USDA SEEKS APPLICATIONS FOR VALUE ADDED PRODUCER GRANTS

WASHINGTON – SEPTEMBER 10, 2009–Agriculture Secretary Tom Vilsack today announced that USDA is accepting applications for grants to assist agricultural producers seeking to add value to the commodities they produce. About $18 million will be awarded nationwide. 

 “These grants strengthen rural economies and create jobs by helping farmers and ranchers add value to their agricultural products by using them for planning activities such as feasibility studies, marketing and business plans, or for working capital,” Vilsack said. “This program also supports President Obama’s goal to expand our nation’s renewable energy resources by helping farmers develop renewable energy from agricultural products.”

USDA plans to award planning grants of up to $100,000 and working capital grants of up to $300,000 to successful applicants. Applicants are encouraged to propose projects that use existing agricultural products in non-traditional ways or merge agricultural products with technology in creative ways. Businesses of all sizes may apply, but priority will be given to operators of small and medium-sized family farms – those with average, annual gross sales of less than $700,000. The competitive grants to be awarded under this notice are part of USDA Rural Development’s annual budget and are not funded through the American Recovery and Reinvestment Act of 2009. 

Last year more than $3.1 million in grant funding was awarded to 17 Wisconsin agricultural producers through the Value-Added Producer Grant Program. Making 2008 the second year in a row Wisconsin led the nation in both number of grants awarded and dollars received.  .

Applicants must provide matching funds equal to the amount of the grant requested. Ten percent of the funding being made available is reserved for beginning farmers or ranchers and socially disadvantaged farmers or ranchers. An additional 10 percent is reserved for projects involving local and regional supply networks that link independent producers with businesses and cooperatives that market value-added products.

Paper and electronic applications must be submitted to the Rural Development state office in the state where the project will be located. A list of state offices is available at www.rurdev.usda.gov/recd_map.html . Electronic applications must be submitted through www.Grants.gov . The Department will publish the official notice for funding availability in the Federal Register within the next week, and will begin accepting applications at that time.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. As the lead federal agency for rural development needs, USDA Rural Development administered over $547 million dollars this past year to rural Wisconsin communities. Funds are used to finance and foster growth in homeownership, business development, and critical community and technological infrastructures. Further information on USDA Rural Development programs is available at a local USDA Rural Development office or by visiting USDA’s web site at http://www.rurdev.usda.gov/wi.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).