Value-Added Producer Grants (10.352)
Program
10.352 Value-Added Producer Grants
Federal Agency
RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE
Authorization
Agriculture Risk Protection Act of 2000, Title VII, Public Law 106-224, as amended; The Farm Security and Rural Investment Act of 2002, Title VII, Public Law 107-171.
Program Number
10.352
Last Known Status
Active
Objectives
To assist eligible independent agricultural commodity producers, agricultural producer groups, farmer and rancher cooperatives, and majority-controlled producer-based businesses in developing strategies and business plans to further refine or enhance their products thereby increasing their value to end users and increasing returns to producers.
Types of Assistance
Project Grants.
Uses and Use Restrictions
The VAPG program offers two types of grants. Planning grants provide funding for the activities necessary to determine the viability of a potential value-added venture, including feasibility studies, marketing strategies, business plans, and legal evaluations. Working capital grants provide funds to pay the actual operating expenses of the venture. An application may be for either a Planning Grant or a Working Capital Grant, but not both.
Eligibility Requirements
Applicant Eligibility
Eligible applicants are independent agricultural producers and producer groups, farmer- and rancher-cooperatives, and majority-controlled producer-based business ventures. Independent producers include agricultural producers, steering committees of producers, and producer-owned corporations and associations who have an ownership interest in the agricultural product subject to the value-added activity.
Beneficiary Eligibility
Agricultural producers.
Credentials/Documentation
Applicants must provide a budget supporting the work plan that details all sources and uses of funds during the project period. Applicants are required to verify matching funds, both cash and in-kind such that USDA can verify all representations. Applicants must certify that matching funds will be available at the time grant funds are received. Matching funds must be spent in advance of grant funds. Proof of Matching Funds is defined as cash or confirmed funding commitments from non-Federal sources unless otherwise provided by law. Proof of residence in a rural area is defined as all the territory of a State that is not within the outer boundary of any city or town having a population of 50,000 or more and the urbanized area contiguous and adjacent to such city or town, as defined by the U.S. Bureau of the Census using the latest decennial census of the United States.
Application and Award Process
Preapplication Coordination
An environmental impact statement is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
USDA will solicit applications on a competitive basis by publication of a notice in the Federal Register and through the Grants.gov Federal Web site. Unless otherwise specified, applicants must file an original and one copy of the proposal and all required forms or as otherwise instructed in the annual announcement. An applicant must submit Form SF-424, Form SF-424A, Form SF-424B, and other information as directed. Each proposal must contain the following elements and any additional elements published in the announcement: (1) Title Page; (2) Table of Contents; (3) Executive Summary, including a clear statement whether the application is for a Planning Grant or a Working Capital Grant and the amount requested; (4) Eligibility; (5) Proposal Narrative including, but not limited to: (i) Project Title; (ii) Information Sheet; (iii) Goals of the Project; (iv) Work Plan; (v) Performance Evaluation Criteria; (vi) Proposal Evaluation Criteria; (6) Verification of Matching Funds; and (7) Certification 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.
Award Procedure
The Agency conducts an initial screening of all proposals to determine eligibility and completeness to allow for an informed review. Applications will be evaluated by agricultural economists or other technical experts appointed by the Agency. After evaluation and scoring according to established criteria, the Administrator of Rural Business Cooperative Service reserves the right to award limited additional points to accomplish Agency objectives (e.g., to ensure geographic distribution, distribution of a commodity or accomplish presidential initiatives). Applications are funded in rank order until all available funds have been obligated. Final processing of the awards and monitoring of projects are the responsibility of the appropriate Rural Development State Office.
Deadlines
Published in the Federal Register.
Range of Approval/Disapproval Time
Appeals
Submissions that do not pass the initial screening may be returned to the applicant. If the submission deadline has not expired and time permits, returned applications may be revised and resubmitted. Applicants may appeal any adverse decisions to USDA's National Appeals Division.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
7 CFR 4284.908 Use of grant and matching funds: (b) Grant funds may be used to pay up to 50 percent of the project and the project's administrative costs. Applicants will be required to contribute at least 50 percent in cash or in-kind contributions. The maximum grant amount of a planning grant is $100,000 and of a working capital grant is $150,000. Matching funds include cash or confirmed funding commitments from non-Federal sources. In-kind contributions that conform to the provisions of 7 CFR 3015.50 and 7 CFR 3019.23, as applicable, can be used as matching funds. Examples of in-kind contributions include volunteer services furnished by professional and technical personnel, donated supplies and equipment, and donated office space. Matching funds must be provided in advance of grant funding such that for every dollar of grant advanced not less than an equal amount of matching funds shall have been funded prior to submitting the request for reimbursement. Matching funds are subject to the same use restrictions as grant funds. Funds used for an ineligible purpose will not be considered matching funds.
Length and Time Phasing of Assistance
Grant funds may be disbursed over a period of a year after obligation. Extensions may be granted.
Post Assistance Requirements
Reports
Progress reports must be submitted to the Rural Development State Office as specified in the grant agreement. A final report must be submitted to the Rural Development State Office within 90 days after the last grant funds have been liquidated.
Audits
In accordance with the provisions of OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations, non-Federal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular A-133. Those non-Federal entities exempt from Circular A-133 will be audited by the Rural Development State Office.
Records
The Grantee will maintain adequate records and accounts to assure that grant funds are used for authorized purposes. Records required by Federal law and regulations will also be maintained by the Rural Development State Office and the Rural Business Cooperative Service National Office.
Program Accomplishments
Fiscal year 2004 funds were awarded to 97 recipients in December, 2004.
Financial Information
Account Identification
12-1900-0-1-452.
Obligations
VAPG awards by Fiscal Year (FY) are: FY 04 $13,200,000; FY 05 est $14,300,000; and FY 06 est $15,500,000.
Range and Average of Financial Assistance
Grants awarded range from $1,250 to $150,000 and average $125,000.
Regulations, Guidelines and Literature
7 CFR Parts 1951; 7 CFR 3015; 7 CFR 3019; 7 CFR 4284, Subpart A--General Requirements for Cooperative Services Grant Programs, 4284.1 through 4284.100; and, Subpart J - Value-Added Producer Grants, 4284.901 through 4284.1000. See the RBS website for additional information. You may also contact Rural Development State and Local Offices and the Rural Business Cooperative Service Web site.
Related Programs
None.
Information Contacts
Regional or Local Office
Contact the appropriate Rural Development State Office listed in Appendix IV of the Catalog or check the RBS Web site.
Headquarters Office
Deputy Administrator, Cooperative Services, Rural Business-Cooperative Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-7558. Use the same number for FTS.
Web Site Address
http://www.rurdev.usda.gov/rbs/
Examples of Funded Projects
Grant funds are used to conduct feasibility studies, develop business and marketing plans, and provide working capital for new operations.
Criteria for Selecting Proposals
Published in the Federal Register and through grants.gov.
