Deb Yocum, USDA Rural Development (402) 223-3125

Terri Teuber, Governor's Office (402) 471-2244

# 

# State and Federal Officials Announce \$1.3 Million in Value-Added Grants 

# From USDA Rural Development

**Lincoln, Neb., October 14, 2004---**Two events are scheduled today to
present nearly \$1.3 million in value-added agricultural product market
development grants to seven Nebraska producers. The first event brings
together state and federal officials to present nearly \$758,000 in
grants to four southeast Nebraska producers.

Lieutenant Governor Dave Heineman and Tom Dorr, Senior Policy Advisor to
the Secretary of Agriculture on Rural Development, presented symbolic
checks to the four producers who will use the funds to develop new
products and tap into new markets.

[]{.mark}

Lt. Gov. Dave Heineman said, "I am very pleased to join our federal
partners to announce these grants. Value-added products play an
important role in our economy, not only in terms of the jobs and income
generated, but because of the investment made in our local communities.
These grants represent a continuing commitment to producers and small
businesses in Nebraska."

"These grants are an important part of the Bush Administration's overall
investment in the economic strength of rural Nebraska," stated Dorr. "I
commend each of the recipients for their development of proposals to
explore new ways of utilizing Nebraska's natural resources."

The four recipients recognized this morning in Lincoln are as follows:

-   Country Side Cooperative of Firth, the recipient of \$415,000 will
    use funds to study the marketing potential for soybean processing
    via a feasibility study and business and marketing plan. Through the
    processing of soybeans, it is believed that the beans can be
    enhanced, providing a higher quality soy product to the livestock
    producers, food processors, or industrial processors.

-   Krista Peeks Dittman in Raymond will utilize \$13,315 for a
    feasibility study to examine the market potential for an onsite
    cooperative dairy processing facility to add value to the milk
    through its processing and to produce specialty cheeses, butter and
    yogurt.

-   Nebraska Soybean Association of Lincoln received \$237,300 to
    conduct a statewide assessment through coordination of several key
    organizations in the state to identify the best location or
    locations for regionally located soybean processing facilities and a
    statewide bio-diesel production facility. The facility is expected
    to use multiple feed stocks that range from expeller or hexane
    extracted soybean oil from current or future soybean processors and
    other vegetable oil or animal fat feed stocks that are economically
    viable.

-   Stonebridge Vineyard, Inc. in Pawnee City received \$92,329 that
    will be used for working capital to assist in their efforts to
    diversify and increase profits to their established seven acre
    vineyard. This to be accomplished by entering the value-added
    Nebraska wine market as a winery and developing it as a tourist
    destination through marketing of the vineyard's unique history.

> -more-

-2-

The remaining three producers will be presented later today in Grand
Island with symbolic checks by U.S. Congressman Tom Osborne and Senior
Policy Advisor Tom Dorr that total nearly \$531,000.

"The awarding of the value-added grants came as great news for rural
Nebraska," stated Jim Barr, Nebraska state director for USDA Rural
Development. "Value-added projects like those identified today, help the
rural economy as producers reap a greater value for their commodity and
in turn reinvest those profits back into the local economy."

The 2002 Farm Bill made available a total of \$240 million in
Value-Added Agricultural Product Market Development Grants to be
utilized over the next 6 years. The program is designed to help
producers to expand the customer base for their commodities through a
value-added activity that allows producers to retain a greater profit in
the marketplace. Since the beginning of the program, Nebraska has
received close to \$7 million assisting in 38 value-added ventures.

For additional information contact Deb Yocum at 201 N. 25^th^ Street
Beatrice, Neb. 68310; debra.yocum@ne.usda.gov or phone (402) 223-3125,
(402) 437-5093 (TDY). Visit http://www.rurdev.usda.gov/ne/.

\#

USDA Rural Development is an Equal Opportunity Lender, Provider and
Employer. Complaints of discrimination should be sent to USDA, Director,
OCR, Washington, D.C. 20250-9410.