**Supplemental Guidance -- Form RME-1**

**March 2008**

**General**

**This supplemental guidance does not address all relevant requirements
of the RFA. Complete requirements can be found only in the RFA.**

This document provides you with supplemental guidance for the
preparation of Form RME-1, entitled "Risk Management Education (RME)
Program Narrative." You are required to use Form RME-1 if you are
applying for either of three agreement programs operated by the USDA
Risk Management Agency dealing with risk management education. The three
programs, with their respective Catalogue of Federal Domestic Assistance
(CFDA) numbers, are:

-   Commodity Partnerships for Risk Management Education (Commodity
    Partnerships), CFDA No. 10.457,

-   Crop Insurance Education in Targeted States (Targeted States), CFDA
    No. 10.458, and

-   Commodity Partnerships for Small Agricultural Risk Management
    Education Sessions (Commodity Partnerships Small Sessions), CFDA No.
    10.459.

The Requests for Applications (RFA) for these three programs were
published in the Federal Register on January 22, 2008; the announcement
for the Commodity Partnership Program begins on Vol. 73, No. 14, page
3660, the announcement for the Commodity Partnerships Small Sessions
Program begins on page 3668, and the announcement for the Targeted
States Program begins on page 3681.

The project you describe in Form RME-1 must be designed to accomplish
the purposes of the Commodity Partnerships Program, the Targeted States
Program or the Commodity Partnerships Small Sessions Program. Although
the three programs have a number of similarities, there are also some
important differences. The Commodity Partnership Program, for instance,
allows education regarding financial management, crop insurance
marketing contracts, and other existing and emerging risk management
tools. But it requires an emphasis on the training of producers of
"Priority Commodities," which are defined in the RFA. The Commodity
Partnerships Small Sessions Program is similar yet seeks to reach
smaller groups of producers. The project criteria is different in the
Commodity Partnerships Small Sessions Program than the other two
programs, therefore, scoring will be different. The Targeted States
program, on the other hand, seeks to reach producers of all commodities
in fifteen Targeted States, which are listed in the RFA, but restricts
the training and informational activities to crop insurance. You should
read the RFA carefully to understand the particular features of the
program for which you wish to apply for funding and ensure that your
completed Form RME-1 and the other parts of your application reflects
these features.

**Part I, Title Page**

After completing the basic project and contact information called for in
Part I, you should complete a project summary statement of not more than
250 words. The statement should specify the geographical scope of your
project and the features of the producers within that area you will
target with education. It should summarize the key features of the
project that address the evaluation criteria of the RFA: Project
Benefits, Statement of Work, Partnering, and Project Management. The
following is a sample of a summary statement of a hypothetical project,
entitled *"Risk Management Education for Southeast Horseradish
Growers,"* from a hypothetical grower group, *"The Southeast Horseradish
Growers Association (SHGA)."* **SHGA is applying under the Commodity
Partnership program (CFDA 10.457)**. It is provided simply to show how a
summary statement might be constructed. Rather than duplicating the
features of this sample, you should tailor your summary statement to the
strengths of your proposed project.

*"This project will focus on providing risk management education and
information to horseradish producers in four southeastern states. As a
result of this project, participating producers will be able to better
employ crop insurance and marketing contracts as risk management tools.
In addition, producers will learn techniques for water conservation,
soil conservation, nutrients management, cover crops, human resources,
and business plans. SHGA will provide these educational opportunities
through two workshops directed to agribusiness professionals; 12
hands-on workshops directed to horseradish producers; an introductory
seminar and workshops at the annual SHGA convention; and an extensive
promotional effort of mailings, newsletter features, and news articles.
SHGA will partner with local extension agents in 12 southeastern
counties and two agricultural lenders to assist with the program. SHGA
has the experience, resources, energy, and commitment to the economic
stability of southeastern horseradish growers to lead the project and
ensure its success."*

**UNITED STATES DEPARTMENT OF AGRICULTURE**

**RISK MANAGEMENT AGENCY**

OMB Approved 0563-0067

Expires 01/31/2009

# RISK MANAGEMENT EDUCATION (RME) PROGRAM NARRATIVE

**Part I:**

  ---------------------------- ------------------------------------------
  Short Project Title (maximum Risk Management Education for Horseradish
  15 words):                   Growers      

  ---------------------------- ------------------------------------------

  ---------------- -------------------- --------------- -------------------
  RME Program      Commodity            Funding         \$75,000
  Name:            Partnerships         Requested:      

  ---------------- -------------------- --------------- -------------------

  ----------------- ------------------- --------------- -----------------------
  Administrative    John Smith          Organization:   Southeast Horseradish
  Contact:                                              Growers Assoc

  ----------------- ------------------- --------------- -----------------------

+----+--------------------+-----------+---------+------+--------------+
| Ti | > Administrative   | Phone     | > 800-9 | > Em | > SH         |
| tl | > Assistant        | Number:   | 99-9999 | ail: | GA@email.com |
| e: |                    |           |         |      |              |
+----+--------------------+-----------+---------+------+--------------+

+------+---------------------------------------------------------------+
| Addr | > 101 Main Street, Anytown, Your State 99999                  |
| ess: |                                                               |
+------+---------------------------------------------------------------+

  ------------ ----------------------- --------------- ------------------------
  Project      Jane Doe                Organization:   Southeast Horseradish
  Director:                                            Growers Assoc

  ------------ ----------------------- --------------- ------------------------

+----+--------------------+-----------+---------+------+--------------+
| Ti | > Education        | Phone     | > 800-9 | > Em | > SH         |
| tl | > Director         | Number:   | 99-9999 | ail: | GA@email.com |
| e: |                    |           |         |      |              |
+----+--------------------+-----------+---------+------+--------------+

+------+---------------------------------------------------------------+
| Addr | > 101 Main Street, Anytown, Your State 99999                  |
| ess: |                                                               |
+------+---------------------------------------------------------------+

**Project Summary (maximum 250 words):**

  -----------------------------------------------------------------------
  The Southeast Horseradish Growers Association (SHGA) has been actively
  seeking proactive means to enrich the opportunities for their growers
  to weather the storm and take advantage of every educational
  opportunity provided them. This partnership seeks to initiate risk
  management education efforts and provide information in the areas of
  production management, marketing, and financial risk. SHGA will conduct
  2 workshops for agribusiness professionals. SHGA will conduct 12
  workshops for horseradish producers in the Southeast. This proposal
  strives to extend the efforts for both insurance and lending via the
  development and implementation of hands-on seminars to be delivered in
  two growing regions in the Southeast. In addition, SHGA will develop
  information for water conservation, soil conservation, nutrients, cover
  crops, human resources and business plans. For the business template,
  the Association will host a day-long introductory seminar and keynote
  presentation at the annual Southeast Horseradish Growers Association
  Convention, and follow-up with all-day, hands-on business planning
  seminars for producers in two growing regions in the Southeast.

  -----------------------------------------------------------------------

*According to the Paperwork Reduction Act of 1995, an agency may not
conduct or sponsor, and a person is not required to respond to a
collection of information unless it displays a valid OMB control number.
The valid OMB control number for this information collection is
0563-0067. The time required to complete this information collection is
estimated to average 10 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed and, and completing and reviewing the
collection of information.*

**Part II, Written Narrative**

(No more than 10 single-sided pages for the Commodity Partnerships
Program and the Targeted States Program; No more than 5 single-sided
pages for the Commodity Partnerships Small Sessions Program)

With respect to Part II, Written Narrative, the RFA instructs you to
complete:

> *"A written narrative of no more than 10 single sided pages which will
> provide reviewers with sufficient information to effectively evaluate
> the merits of the application according to the evaluation criteria
> listed in this notice. Although a Statement of Work, which is the
> second evaluation criterion, is to be completed in detail in Form
> RME-2, applicants may wish to highlight certain unique features of the
> Statement of Work in Part II for the benefit of the evaluation
> panel."*

This written narrative provides you with an opportunity to describe your
project in detail to the review panel. In the narrative, you will
describe the benefits to producers from your project, your plan to reach
farmers and ranchers in a specific geographical area, the groups you
will partner with to reach those producers, and your capacity to conduct
the project. A well-crafted narrative is important because:

-   It will assist you in planning an effective project,

-   It will assist the review panel in understanding the merits of your
    project, and

-   It will help the partners with whom you will be working to
    understand the project and the specific roles of partners.

We have instructed the panel members to examine each application with an
eye on the results that will likely be achieved if the project is
funded, according to the evaluation criteria that are established in the
*Federal Register* notice. To that end, we have asked the panel to
disregard information in the narratives that does not directly
contribute to an assessment of the application against the evaluation
criteria. Therefore, your application's chance will not improve by
providing extraneous commentary.

The narrative is limited to 10 single-sided pages for the Commodity
Partnerships Program and the Targeted States Program and no more than 5
single-sided pages for the Commodity Partnerships Small Sessions
Program. We ask that you number each page of the narrative and, because
the proposal will need to be copied, that you avoid binding, stapling,
printing with small font, printing on both sides of pages, and taking
other steps that will detract from preparing your proposal for careful
review by the panel.

We recommend that you refer often to the evaluation criteria in the
*Federal Register* notice so that you have the criteria in mind as you
construct your narrative. You should address each of the respective
evaluation criteria directly. Therefore, in addition to any introductory
information, your narrative should contain sections corresponding to
each of the evaluation criterion: Project Impacts, Statement of Work,
Partnering (Commodity Partnerships Program and the Targeted States
Program), Project Management, Priority (Commodity Partnerships Program
and the Commodity Partnerships Small Sessions Program), Past
Performance, and Budget Appropriateness and Efficiency.

For the Commodity Partnerships Program, clearly state the "Special
Emphasis Topic" and the RMA Region where the project will be held.

**Part III, Budget Narrative**

**Note: USDA regulations limit indirect costs for this program to 10
percent of direct costs. Only items or services that are necessary for
the successful completion of the project will be funded, as permitted
under the Federal Crop Insurance Act, the applicable Federal cost
principles, and are not prohibited under any other Federal statute.**

You must provide a budget narrative that relates to the information you
provide on SF-424A, "Budget Information, Non-Construction Programs".
This information will be used by the panel to compare the likely
benefits of the project to its costs. It will also be used by agreement
monitors to determine whether the funding requested by you is reasonable
for the effectiveness of the project and allowable under Federal
regulations.

For each budget category on SF-424A, provide a detailed breakdown of all
costs. Include explanations of any cost that may appear to be excessive.
Salaries of project personnel should be requested in proportion to the
effort that these personnel devote to the project. The following is a
listing of the budget categories from SF-424A:

> Direct Charges
>
> Personnel
>
> Fringe Benefits
>
> Travel
>
> Equipment
>
> Supplies
>
> Contractual
>
> Other
>
> Indirect Charges

The RFA lists some of the restrictions on funding for these programs:

> *"Funding Restrictions: Partnership/cooperative agreement funds may
> not be used to:*

*a. Plan, repair, rehabilitate, acquire, or construct a building or
facility including a processing facility;*

> *b. Purchase, rent, or install fixed equipment;*
>
> *c. Repair or maintain privately owned vehicles;*
>
> *d. Pay for the preparation of the cooperative partnership agreement
> application;*

*e. Fund political activities;*

*f. Fund alcohol, food, beverage or entertainment;*

> *g.* lend money to support farming or agricultural business operation
> or expansion;
>
> *h. Pay costs incurred prior to receiving a partnership or cooperative
> agreement;*
>
> *i. Fund any activities prohibited in 7 CFR Parts 3015 and 3019, as
> applicable."*

For instance, a Budget Narrative for the hypothetical organization *"The
Southeast Horseradish Growers Association (SHGA)"* might be:

Number range CHAPTER*"Risk Management Education for Southeast
Horseradish Growers"*

**BUDGET NARRATIVE**

The total budget for this project is \$74,250.00, including \$6,750.00
for indirect charges.

# PERSONNEL

Total Personnel budget for SHGA is \$14,700.00. Rates were based on
established and documented salaries for the staff listed. See below for
breakdown:

1.  Review of developed educational materials: \$700.00

2.  Conduct Training Sessions: \$12,000.00

3.  Project Management & Oversight: \$2,000.00

SHGA project staff consists of (1) John Radish, Director of Education &
Training, (2) Stephen Turnip, Executive Vice President, and (3) William
Mustard, Training & Development Specialist. The three will perform the
following duties:

-   Overall Project Management and Oversight;

-   Review of educational materials;

-   Conduct training sessions;

-   Conduct project evaluations;

-   Write and review project reports.

# FRINGE BENEFITS

Fringe benefits are included in the direct personnel rates.

# 

# TRAVEL COSTS

The total travel cost for twelve 2-day training sessions in four states
is \$8,800.00. The breakdown for each state is listed below. The costs
are calculated using the 2008 Government Service Agency (GSA) travel
rates per location.

### Alabama

The total travel cost for 3 Trainers at three 2-day training sessions
for 6 nights is \$1,990.00. The travel budget for 3 Trainers includes:

Lodging: \$1,200.00 (6 nights \* 3 Trainers \@per diem \$59.00 \* 11%
estimated tax)

Mileage: \$90.00 (250 miles @ .36) 3 Trainers travel to and from
training sessions

Meals & I.E.: \$700.00 (\$31 per diem \* 2.5 days \* 3 Trainers)

### Georgia

The total travel cost for 3 Trainers at three 2-day training sessions
for 6 nights is \$1,990.00. The travel budget for 3 Trainers includes:

Lodging: \$1,200.00 (6 nights \* 3 Trainers \@per diem \$55.00 \* 11%
estimated tax)

Mileage: \$90.00 (250 miles @ .36) 3 Trainers travel to and from
training sessions

Meals & I.E.: \$700.00 (\$31 per diem \* 7.5 days \* 3 Trainers)

### Florida

The total travel cost for 3 Trainers at three 2-day training sessions
for 6 nights is \$2,825.00. The travel budget for 3 Trainers includes:

Airfare: \$525.00 (\$175.00 \* 3 Trainers)

Lodging: \$1,200.00 (6 nights \* 3 Trainers \@per diem \$60.00 \* 11%
estimated tax)

Car Rental: \$400.00 (in-state travel, 6 days @ \$60.00 per day \* 10%
estimated tax for 1 car)

Meals & I.E.: \$700.00 (\$31 per diem \* 7.5 days \* 3 Trainers)

### South Carolina

The total travel cost for 3 Trainers at three 2-day training sessions
for 6 nights is \$1,990.00. The travel budget for 3 Trainers includes:

Lodging: \$1,200.00 (6 nights \* 3 Trainers \@per diem \$60.00 \* 11%
estimated tax)

Mileage: \$90.00 (250 miles @ .36) 3 Trainers travel to and from
training sessions

Meals & I.E.: \$700.00 (\$31 per diem \* 7.5 days \* 3 Trainers)

# EQUIPMENT

The total equipment rental cost is \$12,000.00.

Rental of computer studio for training session, full day, with tables,
seating, projection screen, digital projector, instructor and student
computer stations (20) with internet connections @ \$500 per day for 12
2-day training sessions. (12 sessions).

# 

# SUPPLIES

The total cost of supplies is \$12,000.00

Copied educational training materials: 50 pages, 150 copies each session
@ \$0.10 per page.

Miscellaneous supplies are estimated at \$1,000.00

**CONTRACTUAL**

The total contractual cost is \$20,000.00. See below for breakdown cost
for twelve 2-day sessions:

1.  Development of educational materials: \$7,000.00

2.  State Coordinators = \$12,000.00 (4 persons @ flat fee of \$3,000.00
    each.)

**Subcontractors/Trainers**

The project Sub-Contractors/Trainers are Dr. John Doe and Dr. James
Smith, both from the University of Southern Florida. The two
Sub-Contractors/Trainers will perform the following duties:

-   Develop educational materials;

-   Review of educational materials;

-   Conduct training sessions;

-   Conduct project evaluations;

-   Write and review project reports.

**State Horseradish Growers Coordinator**

Professional fee for local arrangements, advertising and solicitation of
participants, input into material development and training input, and
follow-up contact.

**OTHER**

Not applicable.

**INDIRECT CHARGES**

The total indirect charges are \$6,750.00

The total indirect charges were calculated at the predetermined rate of
10% of direct charges which was obtained from the SHGA's federal
cognizant agency.

\$67,500 X 10% = \$6,650.00

**Part IV, Statement of Non-financial Benefits**

**(Required for Commodity Partnerships and Commodity Partnerships Small
Sessions programs only)**

You must complete Part IV if you are applying under the Commodity
Partnership program or under the Commodity Partnerships Small Sessions
program. If you are applying under the Targeted States program, this
section does not apply. The RFA states the following:

> *"To be eligible, applicants must also be able to demonstrate that
> they will receive a non-financial benefit as a result of a partnership
> agreement. Non-financial benefits must accrue to the applicant and
> must include more than the ability to provide employment income to the
> applicant or for the applicant's employees or the community. The
> applicant must demonstrate that performance under the partnership
> agreement will further the specific mission of the applicant (such as
> providing research or activities necessary for graduate or other
> students to complete their educational program)."*

For instance, a Statement of Non-financial Benefits for the hypothetical
organization *"The Southeast Horseradish Growers Association (SHGA)"*
might be:

> *The Southeast Horseradish Growers Association (SHGA) will receive
> non-financial benefits as a result of this partnership agreement. By
> participating in this agreement, SHGA will have increased
> opportunities to communicate and interact with its own membership,
> with other agricultural producers, and with agribusiness
> professionals. These opportunities will assist SHGA in better
> assessing the needs of its members and improving its products and
> services. The educational elements of this partnership agreement will
> also increase the risk management knowledge base of participating
> producers and agribusiness professionals, including those customers
> served by SHGA. A better-informed membership will aid SHGA in
> achieving its mission, which is to "Foster the economic viability of
> horseradish production in the southeast U.S."*