Inviting Applications for Value-Added Producer Grants

USDA announces the availability of competitive grant funding through the Value-Added Producer Grant (VAPG) program. Approximately $10.5 million in carry over funding from fiscal year (FY) 2013 is available to help agricultural producers enter into value-added activities. This NOFA is being published prior to the Congressional enactment of a full-year appropriation for FY 2014. Should additional funding be made available during FY 2014 for this program RBS will continue to fund applications received under this announcement based upon the applications score. At this time, the exact amount of funding that will be made available to this program for FY 2014 is unknown. Anyone interested in submitting an application for funding under this program should consult the Rural Development Value Added Producer Grant Program Web site at http://www.rurdev.usda.gov/BCP_VAPG.html periodically for updated information regarding any FY 2014 funding for the program. The program purpose is to help U.S. agricultural producers enter into value-added activities. Awards may be made for either economic planning or working capital activities related to the processing and/or marketing of valued-added agricultural products. The maximum grant amount for a planning grant is $75,000 and the maximum grant amount for a working capital grant is $200,000. There is a matching funds requirement of at least $1 for every $1 in grant funds provided by the Agency (matching funds plus grant funds must equal proposed total project costs). Matching funds may be in the form of cash or eligible in-kind contributions and may be used only for eligible project purposes. Matching funds must be available at time of application and must be certified and verified as described in 7 CFR 4284.931(b)(3) and (4). 7 CFR 4284.925 and 7 U.S.C. 1632(a) provide for the reservation of ten percent of available funds for applications submitted by Beginning and Socially Disadvantaged Farmers or Ranchers, and an additional ten percent of available funds for applications from farmers or ranchers proposing development of Mid-Tier Value Chains. For this announcement, Reserved Funds were not obligated prior to June 30, 2013 as required by 7 CFR 4284.925 and 7 U.S.C. 1632(a). Therefore, no reserves are available to fund these categories from FY 2013 carry over monies. However, 7 CFR 4284.925 and 7 U.S.C. 1632(a) allow the Secretary to repurpose and reuse these funds for the general VAPG competition. Beginning and Socially-Disadvantaged Farmers or Ranchers and applicants proposing Mid-Tier Value Chains can still compete and benefit by receiving priority through the award of Priority Points. Should FY 2014 funds become available, 20 percent of those funds will be reserved for these categories.