Grants Available to Agricultural Business Ventures

July 2, 2004

Agriculture Secretary Ann M. Veneman announced the availability of $13.2 million in grants that will support the development of value-added agriculture business ventures and support President Bush’s energy plan to develop alternative sources of renewable energy. Veneman said priority consideration will be given to those grant applications that have at least 51% of project costs dedicated to planning activities for a bio-energy project.

Awards will be made on a competitive basis and applications must be received no later than July 30, 2004. Applications should be submitted to DynAccSys, Attn: Bitsy Keko, 101 Donner Drive, Oak Ridge, TN 37830. More information on the Value Added Program can be found at http://www.rurdev.usda.gov/rbs/coops/vadg.htm. In Colorado, you can contact Dolores Sanchez-Maes, Loan Specialist, USDA Rural Development State Office, @ 720-544-2927 or at dolores.sanchez-maes@co.usda.gov to answer any questions regarding value added agricultural business ventures.

Colorado has received over $1.7 million in value added grants over the last two years. Funding for previous projects was used to diversify and develop new product lines utilizing ag-based products such as canola and sunflower crops. Other projects focused on conducting studies on the viability the coexistence of an ethanol plant and a commercial feedlot operation. "The ingenuity of prior applicants has enhanced the economic opportunities of their products and their communities. President Bush is proactive in supporting the efforts of a strong thriving agricultural base in Colorado," Gigi Dennis, State Director, USDA Rural Development.

To date, the Bush Administration has funded $15 million in value-added development centers and over $85 million in value-added grants, including nearly 70 energy projects. Grants are available to independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures interested in a competitively-awarded grant 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.