Grant funds open to farmers, ranchers

Approximately $18 million in competitive grant funds for Fiscal Year 2009 is available to help independent farmers and ranchers enter into value-added activities.

Ten percent of the funding is available to beginning farmers or ranchers and socially disadvantaged farmers or ranchers.

Grants 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.

Matching funds are required and must be at least equal to the grant amount (1:1).
[B] What is value-added?[/B]

The term “value-added agricultural product” means any agricultural commodity or product that-

* has undergone a change in physical state (e.g., wheat into flour);

* was produced in a manner that enhances the value of the agricultural commodity or product, as demonstrated through a business plan that shows the enhanced value (e.g., organic tomatoes);

* is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product (e.g., identity-preserved corn);

* is a source of farm- or ranch-based renewable energy, including E–85 fuel (e.g., electricity generated from an anaerobic lagoon); or

* is aggregated and marketed as a locally-produced agricultural food product
[B] Eligibility[/B]

Eligible applicants include independent producers; farmer or rancher cooperatives; agricultural producer groups; or majority-controlled producer-based business ventures.

The grants are available to those in Hawaii, American Samoa, Guam, Commonwealth of the Northern Marianas Islands, Palau, Marshall Islands, and the Federated States of Micronesia (Yap, Chuuk, Kosrae, Pohnpei).

An application guide and other materials may be obtained at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.

Applications must be postmarked by June 22, 2009, and sent to the Hawaii State Office. All other applications must be postmarked on or before July 6, 2009, and sent to the Hawaii State Office,

Lori Nekoba, Business Programs Specialist USDA/Rural Development 154 Waianuenue Ave., Room 311 Hilo, HI 96720

Paper applications must be submitted to the Rural Development State Office above. Electronic applications must be submitted through the Grants.gov Web site at: http://www.grants.gov, following the instructions found on this Web site. [B][I](PR)[/I][/B]