Bill Davis, acting USDA Rural Development state director, announced that funding is available to farmers, ranchers and food entrepreneurs to develop new product lines through USDA’s Value-Added Producer Grant program.
“This program supports product development and marketing, which gives producers of all sizes the opportunity to improve their bottom line and contribute to the local economy,” said Davis. “With the increasing consumer demand for local and regional foods, the grant funding is important for those smaller operations wanting to participate.”
Grants may be used to develop new product lines from raw agricultural products, support further processing of existing goods or expand marketing opportunities. Funding may also be used for working capital and planning activities. Independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures are eligible to apply.
For example in 2014, USDA awarded Morning Joy Farm, along with other local food producers, a $62,325 grant to organize a grower’s cooperative in North Dakota. The cooperative members will create a food hub to facilitate multi-channel marketing of their specialty crops, proteins, and value-added food products.
More information on how to apply can be found on page 26528 of the May 8 Federal Register. The deadline to submit paper applications is July 7. Electronic applications submitted through grants.gov are due July 2. To learn more, contact the North Dakota Rural Development office at (701) 530-2037.