Producers urged to submit value-added proposals

HILO, Hawaii—The deadline is drawing near on a new round of value-added producer grants across the country.

According to Lorraine P. Shin, State Director of USDA’s Rural Development Office in Hilo, producers who are seeking help with new projects that further add value to farm commodities, applications are due by March 31, 2006.

A total of $19.475 million for grants will be awarded on a competitive basis nationwide, and Shin said since 2001 when the program started, Hawaii has received over $850,000 in grant money.

Grants are available to producers, producer groups, farm cooperatives and majority controlled producer business ventures. The grants can be used for planning activities needed to establish a viable value-added marketing opportunity for an agricultural product, or for acquiring working capital to operate a value-added business venture that will allow producers to better compete in domestic and international markets.

According to USDA, a typical producer grant could be used to look at marketing jam made from lilikoi, marketing organic foods, converting animal waste into methane energy, or a number of other value-added enterprises.

Shin said often producers are apprehensive about filling out an application because they think their idea may not qualify for the funding. “If you feel too overwhelmed by the application process, or if you are apprehensive about the program, give us a call in Hilo,’’ she said. Shin said producers can call Tim O’Connell, Assistant to the State Director, at 808-933-8313 if they have any questions regarding potential projects or have questions regarding the application process.

Paper applications for a grant are sent directly to:

Cooperative Programs, Attn: VAPG Program
STOP 3250 – Room 4016 South
1400 Independence Ave., SW.
Washington, DC 20250–3250.

The phone number that should be used for FedEx packages is (202) 720–7558.

Electronic grant applications are submitted to http://www.grants.gov, following the instructions found on this Web site.

For details on the application process, eligibility requirements, etc., go to the USDA VAPG Web site at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested over $63 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, over 1.1 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA’s web site at http://www.rurdev.usda.gov. (PR)