**For Immediate Release** Joan Messina (217) 403-6248

Molly Hammond (217) 403-6210

**Time to prepare for USDA grant opportunities**

Champaign, Ill., Feb. 9, 2007---Producers and small business owners can
start preparing their projects for two of USDA's most popular
programs---the Renewable Energy and Energy Efficiency Program and the
Value Added Producer Grant program. "While Congress continues to work on
the final Continuing Resolution for this year's Agriculture
appropriations, the fiscal year is getting shorter," said Illinois Rural
Development Director Doug Wilson. "That suggests a shorter window of
opportunity to prepare applications, but there's still a great
opportunity for funding."

Applicants may end up with as little as 60 days to prepare and submit
their projects to USDA Rural Development. "Applications guidelines have
not yet been published, but a lot can still be done," said Wilson

The Renewable Energy and Energy Efficiency Program can help farmers and
small businesses finance renewable energy systems or make energy
improvements. Eligible renewable energy projects include systems that
generate energy from wind, solar, biomass, or geothermal source.
Renewable energy projects can include the generation of electricity,
heat, fuels, or hydrogen.

The program is not just for energy producing projects such as biofuel
plants, anaerobic digesters and geothermal systems. It can also be used
for energy efficiency improvements to existing energy systems or to
update systems like grain dryers, electric motors, heating and cooling.
A grant can be awarded for up to 25% of the cost of the project and loan
guarantees for up to 50% of the project costs.

Renewable energy applicants can start reviewing the previous year's
procedures by clicking on the program rule at
<http://www.rurdev.usda.gov/rbs/farmbill/index.html>. The requirements
and guidelines can help the applicants prepare for a 2007 application.
Now is the time to work on the technical report for a renewable energy
project or have the energy audit completed for an energy efficiency
application.

Independent producers or producer groups are eligible to apply for Value
Added Producer Grants for proposals that add value to commodities. Over
the six years of the program, Rural Development has awarded value-added
grants for Illinois projects dealing with biofuels, identity preserved
grain, composting, high-value wool, branded beef, wine and pork
processing.

-more-

Grants are available for planning and working capital. More information
on what will probably be needed is available at
<http://www.rurdev.usda.gov/rbs/coops/vadg.htm>.

Value-Added applicants who want to apply for working capital can use
this time to secure a feasibility study and prepare a business plan.
"Preparation for a value-added planning grant doesn't require as much
up-front work, but, as with all of these programs, applicants need to
make an assessment of all the components and resources they will need to
make their projects---and their grant applications---successful," said
Wilson.

Looking at previous grant requirements is valuable, but applicants must
be sure they use this year's rules when preparing their proposals. Rural
Development will notify interested people as soon as the rules are
published. To get on the notification list, send your email address to
<Molly.Hammond@il.usda.gov> or call (217) 403-6210.

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