MODESTO, Calif.—The U.S. Department of Agriculture (USDA) is accepting applications for approximately $18 million in USDA Rural Development Value Added Producer Grants to assist agricultural producers seeking to add value to the commodities they produce.
"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," said Agriculture Secretary Tom Vilsack. "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.
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.
The national application period for USDA Rural Development Value Added Producer Grants closes Nov. 30, 2009. Click here for more information.
