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Release No. 0438.04 Ed Loyd (202) 720-4623

Tim McNeilly (202) 690-0498

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## OVER \$13 MILLION IN USDA RURAL DEVELOPMENT GRANTS SELECTED TO SPUR ECONOMIC GROWTH IN 34 STATES *\$2.1 Million to Support Renewable/Biomass Energy Proposals*

WASHINGTON, Oct. 13, 2004---Agriculture Secretary Ann M. Veneman
announced the approval of 97 value-added agricultural product market
development grants in 34 states, totaling over \$13.1 million. The
grants will help farmers and ranchers increase their economic
opportunities through the development of new products and markets for
agriculturally based products.

\"The Bush Administration continues to place a high priority on creating
new sources of renewable and biomass energy through such grant programs
as the value-added producer grant program,\" said Veneman. "Creating an
energy independent nation, through utilization of our nation's natural
resources, is a valuable investment in America's future."

In support of President Bush's 2001 energy plan, 16 percent of the
proposals selected will support biomass/renewable energy related
ventures.

"These grants are critical to assisting America's farmers and ranchers
increase markets for their commodities and to increase their
profitability," said Agriculture Acting Under Secretary for Rural
Development Gilbert Gonzalez. "President Bush is committed to helping
more rural families live the American Dream through the creation of new
business ventures that employ more rural Americans. This program is a
significant investment in the future of rural families and communities."

Authorized as part of the 2002 Farm Bill, the Value-Added Agricultural
Product Market Development Grants program provides an opportunity to
refine agricultural commodities and products to increase their value in
the marketplace.

    

In South Dakota, successful applicants include:

-   **Min-Kota Fisheries, Inc., Philip...**will receive federal grant
    funds of \$12,500 to be leveraged with \$12,625 from the state of
    South Dakota's Value Added Agriculture sub fund and an applicant
    contribution of \$625 to determine if there is a market in the
    United States and Canada for organic tilapia. Min Kota Fisheries,
    Inc. seeks to be among the first U.S. companies obtaining organic
    certification and, as part of the business development plan,
    requires a market analysis and marketing plan to document the
    opportunity organic certification offers and to identify markets and
    marketing strategies.

-   **Dakota Farms International, LTD, Carpenter...**will receive
    \$125,000 to be leveraged with an applicant contribution of
    \$756,919 and other contributions totaling \$219,200 to purchase
    consumables such as tea bag paper, pouches and cardboard cases to
    roast and package barley tea for export to the Japanese market.

-   **Heartland Grain Fuels, LP, Aberdeen...**will receive \$150,000 to
    be leveraged with an applicant contribution of \$150,000 to make
    their plant more profitable and efficient and thereby assure their
    survival and the jobs that the project supports. The applicant
    currently produces ethanol from corn. They are interested in
    bio-refining or further processing the existing corn through an
    identity preserved process or seeing what products can be added to
    their plant to diversify their current product mix. Heartland Grain
    Fuels (HGF), LP is a producer-owned fuel ethanol production company
    headquartered in Aberdeen, South Dakota. HGF owns and operates two
    corn dry-grind ethanol plants located in Aberdeen and Huron, South
    Dakota. These plants produce 10 million gallons and 14 million
    gallons of ethanol per year, respectively.

**- Continued on back -**

South Dakota State Director Lynn D. Jensen said, "The VAPGs will assist
the recipients develop their businesses and that will result in
increased economic opportunities for rural South Dakota including the
creation of jobs."

The Value-Added Producer Grant program is a highly competitive grant
program that garnered nearly 400 applications. An independent review of
applications is conducted to ensure that selected proposals are scored
based on the criteria established in the announcement of the funding
availability. Funding of selected applicants will be contingent upon
meeting the conditions of the grant agreement. A complete list of the
selected grant recipients can be found at the USDA Rural Development web
site at: [http://www.rurdev.usda.gov](http://www.rurdev.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 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/).

**- USDA-**