and wife) are owners and producers in a venture, each family
member shall count as one owner-producer.
Applications without enough information to determine the number of
producer-owners will receive 0 points for this criterion.
Applicants must be prepared to prove that the numbers and
individuals identified meet the requirements specified upon
notification of a grant award. Failure to do so shall result in
withdrawal of the grant award.
viii. Business size (10 points if the application meets the
criterion or 0 points if the application does meet the criterion).
Applicants must demonstrate their amount of gross sales for their most
recent complete fiscal year. Applicants that have less than $100
million in gross sales will receive 10 points. Applicants that have
$100 million or more in gross sales will receive 0 points. For this
criterion, applicants should simply state the amount of gross sales for
their most recent fiscal year. If an applicant is tentatively selected
for funding, the applicant will need to verify the gross sales amount
at the time of award. Applicants that are start-up operations and do
not yet have a complete fiscal year should state so state in their
applications. These applicants will receive the maximum points allowed
for this criterion. Applicants that do not provide enough information
to determine gross sales will receive 0 points for this criterion.
Failure to verify the amount stated in the application will be grounds
for withdrawing the award.
ix. Number of grants (0 points if the application meets the
criterion or negative 10 points if the application does not meet the
criterion). Applicants must indicate whether they have received any
previous grants under the VAPG program since its inception in 2001.
Applicants who have already received a working capital grant will
receive negative 10 points. Applicants who have not received a working
capital grant will receive 0 points. Applicants that do not provide
enough information to determine if they have received previous grants
will receive negative 10 points for this criterion.
x. Presidential initiative of bio-energy (0 points if application
does not meet
[[Page 75789]]
the criterion or 5 points if application does meet the criterion).
Applicants must indicate whether they believe their project has a bio-
energy component. If you believe this criterion is not applicable, you
must state that in your application. Those applications that have at
least 51 percent of Project costs dedicated to working capital for a
qualifying bio-energy project will receive 5 points. Partial credit
will not be given. Qualifying bio-energy projects are limited to on-
Farm or on-Ranch production of energy as defined in the ``Definitions''
section of this notice. Applicants that do not provide enough
information to determine if at least 51 percent of project costs are
dedicated to a bio-energy component will receive 0 points for this
criterion.
xi. Administrator points (up to 5 points, but not to exceed 10
percent of the total points awarded for the other 10 criteria). The
Administrator of RBS may award additional points to recognize
innovative technologies, insure geographic distribution of grants, or
encourage value-added projects in under-served areas. Applicants may
submit an explanation of how the technology proposed is innovative and/
or specific information verifying that the project is in an under-
served area.
B. Review and Selection Process
Each application will be assigned to a USDA Rural Development State
Office, based on the address of the applicant or the location of the
project. This state will be known as the servicing State Office. For
example, if an applicant has an address in Kansas, the application will
be assigned to the Rural Development State Office in Kansas and the
Kansas State Office will be the servicing State Office. Applications
will then be initially reviewed by Rural Development field office
personnel from the servicing State Office for eligibility and to
determine whether all required elements are complete. A list of
required elements follows:
SF-424
SF-424A
SF-424B
Title Page
Table of Contents
Executive Summary
Applicant Eligibility Discussion
Product Eligibility Discussion
Purpose Eligibility Discussion
Project Title
Information Sheet
Goals of the Project
Work Plan
Pro-Forma Financial Statements (working capital applications
only)
Performance Evaluation Criteria
Proposal Evaluation Criterion i
Proposal Evaluation Criterion ii
Proposal Evaluation Criterion iii
Proposal Evaluation Criterion iv
Proposal Evaluation Criterion v
Proposal Evaluation Criterion vi
Proposal Evaluation Criterion vii
Proposal Evaluation Criterion viii
Proposal Evaluation Criterion ix
Proposal Evaluation Criterion x
Conflict of Interest Disclosure
Certification of Judgment
Verification of Matching Funds
Certification of Matching Funds.
Incomplete applications that have four or less incomplete required
elements and appear to be otherwise eligible will receive a letter
requesting the incomplete items be provided within 12 business days of
the date the letter was sent. If the requested items are not received
when requested or are not complete, the application will not be further
evaluated and will not be considered for funding. Any other incomplete
or ineligible applications will not be further evaluated and will not
be considered for funding.
All eligible and complete proposals will be evaluated by three
reviewers based on criteria i through v described in Section V.1 or
V.2. One of these reviewers will be a Rural Development employee not
from the servicing State Office and the other two reviewers will be
non-Federal persons. All reviewers must meet the following
qualifications. Reviewers must have obtained at least a bachelors
degree in one or more of the following fields: agri-business, business,
economics, finance, or marketing. They must also have a minimum of
three years of experience in an agriculture-related field (e.g.
farming, marketing, consulting, university professor, research, officer
for trade association, government employee for an agricultural
program). If the reviewer does not have a degree in one of those
fields, he/she must possess at least five years of working experience
in an agriculture-related field.
Once the scores for criteria i through v have been completed by the
three reviewers, the scores will be statistically normalized to correct
for any reviewer tendencies to score applications ``high'' or ``low.''
After the normalization is complete, the three scores will be converted
to ensure compatibility with the additional scores discussed below and
then averaged to obtain an independent reviewer score.
The application will also receive one score from the Rural
Development servicing State Office based on criteria vi through x. This
score will be added to the independent reviewer score.
The servicing State Office will also rank its top three
applications according to how the proposed project is expected to
benefit the State as a whole. The first-ranked application will be
awarded three additional points, the second-ranked application will be
awarded two additional points, and the third-ranked application will be
awarded one additional point.
Finally, the Administrator of RBS will award any Administrator
points based on criteria xi. These points will be added to the
cumulative score for criteria i through x and any points received from
the servicing State Office ranking score. A final ranking will be
obtained based solely on the scores received for criteria i through xi
and the servicing State Office ranking score. Eligible applications
requesting $25,000 or less will be funded in rank order until $1.5
million in set-aside funds are expended. If the Agency does not receive
enough applications to fully expend the set-aside amount, any remaining
funds will be used to fund applications requesting more than $25,000.
If the Agency receives more eligible applications requesting $25,000 or
less than it can fund with the set-aside funds, the applications that
rank too low to be funded from the set-aside funds will not be funded.
Eligible applications requesting more than $25,000 will be funded in
rank order using the non set-aside funds of approximately $17.975 and
any funds remaining from the set-aside.
After the award selections are made, all applicants will be
notified of the status of their applications by mail. Awardees must
meet all statutory and regulatory program requirements in order to
receive their award. In the event that an awardee cannot meet the
requirements, the award will be withdrawn. Applicants for working
capital grants must submit complete, independent third-party
feasibility studies and business plans before the grant award can be
finalized. All projects will be evaluated by the servicing State Office
prior to finalizing the award to ensure that funded Projects are likely
to be feasible in the proposed project area. Regardless of scoring, a
project determined to be unlikely to be feasible by the Servicing State
Office with concurrence by the National Office will not be funded.
C. Anticipated Announcement and Award Dates
Award Date: The announcement of award selections is expected to
occur on or about August 31, 2006.
[[Page 75790]]
VI. Award Administration Information
A. Award Notices
Successful applicants will receive a notification of tentative
selection for funding from Rural Development. Applicants must comply
with all applicable statutes, regulations, and this notice before the
grant award will receive final approval.
Unsuccessful applicants will receive notification, including
mediation procedures and appeal rights, by mail.
B. Administrative and National Policy Requirements
7 CFR parts 3015, 3019, and 4284. These regulations may be accessed
at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1.
The following additional requirements apply to grantees selected
for this program:
Grant Agreement.
Letter of Conditions.
Form RD 1940-1, ``Request for Obligation of Funds.''
Form RD 1942-46, ``Letter of Intent to Meet Conditions.''
Form AD-1047, ``Certification Regarding Debarment,
Suspension, and Other Responsibility Matters-Primary Covered
Transactions.''
Form AD-1048, ``Certification Regarding Debarment,
Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered
Transactions.''
Form AD-1049, ``Certification Regarding a Drug-Free
Workplace Requirements (Grants).''
Form RD 400-1, ``Equal Opportunity Agreement.''
Form RD 400-4, ``Assurance Agreement.''
Additional information on these requirements can be found at http://www.rurdev.usda.gov/rbs/coops/vadg.htm
.
Reporting Requirements: You must provide Rural Development with a
hard copy original or an electronic copy that includes all required
signatures of the following reports. The reports should be submitted to
the Agency contact listed on your grant agreement and Letter of
Conditions. Failure to submit satisfactory reports on time may result
in suspension or termination of your grant.
1. Form SF-269 or SF-269A. A ``Financial Status Report,'' listing
expenditures according to agreed upon budget categories, on a semi-
annual basis. Reporting periods end each March 31 and September 30.
Reports are due 30 days after the reporting period ends.
2. Semi-annual performance reports that compare accomplishments to
the objectives stated in the proposal. Identify all tasks completed to
date and provide documentation supporting the reported results. If the
original schedule provided in the work plan is not being met, the
report should discuss the problems or delays that may affect completion
of the project. Objectives for the next reporting period should be
listed. Compliance with any special condition on the use of award funds
should be discussed. Reports are due as provided in paragraph (1) of
this section. Supporting documentation must also be submitted for
completed tasks. The supporting documentation for completed tasks
include, but are not limited to, feasibility studies, marketing plans,
business plans, articles of incorporation and bylaws and an accounting
of how working capital funds were spent.
3. Final Project performance reports that compare accomplishments
to the objectives stated in the proposal. Identify all tasks completed
and provide documentation supporting the reported results. If the
original schedule provided in the work plan was not met, the report
must discuss the problems or delays that affected completion of the
project. Compliance with any special condition on the use of award
funds should be discussed. Supporting documentation for completed tasks
must also be submitted. The supporting documentation for completed
tasks include, but are not limited to, feasibility studies, marketing
plans, business plans, articles of incorporation and bylaws and an
accounting of how working capital funds were spent. Planning grant
projects must also report the estimated increase in revenue, increase
in customer base, number of jobs created, and any other relevant
economic indicators generated by continuing the project into its
operational phase. Working capital grants must report the increase in
revenue, increase in customer base, number of jobs created, any other
relevant economic indicators generated by the project during the grant
period in addition to the total funds used for the Venture during the
grant period. These total funds must include other federal, state,
local, and other funds used for the venture. Projects with significant
energy components must also report expected or actual capacity (e.g.
gallons of ethanol produced annually, megawatt hours produced annually)
and any emissions reductions incurred during the project. The final
performance report is due within 90 days of the completion of the
project.
VII. Agency Contacts
For general questions about this announcement and for program
technical assistance, please contact your USDA Rural Development State
Office at http://www.rurdev.usda.gov/rbs/coops/vadg.htm. You can also
reach your State Office by calling (202) 720-4323 and pressing ``1''.
If you are unable to contact your State Office, please contact a nearby
State Office or you may contact the RBS National Office at Mail STOP
3250, Room 4016-South, 1400 Independence Avenue, SW., Washington, DC
20250-3250, Telephone: (202) 720-7558, e-mail: cpgrants@wdc.usda.gov.
VIII. Other Information
It is suggested that applicants visit the Agricultural Marketing
Resource Center (AgMRC) at http://www.agmrc.org for additional
information on value-added agriculture. AgMRC brings together experts
from three of the nation's leading agricultural universities--Iowa
State University, Kansas State University and the University of
California--into a dynamic, electronically based center to create and
present information about value-added agriculture. The center draws on
the abilities, skills and knowledge of leading economists, business
strategists and outreach specialists to provide reliable information
needed by independent producers to achieve success and profitability in
value-added agriculture. Partial support for the center is derived from
a grant administered by RBS.
Dated: December 12, 2005.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. E5-7596 Filed 12-20-05; 8:45 am]
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