California State Director for United States Department of Agriculture (USDA) Rural Development Janice Waddell encouraged the state’s farmers, ranchers, and agriculture cooperatives to apply for the $44 million in funds announced by Agriculture Secretary Tom Vilsack earlier today. Funding is made available through USDA’s Value-Added Producer Grant program.
“This program can help California’s diverse group of producers with access to capital, technical assistance and new markets for value-added products,” said Waddell. “From beginning farmers and ranchers to established cooperatives, USDA Rural Development is committed to helping create new opportunities for California-grown products.”
Value-Added Producer Grants can be used to develop new products or create new markets for existing products. Awards are limited to $75,000 for planning grants and $250,000 for working capital grants, and each project must have a 50 percent match. Veterans, members of socially disadvantaged groups, beginning farmers and ranchers, and operators of small- and medium-sized family farms and ranches are given special priority for grants.
Last year, Challenge Dairy Products, a 468 member farmer cooperative based in California, received a $250,000 working capital grant to help market a new lactose-free butter. With help from the grant, the product is now on grocery store shelves providing another financial avenue for dairy farmers struggling to remain profitable.
And Sohnrey Family Foods received a $72,675 planning grant to help research value-added opportunities with their almond crops. The family of fourth and fifth generation farmers are seeking new ways to grow their business and involve younger family members by capturing more value from their crops beyond their current practice of selling to wholesale markets.
Paper applications are due by July 1, 2016 and electronic applications submitted through grants.gov are due by June 24, 2016. Additional details are available in the April 8 Federal Register and questions may be directed to Martin Zone at (530) 792-5829 or martin.zone@ca.usda.gov.