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USDA Announces $851,030 in Grants to Help Michigan Agricultural Producers Develop New Products, Expand Business Lines

Name
Alec Lloyd
City
East Lansing
Release Date

Rural Development Deputy Under Secretary Vernita F. Dore today highlighted the importance of rural entrepreneurs to the U.S. economy and announced that USDA is investing nearly $34 million to help 258 businesses nationwide. The funding comes from USDA Rural Development’s Value-Added Producer Grant program.

“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.

Michigan has eight recipients with for total of $851,030 in grants:

Recipient

Location

Grant Type

Amount

Description

Campbell Milarch LLC

Copemish

Planning

$19,300

Rural Development planning grant funds will be used to develop a business plan, marketing plan, and feasibility study for their "truly Michigan" vinifera vine business.

RMG Maple Products, Inc.

Rudyard

Planning

$11,500

Rural development planning grant funds will be used to conduct a feasibility study on the potential market for USDA certified organic maple syrup.

Leelanau Fruit Company

Suttons Bay

Planning

$5,015

To conduct a feasibility study on of a new market expansion of maraschino cherries

Indian Summer Cooperative, Inc.

Ludington

Working Capital

$250,000

To increase production of applesauce cups and expand their market

Gallagher's Vineyard and Winery Corp

Cedar

Working Capital

$250,000

To turn 15 acres of grapes into wine and open a tasting room

Brengman Brothers LLC, dba Ita | lee | lanau

Traverse City

Working Capital

$250,000

To expand the market by opening a second tasting room in Grand Rapids with food pairing option

Swallowtail Farm, LLC

Mason

Working Capital

$50,215

To increase production and expand the market for fruit syrups and jams

Michigan Fiber Industry Coalition Cooperative

Potterville

Working Capital

$15,000

To increase production and expand the market for yarn made within the USA.

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.

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.