Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Notices 18949 

DEPARTMENT OF AGRICULTURE 

Rural Business-Cooperative Service 

Announcement of Value-Added 

Producer Grant Application Deadlines 

AGENCY: Rural Business-Cooperative 

Service, USDA. 

ACTION: Notice of solicitation of 

applications. 

SUMMARY: The Rural BusinessCooperative Service (RBS) announces 

the availability of approximately $19.3 

million in competitive grant funds for 

fiscal year (FY) 2007 to help 

independent agricultural producers 

enter into value-added activities. 

Awards may be made for planning 

activities or for working capital 

expenses, but not for both. The 

maximum grant amount for a planning 

grant is $100,000 and the maximum 

grant amount for a working capital grant 

is $300,000. 

DATES: Applications for grants must be 

submitted on paper or electronically 

according to the following deadlines: 

Paper copies must be postmarked and 

mailed, shipped, or sent overnight no 

later than May 16, 2007, to be eligible 

for FY 2007 grant funding. Late 

applications are not eligible for FY 2007 

grant funding. 

Electronic copies must be received by 

May 16, 2007 to be eligible for FY 2007 

grant funding. Late applications are not 

eligible for FY 2007 grant funding. 

ADDRESSES: An application guide and 

other materials may be obtained at 

http://www.rurdev.usda.gov/rbs/coops/ 

vadg.htm or by contacting the 

applicant’s USDA Rural Development 

State Office. The State Office can be 

reached by calling (202) 720–4323 and 

pressing ‘‘1’’. 

Paper applications must be submitted 

to: Cooperative Programs, Attn: VAPG 

Program, Mail Stop 3250, Room 4016–

South, 1400 Independence Ave., SW., 

Washington, DC 20250–3250. The 

phone number that should be used for 

courier delivery is (202) 720–7558. 

Electronic applications must be 

submitted through the Grants.gov Web 

site at: http://www.grants.gov, following 

the instructions found on this Web site. 

FOR FURTHER INFORMATION CONTACT: 

Applicants should visit the program 

Web site at http://www.rurdev.usda.gov/ 

rbs/coops/vadg.htm, which contains 

application guidance, including 

Frequently Asked Questions and an 

Application Guide. Or applicants may 

contact their USDA Rural Development 

State Office. The State Office can be 

reached by calling (202) 720–4323 and 

pressing ‘‘1’’, or by selecting the State 

Contacts link at the above Web site. 

Applicants are encouraged to contact 

their State Offices well in advance of the 

deadline to discuss their projects and 

ask any questions about the application 

process. Also, applicants may submit 

drafts of their applications to their State 

Offices for a preliminary review anytime 

prior to May 7, 2007. The preliminary 

review will only assess the eligibility of 

the application and its completeness 

and the results of the preliminary 

review are not binding on the Agency. 

SUPPLEMENTARY INFORMATION: 

Overview 

Federal Agency: USDA Rural 

Development Cooperative Programs. 

Funding Opportunity Title: ValueAdded Producer Grants. 

Announcement Type: Initial 

announcement. 

Catalog of Federal Domestic 

Assistance Number: 10.352. 

Dates: Application Deadline: 

Applications for grants must be 

submitted on paper or electronically 

according to the following deadlines: 

Paper copies must be postmarked and 

mailed, shipped, or sent overnight no 

later than May 16, 2007 to be eligible for 

FY 2007 grant funding. Late 

applications are not eligible for FY 2007 

grant funding. 

Electronic copies must be received by 

May 16, 2007 to be eligible for FY 2007 

grant funding. Late applications are not 

eligible for FY 2007 grant funding. 

I. Funding Opportunity Description 

This solicitation is issued pursuant to 

section 231 of the Agriculture Risk 

Protection Act of 2000 (Pub. L. 106–224) 

as amended by section 6401 of the Farm 

Security and Rural Investment Act of 

2002 (Pub. L. 107–171 (see 7 U.S.C. 

1621 note)) authorizing the 

establishment of the Value-Added 

Agricultural Product Market 

Development grants, also known as 

Value-Added Producer Grants. The 

Secretary of Agriculture has delegated 

the program’s administration to USDA 

Rural Development Cooperative 

Programs. 

The primary objective of this grant 

program is to help Independent 

Producers of Agricultural Commodities, 

Agriculture Producer Groups, Farmer 

and Rancher Cooperatives, and 

Majority-Controlled Producer-Based 

Business Ventures develop strategies to 

create marketing opportunities and to 

help develop Business Plans for viable 

marketing opportunities regarding 

production of biobased products from 

agricultural commodities. Cooperative 

Programs will competitively award 

funds for Planning Grants and Working 

Capital Grants. In order to provide 

program benefits to as many eligible 

applicants as possible, applicants must 

apply only for a Planning Grant or for 

a Working Capital Grant, but not both. 

Applicants other than Independent 

Producers must limit their Projects to 

Emerging Markets. Grants will only be 

awarded if Projects are determined to be 

economically viable and sustainable. No 

more than 10 percent of program funds 

can go to applicants that are MajorityControlled Producer-Based Business 

Ventures. 

Definitions 

The definitions at 7 CFR 4284.3 and 

4284.904 are incorporated by reference. 

In addition, the Agency uses the 

following terms in this NOSA: 

Agricultural Commodity, Bioenergy 

Project, Biomass, Business Plan, 

Conflict of Farm or Ranch, Feasibility 

Study, Project, Renewable Energy, and 

Venture. It is the Agency’s position that 

those terms are defined as follows. 

Agricultural Commodity—An 

unprocessed product of farms, ranches, 

nurseries, and forests. Agricultural 

Commodities include: Livestock, 

poultry, and fish; fruits and vegetables; 

grains, such as wheat, barley, oats, rye, 

triticale, rice, corn, and sorghum; 

legumes, such as field beans and peas; 

animal feed and forage crops; seed 

crops; fiber crops, such as cotton; oil 

crops, such as safflower, sunflower, 

corn, and cottonseed; trees grown for 

lumber and wood products; nursery 

stock grown commercially; Christmas 

trees; ornamentals and cut flowers; and 

turf grown commercially for sod. 

Agricultural Commodities do not 

include horses or animals raised as pets, 

such as cats, dogs, and ferrets. 

Bioenergy Project—A Renewable 

Energy system that produces fuel, 

thermal energy, or electric power from 

a Biomass source. 

Biomass—Any organic material that is 

available on a renewable or recurring 

basis, including agricultural crops; trees 

grown for energy production; wood 

waste and wood residues; plants, 

including aquatic plants and grasses; 

fibers; animal waste and other waste 

materials; and fats, oils, and greases, 

including recycled fats, oils, and 

greases. It does not include paper that 

is commonly recycled or un-segregated 

solid waste. 

Business Plan—A plan for Venture 

implementation that includes key 

management personnel, business 

location, the financial package, product 

flow, and possible customers. It also 

includes at least three years of pro forma 

financial statements. The plan is usually 


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developed by the business with 

assistance from third parties. 

Conflict of Interest—A situation in 

which a person or entity has competing 

professional or personal interests that 

make it difficult for the person or 

business to act impartially. An example 

of a Conflict of Interest is a grant 

recipient or an employee of a recipient 

that conducts or significantly 

participates in conducting a Feasibility 

Study for the recipient. 

Farm or Ranch—Any place from 

which $1,000 or more of agricultural 

products (crops and livestock) were 

raised and sold or normally would have 

been raised and sold during the 

previous year. 

Feasibility Study—An independent, 

third party analysis that shows how the 

Venture would operate under a set of 

assumptions—the technology used (the 

facilities, equipment, production 

process, etc.), the qualifications of the 

management team, and the financial 

aspects (capital needs, volume, cost of 

goods, wages, etc.). The analysis should 

answer the following questions about 

the Venture. 

(1) Where is it now? 

(2) Where does the group want to go? 

(3) Why does the group want to go 

forward with the Venture? 

(4) How will the group accomplish 

the Venture? 

(5) What resources are needed? 

(6) Who will provide assistance? 

(7) When will the Venture be 

completed? 

(8) How much will the Venture cost? 

(9) What are the risks? 

Project—Includes all proposed 

activities to be funded by the VAPG and 

Matching Funds. 

Renewable Energy—Energy derived 

from a wind, solar, biomass, or 

geothermal source; or hydrogen derived 

from biomass or water using wind, 

solar, biomass, or geothermal energy 

sources. 

Venture—Includes the Project and 

any other activities related to the 

production, processing, and marketing 

of the Value-Added product that is the 

subject of the VAPG grant request. 

II. Award Information 

Type of Award: Grant. 

Fiscal Year Funds: FY 2007. 

Approximate Total Funding: $19.475 

million. 

Approximate Number of Awards: 130. 

Approximate Average Award: 

$150,000. 

Floor of Award Range: None. 

Ceiling of Award Range: $100,000 for 

Planning Grants and $300,000 for 

Working Capital Grants. 

Anticipated Award Date: September 

1, 2007. 

Budget Period Length: 12 months. 

Project Period Length: 12 months. 

III. Eligibility Information 

A. Eligible Applicants 

Applicants must be an Independent 

Producer, Agriculture Producer Group, 

Farmer or Rancher Cooperative, or 

Majority-Controlled Producer-Based 

Business Venture as defined in 7 CFR 

part 4284, subpart A. If the applicant is 

an unincorporated group (steering 

committee), it must form a legal entity 

before the grant funds can be obligated. 

Please note that a steering committee 

may only apply as an Independent 

Producer. Therefore, the steering 

committee must be composed of 100 

percent Independent Producers and the 

business to be formed must meet the 

definition of Independent Producer. 

Also, entities that contract out the 

production of an Agricultural 

Commodity are not considered 

Independent Producers. In addition, 

note that Farmer or Rancher 

Cooperatives that are 100 percent 

owned by farmers and ranchers are not 

considered under the Independent 

Producer category; these applicants 

must apply as Farmer or Rancher 

Cooperatives. It is the Agency’s position 

that if a cooperative is 100 percent 

owned and controlled by agricultural 

harvesters (e.g. fishermen, loggers), it is 

eligible only as an Independent 

Producer and not as a Farmer- or 

Rancher-Cooperative. If a cooperative is 

not 100 percent owned and controlled 

by farmers and ranchers or 100 percent 

owned and controlled by agricultural 

harvesters, it may still be eligible to 

apply as a Majority-Controlled 

Producer-Based Business Venture, 

provided it meets the definition in 7 

CFR part 4284, subpart A. 

B. Cost Sharing or Matching 

Matching Funds are required. 

Applicants must verify in their 

applications that Matching Funds are 

available for the time period of the 

grant. Matching Funds must be at least 

equal to the amount of grant funds 

requested. Unless provided by other 

authorizing legislation, other Federal 

grant funds cannot be used as Matching 

Funds. Matching Funds must be spent 

at a rate equal to or greater than the rate 

at which grant funds are expended. 

Matching Funds must be provided by 

either the applicant or by a third party 

in the form of cash or in-kind 

contributions. Matching Funds must be 

spent on eligible expenses and must be 

from eligible sources. 

C. Other Eligibility Requirements 

Product Eligibility: The project 

proposed must involve a Value-Added 

product as defined in 7 CFR part 4284, 

subpart A. The definition of ValueAdded includes four categories. They 

are the incremental value that is 

realized by the producer from an 

Agricultural Commodity or product as 

the result of: 

(1) A change in its physical state, 

(2) Differentiated production or 

marketing, as demonstrated in a 

Business Plan, or 

(3) Product segregation. 

The fourth category is the economic 

benefit realized from the production of 

Farm- or Ranch-based Renewable 

Energy. 

Purpose Eligibility: The application 

must specify whether grant funds are 

requested for planning activities or for 

working capital. Applicants may not 

request funds for both types of activities 

in one application. Applications 

requesting more than the maximum 

grant amount will be considered 

ineligible. Please note that working 

capital expenses are not considered 

eligible for Planning Grants and 

planning expenses are not considered 

eligible for Working Capital Grants. 

It is the Agency’s position that 

applicants other than Independent 

Producers applying for a Working 

Capital Grant must demonstrate that the 

venture has not been in operation more 

than two years at the time of application 

in order to show that they are entering 

an Emerging Market. 

Grant Period Eligibility: Applications 

that have a timeframe of more than 365 

days will be considered ineligible. 

Applications that request funds for a 

time period beginning prior to October 

1, 2007 and/or ending after November 

30, 2008, will be considered ineligible. 

Multiple Grant Eligibility: An 

applicant can only submit one 

application per funding cycle. 

Applicants who have already received 

a Planning Grant for the proposed 

Project cannot receive another Planning 

Grant for the same Project. Applicants 

who have already received a Working 

Capital Grant for a Project cannot 

receive any additional grants for that 

Project. 

Current Grant Eligibility: If an 

applicant currently has a VAPG, that 

grant period must be scheduled to 

expire by December 31, 2007. 

Judgment Eligibility: In accordance 

with 7 CFR part 4284.6. 


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IV. Application and Submission 

Information 

A. Address To Request Application 

Package 

The application package for applying 

on paper for this funding opportunity 

can be obtained at http:// 

www.rurdev.usda.gov/rbs/coops/ 

vadg.htm. Alternatively, applicants may 

contact their USDA Rural Development 

State Office. The State Office can be 

reached by calling (202) 720–4323 and 

pressing ‘‘1’’. For electronic 

applications, applicants must visit 

http://www.grants.gov and follow the 

instructions. 

B. Content and Form of Submission 

Applications must be submitted on 

paper or electronically. An Application 

Guide may be viewed at http:// 

www.rurdev.usda.gov/rbs/coops/ 

vadg.htm. It is recommended that 

applicants use the template provided on 

the Web site. The template can be filled 

out electronically and printed out for 

submission with the required forms for 

a paper submission or it can be filled 

out electronically and submitted as an 

attachment through Grants.gov. 

If an application is submitted on 

paper, one signed original of the 

complete application must be 

submitted. 

If the application is submitted 

electronically, the applicant must follow 

the instructions given at http:// 

www.grants.gov. Applicants are advised 

to visit the site well in advance of the 

application deadline if they plan to 

apply electronically to insure that they 

have obtained the proper authentication 

and have sufficient computer resources 

to complete the application. 

Applicants must complete and submit 

the following elements. Please note that 

the requirements in the following 

locations within 7 CFR part 4284 have 

been combined with other requirements 

to simplify the application and reduce 

duplication: § 4284.910(b)(5)(i), 

§ 4284.910(b)(5)(ii), and 

§ 4284.910(b)(5)(iv). The Agency will 

conduct an initial screening of all 

application for eligibility and to 

determine whether the application is 

complete and sufficiently responsive to 

the requirements set forth in this Notice 

to allow for an informed review. 

Information submitted as part of the 

application will be protected to the 

extent permitted by law. 

1. Form SF–424, ‘‘Application for 

Federal Assistance.’’ The form must be 

completed, signed and submitted as part 

of the application package. Please note 

that applicants are required to have an 

Employer Identification Number (or a 

Social Security Number if the applicant 

is an individual or steering committee) 

and a DUNS number (unless the 

applicant is an individual). The DUNS 

number is a nine-digit identification 

number, which uniquely identifies 

business entities. To obtain a DUNS 

number, access http:// 

www.dnb.com/us, or call (866) 705–

5711. Additional information on the 

VAPG program can be obtained at 

http://www.rurdev.usda.gov/rbs/coops/ 

vadg.htm or by contacting the 

applicant’s Rural Development State 

Office. The State Office can be reached 

by calling (202) 720–4323 and pressing 

‘‘1’’. 

2. Form SF–424A, ‘‘Budget 

Information—Non-Construction 

Programs.’’ This form must be 

completed and submitted as part of the 

application package. 

3. Form SF–424B, ‘‘Assurances—NonConstruction Programs.’’ This form must 

be completed, signed, and submitted as 

part of the application package. 

4. Title Page (limited to one page). 

The title page must include the title of 

the project and may include other 

relevant identifying information. 

5. Table of Contents. For ease of 

locating information, each application 

must contain a detailed Table of 

Contents (TOC) immediately following 

the title page. 

6. Executive Summary (limited to one 

page). The Executive Summary should 

briefly describe the Project, including 

goals, tasks to be completed and other 

relevant information that provides a 

general overview of the Project. In this 

element, the applicant must clearly state 

whether the application is for a 

Planning Grant or a Working Capital 

Grant and the grant amount requested. 

7. Eligibility Discussion (limited to 

four pages). The Eligibility Discussion is 

a detailed discussion describing how 

the eligibility requirements are met. 

i. Applicant Eligibility. The applicant 

must first describe how it meets the 

definition of an Independent Producer, 

Agriculture Producer Group, Farmer or 

Rancher Cooperative, or a MajorityControlled Producer-Based Business 

Venture as defined in 7 CFR 4284.3. The 

applicant must apply as only one type 

of applicant. 

If the applicant is an Independent 

Producer, the application must provide 

the following information: (1) A 

discussion of how 100 percent of the 

owners of the applicant organization 

meet the definition of an Independent 

Producer; (2) a discussion that 

demonstrates these owners currently 

own and produce more than 50 percent 

of the raw commodity that will be used 

for the Value-Added product; and (3) a 

discussion that demonstrates the 

product will be owned by the 

Independent Producers from its raw 

commodity state through the production 

of the Value-Added product during the 

Project. 

If the applicant is an Agriculture 

Producer Group, the application must 

provide the following information: (1) 

The mission of the applicant; (2) a 

statement identifying the number of the 

applicant’s membership and board of 

directors that meet the definition of 

Independent Producer as well as the 

number of non-Independent Producers; 

(3) an identification (either by name or 

by class) of the Independent Producers 

on whose behalf the work will be done; 

(4) a discussion demonstrating that 

these Independent Producers currently 

own and produce more than 50 percent 

of the raw commodity that will be used 

for the Value-Added product; and (5) a 

discussion demonstrating that the 

Value-Added product will be owned by 

the Independent Producers from its raw 

commodity state through the production 

of the Value-Added product during the 

Project. Note that applicants tentatively 

selected for a grant award must verify 

that the work will be done on behalf of 

the Independent Producers identified in 

the application. 

If the applicant is a Farmer or Rancher 

Cooperative, the application must 

provide the following information: (1) 

The applicant must reference the 

business’ good standing as a cooperative 

in its state of incorporation; (2) the 

applicant must also explain how the 

cooperative is 100 percent owned and 

controlled by farmers and ranchers; (3) 

if the applicant is applying on behalf of 

only a portion of its membership, that 

portion must be identified, and the 

applicant must explain how all 

members in this portion of its 

membership meet the definition of an 

Independent Producer; (4) a discussion 

demonstrating that these Independent 

Producers currently own and produce 

more than 50 percent of the raw 

commodity that will be used for the 

Value-Added product; and (5) a 

discussion demonstrating that the 

Value-Added product will be owned by 

the Independent Producers from its raw 

commodity state through the production 

of the Value-Added product during the 

Project. 

If the applicant is a MajorityControlled Producer-Based Business 

Venture, the application must provide 

the following information: (1) The 

number of owners who are Independent 

Producers and the number of owners 

who are not Independent Producers; (2) 

the financial interest of Independent 

Producers and non-Independent 


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Producers in the applicant organization; 

(3) the voting interest of Independent 

Producers and non-Independent 

Producers on the governing board; (4) a 

discussion demonstrating that these 

Independent Producers currently own 

and produce more than 50 percent of 

the raw commodity that will be used for 

the Value-Added product; and (5) a 

discussion demonstrating that the 

Value-Added product will be owned by 

the Independent Producers from its raw 

commodity state through the production 

of the Value-Added product during the 

Project. 

ii. Product Eligibility. The applicant 

must next describe how the ValueAdded product to be produced meets at 

least one of the categories in the 

definition of Value-Added as defined in 

7 CFR part 4284, subpart A. Regardless 

of which category is met, the applicant 

must describe the raw commodity that 

will be used, the process used to add 

value, and the Value-Added product 

that will be marketed. 

If the product meets the first category 

(incremental value realized as a result of 

a change in the physical state of the 

commodity), the application must 

explain how the change in physical 

state or form of the product enhances its 

value. A change in physical state is only 

achieved if the product cannot be 

returned to its original state. Examples 

of this type of product include: fish 

fillets, diced tomatoes, ethanol, biodiesel, and wool rugs. The following 

examples are not eligible under this 

category: dehydrated corn, raw fiber, 

and cut flowers. 

If the product meets the second 

category (incremental value realized as 

a result of differentiated production or 

marketing), the application must 

explain how the production or 

marketing of the commodity enhances 

the Value-Added product’s value. The 

enhancement of value must be 

quantified by using a comparison with 

products produced or marketed in the 

standard manner, using information 

from the Feasibility Study and Business 

Plan developed for the Venture. 

Examples of this type of product 

include: organic carrots, identitypreserved apples, and branded milk. 

The following example is not eligible 

under this category: marketing a nonstandard variety of produce. Also, a 

Business Plan that has been developed 

for the applicant for the Venture must 

be referenced by indicating who 

developed the Business Plan and when 

it was completed. 

If the product meets the third category 

(incremental value realized as a result of 

product segregation), the application 

must explain how the physical 

segregation of a commodity enhances its 

value. The enhancement of value should 

be quantified to the extent possible by 

using a comparison with products 

marketed without segregation. 

Applicants must demonstrate that a 

physical barrier (i.e. distance or a 

structure) separates the commodity from 

other varieties of the same commodity 

during production, that the commodity 

will continue to be separated during 

processing, and that the Value-Added 

product produced will be separated 

from similar products during marketing. 

An example of this type of product is 

non-genetically-modified corn that is 

produced on the same Farm as 

genetically-modified corn where an 

increase in incremental value is realized 

for either one or both of the types of 

corn that is attributed to physical 

segregation. The following examples are 

not eligible under this category: 

livestock sorted by grade, produce 

sorted by size or grade. 

If the product meets the fourth 

category (economic benefit realized by 

Farm-or Ranch-based production of 

Renewable Energy), the application 

must explain how the Renewable 

Energy will be generated on a Farm or 

a Ranch owned or leased by the owners 

of the Venture. Please note that the 

owners/leasers of the Farm or Ranch 

must currently produce an Agricultural 

Commodity on the Farm or Ranch and 

the Farm or Ranch must meet the 

definition of a Farm or a Ranch as 

defined in the ‘‘Definitions’’ section of 

this notice. Examples of this type of 

product are wind energy, solar energy, 

and anaerobic digesters. The following 

examples are not eligible under this 

category: any type of fuel, such as 

ethanol, bio-diesel, and switchgrass 

pellets, that is not generated on a Farm 

or Ranch owned or leased by the owners 

of the Venture. 

iii. Purpose Eligibility. The applicant 

must describe how the Project purpose 

is eligible for funding. The project 

purpose is comprised of two 

components. First, the applicant must 

describe how the proposed Project 

consists of eligible planning activities or 

eligible working capital activities. 

Second, the applicant must 

demonstrate that the activities are 

directly related to the processing and/or 

marketing of a Value-Added product. If 

the applicant is applying for a Working 

Capital Grant, it must reference a thirdparty, independent Feasibility Study 

and a Business Plan that have been 

completed specifically for the proposed 

Venture. The reference must include the 

name of the party who conducted the 

Feasibility Study and developed the 

Business Plan as well as the dates the 

Feasibility Study and Business Plan 

were completed. 

If the applicant is applying for a 

Working Capital Grant, and it is an 

Agriculture Producer Group, a Farmer 

or Rancher Cooperative, or a MajorityControlled Producer-Based Business 

Venture, it must also demonstrate that 

its proposed Venture has been in 

operation for less than two years at the 

time of application, in order to show 

that the applicant is entering an 

Emerging Market. 

8. Proposal Narrative (limited to 35 

pages). 

i. Goals of the Project. The application 

must include a clear statement of the 

ultimate goals of the Project. There must 

be an explanation of how a market will 

be expanded and the degree to which 

incremental revenue will accrue to the 

benefit of the Agricultural Producer(s). 

ii. Performance Evaluation Criteria. 

Applicants applying for Planning Grants 

must suggest at least one criterion by 

which their performance under a grant 

could be evaluated. Applicants applying 

for Working Capital Grants must 

identify the projected increase in 

customer base, revenue accruing to 

Independent Producers, and number of 

jobs attributed to the Project. Working 

capital projects with significant energy 

components must also identify the 

projected increase in capacity (e.g. 

gallons of ethanol produced annually, 

megawatt hours produced annually) 

attributed to the Project. Please note that 

these criteria are different from the 

Proposal Evaluation Criteria and are a 

separate requirement. 

iii. Proposal Evaluation Criteria. Each 

of the proposal evaluation criteria 

referenced in this funding 

announcement must be addressed, 

specifically and individually, in 

narrative form. Applications that do not 

address the appropriate criteria 

(Planning Grant applications must 

address Planning Grant evaluation 

criteria and Working Capital Grant 

applications must address Working 

Capital Grant evaluation criteria) will be 

considered ineligible. 

9. Certification of Matching Funds. 

Applicants must certify that Matching 

Funds will be available at the same time 

grant funds are anticipated to be spent 

and that Matching Funds will be spent 

in advance of grant funding, such that 

for every dollar of grant funds advanced, 

not less than an equal amount of 

Matching Funds will have been 

expended prior to submitting the 

request for reimbursement. Please note 

that this certification is a separate 

requirement from the verification of 

matching funds requirement. Applicants 

must include a statement for this section 


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that reads as follows: ‘‘[INSERT NAME 

OF APPLICANT] certifies that matching 

funds will be available at the same time 

grant funds are anticipated to be spent 

and that matching funds will be spent 

in advance of grant funding, such that 

for every dollar of grant funds advanced, 

not less than an equal amount of 

matching funds will have been 

expended prior to submitting the 

request for reimbursement.’’ A separate 

signature is not required. 

10. Verification of Matching Funds. 

Applicants must provide documentation 

of all proposed Matching Funds, both 

cash and in-kind. The documentation 

must be included in the Appendix. 

If Matching Funds are to be provided 

by the applicant in cash, a copy of a 

bank statement with an ending date 

within one month of the application 

submission is required. The bank 

statement must show an ending balance 

equal to or greater than the amount of 

cash Matching Funds proposed. If the 

Matching Funds will be provided 

through a loan or line of credit, the 

applicant must include a signed letter 

from the lending institution verifying 

the amount available, the time period of 

availability of the funds, and the 

purposes for which funds may be used. 

If the Matching Funds are to be 

provided by the applicant through an 

in-kind contribution, the application 

must include a signed letter from the 

applicant verifying the goods or services 

to be donated, when the goods and 

services will be donated, and the value 

of the goods or services. Please note that 

if the applicant organization is 

purchasing goods or services for the 

grant (e.g. salaries, inventory), the 

contribution is considered a cash 

contribution and must be verified as 

described in the preceding paragraph. 

Also, if an owner or employee of the 

applicant organization is donating goods 

or services, the contribution is 

considered a third-party in-kind 

contribution and must be verified as 

described below. Verification for inkind contributions donated outside the 

proposed time period of the grant will 

not be accepted. Verification for in-kind 

contributions that are over-valued will 

not be accepted. The valuation process 

for the in-kind funds does not need to 

be included in the application, 

especially if it is lengthy, but the 

applicant must be able to demonstrate 

how the valuation was achieved at the 

time of notification of tentative selection 

for the grant award. If the applicant 

cannot satisfactorily demonstrate how 

the valuation was determined, the grant 

award may be withdrawn or the amount 

of the grant may be reduced. 

If the Matching Funds are to be 

provided by a third party in cash, the 

application must include a signed letter 

from that third party verifying how 

much cash will be donated and when it 

will be donated. Verification for funds 

donated outside the proposed time 

period of the grant will not be accepted. 

If the Matching Funds are to be 

provided by a third party in-kind 

donation, the application must include 

a signed letter from the third party 

verifying the goods or services to be 

donated, when the goods and services 

will be donated, and the value of the 

goods or services. Verification for inkind contributions donated outside the 

proposed time period of the grant will 

not be accepted. Verification for in-kind 

contributions that are over-valued will 

not be accepted. The valuation process 

for the in-kind funds does not need to 

be included in the application, 

especially if it is lengthy, but the 

applicant must be able to demonstrate 

how the valuation was achieved at the 

time of notification of tentative selection 

for the grant award. If the applicant 

cannot satisfactorily demonstrate how 

the valuation was determined, the grant 

award may be withdrawn or the amount 

of the grant may be reduced. 

If Matching Funds are in cash, they 

must be spent on goods and services 

that are eligible expenditures for this 

grant program. If Matching Funds are inkind contributions, the donated goods 

or services must be considered eligible 

expenditures for this grant program. The 

Matching Funds must be spent or 

donated during the grant period and the 

funds must be expended at a rate equal 

to or greater than the rate grant funds 

are expended. Some examples of 

acceptable uses for matching funds are: 

skilled labor performing work required 

for the proposed Project, office supplies, 

and purchasing inventory. Some 

examples of unacceptable uses of 

matching funds are: Land, fixed 

equipment, buildings, and vehicles. 

Expected program income may not be 

used to fulfill the Matching Funds 

requirement at the time of application. 

If program income is earned during the 

time period of the grant, it is subject to 

the requirements of 7 CFR part 3015, 

subpart F and 7 CFR 3019.24 and any 

provisions in the Grant Agreement. 

C. Submission Dates and Times 

Application Deadline Date: May 16, 

2007. 

Explanation of Deadlines: Paper 

applications must be postmarked by the 

deadline date (see Section IV.F. for the 

address). Final electronic applications 

must be received by Grants.gov by the 

deadline date. If an application does not 

meet the deadline above, it will not be 

considered for funding. Applicants will 

be notified that their applications did 

not meet the submission deadline. 

Applicants will also be notified by mail 

or by e-mail if their applications are 

received on time. 

D. Intergovernmental Review of 

Applications 

Executive Order (EO) 12372, 

Intergovernmental Review of Federal 

Programs, applies to this program. This 

EO requires that Federal agencies 

provide opportunities for consultation 

on proposed assistance with State and 

local governments. Many states have 

established a Single Point of Contact 

(SPOC) to facilitate this consultation. A 

list of states that maintain an SPOC may 

be obtained at http:// 

www.whitehouse.gov/omb/grants/ 

spoc.html. If an applicant’s state has an 

SPOC, the applicant may submit the 

application directly for review. Any 

comments obtained through the SPOC 

must be provided to Rural Development 

for consideration as part of the 

application. If the applicant’s state has 

not established an SPOC, or the 

applicant does not want to submit the 

application, Rural Development will 

submit the application to the SPOC or 

other appropriate agency or agencies. 

Applicants are also encouraged to 

contact their Rural Development State 

Office for assistance and questions on 

this process. The Rural Development 

State Office can be reached by calling 

(202) 720–4323 and selecting option ‘‘1’’

or by viewing the following Web site: 

http://www.rurdev.usda.gov/. 

E. Funding Restrictions 

Funding restrictions apply to both 

grant funds and matching funds. Funds 

may only be used for planning activities 

or working capital for Projects focusing 

on processing and marketing a valueadded product. 

1. Examples of acceptable planning 

activities include: 

i. Obtaining legal advice and 

assistance related to the proposed 

Venture; 

ii. Conducting a Feasibility Study of 

a proposed Value-Added Venture to 

help determine the potential marketing 

success of the Venture; 

iii. Developing a Business Plan that 

provides comprehensive details on the 

management, planning, and other 

operational aspects of a proposed 

Venture; and 

iv. Developing a marketing plan for 

the proposed Value-Added product, 

including the identification of a market 

window, the identification of potential 

buyers, a description of the distribution 


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system, and possible promotional 

campaigns. 

2. Examples of acceptable working 

capital uses include: 

i. Designing or purchasing an 

accounting system for the proposed 

Venture; 

ii. Paying for salaries, utilities, and 

rental of office space; 

iii. Purchasing inventory, office 

equipment (e.g. computers, printers, 

copiers, scanners), and office supplies 

(e.g. paper, pens, file folders); and 

iv. Conducting a marketing campaign 

for the proposed Value-Added product. 

3. No funds made available under this 

solicitation shall be used to: 

i. Plan, repair, rehabilitate, acquire, or 

construct a building or facility, 

including a processing facility; 

ii. Purchase, rent, or install fixed 

equipment, including processing 

equipment; 

iii. Purchase vehicles, including 

boats; 

iv. Pay for the preparation of the grant 

application; 

v. Pay expenses not directly related to 

the funded Venture; 

vi. Fund political or lobbying 

activities; 

vii. Fund any activities prohibited by 

7 CFR parts 3015 and 3019; 

viii. Fund architectural or engineering 

design work for a specific physical 

facility; 

ix. Fund any expenses related to the 

production of any commodity or 

product to which value will be added, 

including seed, rootstock, labor for 

harvesting the crop, and delivery of the 

commodity to a processing facility. The 

Agency considers these expenses to be 

ineligible because the intent of the 

program is to assist producers with 

marketing value-added products rather 

than producing Agricultural 

Commodities; 

x. Fund research and development; 

xi. Purchase land; 

xii. Duplicate current services or 

replace or substitute support previously 

provided; 

xiii. Pay costs of the Project incurred 

prior to the date of grant approval; 

xiv. Pay for assistance to any private 

business enterprise which does not have 

at least 51 percent ownership by those 

who are either citizens of the United 

States or reside in the United States 

after being legally admitted for 

permanent residence; or 

xv. Pay any judgment or debt owed to 

the United States; or 

xvi. Conduct activities on behalf of 

anyone other than a specific 

Independent Producer or group of 

Independent Producers. The Agency 

considers conducting industry-level 

Feasibility Studies and Business Plans 

that are also known as feasibility study 

templates or guides or business plan 

templates or guides to be ineligible 

because the assistance is not provided to 

a specific group of Independent 

Producers. 

xvii. Pay for any goods or services 

provided by a person or entity who has 

a Conflict of Interest. Also, note that inkind Matching Funds may not be 

provided by a person or entity that has 

a Conflict of Interest. 

F. Other Submission Requirements 

Paper applications must be submitted 

to USDA Rural Development 

Cooperative Programs, Attn: VAPG 

Program, Mail STOP 3250, Room 4016- 

South, 1400 Independence Ave., SW., 

Washington, DC 20250–3250. The 

phone number that should be used for 

courier delivery is (202) 720–7558. 

Applications can also be submitted 

electronically at http://www.grants.gov. 

Applications submitted by electronic 

mail, facsimile, or by hand-delivery will 

not be accepted. Each application 

submission must contain all required 

documents in one envelope, if by mail 

or courier delivery service. 

V. Application Review Information 

A. Criteria 

All eligible and complete applications 

will be evaluated based on the following 

criteria. Applications for Planning 

Grants have different criteria to address 

than applications for Working Capital 

Grants. 

1. Criteria for applications for 

Planning Grants are: 

i. Nature of the proposed venture (0– 

10 points). Projects will be evaluated for 

technological feasibility, operational 

efficiency, profitability, sustainability 

and the likely improvement to the local 

rural economy. Evaluators may rely on 

their own knowledge and examples of 

similar ventures described in the 

proposal to form conclusions regarding 

this criterion. Points will be awarded 

based on the greatest expansion of 

markets and increased returns to 

producers based on the following 

structure. 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1–3 points will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

all areas of the criterion. 

• 4–6 points will be awarded if the 

applicant demonstrates that the Project 

meets part, but not all, of the criterion. 

• 7–9 points will be awarded if the 

applicant demonstrates that the Project 

is strong in all areas of the criterion. 

• 10 points will only be awarded if 

the applicant demonstrates that the 

Project is strong in all areas of the 

criterion and the Project is expected to 

significantly expand the market for the 

Value-Added product to be produced 

and/or the Project will significantly 

increase returns to the Independent 

Producer owners of the Venture. 

ii. Qualifications of those doing work 

(0–5 points). Proposals will be reviewed 

for whether the personnel who are 

responsible for doing proposed tasks, 

including those hired to do the studies, 

have the necessary qualifications. If a 

consultant or others are to be hired, 

more points may be awarded if the 

proposal includes evidence of their 

availability and commitment as well. If 

staff or consultants have not been 

selected at the time of application, the 

application should include specific 

descriptions of the qualifications 

required for the positions to be filled. 

The qualifications of the personnel and 

consultants should be discussed directly 

within the response to this criterion. If 

resumes are included, those pages will 

be counted toward the page limit for the 

narrative. Points will be awarded as 

follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1 point will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

the qualifications of the personnel. 

• 2–3 points will be awarded if the 

applicant demonstrates that the 

qualifications of the personnel are 

adequate for the Project. 

• 4 points will be awarded if the 

applicant demonstrates that the 

qualifications of the personnel are above 

average for the Project. 

• 5 points will only be awarded if the 

applicant demonstrates that the 

qualifications of the personnel are 

outstanding and could not be improved. 

iii. Commitments and support (0–10 

points). Producer commitments will be 

evaluated on the basis of the number of 

Independent Producers currently 

involved as well as how many may 

potentially be involved, and the nature, 

level and quality of their contributions. 

End user commitments will be 

evaluated on the basis of potential 

markets and the potential amount of 

output to be purchased. Proposals will 

be reviewed for evidence that the 

project enjoys third party support and 

endorsement, with emphasis placed on 

financial and in kind support as well as 

technical assistance. Support should be 

discussed directly within the response 

to this criterion. If support letters are 

included, those pages will be counted 


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toward the page limit for the narrative. 

Points will be awarded based on the 

greatest level of documented and 

referenced commitment. Points will be 

awarded as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1–3 points will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

all areas of the criterion. 

• 4–6 points will be awarded if the 

applicant demonstrates that the Project 

has strong financial commitment from 

all of the Independent Producer owners 

of the Venture, but lacks third-party 

support and end user commitment. 

• 7–9 points will be awarded if the 

applicant demonstrates that the Project 

has strong financial commitment from 

all of the Independent Producer owners 

of the Venture AND there is third party 

financial and/or in-kind support, but 

lacks end user commitment. 

• 10 points will only be awarded if 

the applicant demonstrates that the 

Project has strong financial commitment 

from all of the Independent Producer 

owners of the Venture AND there is 

third party financial and/or in-kind 

support AND there is evidence of end 

user commitment. 

iv. Project leadership (0–5 points). 

The leadership abilities of individuals 

who are proposing the Venture will be 

evaluated as to whether they are 

sufficient to support a conclusion of 

likely project success. Credit may be 

given for leadership evidenced in 

community or volunteer efforts. The 

leadership abilities should be discussed 

directly within the response to this 

criterion. If resumes are attached at the 

end of the application, those pages will 

be counted toward the page limit for the 

narrative. Points will be awarded as 

follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1 point will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

the leadership abilities. 

• 2–3 points will be awarded if the 

applicant demonstrates that the 

leadership abilities are adequate for the 

Project. 

• 4 points will be awarded if the 

applicant demonstrates that the 

leadership abilities are above average for 

the Project. 

• 5 points will only be awarded if the 

applicant demonstrates that the 

leadership abilities are outstanding and 

could not be improved. 

v. Work plan/budget (0–10 points). 

Applicants must submit a work plan 

and budget. The work plan will be 

reviewed to determine whether it 

provides specific and detailed 

descriptions of tasks that will 

accomplish the project’s goals. The 

budget will be reviewed for a detailed 

breakdown of estimated costs associated 

with the planning activities. The budget 

must present a detailed breakdown of 

all estimated costs associated with the 

planning activities and allocate these 

costs among the listed tasks. Points may 

not be awarded unless sufficient detail 

is provided to determine whether or not 

funds are being used for qualified 

purposes. Matching funds as well as 

grant funds must be accounted for in the 

budget to receive points. Points will be 

awarded as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1–3 points will be awarded if the 

budget and work plan only associate 

grant and matching funds dollar 

amounts with Project tasks, but do not 

identify specific time frames and 

personnel by task. 

• 4–6 points will be awarded if the 

budget and work plan associate grant 

and matching funds dollar amounts 

with Project tasks and identify specific 

time frames for Project tasks, but do not 

identify personnel for Project tasks. 

• 7–9 points will be awarded if the 

budget and work plan associate grant 

and matching dollar amounts, specific 

time frames, and personnel with Project 

tasks. 

• 10 points will only be awarded if 

the budget and work plan associate 

dollar amounts, specific time frames, 

and personnel with Project tasks and 

these dollar amounts, time frames, and 

personnel are realistic for the Project. 

vi. Amount requested (0 or 2 points). 

Two points will be awarded for grant 

requests of $50,000 or less. To 

determine the number of points to 

award, the Agency will use the amount 

indicated in the work plan and budget. 

vii. Project cost per owner-producer 

(0–3 points). The applicant must state 

the number of Independent Producers 

that are owners of the Venture. Points 

will be calculated by dividing the 

amount of Federal funds requested by 

the total number of Independent 

Producers that are owners of the 

Venture. The allocation of points for 

this criterion shall be as follows: 

• 0 points will be awarded to 

applications without enough 

information to determine the number of 

owner-producers. 

• 1 point will be awarded to 

applications with a project cost per 

owner-producer of $70,001–$100,000. 

• 2 points will be awarded to 

applications with a project cost per 

owner-producer of $35,001–$70,000. 

• 3 points will be awarded to 

applications with a project cost per 

owner-producer of $1–$35,000. 

An owner cannot be considered an 

Independent Producer unless he/she is 

a producer of the Agricultural 

Commodity to which value will be 

added as part of this Project. For 

Agriculture Producer Groups, the 

number used must be the number of 

Independent Producers represented who 

produce the commodity to which value 

will be added. In cases where family 

members (including husband and wife) 

are owners and producers in a Venture, 

each family member shall count as one 

owner-producer. 

Applicants must be prepared to prove 

that the numbers and individuals 

identified meet the requirements 

specified upon notification of a grant 

award. Failure to do so shall result in 

withdrawal of the grant award. 

viii. Business management 

capabilities (0–10 points). Applicants 

must discuss their financial 

management system, procurement 

procedures, personnel policies, property 

management system, and travel 

procedures. Up to two points can be 

awarded for each component of this 

criterion, based on the appropriateness 

of the system, procedures or policies to 

the size and structure of the business 

applying. Larger, more complex 

businesses will be expected to have 

more complex systems, procedures, and 

policies than smaller, less complex 

businesses. 

ix. Sustainability and economic 

impact (0–15 points). Projects will be 

evaluated based on the expected 

sustainability of the Venture and the 

expected economic impact on the local 

economy. Points will be awarded as 

follows: 

• 0–4 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 5–9 points will be awarded if the 

applicant demonstrates that the Project 

has a reasonable chance of success OR 

will have a small impact on the local 

economy. 

• 10–14 points will be awarded if the 

applicant demonstrates that the Project 

has a reasonable chance of success and 

will have a small impact on the local 

economy. 

• 15 points will only be awarded if 

the applicant demonstrates that the 

Project is likely to succeed and that it 

will have a significant impact on the 

local economy. 

x. Business size (5 points if the 

application meets the criterion or 0 


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points if the application does not meet 

the criterion). Applicants must state the 

amount of gross sales earned for their 

most recent complete fiscal year or startup operations must state that that they 

have not completed a fiscal year. Points 

will be awarded as follows: 

• 0 points will be awarded to 

applicants that have $10 million or 

more in gross sales OR to applicants that 

do not provide enough information to 

determine gross sales. 

• 5 points will be awarded to 

applicants that have less than $10 

million in gross sales. 

If an applicant is tentatively selected 

for funding, the applicant will need to 

verify the gross sales amount at the time 

of award. Failure to verify the amount 

stated in the application will be grounds 

for withdrawing the award. 

xi. Administrator points (up to 5 

points, but not to exceed 10 percent of 

the total points awarded for the other 10 

criteria). The Administrator of USDA 

Rural Development Business and 

Cooperative Programs may award 

additional points to recognize 

innovative technologies, insure 

geographic distribution of grants, or 

encourage Value-Added Projects in 

under-served areas. Applicants may 

submit an explanation of how the 

technology proposed is innovative and/ 

or specific information verifying that the 

project is in an under-served area. 

2. Criteria for Working Capital 

applications are: 

i. Business viability (0–10 points). 

Proposals will be evaluated on the basis 

of the technical and economic feasibility 

and sustainability of the Venture and 

the efficiency of operations. Points will 

be awarded as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1–3 points will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

all areas of the criterion. 

• 4–6 points will be awarded if the 

applicant demonstrates that the Project 

is strong for at least half of the 

components of the criterion. 

• 7–9 points will be awarded if the 

applicant demonstrates that the Project 

is strong in at least three components of 

the criterion. 

• 10 points will only be awarded if 

the applicant demonstrates that the 

Project is strong based on all 

components of the criterion. 

ii. Customer base/increased returns 

(0–10 points). Describe in detail how the 

customer base for the product being 

produced will expand because of the 

Value-Added Venture. Provide 

documented estimates of this 

expansion. Describe in detail how a 

greater portion of the revenue derived 

from the venture will be returned to the 

producers that are owners of the 

Venture. Applicants should also 

reference the pro forma financial 

statements developed for the Venture. 

Applications that demonstrate strong 

growth in a market or customer base and 

greater Value-Added revenue accruing 

to producer-owners will receive more 

points than those that demonstrate less 

growth in markets and realized ValueAdded returns. Points will be awarded 

as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1–3 points will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

all areas of the criterion. 

• 4–6 points will be awarded if the 

applicant demonstrates that the Project 

will reasonably expand the customer 

base for the Value-Added product OR 

increase returns to the Independent 

Producer owners of the Venture. 

• 7–9 points will be awarded if the 

applicant demonstrates that the Project 

will reasonably expand the customer 

base for the Value-Added product AND 

increase returns to the Independent 

Producer owners of the Venture. 

• 10 points will only be awarded if 

the applicant demonstrates that the 

Project is expected to expand the 

customer base for the Value-Added 

product AND increase returns to the 

Independent Producer owners of the 

Venture in an exceptional way. 

iii. Commitments and support (0–5 

points). Producer commitments will be 

evaluated on the basis of the number of 

Independent Producers currently 

involved as well as how many may 

potentially be involved, and the nature, 

level and quality of their contributions. 

End user commitments will be 

evaluated on the basis of identified 

markets, letters of intent or contracts 

from potential buyers and the amount of 

output to be purchased. Applications 

will be reviewed for evidence that the 

Project enjoys third party support and 

endorsement, with emphasis placed on 

financial and in kind support as well as 

technical assistance. Support should be 

discussed directly within the response 

to this criterion. If support letters are 

included, those pages will be counted 

toward the page limit for the narrative. 

Points will be awarded based on the 

greatest level of documented and 

referenced commitment. Points will be 

awarded as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1 point will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

all areas of the criterion. 

• 2–3 points will be awarded if the 

applicant demonstrates that the Project 

has strong financial commitment from 

all of the Independent Producer owners 

of the Venture, but lacks third-party 

support and end user commitment. 

• 4 points will be awarded if the 

applicant demonstrates that the Project 

has strong financial commitment from 

all of the Independent Producer owners 

of the Venture and there is third party 

financial and/or in-kind support, but 

lacks end user commitment. 

• 5 points will only be awarded if the 

applicant demonstrates that the Project 

has strong financial commitment from 

all of the Independent Producer owners 

of the Venture and there is third party 

financial and/or in-kind support AND 

there is evidence of end user 

commitment. 

iv. Management team/work force (0–

5 points). The education and 

capabilities of project managers and 

those who will operate the Venture 

must reflect the skills and experience 

necessary to affect Project success. The 

availability and quality of the labor 

force needed to operate the Venture will 

also be evaluated. Applicants must 

provide the information necessary to 

make these determinations. 

Applications that reflect successful 

track records managing similar projects 

will receive higher points for this 

criterion than those that do not reflect 

successful track records. Points will be 

awarded as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1 point will be awarded if the 

applicant only partially addresses the 

criterion or demonstrates weakness in 

the qualifications of the personnel. 

• 2–3 points will be awarded if the 

applicant demonstrates that the 

education and capabilities of the Project 

managers and operators of the Venture 

and the availability and quality of the 

labor force are adequate for the Project. 

• 4 points will be awarded if the 

applicant demonstrates that the 

education and capabilities of the Project 

managers and operators of the Venture 

and the availability and quality of the 

labor force are above average for the 

Project. 

• 5 points will only be awarded if the 

applicant demonstrates that the 

education and capabilities of the Project 

managers and operators of the Venture 

and the availability and quality of the 

labor force are outstanding and could 

not be improved. 


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v. Work plan/budget (0–10 points). 

The work plan will be reviewed to 

determine whether it provides specific 

and detailed descriptions of tasks that 

will accomplish the project’s goals and 

the budget will be reviewed for a 

detailed breakdown of estimated costs 

associated with the proposed activities. 

The budget must present a detailed 

breakdown of all estimated costs 

associated with the Project’s operations 

and allocate these costs among the listed 

tasks. Points may not be awarded unless 

sufficient detail is provided to 

determine whether or not funds are 

being used for qualified purposes. 

Matching Funds as well as grant funds 

must be accounted for in the budget to 

receive points. Points will be awarded 

as follows: 

• 0 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 1–3 points will be awarded if the 

budget and work plan only associate 

grant and matching funds dollar 

amounts with Project tasks, but do not 

identify specific time frames and 

personnel by task. 

• 4–6 points will be awarded if the 

budget and work plan associate grant 

and matching funds dollar amounts 

with Project tasks and identify specific 

time frames for Project tasks, but do not 

identify personnel for Project tasks. 

• 7–9 points will be awarded if the 

budget and work plan associate grant 

and matching dollar amounts, specific 

time frames, and personnel with Project 

tasks. 

• 10 points will only be awarded if 

the budget and work plan associate 

dollar amounts, specific time frames, 

and personnel with Project tasks and 

these dollar amounts, time frames, and 

personnel are realistic for the Project. 

vi. Amount requested (0 or 2 points). 

Two points will be awarded for grant 

requests of $150,000 or less. To 

determine the number of points to 

award, the Agency will use the amount 

indicated in the work plan and budget. 

vii. Project cost per owner-producer 

(0–3 points). The applicant must state 

the number of Independent Producers 

that are owners of the Venture. Points 

will be calculated by dividing the 

amount of Federal funds requested by 

the total number of Independent 

Producers that are owners of the 

Venture. The allocation of points for 

this criterion shall be as follows: 

• 0 points will be awarded to 

applications without enough 

information to determine the number of 

owner-producers. 

• 1 point will be awarded to 

applications with a project cost per 

owner-producer of $200,001–$300,000. 

• 2 points will be awarded to 

applications with a project cost per 

owner-producer of $100,001–$200,000. 

• 3 points will be awarded to 

applications with a project cost per 

owner-producer of $1–$100,000. 

An owner cannot be considered an 

Independent Producer unless he/she is 

a producer of the Agricultural 

Commodity to which value will be 

added as part of this Project. For 

Agriculture Producer Groups, the 

number used must be the number of 

Independent Producers represented who 

produce the commodity to which value 

will be added. In cases where family 

members (including husband and wife) 

are owners and producers in a Venture, 

each family member shall count as one 

owner-producer. 

Applicants must be prepared to prove 

that the numbers and individuals 

identified meet the requirements 

specified upon notification of a grant 

award. Failure to do so shall result in 

withdrawal of the grant award. 

viii. Business management 

capabilities (0–10 points). Applicants 

should discuss their financial 

management system, procurement 

procedures, personnel policies, property 

management system, and travel 

procedures. Up to two points can be 

awarded for each component of this 

criterion, based on the appropriateness 

of the system, procedures or policies to 

the size and structure of business 

applying. Larger, more complex 

businesses will be expected to have 

more complex systems, procedures, and 

policies than smaller, less complex 

businesses. 

ix. Sustainability and economic 

impact (0–15 points). Projects will be 

evaluated based on the expected 

sustainability of the Venture and the 

expected economic impact on the local 

economy. Points will be awarded as 

follows: 

• 0–4 points will be awarded if the 

applicant does not substantively address 

the criterion. 

• 5–9 points will be awarded if the 

applicant demonstrates that the Project 

has a reasonable chance of success OR 

will have a small impact on the local 

economy. 

• 10–14 points will be awarded if the 

applicant demonstrates that the Project 

has a reasonable chance of success and 

will have a small impact on the local 

economy. 

• 15 points will only be awarded if 

the applicant demonstrates that the 

Project is likely to succeed and that it 

will have a significant impact on the 

local economy. 

x. Business size (5 points if the 

application meets the criterion or 0 

points if the application does meet the 

criterion). Applicants must state the 

amount of gross sales earned for their 

most recent complete fiscal year or startup operations must state that that they 

have not completed a fiscal year. Points 

will be awarded as follows: 

• 0 points will be awarded to 

applicants that have $10 million or 

more in gross sales or to applicants that 

do not provide enough information to 

determine gross sales. 

• 5 points will be awarded to 

applicants that have less than $10 

million in gross sales. 

If an applicant is tentatively selected 

for funding, the applicant will need to 

verify the gross sales amount at the time 

of award. Failure to verify the amount 

stated in the application will be grounds 

for withdrawing the award. 

xi. Administrator points (up to 5 

points, but not to exceed 10 percent of 

the total points awarded for the other 10 

criteria). The Administrator of USDA 

Rural Development Business and 

Cooperative Programs may award 

additional points to recognize 

innovative technologies, insure 

geographic distribution of grants, or 

encourage value-added projects in 

under-served areas. Applicants may 

submit an explanation of how the 

technology proposed is innovative and/ 

or specific information verifying that the 

project is in an under-served area. 

B. Review and Selection Process 

The Agency will conduct an initial 

screening of all applications for 

eligibility and to determine whether the 

application is complete and sufficiently 

responsive to the requirements set forth 

in this Notice to allow for an informed 

review. 

All eligible and complete proposals 

will be evaluated by three reviewers 

based on criteria i through v described 

in Section V.1 or V.2. One of these 

reviewers will be a Rural Development 

employee not from the servicing State 

Office and the other two reviewers will 

be non-Federal persons. All reviewers 

must either: (1) Possess at least five 

years of working experience in an 

agriculture-related field, or (2) have 

obtained at least a bachelors degree in 

one or more of the following fields: 

Agri-business, business, economics, 

finance, or marketing and have a 

minimum of three years of experience in 

an agriculture-related field (e.g. farming, 

marketing, consulting, university 

professor, research, officer for trade 

association, government employee for 

an agricultural program). Once the 

scores for criteria i through v have been 

completed by the three reviewers, they 


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18958 Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Notices 

will be averaged to obtain the 

independent reviewer score. 

The application will also receive one 

score from the Rural Development 

servicing State Office based on criteria 

vi through x. This score will be added 

to the independent reviewer score. 

Finally, the Administrator of USDA 

Rural Development Business and 

Cooperative Programs will award any 

Administrator points based on Proposal 

Evaluation Criterion xi. These points 

will be added to the cumulative score 

for criteria i through x. A final ranking 

will be obtained based solely on the 

scores received for criteria i through xi. 

After the award selections are made, 

all applicants will be notified of the 

status of their applications by mail. 

Grantees must meet all statutory and 

regulatory program requirements in 

order to receive their award. In the 

event that a grantee cannot meet the 

requirements, the award will be 

withdrawn. Applicants for Working 

Capital Grants must submit complete, 

independent third-party Feasibility 

Studies and Business Plans before the 

grant award can be finalized. All 

Projects will be evaluated by the 

servicing State Office prior to finalizing 

the award to ensure that funded Projects 

are likely to be feasible in the proposed 

project area. Regardless of scoring, a 

Project determined to be unlikely to be 

feasible by the servicing State Office 

with concurrence by the National Office 

will not be funded. 

C. Anticipated Announcement and 

Award Dates 

Award Date: The announcement of 

award selections is expected to occur on 

or about September 1, 2007. 

VI. Award Administration Information 

A. Award Notices 

Successful applicants will receive a 

notification of tentative selection for 

funding from Rural Development. 

Applicants must comply with all 

applicable statutes, regulations, and this 

notice before the grant award will 

receive final approval. 

Unsuccessful applicants will receive 

notification, including dispute 

resolution alternatives, by mail. 

B. Administrative and National Policy 

Requirements 

7 CFR parts 3015, 3019, and 4284. 

These regulations may be accessed at 

http://www.access.gpo.gov/nara/cfr/cfrtable-search.html#page1. 

The following additional 

requirements apply to grantees selected 

for this program: 

Grant Agreement. 

Letter of Conditions. 

Form RD 1940–1, ‘‘Request for 

Obligation of Funds.’’

Form RD 1942–46, ‘‘Letter of Intent to 

Meet Conditions.’’

Form AD–1047, ‘‘Certification 

Regarding Debarment, Suspension, and 

Other Responsibility Matters-Primary 

Covered Transactions.’’

Form AD–1048, ‘‘Certification 

Regarding Debarment, Suspension, 

Ineligibility and Voluntary ExclusionLower Tier Covered Transactions.’’

Form AD–1049, ‘‘Certification 

Regarding a Drug-Free Workplace 

Requirements (Grants).’’

Form RD 400–4, ‘‘Assurance 

Agreement.’’

Additional information on these 

requirements can be found at http:// 

www.rurdev.usda.gov/rbs/coops/ 

vadg.htm. 

Reporting Requirements: Grantees 

must provide Rural Development with a 

paper or electronic copy that includes 

all required signatures of the following 

reports. The reports must be submitted 

to the Agency contact listed on the 

Grant Agreement and Letter of 

Conditions. Failure to submit 

satisfactory reports on time may result 

in suspension or termination of the 

grant. 

1. Form SF–269 or SF–269A. A 

‘‘Financial Status Report,’’ listing 

expenditures according to agreed upon 

budget categories, on a semi-annual 

basis. Reporting periods end each March 

31 and September 30, regardless of 

when the grant period begins. Reports 

are due 30 days after the reporting 

period ends. 

2. Semi-annual performance reports 

that compare accomplishments to the 

objectives stated in the Grant 

Agreement. Identify all tasks completed 

to date and provide documentation 

supporting the reported results. If the 

original schedule provided in the work 

plan is not being met, the report should 

discuss the problems or delays that may 

affect completion of the project. 

Objectives for the next reporting period 

should be listed. Compliance with any 

special condition on the use of award 

funds should be discussed. Reports are 

due as provided in paragraph (1) of this 

section. Supporting documentation 

must also be submitted for completed 

tasks. The supporting documentation for 

completed tasks include, but are not 

limited to, Feasibility Studies, 

marketing plans, Business Plans, articles 

of incorporation and bylaws and an 

accounting of how working capital 

funds were spent. 

3. Final Project performance reports 

that compare accomplishments to the 

objectives stated in the proposal. 

Identify all tasks completed and provide 

documentation supporting the reported 

results. If the original schedule provided 

in the work plan was not met, the report 

must discuss the problems or delays 

that affected completion of the project. 

Compliance with any special condition 

on the use of award funds should be 

discussed. Supporting documentation 

for completed tasks must also be 

submitted. The supporting 

documentation for completed tasks 

include, but are not limited to, 

Feasibility Studies, marketing plans, 

Business Plans, articles of incorporation 

and bylaws and an accounting of how 

working capital funds were spent. 

Planning Grant Projects must also report 

the estimated increase in revenue, 

increase in customer base, number of 

jobs created, and any other relevant 

economic indicators generated by 

continuing the project into its 

operational phase. Working Capital 

Grants must report the increase in 

revenue, increase in customer base, 

number of jobs created, any other 

relevant economic indicators generated 

by the project during the grant period in 

addition to the total funds used for the 

Venture during the grant period. These 

total funds must include other federal, 

state, local, and other funds used for the 

venture. Projects with significant energy 

components must also report expected 

or actual capacity (e.g. gallons of 

ethanol produced annually, megawatt 

hours produced annually) and any 

emissions reductions incurred during 

the project. The final performance 

report is due within 90 days of the 

completion of the project. 

VII. Agency Contacts 

For general questions about this 

announcement and for program 

technical assistance, applicants should 

contact their USDA Rural Development 

State Office at http:// 

www.rurdev.usda.gov/rbs/coops/ 

vadg.htm. The State Office can also be 

reached by calling (202) 720–4323 and 

pressing ‘‘1’’. If an applicant is unable 

to contact their State Office, a nearby 

State Office may be contacted or the 

RBS National Office can be reached at 

Mail STOP 3250, Room 4016–South, 

1400 Independence Avenue, SW., 

Washington, DC 20250–3250, 

Telephone: (202) 720–7558, e-mail: 

cpgrants@wdc.usda.gov. 

The U.S. Department of Agriculture 

(USDA) prohibits discrimination in all 

its programs and activities on the basis 

of race, color, national origin, age, 

disability, and where applicable, sex, 

marital status, familial status, parental 

status, religion, sexual orientation, 

genetic information, political beliefs, 


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Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Notices 18959 

reprisal, or because all or part of an 

individual’s income is derived from any 

public assistance program. (Not all 

prohibited bases apply to all programs.) 

Persons with disabilities who require 

alternative means for communication of 

program information (Braille, large 

print, audiotape, etc.) should contact 

USDA’s TARGET Center at (202) 720–

2600 (voice and TDD). To file a 

complaint of discrimination, write to 

USDA, Director, Office of Civil Rights, 

1400 Independence Avenue, SW., 

Washington, DC 20250–9410, or call 

(866) 632–9992 (voice) or (202) 401–

0216 (TDD). USDA is an equal 

opportunity provider and employer. 

Dated: April 10, 2007. 

Jackie J. Gleason, 

Administrator, Rural Business-Cooperative 

Service. 

[FR Doc. E7–7110 Filed 4–13–07; 8:45 am] 

BILLING CODE 3410–XY–P 

DEPARTMENT OF COMMERCE 

Bureau of the Census 

2010 Census Advisory Committee 

AGENCY: Bureau of the Census, 

Department of Commerce. 

ACTION: Notice of public meeting. 

SUMMARY: The Bureau of the Census 

(U.S. Census Bureau) is giving notice of 

a meeting of the 2010 Census Advisory 

Committee. Committee members will 

address policy, research, and technical 

issues related to the 2010 Decennial 

Census Program. Working groups will 

be convened to assist in planning efforts 

for the 2010 Census and the American 

Community Survey. Last-minute 

adjustments to the agenda are possible, 

which could prevent giving advance 

notification of schedule changes. 

DATES: May 17–18, 2007. On May 17, 

the meeting will begin at 8:30 a.m. and 

end at approximately 5:15 p.m. On 

Friday, May 18, 2007, the meeting will 

begin at 9 a.m. and end at 

approximately 12 p.m. 

ADDRESSES: The meeting will be held at 

the U.S. Census Bureau, 4600 Silver Hill 

Road, Suitland, Maryland 20746. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jeri Green, Committee Liaison Officer, 

U.S. Department of Commerce, U.S. 

Census Bureau, Room 8H153, 

Washington, DC 20233, telephone (301) 

763–2070, TTY (301) 457–2540. 

SUPPLEMENTARY INFORMATION: The 2010 

Census Advisory Committee is 

composed of a Chair, Vice-Chair, and 20 

member organizations—all appointed by 

the Secretary of Commerce. The 

Committee considers the goals of the 

decennial census, including the 

American Community Survey and 

related programs, and users’ needs for 

information provided by the decennial 

census from the perspective of outside 

data users and other organizations 

having a substantial interest and 

expertise in the conduct and outcome of 

the decennial census. The Committee 

has been established in accordance with 

the Federal Advisory Committee Act 

(Title 5, United States Code, Appendix 

2, Section 10(a)(b)). 

A brief period will be set aside at the 

meeting for public comment. However, 

individuals with extensive statements 

for the record must submit them in 

writing to the Census Bureau Committee 

Liaison Officer named above at least 

three working days prior to the meeting. 

Seating is available to the public on a 

first-come, first-served basis. 

The meeting is physically accessible 

to people with disabilities. Requests for 

sign language interpretation or other 

auxiliary aids should be directed to the 

Census Bureau Committee Liaison 

Officer as soon as known, and 

preferably two weeks prior to the 

meeting. 

Dated: April 11, 2007. 

Charles Louis Kincannon, 

Director, Bureau of the Census. 

[FR Doc. E7–7121 Filed 4–13–07; 8:45 am] 

BILLING CODE 3510–07–P 

DEPARTMENT OF COMMERCE 

Bureau of Economic Analysis 

Proposed Data Sharing Activity 

AGENCY: Bureau of Economic Analysis, 

Department of Commerce. 

ACTION: Notice of determination. 

SUMMARY: The Bureau of Economic 

Analysis (BEA) will provide to the 

Bureau of the Census (Census Bureau) 

data collected from several surveys that 

it conducts on U.S. direct investment 

abroad, foreign direct investment in the 

United States, and U.S. international 

services transactions for statistical 

purposes exclusively. In accordance 

with the requirement of Section 524(d) 

of the Confidential Information 

Protection and Statistical Efficiency Act 

of 2002 (CIPSEA), we provided the 

opportunity for public comment on this 

data-sharing action (see the January 23, 

2007 edition of the Federal Register (72 

FR 2854)). 

The data provided to Census Bureau 

will be used for two purposes: 

(1) Data from BEA surveys of U.S. 

direct investment abroad and foreign 

direct investment in the United States 

will be linked with data from the Survey 

of Industrial Research and Development 

conducted by the Census Bureau under 

a joint partnership agreement with the 

National Science Foundation (NSF). The 

linked data will be used to produce 

aggregate tabulations for the NSF, which 

will provide an integrated data set on 

R&D performance and funding with 

domestic and foreign ownership detail. 

BEA will use the linked data to augment 

its existing R&D-related data, identify 

data quality issues arising from 

reporting differences in BEA and Census 

Bureau surveys, and improve its survey 

sample frames. The Census Bureau will 

identify unmatched companies on BEA 

files that conduct R&D activities and 

add them to the R&D survey to improve 

the survey’s sample. The NSF will be 

provided non-confidential aggregate 

data (public use) and reports that have 

cleared BEA and Census Bureau 

disclosure review. Disclosure review is 

a process conducted to verify that the 

data to be released do not reveal any 

confidential information. 

(2) BEA will also provide data to the 

Census Bureau in order to link records 

from its surveys of U.S. international 

services transactions, U.S. direct 

investment abroad, and foreign direct 

investment in the United States with 

information from the Census Bureau’s 

Business Register and with data from 

the 2002 Economic Census. This linked 

information will be used by the BEA to 

evaluate the feasibility of developing 

state-level estimates of service exports. 

FOR FURTHER INFORMATION CONTACT: 

Requests for additional information on 

this program should be directed to Ned 

G. Howenstine, Chief, Research Branch, 

International Investment Division, 

Bureau of Economic Analysis (BE–50), 

Washington, DC 20230, by phone (202) 

606–9845 or by fax (202) 606–5318. 

SUPPLEMENTARY INFORMATION: 

Background 

CIPSEA (Pub. L. 107–347, Title V) and 

the International Investment and Trade 

in Services Survey Act (Pub. L. 94–472, 

22 United States Code (U.S.C.) 3101–

3108) allow BEA and the Census Bureau 

to share certain business data for 

exclusively statistical purposes. Section 

524(d) of the CIPSEA required a Federal 

Register notice announcing the intent to 

share data (allowing 60 days for public 

comment). Section 524(d) also required 

us to provide information about the 

terms of the agreement for data sharing. 

On January 23, 2007 (72 FR 2854), 

BEA published in the Federal Register 

a notice of this proposed data-sharing 

activity and request for comment on the 


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