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

Erin Hegge, U.S. Congressman Osborne (202) 225-6435

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# Federal Officials Announce \$1.3 Million in Value-Added Grants From USDA Rural Development

**Grand Island, 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
second event brings together federal officials to present nearly
\$531,000 in grants to three Nebraska producers.

U.S. Congressman Tom Osborne and Tom Dorr, Senior Policy Advisor to the
Secretary of Agriculture on Rural Development, presented symbolic checks
to the three producers who will use the funds to develop new products
and tap into new markets.

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"Effective rural economic development creates an atmosphere that enables
individuals, businesses, and communities to successfully start or expand
businesses, generate better paying jobs, and add wealth to a region. I
am proud of these seven ventures in Nebraska for their hard work and
ingenuity in pursuing federal funds available to expand and improve
their operations. They are a fine example of what Nebraska businesses
have to offer not just to residents within the region but throughout the
global market," stated Rep. Tom Osborne.

"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."

Recipients recognized today in Grand Island were:

-   Booty Farms LLC of Sutherland will utilize \$150,000 for working
    capital to conduct a marketing campaign for its value-added chili
    pepper products along with acquisition of bottling, shipping and
    labeling inventory and office supplies.

-   Kearney Area Ag Producers Alliance of Kearney received \$130,700
    that will conduct a feasibility study and complete required research
    for developing a business plan. The plan is to identify alternative
    products for processing at a lutein-extraction plant, and/or markets
    for alfalfa byproducts from such a plant; and the identification of
    a capitalization strategy, so as to conduct an equity offering for
    the funding required to secure the processing or markets for these
    products.

-   Small Farms Cooperative in West Point is the recipient of \$250,000
    for working capital to market their "Pre-cooked, Ready to Eat
    *Natural* Meat Entrees" to the domestic market while exporting
    numerous cuts of meat overseas.

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The remaining four producers were presented this morning in Lincoln with
symbolic checks by Lt. Governor Dave Heineman and Senior Policy Advisor
Tom Dorr that totaled nearly \$758,000.

"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 that has assisted 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/.

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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.