RD Instruction 4284-K

Table of Contents

Page 1

PART 4284 -- GRANTS

Subpart K - Agriculture Innovation Demonstration Centers

## [TABLE OF CONTENTS]{.underline}

[Sec.]{.underline} [Page]{.underline}

4284.1001 Purpose. 1

4284.1002 Policy. 1

4284.1003 Program administration. 1

4284.1004 Definitions.1

4284.1005 -- 4284.1006 \[Reserved\] 2

4284.1007 Eligibility for grant assistance. 2

4284.1008 Use of grant funds. 3

4284.1009 Limitations on awards. 4

4284.1010 Application processing.

\(a\) Applications. 4

\(b\) Required forms. 4

\(c\) Proposal. 4

4284.1011 Evaluation screening. 7

4284.1012 Evaluation process. 7

4284.1013 Evaluation criteria and weights. 8

\(a\) Ability to deliver. 8

\(b\) Successful track record. 8

\(c\) Work plan/budget. 8

\(d\) Qualifications of personnel. 8

\(e\) Local support. 8

\(f\) Future support. 8

4284.1014 Grant closing. 9

\(a\) Letter of conditions. 9

\(b\) Applicant's intent to meet conditions. 9

\(c\) Grant agreement. 9

4284.1015 -- 4284.1099 \[Reserved\] 9

4284.1100 OMB control number. 9

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RD Instruction 4284-K

PART 4284 -- GRANTS

Subpart K -- Agriculture Innovation Demonstration Centers

§ 4284.1001 [Purpose]{.underline}.

This subpart implements a demonstration program administered by the
Rural Business-Cooperative Service whereby grants are made to innovation
centers responsible for providing technical and business development
assistance to agricultural producers seeking to engage in the marketing
or the production of Value-Added products.

§ 4284.1002 [Policy]{.underline}.

It is the policy of the Secretary of Agriculture to fund Centers which
evidence broad support from the agricultural community in the state or
region, significant coordination with end users (processing and
distribution companies and regional grocers), strategic alliances with
entities having technical research capabilities and a focused delivery
plan for reaching out to the producer community. It is also the policy
of the Secretary, using the research and technical services of the U.S.
Department of Agriculture, to assist the grantees in establishing
Centers. This program is not intended to fund scientific research.

§ 4284.1003 [Program administration]{.underline}.

The Agriculture Innovation Demonstration Center program is administered
by Cooperative Services within the Agency. *This Instruction is used by
State Office personnel in administering the Agriculture Innovation
Demonstration Center (AIC) program. In the AIC program, activities
through the awarding of grants are administered from the National
Office. Post-award activities are administered by the State Offices.*

§ 4284.1004 [Definitions]{.underline}.

[Board of Directors]{.underline}. The group of individuals that govern
the Center.

[Center]{.underline} - The Agriculture Innovation Center to be
established and operated by the grantees. It may or may not be an
independent legal entity, but it must be independently governed in
accordance with the requirements of this subpart.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DISTRIBUTION: WSAL Grants

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RD Instruction 4284-K

§ 4284.1003 (Con.)

[Qualified Board of Directors]{.underline}. A Board of Directors that
includes representatives from each of the following groups: (1) the two
general agricultural organizations with the greatest number of members
in the State in which the Center is located, (2) the State department of
agriculture, or equivalent, of the State in which the Center is located
and (3) entities representing the four highest grossing commodities
produced in the State in which the Center is located, as determined on
the basis of annual gross cash sales.

[Producer Services]{.underline}. Services to be provided by the Centers
to agricultural producers. Producer Services consist of the following
types of services:

\(1\) Technical assistance, consisting of engineering services, applied
research, Scale Production Assessments, and similar services, to enable
the agricultural producers to establish businesses to produce Value-
Added agricultural commodities or products;

\(2\) Assistance in marketing, market development and business planning,
including advisory services with respect to leveraging capital assets;
and

\(3\) Organizational, outreach and development assistance to increase
the viability, growth and sustainability of businesses that produce
Value- Added agricultural commodities or products.

[Scale Production Assessments]{.underline}. Studies that analyze
facilities, including processing facilities, for potential Value-added
activities in order to determine the size that optimizes construction
and other cost efficiencies.

§ 4284.1005 -- 4284.1006 \[Reserved\]

§ 4284.1007 [Eligibility for grant assistance]{.underline}.

Non-profit and for-profit corporations, institutions of higher learning
and other entities, including a consortium where a lead entity has been
designated and agrees to act as funding agent, that meet the following
requirements are eligible for grant assistance:

\(a\) The entity-

\(1\) has provided services similar to those listed for Producer
Services; or

\(2\) demonstrates the capability of providing Producer Services.

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RD Instruction 4284-K

§ 4284.1007 (Con.)

\(b\) The application includes a plan that meets the requirements of\
§ 4284.1010(c)(5)(iv) that also outlines:

\(1\) the support for the entity in the agricultural community;

\(2\) the technical and other expertise of the entity; and

\(3\) the goals of the entity for increasing and improving the ability
of local agricultural producers to develop markets and processes for
Value-Added agricultural commodities or products;

\(c\) The entity demonstrates that adequate resources (in cash or in
kind) are available, or have been committed to be made available to the
entity, to increase and improve the ability of local agricultural
producers to develop markets and processes for Value-Added agricultural
commodities or products; and

\(d\) The proposed Center has a Qualified Board of Directors.

§ 4284.1008 [Use of grant funds]{.underline}.

Grant funds may be used to assist eligible recipients in establishing
Centers that provide Producer Services and may only be used to support
operations of the Center that directly relate to providing Producer
Services. Grant funds may be used for the following purposes, subject to
the limitations set forth in § 4284.10:

\(a\) Consulting services for legal, accounting and technical services
to be used by the grantee in establishing and operating a Center;

\(b\) Hiring of employees, at the discretion of the Qualified Board of
Directors;

\(c\) The making of matching grants to agricultural producers,
individually not to exceed \$5,000, where the aggregate amount of all
such matching grants made by the grantee does not exceed \$50,000;

\(d\) Applied research;

\(e\) Legal services; and

\(f\) Such other related purposes as the Agency may announce in the RFP.

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RD Instruction 4284-K

§ 4284.1009 [Limitations on awards]{.underline}.

The maximum grant award for an agriculture innovation center shall be in
an amount that does not exceed the lesser of \$1,000,000 or twice the
dollar amount of the resources (in cash or in kind) that the eligible
entity demonstrates are available, or have been committed to be made
available, to the eligible entity.

§ 4284.1010 [Application processing]{.underline}.

\(a\) [Applications]{.underline}. USDA will solicit applications on a
competitive basis by publication of one or more Requests for Proposals
(RFPs). Unless otherwise specified in the applicable RFP, applicants
must file an original and one copy of the required forms and a proposal.

\(b\) [Required forms]{.underline}. The following forms must be
completed, signed and submitted as part of the application package.
Other OMB approved forms may be required. This will be published in the
applicable RFP.

\(1\) Standard Form 424, \"Application for Federal Assistance.\"

\(2\) Standard Form 424-A, \"Budget Information---Non-Construction
Programs.\"

\(3\) Standard Form 424-B, \"Assurances\-\--Non-Construction Programs.\"

\(c\) [Proposal]{.underline}. Each proposal must contain the following
elements. Additional elements may be published in the applicable RFP.

\(1\) Title Page.

\(2\) Table of Contents.

\(3\) [Executive Summary]{.underline}. A summary of the proposal should
briefly describe the project including goals, tasks to be completed and
other relevant information that provides a general overview of the
project and the amount requested.

\(4\) [Eligibility]{.underline}. A detailed discussion describing how
the applicant meets the eligibility requirements.

\(5\) [Proposal Narrative]{.underline}. The narrative portion of the
proposal must include, but is not limited to, the following:

\(i\) [Project Title]{.underline}. The title of the proposed project
must be brief, not to exceed 75 characters, yet describe the essentials
of the project.

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RD Instruction 4284-K

§ 4284.1010(c)(5) (Con.)

\(ii\) [Information Sheet]{.underline}. A separate one page information
sheet listing each of the evaluation criteria referenced in the RFP
followed by the page numbers of all relevant material and documentation
contained in the proposal that address or support the criteria.

\(iii\) [Goals of the Project]{.underline}. The first part of this
section should list each Producer Service to be offered by the Center.
The second part of this section should list one or more specific goals
relating to increasing and improving the ability of identified local
agricultural producers to develop a market or process for Value-Added
agricultural commodities or products.

\(iv\) [Work Plan]{.underline}. Actions that must be taken in order for
the Producer Services to be available from the Center. Each action
listed should include a target date by which it will be completed.
General start up tasks should be listed, followed by specific tasks
listed for each Producer Service to be offered, as well as tasks
associated with the start of operations. The tasks associated with the
start of operations should include a focused marketing and delivery plan
directed to the local agricultural producers that were identified in
paragraph (c)(5)(iii) of this section. The actions to be taken should
include steps for identifying customers, acquiring personnel and
contracting for services to the Center, including arrangements for
strategic alliances.

\(v\) [Performance Evaluation Criteria]{.underline}. Performance
criteria suggested by the applicant for incorporation in the grant award
in the event the proposal receives grant funding under this subpart.
These suggested criteria are not binding on USDA.

\(vi\) [Agricultural Community Support]{.underline}. Evidence of support
from the local agricultural community should be included in this
section. Letters in support should reflect that the writer is familiar
with the provisions of the Plan for the Center, including the stated
goals. Evidence of support can take the form of making employees
available to the Center, service as a board member and other in-kind
contributions.

\(vii\) [Strategic Coordination and Alliances]{.underline}. Describe
arrangements in place or planned with end users (processing and
distribution companies and regional grocers) as well as arrangements
with entities having technical research

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RD Instruction 4284-K

§ 4284.1010(c)(5)(vii) (Con.)

capabilities, broad support from the agricultural community in the state
or region, significant coordination with end users

(processing and distribution companies and regional grocers), strategic
alliances with entities having technical research capabilities and a
focused delivery plan for reaching out to the producer community.

\(viii\) [Capacity]{.underline}. Evidence of the ability of the
grantee(s) to successfully establish and operate a Center. A description
of the grantee\'s track record in providing services similar to those
listed for Producer Services or evidence that the entity has the
capability to provide Producer Services. Resumes of key personnel should
be included in this section. Past successes should be described in
detail, with a focus on lessons learned, best practices, familiarity
with producer problems in Value-Added ventures, and how these barriers
are best overcome should be elaborated on in this section. For every
challenge identified, the applicant should demonstrate how they are
addressed in the Work Plan (see paragraph (c)(5)(iv) of this section).
All successes should include a monetary estimate of the Value-Added
achieved.

\(ix\) [Legal structure]{.underline}. Provide a description of the legal
relationship between the grantee(s) and the proposed Center. If the
Center is to be an independent corporate entity, provide copies of the
corporate charter, bylaws and other relevant organizational documents.
Describe how funds for the Center will be handled and include copies of
the agreements documenting the legal relationships between the Center
and related parties. If the Center is not to be an independent legal
entity, provide copies of the corporate governance documents that
describe how members of the Board of Directors for the Center are to be
determined.

\(x\) [Evaluation Criteria]{.underline}. Each of the evaluation criteria
referenced in the RFP must be specifically and individually addressed in
narrative form. Supporting documentation, as applicable, should be
included in this section, or a cross reference to other sections in the
application should be provided, as applicable.

\(xi\) [Verification of Adequate Resources]{.underline}. Present a
budget to support the work plan showing sources and uses of funds during
the start up period prior to the start of operations and for the first
year of full operations. Present a copy of a bank

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RD Instruction 4284-K

§ 4284.1010(c)(5)(xi) (Con.)

statement evidencing sources of funds equal to amounts required in
excess of the grant requested, or, in the alternative, a copy of
confirmed funding commitments from credible sources such that USDA is
satisfied that the Center has adequate resources to complete a full year
of operation. Include information sufficient to facilitate verification
by USDA of all representations.

\(xii\) [Certification of Adequate Resources]{.underline}. Applicants
must certify that non-Federal funds identified in the budget pursuant to
paragraph (c)(5)(xi) of this section will be available and funded
commensurately with grant funds.

§ 4284.1011 [Evaluation screening]{.underline}.

The Agency will conduct an initial screening of all proposals to
determine whether the applicant is eligible and whether the application
is complete and sufficiently responsive to the requirements set forth in
the applicable RFP so as to allow for an informed review. Incomplete or
non-responsive applications will not be evaluated further, and may be
returned to the applicant. Applicants may revise their applications and
re-submit them prior to the published deadline if there is sufficient
time to do so.

§ 4284.1012 [Evaluation process]{.underline}.

\(a\) Applications will be evaluated by qualified reviewers appointed by
the Agency.

\(b\) After all proposals have been evaluated using the evaluation
criteria and scored in accordance with the point allocation specified in
the applicable RFP, Agency officials will present to the Administrator
of RBS a list of all applications in rank order, together with funding
level recommendations.

\(c\) The Administrator reserves the right to award additional points,
as specified in the applicable RFP, to accomplish agency objectives
(e.g., to ensure geographic distribution, put emphasis on a specific
commodity, or to accomplish presidential initiatives.) The maximum
number of points that can be added to an application under this
paragraph cannot exceed ten percent of the total points the application
originally scored.

\(d\) After giving effect to the Administrator\'s point awards,
applications will be funded in rank order until all available funds have
been obligated.

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§ 4284.1013 [Evaluation criteria and weights]{.underline}.

Unless supplemented in a RFP, the criteria listed in this section will
be used to evaluate grants under this subpart. The distribution of
points to be awarded per criterion will be identified in the applicable
RFP.

\(a\) [Ability to deliver]{.underline}. The application will be
evaluated as to whether it evidences unique abilities to deliver
Producer Services so as to create sustainable Value-Added ventures.
Abilities that are transferable to a wide range of agricultural
Value-Added commodities are preferred over highly specialized skills.
Strong skills must be accompanied by a credible and thoughtful plan.

\(b\) [Successful track record]{.underline}. The applicant\'s track
record in achieving Value-Added successes.

\(c\) [Work plan/budget]{.underline}. The work plan will be reviewed for
detailed actions and an accompanying timetable for implementing the
proposal. Clear, logical, realistic and efficient plans will result in a
higher score. Budgets will be reviewed for completeness and the strength
of non Federal funding commitments.

\(d\) [Qualifications of personnel]{.underline}. Proposals will be
reviewed for whether the key personnel who are to be responsible for
performing the proposed tasks have the necessary qualifications and
whether they have a track record of performing activities similar to
those being proposed. If a consultant or others are to be hired, points
may be awarded for consultants only if the proposal includes evidence of
their availability and commitment as well. Proposals using in-house
employees with strong track records in innovative activities will
receive higher points relative to proposals that out-source expertise.

\(e\) [Local support]{.underline}. Proposed Centers must show local
support and coordination with other developmental organizations in the
proposed service area and with state and local institutions. Support
documentation should include recognition of rural values that balance
employment opportunities with environmental stewardship and other rural
amenities. Proposed Centers that show strong support from potential
beneficiaries and coordination with other developmental organizations
will receive more points than those not evidencing such support.

\(f\) [Future support]{.underline}. Applicants that can demonstrate
their vision for funding center operations for future years, including
diversification of funding sources and building in-house technical
assistance capacity, will receive more points for this criterion.

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RD Instruction 4284-K

§ 4284.1014 [Grant closing]{.underline}.

\(a\) [Letter of Conditions]{.underline}. The Agency will notify an
approved applicant in writing, setting out the conditions under which
the grant will be made.

\(b\) [Applicant\'s intent to meet conditions]{.underline}. Upon
reviewing the conditions and requirements in the letter of conditions,
the applicant must complete, sign and return the Agency\'s \"Letter of
Intent to Meet Conditions,\" or, if certain conditions cannot be met,
the applicant may propose alternate conditions to the Agency. The Agency
must concur with any changes proposed to the letter of conditions by the
applicant before the application will be further processed.

\(c\) [Grant agreement]{.underline}. The Agency and the grantee must
enter into an \"Agriculture Innovation Center Grant Agreement\" prior to
the advance of funds.

§§ 4284.1015 - 4284.1099 \[Reserved\]

§ 4284.1100 [OMB control number]{.underline}.

The reporting and recordkeeping requirements contained in this
regulation have been approved by the Office of Management and Budget and
have been assigned OMB control number 0570-0045.

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