Agriculture Secretary Tom Vilsack today announced that USDA is providing more than $45 million to help farmers, ranchers, small businesses and entrepreneurs nationwide develop new product lines. USDA is investing in 325 projects through the Value-Added Producer Grant (VAPG) program.
“Value-Added Producer Grants are one of USDA’s most sought-after funding sources for veteran and beginning farmers, and rural-based businesses,” Vilsack said. “These grants provide a much-needed source of financing to help producers develop new product lines and increase their income, and keep that income in their communities. Economic development initiatives like this one are working – the unemployment rate in rural America is at an eight-year low and incomes rose 3.4 percent last year. Small business entrepreneurship, which Value-Added Producer Grants support, is a major reason why rural America is a making a comeback.”
USDA Rural Development State Director Virginia Manuel said, “It is important for USDA Rural Development to invest in these Maine agricultural producers that are using innovative ideas to add value to their product lines, thereby increasing agricultural/aquaculture production in rural Maine. These business development activities help to make diverse products available to consumers while supporting jobs and the local economy in Maine.”
In Maine, nine agricultural producers have been selected to receive a total of $1,363,118 in Value-Added Producer Grants. They are:
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American Unagi, LLC, in Thomaston, has been selected to receive $49,400. Grant funds will be used to assess the feasibility and marketability of processed products made from farm-raised American eels. Planning funds will support hiring a marketing consultant, performing consumer testing, nutritional analysis, and development of a business plan.
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Penobscot McCrum, LLC, in Belfast, has been selected to receive $248,000. Grant funds will be used to assist with personnel, ingredients, and marketing expenses associated with transforming raw potatoes into processed potato wedges. Working capital funds will help expand the existing customer by 300 percent over the course of the grant period.
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South Paw Farm, Margaret Mitchell, in Freedom, has been selected to receive $63,856. Grant funds will be used to promote and produce canned, organic marinara sauce and salsa. Working capital funds will support labor costs for processing, product delivery, and bookkeeping as well as assist in paying for marketing, jars, and product labels.
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Noami Brautigam, independent producer, in Monroe, has been selected to receive $24,145. Grant funds will be used to assist with the branding, processing, marketing, and distribution of organic winter greens. Working capital funds will support a marketing strategy that teaches Maine consumers to shop for fresh, locally-grown, organic vegetables year-round.
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Ricker Hill Orchards, in Turner, has been selected to receive $250,000. Grant funds will be used for brand unification, expanding product reach nationally, and to increase production of raw apple cider vinegar, hard cider, fruit wines, and carbonated sweet ciders. Working capital funds will support hiring a marketing manager, enhancing online presence, and increasing production of all products.
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Avena Botanicals, in Rockport, has been selected to receive $250,000. Grant funds will be used to assist with personnel, processing, and marketing costs to increase sales of organic herbal products. Working capital funds will help expand the existing customer base and revenues more than 50 percent over the course of the grant period.
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Fuzzy Udder Creamery, Jessica Laing Dowling, in Whitefield, has been selected to receive a grant in the amount of $177,717. Grant funds will be used to pay costs to produce and market artisan cheeses from goat and sheet milk. Working capital funds will be used for marketing, attending and participating in conferences, packaging, labeling, and labor, in an effort to expand markets and increase customers.
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Thirty Acre Farm, LLC, in Whitefield, has been selected to receive $250,000. Grant funds will be used to expand the marketing and processing of sauerkraut and other fermented products made from organic vegetables. Working capital funds will support labor costs for production, packaging, labeling, operational and promotional expenses.
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Dogpatch Farm, LLC, in Washington, has been selected to receive $50,000. Grant funds will be used to brand and direct market pork from critically rare Mulefoot Hogs. Working capital funds will support labor costs for production, sales, marketing, and delivery as well as packaging, labeling and promotional expenses.
VAPG grants can be used to develop new product lines from raw agricultural products or promote additional uses for established products. Veterans, socially-disadvantaged groups, beginning farmers and ranchers, operators of small- and medium-sized family farms and ranches, and farmer and rancher cooperatives are given special priority.
USDA Rural Business-Cooperative Service Administrator Sam Rikkers announced the grants on Vilsack’s behalf during a visit to Leffel Roots, LLC in Eau Claire, Wis. Leffel is receiving a $22,530 value-added grant to develop and market bakery, cider and hard cider products. Another Wisconsin recipient, Bee Forest, LLC, a logging and sawmill company in Nelson, is receiving a $250,000 grant to market, process and ship shredded bark and saw dust.
USDA has awarded 1,442 VAPG awards since 2009, totaling $183.2 million. Congress increased funding for the program in the 2014 Farm Bill. The 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. Secretary Vilsack has identified local and regional food systems as a key component of rural economic development.
Today’s funding builds on USDA’s historic investments in rural America over the past seven years. USDA has worked to strengthen and support rural communities and American agriculture, an industry that supports one in 11 American jobs, provides American consumers with more than 80 percent of the food we consume, ensures that Americans spend less of their paychecks at the grocery store than most people in other countries, and supports markets for homegrown renewable energy and materials.
Since 2009, USDA Rural Development (@USDARD) has invested nearly $13 billion to start or expand nearly 112,000 rural businesses; and invested $38.2 billion in 1,057 electric projects that have financed more than 198,000 miles of transmission and distribution lines serving 4.6 million rural residents. USDA also helped 1.1 million rural residents buy homes; funded nearly 9,200 community facilities such as schools, public safety and health care facilities; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. For more information, visit www.usda.gov/results.
To read more about USDA’s investments in rural America and its successful turnaround, visit USDA's entry on Medium.com, Rural America Is Back in Business.
USDA Rural Development has Area Offices located in Presque Isle, Bangor, Lewiston, and Scarborough, as well as a State Office, located in Bangor. There are 54 employees working to deliver the agency’s Housing, Business, and Community Programs, which are designed to improve the economic stability of rural communities, businesses, residents, and farmers, and improve the quality of life in rural Maine. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at http://www.rd.usda.gov/me.