$18 million to add value to the agricultural commodities

by S. C.

Agriculture Secretary Tom Vilsack announced that USDA will soon be accepting applications for grants to assist agricultural producers seeking to add value to the commodities they produce. Approximately $18 million will be awarded nationwide.

"These grants strengthen rural economies and create jobs by helping farmers and ranchers add value to their agricultural products by using them for planning activities such as feasibility studies, marketing and business plans, or for working capital," Vilsack said. "This program also supports President Obama's goal to expand our nation's renewable energy resources by helping farmers develop renewable energy from agricultural products."

Vilsack highlighted a past grant recipient in Ohio as an example of how local producers have used USDA's Value Added Producer Grant funds to expand markets for locally grown produce. The Chef's Garden, Inc., in Huron, Ohio, received a $97,500 grant to explore the feasibility of processing and marketing products derived from locally-grown produce. The 40-year-old company has completed market research efforts and is now selecting products to market to consumers. The company projects a 20 percent increase in sales.

USDA plans to award planning grants of up to $100,000 and working capital grants of up to $300,000 to successful applicants. Applicants are encouraged to propose projects that use existing agricultural products in non-traditional ways or merge agricultural products with technology in creative ways. Businesses of all sizes may apply, but priority will be given to operators of small and medium-sized family farms – those with average, annual gross sales of less than $700,000.

Applicants must provide matching funds equal to the amount of the grant requested. Ten percent of the funding being made available is reserved for beginning farmers or ranchers and socially disadvantaged farmers or ranchers. An additional 10 percent is reserved for projects involving local and regional supply networks that link independent producers with businesses and cooperatives that market value-added products.