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USDA Announces $3 Million in Grants to Help Virginia Agricultural Producers Develop New Products, Expand Business Lines

Name
Eric Peters
City
Richmond
Release Date

The U.S. Department of Agriculture’s Virginia Rural Development office today announced USDA is investing $3 million to help 21 Virginia businesses. The funding comes from USDA Rural Development’s Value-Added Producer Grant program.

Rural Development Deputy Under Secretary Vernita F. Dore also announced grants nationwide today, highlighting the importance of rural entrepreneurs to the U.S. economy. Nationally, Rural Development is investing nearly $34 million to help 258 businesses.

“This funding will enable farmers and ranchers to develop new products, improve the bottom line for their operations and help create a robust local and regional food system,” Dore said. “Value-Added Producer Grants provide capital to enable ag producers to grow their business through diversification. USDA’s support is especially important for beginning farmers and smaller farm operations.”

 Value-Added Producer Grants can be used to develop new agricultural products or additional markets for existing ones. Military veterans, socially-disadvantaged and beginning farmers and ranchers, operators of small- and medium-sized family farms and ranches, and farmer and rancher cooperatives are given priority when applying for these grants.

“The Value Added Producer Grants we’ve awarded in Virginia over the past year have contributed to one of the most vital parts of our economy – agriculture,” said Basil Gooden, Ph.D., Virginia State Director, USDA Rural Development. “From breweries and cideries to meat processors and organic producers, these businesses provide recreation, nutrition and employment throughout Virginia.”

Companies receiving awards today include Good Earth Peanut Company in Skippers, which received $49,999 to market and to process locally grown peanuts into various peanut products, and Old House Vineyards in Culpepper, which received $250,000 to help with marketing labor and processing costs necessary to grow the business.

Another company is North Cove Mushroom in Madison, which received $250,000 to market and ro process locally produced mushrooms into prepared foods and medicinal products. North Cove Mushroom plans to expand its kitchen to support sales to specialty grocery stores and service of hot food at local events.

Funding of each award announced today is contingent upon the recipient meeting the terms of the grant agreement.

Since 2009, USDA has awarded 1,115 Value-Added Producer Grants totaling $154 million. Approximately 18 percent of the grants and 14 percent of total funding has been awarded to beginning farmers and ranchers. During 2015, more than one-third of Value-Added awards went to farmers and ranchers developing products for the local foods sector.

 Value-Added Producer Grants are a key element of USDA’s Know Your Farmer, Know Your Food Initiative, which coordinates the Department’s work on local and regional food systems. These are major contributors to rural economic development. Congress increased funding for the Value-Added program when it passed the 2014 Farm Bill. That measure builds on historic economic gains in rural America over the past seven years, while achieving meaningful reform and billions of dollars in savings for taxpayers.

Rural Development helped 84 agricultural producers carry out local foods projects in 2014 through almost $8.9 million in Value-Added Producer Grant awards. For instance, in Arizona, North Leupp Family Farms received a $26,270 grant to determine the feasibility of producing blue cornmeal from Navajo corn and starting a mobile market to sell products on the Navajo Nation. In Georgia, the owners of B.J. Reese Orchards, LLC are using a $200,000 grant to process their apples into home-made apple pies and other value-added apple products.

President Obama’s plan for rural America has produced historic investment in rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have strengthened America’s small towns and cities and helped improve the nation’s economy.