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Release No. 0438.04

Ed Loyd (202) 720-4623

Tim McNeilly (202) 690-0498

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## OVER \$13 MILLION IN USDA RURAL DEVELOPMENT GRANTS SELECTED TO SPUR ECONOMIC GROWTH IN 34 STATES *\$2.1 Million to Support Renewable/Biomass Energy Proposals*

WASHINGTON, Oct. 13, 2004---Agriculture Secretary Ann M. Veneman today
announced the approval of 97 value-added agricultural product market
development grants in 34 states, totaling over \$13.1 million. The
grants will help farmers and ranchers increase their economic
opportunities through the development of new products and markets for
agriculturally based products.

\"The Bush Administration continues to place a high priority on creating
new sources of renewable and biomass energy through such grant programs
as the value-added producer grant program,\" said Veneman. "Creating an
energy independent nation, through utilization of our nation's natural
resources, is a valuable investment in America's future."

In support of President Bush's 2001 energy plan, 16 percent of the
proposals selected will support biomass/renewable energy related
ventures.

"These grants are critical to assisting America's farmers and ranchers
increase markets for their commodities and to increase their
profitability," said Agriculture Acting Under Secretary for Rural
Development Gilbert Gonzalez. "President Bush is committed to helping
more rural families live the American Dream through the creation of new
business ventures that employ more rural Americans. This program is a
significant investment in the future of rural families and communities."

Authorized as part of the 2002 Farm Bill, the Value-Added Agricultural
Product Market Development Grants program provides an opportunity to
refine agricultural commodities and products to increase their value in
the marketplace.

    

Of the \$13.1 million announced, \$2.1 million will fund 16 proposals
ranging from determining the feasibility and creating a business plan
for harnessing wind energy in Colorado, to determining the feasibility
of marketing ethanol from a 50 million gallon dry grind ethanol plant in
Illinois, to determining the feasibility of converting dairy biogas into
purity pipeline or automotive quality fuel in Idaho.

-more-

The Value-Added Producer Grant program is a highly competitive grant
program that garnered nearly 400 applications. An independent review of
applications is conducted to ensure that selected proposals are scored
based on the criteria established in the announcement of the funding
availability. Funding of selected applicants will be contingent upon
meeting the conditions of the grant agreement. A complete list of the
selected grant recipients can be found at the USDA Rural Development web
site at: [http://www.rurdev.usda.gov](http://www.rurdev.usda.gov/).

  USDA Rural Development\'s mission is to deliver programs in a way that
will support increasing economic opportunity and improve the quality of
life of rural residents. As a venture capital entity, Rural Development
provides equity and technical assistance to finance and foster growth in
homeownership, business development, and critical community and
technology infrastructure. Further information on rural programs is
available at a local USDA Rural Development office or by visiting
USDA\'s web site at
[http://www.rurdev.usda.gov](http://www.rurdev.usda.gov/).

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