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Purpose

The Value-Added Producer Grant (VAPG) Program is intended to provide grant funds to agricultural producers for planning activities and working capital expenses to assist them in receiving a greater share of the consumer's dollar for value-added agricultural products.

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Product Eligibility

Change in physical state

Produced in a manner that enhances value - must reference a business plan

Physical segregation

Ag commodity that is a source of renewable energy

Locally-produced agricultural food product

Customer base must be expanded

Greater portion of the revenue must be available to the producer

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Matching Eligibility

Matching funds of at least 50% of total project costs are required

Match must be spent at a rate equal to or greater than grant funds

Match must be provided by the applicant or a third-party in the form of cash or in-kind funds

Match must be spent on eligible purposes and must be from eligible sources

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Market Expansion Proposals

Must be Independent Producer

W.C. only of $50,000 or more

Market Expansion of existing product in production for a minimum of two years

Must submit business & marketing plan

Feasibility study not required.

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What is the REAP Program?

Created as a U.S. Department of Agriculture program.

Program designed to assist farmers, ranchers and rural small businesses with energy projects

This program provides grants and guaranteed loans for renewable energy systems and energy efficiency improvement projects

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Who is Eligible?

Rural Small business and agricultural producers can apply (Rural – population < 50,000)

Agricultural Producer – An individual or entity directly in the production of agricultural products (including farming or ranching) that gets 50% of their gross income from the operations.

OR

Small Business – A private entity including a sole proprietorship, partnership, corporation, cooperative (including most Rural Electric Cooperatives), and certain other electric utilities.

Must meet SBA size standards for small Business www.sba.gov/size/indextableofsize.html

Non-profits excluded

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What Projects are Eligible?

Any renewable energy and energy efficiency project as defined in the law.

Requirements for eligible projects:

Must be located in a rural area.

Must be for a pre-commercial or commercially available and replicable technology.

Must be technically feasible.

Must have sufficient revenues to provide for operation and maintenance.

The applicant must be the owner of the project and control the operation and maintenance of the proposed project.

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