By Shala Gean
Communications Specialist
Farmers and ranchers can apply for a grant from the U.S. Department of Agriculture (USDA) Rural Development to help generate and market new agricultural products.
The deadline to apply for the agency’s Value Added Producer Grants (VAPG) is Jan. 31, 2018. VAPG funds can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product.
This program is for farmers and ranchers who are ready to market their product once they have raised their crop or livestock, according to USDA Rural Development, Business, Cooperative & Energy Specialist Billy Curb.
Examples of working capital expenses include processing costs, marketing and advertising expenses, as well as some inventory and salary expenses.
“In the bee industry, after you have harvested the honey from the hives, it would help pay for the jars, the labels, the transportation costs to the market and any ingredients that need to go with the honey to preserve it,” Curb said.
For grape growers, the grant could be used for operating costs in making wine, such as barrels, bottles, labels, transportation costs and marketing.
Any farmer and rancher can apply, but more than half of the product being sold must come from the crops or livestock they have raised.
The matching grant will pay for 50 percent of total project costs, and the working capital grant pays up to $250,000. The planning grant pays up to $75,000. Curb noted a planning grant is required if you apply for a working capital grant that exceeds $50,000.
Planning activities include conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product.
Farmers and ranchers must request a Data Universal Number System (DUNS) number before applying and pre-register with the System for Award Management (SAM).
Curb said instructions on how to obtain those numbers can be found on the USDA Rural Development website.
These preliminary actions take time and Curb urges farmers and ranchers interested in applying for this grant to begin the process right away.
“You don’t want to wait until the last two weeks before you start filling it out,” Curb said. “You need to start completing it as soon as you know you want to apply for it.”
Special priority is given to applicants competing as beginning or socially-disadvantaged, military veteran farmers and ranchers, operators of small and medium-sized family farms and ranches, farmer and rancher cooperatives and applicants who propose mid-tier value chain projects.
Application planning and working capital toolkits also can be found on the USDA Rural Development website.
Farmers and ranchers can contact Curb at 254-742-9775 for questions with the application process.