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| Release No. 0411.05                                                   |
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| Contact:                                                              |
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| Ed Loyd (202) 720-4623                                                |
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| Wayne Maloney (202) 690-0498                                          |
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|  (Nebraska) Deb Yocum (402) 223-3125                                  |
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|                                                                       |
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| **JOHANNS ANNOUNCES \$14.6 MILLION FOR VALUE ADDED PRODUCER GRANTS**  |
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|                                                                       |
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| ***Projects in 42 States Selected, Bioenergy, Dairy Producers get     |
| Funding***                                                            |
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| ** **                                                                 |
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| WESTEGO, La., Sept. 30, 2005\-- Agriculture Secretary Michael Johanns |
| today announced the selection of 171 applications from 42 states to   |
| receive over \$14.6 million in USDA Rural Development grant           |
| assistance under the Value-Added Producer Grant program.              |
|                                                                       |
| \"These grants will create jobs and improve financial returns for     |
| growers and farm families across rural America,\" said Johanns.       |
| \"These funds assist agricultural producers in marketing their        |
| products and enhance opportunities for the development of alternative |
| fuels from renewable energy sources, part of President Bush\'s        |
| comprehensive national energy policy.\"                               |
|                                                                       |
| Since 2001 the Bush Administration has committed over \$115 million   |
| to support value-added agricultural investments, including over 110   |
| energy related projects. Value-Added Producer Grants may be used for  |
| planning activities, such as feasibility studies or business plans,   |
| or to provide working capital for marketing value-added agricultural  |
| products and for farm-based renewable energy projects.                |
|                                                                       |
| Eligible applicants are independent producers, farmer and rancher     |
| cooperatives, agricultural producer groups, and majority-controlled   |
| producer-based business ventures. The Value-Added Producer Grant      |
| program was authorized by the Agriculture Risk Protection Act of 2000 |
| (P.L. 106-224) and the 2002 Farm Bill (P.L. 107-171).                 |
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| -more-                                                                |
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| -2-                                                                   |
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| Value added products are created when a producer takes an             |
| agricultural commodity, like milk or vegetables, and processes or     |
| prepares it in a way that increases value to consumers. For example,  |
| in Nebraska, an on-farm dairy processing plant that manufactures a    |
| Hispanic line of cheeses will receive funding to prepare a marketing  |
| plan and design promotional materials and bi-lingual labels.          |
|                                                                       |
| A Mississippi cooperative will receive a grant to process and market  |
| frozen, processed blueberries. The Wisconsin Soybean Marketing Board  |
| will receive a grant to determine the viability of marketing          |
| bio-diesel fuel made by a producer-owned soybean processing plant.    |
| Businesses and producers in California, Colorado, Delaware, Illinois, |
| Indiana, Iowa, Kansas, Mississippi, Missouri, Nebraska, Ohio, Oregon, |
| Vermont, Washington and Wisconsin will receive grants to assess the   |
| feasibility of marketing ethanol and bio-diesel, or other types of    |
| renewable energy. A total of 32 energy related grants were awarded    |
| this year. A complete list of the grants is available on the USDA web |
| site at: [http://www.rurdev.usda.gov](http://www.rurdev.usda.gov/).   |
|                                                                       |
| [Nebraska received over \$1.1 million in value-added producer grants  |
| distributed to the following 16 recipients:]{.underline}              |
|                                                                       |
| **Beaver Creek Partners, LLC**-Sutton-\$150,000 for marketing and     |
| promotional efforts of 'Deering Bridge Farms' pork products.          |
|                                                                       |
| **CC Ag, LLC**-Wisner-\$150,000 to develop a market for compost to    |
| use as plant nutrients and a soil amendment.                          |
|                                                                       |
| **Chicory USA, LLC-**Scottsbluff-\$150,000 to develop the only        |
| domestic roasted chicory enterprise in North and South America.       |
| Create additional markets, promote increased local production of      |
| chicory root and purchase inventory.                                  |
|                                                                       |
| **Farmers Cooperative Elevator Company**-Hemingford-\$29,000 to       |
| determine feasibility of hard white wheat for new and emerging        |
| markets.                                                              |
|                                                                       |
| **Greenglade Specialty Goat Milk Products**-Martell-\$18,500 to       |
| conduct feasibility study for establishment of a value-added on farm  |
| goat cheese and dairy product processing facility.                    |
|                                                                       |
| **Jisa Farmstead Cheese, LLC**-Brainard-\$150,000 to market Hispanic  |
| specialty cheeses.                                                    |
|                                                                       |
| **Meyer Vineyards, Inc.**-Superior-\$150,000 to produce and market    |
| premium wines.                                                        |
|                                                                       |
| **Nebraska Turkey Growers Cooperative**-Gibbon-\$64,840 to create new |
| sales opportunities for higher value-added turkey products.           |
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| -more-                                                                |
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| -3-                                                                   |
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| **Prairieland Dairy, LLC**-Firth-\$85,000 will complete market        |
| feasibility study and business & marketing plans regarding consumer   |
| demand for composted products derived from dairy operation.           |
|                                                                       |
| **Richard D. Zeller dba RZ Management**-Ogallala-\$16,000 to conduct  |
| feasibility study and develop marketing & business plans.             |
|                                                                       |
| **Rolling Hills Vineyard**-Cody-\$18,500 will conduct a feasibility   |
| study on and develop marketing & business plans for processing,       |
| marketing and distributing gourmet vinegars made from wild fruits     |
| native to the Nebraska Sandhills.                                     |
|                                                                       |
| **Rutledge Apiaries, Inc.**-Plainview-\$18,500 to complete            |
| feasibility study, marketing & business plans for producing and       |
| marketing honey spread known as honey 'buttur'.                       |
|                                                                       |
| **Seifer Farms, LLC**-Sutherland-\$10,000 for feasibility study,      |
| developing marketing & business plans for all natural pasture raised  |
| chickens.                                                             |
|                                                                       |
| **Spring Valley Farm**-Lincoln-\$29,700 for feasibility study to      |
| determine local market potential and overall profitability of         |
| freeze-dried floral and food products and to develop marketing and    |
| business plans.                                                       |
|                                                                       |
| **Unified Soy Products, LLC**-Orchard-\$25,000 to conduct site        |
| analysis, feasibility & marketing study and business plan for         |
| building combination soybean crushing facility and soy bio-diesel     |
| production plant.                                                     |
|                                                                       |
| **Westphalia Vineyards**-Bow Valley-\$48,500 to conduct feasibility   |
| study and marketing & business plans, with assistance from University |
| of Lincoln Food Processing Center and other consulting firms, for a   |
| new winery.                                                           |
|                                                                       |
| For further information on the Value-Added Producer Grant program in  |
| Nebraska, contact Deb Yocum at (402) 223-3125, (402) 437-5093 (TDY);  |
| <debra.yocum@ne.usda.gov>; 201 N. 25^th^ Street Beatrice, NE 68310.   |
|                                                                       |
| 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 has invested over \$54 billion since the beginning  |
| of the Bush Administration to provide equity and technical assistance |
| to finance and foster growth in homeownership, business development,  |
| and critical community and technology infrastructure. As a result,    |
| over one million jobs have been created or saved through these        |
| investments. Further information on rural programs is available at a  |
| local USDA Rural Development office or by visiting USDA\'s web site   |
| at [http://www.rurdev.usda.gov](http://www.rurdev.usda.gov/).         |
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