**From:** Millhiser, Lyn - Montpelier, VT\
**Sent:** Wednesday, January 04, 2006 11:06 AM\
**Cc:** Millhiser, Lyn - Montpelier, VT\
**Subject:** USDA Value-Added Producer Grant Solicitation

Attached please find a copy of the [Notice of Solicitation for
Applications (NOSA)]{.underline} for USDA Rural Development\'s
[Value-Added Producer Grant (VAPG)]{.underline} program.  \$19.475
million in competitive grant funds is available in FY 2006 to help
independent agricultural producers enter into value-added activities
directly related to the processing and/or marketing of a value-added
product.  Of this amount, \$1.5 million is set aside for applicants
requesting \$25,000 or less.  Awards may be made for planning activities
such as development of feasibility studies, marketing plans, or business
plans to establish a viable value-added marketing opportunity for an
agricultural product; or for working capital expenses related to
operating the value-added business venture when an independently
prepared feasibility study and business plan specific to the value-added
venture already exists.  The maximum amount for a planning grant is
\$100,000 and the maximum amount for a working capital grant is
\$300,000.  Matching funds of 50% of total eligible project costs are
required.  The timeframe for the grant period must be no more than 365
days, and must end no later than 12/31/07.  If an applicant currently
has an active VAPG, that grant period must be scheduled to expire by
12/31/06.  The application deadline is [March 31, 2006]{.underline} and
late applications are not eligible for grant funding. 

 

You may obtain full program details, application guides and materials
for a VAPG at <http://www.rurdev.usda.gov/rbs/coops/vadg.htm>.  Complete
paper applications must be mailed to the National Office address in
Washington, DC indicated in the NOSA.  Electronic applications must be
submitted following the instructions found at
the [http://www.grants.gov](http://www.grants.gov/) website, which
requires advance authentication and sufficient computer reources.  In
addition to your original paper or electronic submissions, [please also
mail one complete copy of your application to the State Office address
below, and contact Lyn Millhiser to discuss your project and clarify
questions if you intend to apply. ]{.underline}

 

**[Please Note]{.underline}**:  There are four eligible applicant
types:  Independent Producer, Agriculture Producer Group, Farmer/Rancher
Cooperative, and Majority Controlled Producer-Based Business
Venture.  All applicants *[except the independent producer]{.underline}*
must limit their proposals to emerging markets, and if applying for
working capital must demonstrate that the value-added venture has not
been in operation more than two years at the time of application. 
Independent producers must currently own and produce more than 50% of
the raw commodity that will be used for the value-added product and
demonstrate that the product is owned by the producers from its raw
commodity state through the production of the value-added product.  A
value-added product includes a change in physical state where the
product cannot be returned to its original state (diced tomatoes, wool
rugs), differentiated production or marketing where a Feasibility Study
and Business Plan exist to document the value enhancement (organic
carrots, branded milk), physical segregation of a commodity or product
that enhances its value (non-genetically modified corn,
identity-preserved hormone-free beef), and renewable energy generated on
a farm or ranch (manure to methane anaerobic digester). Funds are not
available for industry-level feasibility studies and business plans
because the assistance must be provided to a specific group of
independent producers.  

 

It is suggested that applicants visit the Agricultural Marketing
Resource Center (AgMRC) at [http://www.agmrc.org](http://www.agmrc.org/)
for additional information on value-added agriculture.  Additional
resources in VT and NH include:  [VERMONT]{.underline}:  Center for
Sustainable Agriculture, <allen.matthews@uvm.edu> (802-656-0037); UVM
Coop Extension,
[www.uvm.edu/\~uvmext/directory](http://www.uvm.edu/~uvmext/directory)
 (866-622-2990); VT Farm Viability, <ethan@vhcb.org> (802-828-0795); VT
SBDC, [www.vtsbdc.org](http://www.vtsbdc.org/) (800-464-7232); VT Agency
of Agriculture, <davel@agr.state.vt.us> (802-828-3830).  [NEW
HAMPSHIRE]{.underline}:  NH Department of Agriculture,
<gmcwilliam@agr.state.nh.us> (603-271-3788); UNH Coop Extension,
<bruce.clement@unh.edu> (603-862-2033 or ag resources at 603-862-2033);
NH SBDC, [www.sbdc.org](http://www.sbdc.org/) (603-862-2200); Ag
Business Management, <mike.sciabarrasi@unh.edu> (603-862-3234); Beginner
Farmers of NH, <richard.demark@nh.usda.gov> (603-527-2093).

 

Best of luck with your proposals!

 

Lyn Millhiser\
Business & Cooperative Programs Specialist\
USDA Rural Development\
Third Floor City Center\
89 Main Street\
Montpelier, VT 05602\
lyn.millhiser@vt.usda.gov\
802-828-6069