Senator Clinton Urges New York Farmers to Apply for USDA Value-Added Producer Grants

Senator Clinton Urges New York Farmers to Apply for USDA Value-Added Producer Grants

Senator Hillary Rodham Clinton today urged New York agricultural entrepreneurs to apply for the U.S. Department of Agriculture's Value-Added Producer Grant Program (VAPG). USDA has just made available approximately $19.5 million for the grant program for fiscal year 2006.

"I encourage all New York farmers and other agricultural entrepreneurs to apply for these grants," Senator Clinton said. "This is a great opportunity for producers to develop new markets for New York State commodities."

The primary objective of the Value-Added Producer Grant Program is to help agricultural producers, groups, cooperatives, and businesses develop viable business plans and create new marketing opportunities for their products through value-added activities. Value-added can be achieved by changes in the processing, packaging, and marketing of agricultural commodities and can include economic benefits realized from the production of farm- or ranch-based renewable energy.

RBS will competitively award grants to fund one of the following two activities: 1) Planning activities needed to establish a viable value-added marketing opportunity for an agricultural product (e.g. conduct a feasibility study, develop a business plan, develop a marketing plan); or 2) acquire working capital to operate a value-added business venture that will allow producers to better compete in domestic and international markets. The maximum grant amount for a planning grant is $100,000 and the maximum grant amount for a working capital grant is $300,000.

New York State producers have received over $1.5 million over the past three years from the VAPG program for a wide range of value-added activities including: $47,000 to Butternut Farm Organic Coop for working capital expenses for marketing organic cheeses; $250,000 to Martens Country Kitchen for the development, manufacture and marketing of a fresh extended shelf life potato product for the foodservice industry; $53,000 to the Northeast Cervid Cooperation to conduct a feasibility study and develop a business plan for marketing and selling deer and elk meat products on the East Coast; and $100,000 to Empire Biofuels to conduct a feasibility study and develop a business plan for marketing ethanol.

Applications must be received by March 31, 2006 to be eligible for FY 2006 grant funding with an anticipated award date of August 31, 2006. Application guidelines and materials for a VAPG can be obtained at http://www.rurdev.usda.gov/rbs/coops/vadg.htm or by contacting the USDA Rural Development Office for New York State at (315) 477-6409.

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