TEMPLE, TEXAS, September 3, 2009 — Agriculture Secretary Tom Vilsack has announced that USDA is 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."

Planning grants up to $100,000 and working capital grants up to $300,000 will be awarded through USDA Rural Development’s Value Added Producer Grant program.  USDA is encouraging projects that use existing agricultural products in nontraditional ways and/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 or Ranches with a 3-year average of $700,000 or less in annual gross sales of agricultural product. The competitive grants to be awarded under this notice are part of USDA Rural Development’s annual budget and are not funded through the American Recovery and Reinvestment Act of 2009. 

Applicants must provide matching funds equal to the amount of the grant requested.  Ten percent of available funds are 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.

Paper applications for both unreserved and reserved funds must be postmarked and mailed, shipped or sent overnight no later than November 30, 2009 to the Rural Development Texas State Office, Attention Business and Cooperative Programs, 101 South Main Street, Suite 102, Temple, TX 76501.  Electronic applications for both unreserved and reserved funds must be submitted through www.Grants.gov and received by November 30, 2009. 

For additional information, see the September 1, 2009 Federal Register, page 46165. 

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents.  Rural Development fosters growth in homeownership, finances business development and supports the creation of critical community and technology infrastructure.

For more information on the Value-Added Producer Grant Program, please contact Billy Curb, Business and Cooperative Specialist at (254) 742-9775.  Further information on the Value Added Producer Grant is available at one of our local offices or by visiting the web site at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.