Value-Added Producer Grant Program

Summary

A total of $14.3 million in grants was allocated for fiscal year 2005 from the U.S. Department of Agriculture (USDA) to support the development of value-added agriculture business ventures. Value-Added Producer Grants are available to independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures seeking funding for one of the following 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) acquiring working capital to operate a value-added business venture that will allow producers to better compete in domestic and international markets. Grant awards for fiscal year 2005 supported energy generated on-farm through the use of agricultural commodities, wind power, water power or solar power. The maximum award per grant was $100,000 for planning grants and $150,000 for working capital grants. Matching funds of at least 50% were required. Applications were due on or before May 6, and the anticipated award date is September 30, 2005. Information about grant recipients and projects from previous years' solicitations is available on the program Web site above. Application guides and materials for the Value-Added Producer Grant are available at www.rurdev.usda.gov/rbs/coops/vadg.htm. USDA Coordinators for each state are available to assist with questions related to the application process and forms, and other issues.