FOR IMMEDIATE RELEASE Media Contact: Tim Jones (315) 477-6436

<timothy.jones@ny.usda.gov>

USDA RURAL DEVELOPMENT AWARDS MORE THAN

\$1 MILLION TO 12 NEW YORK BUSINESSES

**SYRACUSE, N.Y., September 14, 2006 --** U.S. Department of Agriculture
Rural Development has awarded Value-Added Producer Grants (VAPG)
totaling \$1,041,017 to 12 New York farms and agricultural producers.

The New York awards were announced Wednesday by Agriculture Secretary
Michael Johanns and are part of a \$21.1 million grant package being
distributed to 185 producers across the country. The VAPG program
assists farmers and agri-businesses in developing products that increase
the value of agricultural commodities.

"Congratulations to all our New York grant recipients for their success
in this extremely competitive program," said Scott Collins, Acting State
Director for Rural Development in New York. "These grants will help farm
families develop and market value-added products and increase the
profitability of their diverse farm operations. I'm particularly pleased
that some of the projects focus on the development of renewable energy,
which will become an important market for agricultural products in the
near future."

New York recipients are:

-   Lake Distilling, King Ferry, Cayuga County, \$300,000 for a
    bio-refinery that will make ethanol and premium vodka from wheat.
    The bio-refinery will provide a market for low-value wheat and will
    use forest residues as a rouse of heat for processing.

-   Liberty Vineyards, Sheridan, Chautauqua County, \$98,167 to market
    wine from Lake Erie grape varieties. The grant includes contracting
    bottling services, packaging, labels and label design.

-   Robert S. MacArthur, Dickinson Center, Franklin County, \$100,000 to
    determine the feasibility of using a woodchip-fueled micro-turbine
    and a co-located wind turbine to power and heat a greenhouse.

-   New York State Maple Producers Association, Inc., Watkins Glen,
    Schuyler County, \$75,000 for a planning study of a year-round
    sugarhouse and commercial kitchen at the New York State Fairgrounds.

-   RT Solutions, Geneseo, Livingston County, \$181,895 for the
    large-scale production and marketing of vermicomposted dairy solids.
    The technology utilizes worms to decompose animal waste and produce
    a premium soil conditioner.

-   Spring Lake Winery, Lockport, Niagara County, \$100,000 to produce
    and market European-style dry wines.

-   Zehr's Farm Market and Nursery, Wilson, Niagara County, \$75,000 to
    develop an integrated branding strategy that includes signage,
    containers and marketing.

-   Blackman Homestead Farm, Lockport, Niagara County, \$25,000, to
    implement a business plan for new vegetable and fruit products, such
    as cherry and pear butter.

-   Eveningside Vineyard, Lockport, Niagara County, \$17,600 to plan the
    expansion of their vineyard and optimize their marketing strategy.

-   C & S Farms, St. Johnsville, Montgomery County, \$25,000 to produce
    and market premium ice cream from the farm's registered herd of
    Guernsey dairy cattle.

-   Lagoner Farms, Williamson, Wayne County, \$24,494 to manufacture,
    package and market farm products such as jams and sauces.

-   Wake Robin Farm, Jordan, Onondaga, \$18,861 to produce and market
    yogurt from the farm's pasture-based dairy herd.

VAPGs are distributed as planning grants and working capital grants.
Planning grants can be used for feasibility studies and to develop
business and marketing plans. Working capital grants are used to
implement the plans and pay operating costs. Applicants are required to
provide matching funds, or other confirmed funding commitments, for both
types of grants. For more detailed information on the VAPG program,
contact Thomas Hauryski at (707) 776-7398, extension 4, or by e-mail at
<thomas.hauryski@ny.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 by contacting the Rural Development's New York state office at
(315) 477-6400 or by visiting USDA\'s web site at
http://www.rurdev.usda.gov.

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