Grants available for value-added ag ventures

Agriculture Secretary Mike Johanns has announced the availability of $19.475 million to help producers with value-added activities. Funds can be used to help producers capture more of the revenue stream generated from their crops and other production. For example, grants can be used to switch to organic production, process raw commodities to a finished product and then convert farm crops into renewable energy sources.

“These grants are a vital tool to help support rural businesses, create new markets for agricultural products and help the United States become more energy independent,” Johanns said in a press release. “They represent the exciting new direction we’re proposing for the energy and rural development titles of a new farm bill this year.”

“By helping producers expand their market opportunities, we help them improve their profits. And when agriculture is more profitable, rural communities can benefit,” said Illinois Director for Rural Development Doug Wilson. “These matching grants help turn good ideas into successful new businesses with new revenues for them and the communities in which they live.”

Grants for up to $300,000 can be used for working capital, including operating a value-added business venture, marketing value-added agricultural products and for farm-based renewable energy projects. Planning grants for up to $100,000 are available for developing business plans, marketing plans and feasibility studies.

Independent producers, agriculture producer groups, farmer or rancher cooperatives or majority-controlled producer-based businesses can apply. Applicants must match the grant dollar for dollar.

The deadline for submitting applications is May 16. Applicants can send their draft applications to the Illinois Rural Development state office by May 7 for preliminary review.

“The easiest way to begin the application process is to go to our Web site at www.rurdev.usda.gov/rbs/coops/vadg.htm,” said Rural Development’s Business Programs Director Ron Firkins. “When you click on the ‘Applicants’ link, you can access detailed information on the VAPG application process, an eligibility assessment, and application forms and checklist.”

Help is also available by calling Firkins or Business Specialist Matt Harris at (217) 403-6200.

In the last six years, Rural Development has awarded nearly $4 million to 24 producers and producer groups in Illinois. The grants were used for value-added projects that included biofuels, identity preserved grain, composting, high-value wool, branded beef, wine and pork processing.