USDA Rural Development State Director Colleen Landkamer today visited Redhead Creamery to celebrate local foods and highlight entrepreneurs expanding their operations and bringing new products to market with funding assistance through USDA’s Value-Added Producer Grant (VAPG) program.
“These projects create expansion and job opportunities for local producers and small rural businesses,” Landkamer said. “Providing local entrepreneurs and agricultural producers with access to capital, technical assistance and new markets is essential to the continued growth of rural America.”
What began as a dream years ago, turned into a reality in 2013 when owners of Jer-Lindy Farms teamed up with owners of Redhead Creamery and decided it was time to build their own cheese plant after months of making experimental batches at the University of Minnesota.
Redhead Creamery made its first successful batch of cheese upon final completion of the new facility in July of 2014. Since then, they have been making Aged Cheddar and Ridiculously Good Cheese Curds alternatively three days a week.
In 2015, Redhead Creamery was awarded a $250,000 grant through USDA Rural Development’s VAPG program for working capital expenses associated with marketing their cheese products, including conducting a feasibility study on several other successfully established creameries.
USDA Rural Development's Value-Added Producer Grant program helps agricultural producers grow their businesses by turning raw commodities into value-added products, expanding marketing opportunities and developing new uses for existing products.
The grants can be used for a wide range of purposes. They can support local and regional food systems, further the development of the growing bioeconomy, and finance the distribution of local and regional products.
Since 2009, USDA has awarded 33 Value-Added Producer Grants in Minnesota totaling $5.9 million. The 2014 Farm Bill increases mandatory funding for the program from $15 million to $63 million over five years (while also reauthorizing an additional $40 million in discretionary funding).
Grants are awarded through a national competition. Each fiscal year, applications are requested through a notice published on the Federal Register and through an announcement posted on Grants.gov. Applications for the 2016 funding cycle are now being accepted. The deadline to apply electronically is June 24, 2016 and paper applications will be accepted through July 1, 2016.
Value-Added Producer Grants are an element of USDA's Know Your Farmer, Know Your Food initiative, which coordinates USDA's work to support local and regional food systems. Previous Value-Added Producer Grants supporting local and regional projects are mapped on the Know Your Farmer, Know Your Food compass.
In addition to local foods, USDA Rural Development also invests in housing, water and wastewater treatment, community facilities, renewable energy and energy efficiency, and broadband. Since 2009, USDA has invested over $6 billion in rural community economic development throughout Minnesota across more than 40 programs.
For more information on the Value-Added Producer Grant program or any USDA Rural Development programs, visit www.rurdev.usda.gov/MN and contact your local area office.