USDA Rural Development Business Programs Director in Kansas, Randy Snider, highlighted the importance of rural entrepreneurs to the U.S. economy and announced that USDA is investing $705,334 in nine Kansas businesses. The funding comes from USDA Rural Development’s Value-Added Producer Grant program.
“The entrepreneurial spirit of agricultural producers is evident in the diversity of projects that were funded this year through the Value-Added Producer Grant program, and USDA is excited to be partnering with these producers to help create and save jobs throughout the state,” said Snider. “The grants that we are awarding today are helping ag producers grow their business into a small business venture.”
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.
The announcement today took place at Hildebrand Farms Dairy in Junction City. In 2008, the farm built an on-site processing plant and currently offers nine different varieties of milk, including such varieties as chocolate, strawberry, root beer, and eggnog as well as traditional milk varieties. The company’s milk is sold in glass bottles in more than 105 grocery stores in the state. The dairy is receiving a $92,992 Value-Added Producer Grant to expand the company’s sales of processed milk into western and southeast Kansas.
“My brother and I are the fourth generation of dairy producers at Hildebrand Farms Dairy. Each generation has built for the next. My dad and grandpa expanded our herd so the farm could have an on-site processing plant, which has allowed us to come back to the farm,” said Melissa Hildebrand Reed. “Through the Value-Added Producer Grant we will be able to market our products to regions of the state we don’t currently serve, and I am looking forward to expanding our product into a new territory.”
In Kansas, the following nine businesses received Value-Added Producer Grants. Funding of each award announced today is contingent upon the recipient meeting the terms of the grant agreement.
- Bee Hopper Honey
Valley Center, Kansas
$47,954 Working Capital Grant
Funds will be used to create a new honey product line.
- Central Grazing Co., LLC
Lawrence, Kansas
$160,000 Working Capital Grant
Funds will be used to expand Central Grazing Company's distribution to new markets.
- Hildebrand Farms
Junction City, Kansas
$92,992 Working Capital Grant
Funds will be used to expand the sale of processed milk into western and southeast Kansas.
- Regional Food Hub Steering Committee
Lawrence, Kansas
$244,943 Working Capital Grant
Funds will be used to finance business start-up costs for a Regional Food Hub to serve northeast Kansas, northwest Missouri, and the Kansas City metropolitan area.
- Rowe Ridge Vineyard & Winery Grant
Kansas City, Kansas
$8,032 Working Capital Grant
Funds will be used to develop new wine blends and increase the marketing presence of Rowe Ridge Vineyard and Winery wines.
- Sappa Valley Poultry LLC
Oberlin, Kansas
$49,663 Working Capital Grant
Funds will be used to expand the market of Sappa Valley Poultry, LLC for locally-produced, non-genetically modified organism (GMO), free-range chickens.
- Schenker Family Farms
McCune, Kansas
$32,000 Planning Grant
Funds will be used to conduct a feasibility study on establishing a poultry processing facility.
- Sramek Family Farm
Atwood, Kansas
$49,750 Working Capital Grant
Funds will be used to expand processing and distribution of eggs produced by free-range chickens.
- White Tail Run Winery LLC
Edgerton, Kansas
$20,000 Working Capital Grant
Funds will be used to increase production of wines by 50 percent, and to expand both the winery’s retail and wholesale markets.
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.
For more information on how to apply for Value-Added Producer Grant funding and upcoming deadlines, contact Nancy Pletcher at (785) 271-2733 or nancy.pletcher@ks.usda.gov.