Federal Funding Opportunity -Department of Agriculture to help independent agricultural producers enter into value-added activities.

The Rural Business-Cooperative Service (RBS) has approximately $33 million in FY 2002 funds to help independent agricultural producers enter into
value-added activities.

The maximum award amount is $500,000. RBS requests proposals from eligible independent producers, agricultural producer groups, farmer
or rancher cooperatives, and majority-controlled producer-based business ventures to fund one of the following two activities:

(1) Developing feasibility studies or
business plans (including marketing plans or other planning activities) needed to establish a viable value-added marketing opportunity for an agricultural product; or

(2)
acquiring working capital to operate a value-added business venture or an alliance that will allow the producers to better compete in domestic and international
markets. Applications are due August 8, 2002.

In Montana contact:

William W. Barr, USDA Rural Development, 900 Technology Blvd., Suite
B, Bozeman, MT 59717, (406) 585-2545, [email protected]

More information is available at: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2002_register&docid=02-15910-filed

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USDA-RURAL DEVELOPMENT INVITING PREAPPLICATIONS FOR
VALUE ADDED DEVELOPMENT GRANTS

W. T. “Tim” Ryan, State Director, USDA-Rural Development, announced on June 25, 2002, that
a Notice of Funds Availability (NOFA) was published in the Federal Register for the Value
Added Development Grant Program (VADG). The $40 million per year program was authorized
by the Agriculture Risk Protection Act of 2000 and was amended in the Farm Bill of 2002.

The VADG program, according to Mr. Ryan, is designed to encourage eligible independent
agricultural producers, producer groups, farmer and rancher cooperatives, and
majority-owned producer-based business ventures to increase farm income by processing
their commodities into marketable, value-added products. Producers who add value to their
products by processing, segregating, or by other means are eligible to apply for grants.

Grant funds can be awarded for activities which include conducting feasibility analyses,
developing business and marketing plans. Grant funds may also be awarded for use as
working capital while the business venture develops positive cash flow. Pre-applications
may only be for business planning or for working capital, but not for both of these
purposes. Grant funds cannot be used for the development or acquisition of buildings or
other facilities, or to purchase, rent, or install fixed equipment.

The maximum amount of grant award is $500,000. There is a requirement that grant
recipients must provide 1-to-1 matching funds. Careful reading of the NOFA is strongly
encouraged, for it will help you prepare a better proposal. Pre-applications must be
received by the Montana State Office by August 8, 2002, 4:00 p.m., MST. Electronic
transmittal of pre-applications is encouraged.

Application criteria is available at: http://www.rurdev.usda.gov/rbs/coops/vadg.htm. The
Montana USDA-Rural Development VADG contact person is Bill Barr, (406) 585-2545, or
[email protected]. Please feel free to contact him when you do have a question.