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# Value-Added Producer Grant Program
Fiscal Year 2015
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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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## Eligibility
• Applicant eligibility
• Product eligibility
• Purpose eligibility
• Matching eligibility
• Other eligibility requirements
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## Applicant Eligibility
• Independent Producer
• Farmer or Rancher Cooperative
• Agricultural Producer Group
• Majority-Controlled Producer-Based Business Venture
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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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## Purpose Eligibility
• Planning Activities (e.g. feasibility study, business plan, marketing plan)
OR
• Working Capital (e.g. labor, inventory, advertising)
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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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## In-Kind Match
• May include appropriately valued inventory of raw commodity
• Applicant or family member time up to 25% of total project cost and provide adequate explanation
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## Other Points of Interest
• Grant period eligibility
• Completeness eligibility
• Market Expansion Proposals
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## Grant Period Eligibility
• Applications cannot have a timeframe of more than 3 years.
- The NOSA will restrict the starting and ending dates of the project. Make sure the proposed work plan takes those restrictions into account.
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## Completeness Eligibility
• Applications must contain all requested information to be considered for funding
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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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## Funding For FY'15
• $250,000 max on working capital
• $75,000 max on planning grant
• Notice of funding availability will be $30 million
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## Application Deadline
- Technical Assistance provided up to 14 days prior to the application deadline
• Dun & Bradstreet number is required
• System for Awards Management required
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## Application Submission
• Paper applications submitted to RD State Office in applicant's state
• Electronic applications submitted through Grants.gov
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## Overview
• Very competitive program
• National Competition
• Very unforgiving program
• Grant Writers are available
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## Contact Information
Program Website:
http://www.rd.usda.gov/programs-services/value-added-producer-grants
Dean Tandy
Business –Cooperative Specialist
(859) 224-7435
Dean.tandy@ky.usda.gov
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## BEAP
# Rural Energy for America Program
## (Section 9007 - 2008 Farm Bill)
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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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## Grants - Limits
• Grants request must not exceed 25% of the eligible project costs
– Renewable Energy:
• Minimum grant request $2,500
• Maximum grant request: $500,000
• If request is over $50,000, regulation requires a project-specific feasibility study prepared by a qualified independent consultant
– Energy Efficiency:
- Minimum grant request $1,500
• Maximum grant request: $250,000
- If total project costs are over $50,000, regulation requires an energy audit. Less than $50,000, an Energy Assessment is required.
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## Guaranteed Loans - Limits
- Guaranteed loans are limited to 75% of the total eligible project cost
• Maximum guarantee is $25 million
- Guaranteed Loan/Grant combination limited to a total of 75% of the total eligible project cost (25% Grant and 50% Guaranteed Loan).
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## Farm Bill Definitions
• Renewable Energy – Energy derived from:
- biomass, wind, solar, or geothermal source,
Or
- hydrogen derived from biomass or water using one of the above energy sources.
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## Biomass, Bioenergy
Bioenergy: A renewable energy system that produces fuel, thermal energy, or electric power from a biomass source, other than an anaerobic digester project.
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## Biomass, Anaerobic Digester
A renewable energy system that uses animal waste and other organic substrates to produce thermal or electrical energy via an anaerobic digestion
– Digesters
• Small (500 head, 150kW)
• Large (3500 head, 750kW)
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## Solar Energy
Active Indirect System
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Energy Efficiency Improvement – Improvements to a facility, building, or process that reduces energy consumption, or reduces energy consumed per square foot.
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## Energy Efficiency Improvements Grain Bin Replacement
$49,781.25 Grant for a
$199,125.00 Project.
Energy savings per year
estimated 35.2% with a
return on investment of
2.62 years.
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## Energy Efficiency Improvements Poultry Operation
$5,952.00 Grant on a
$23,808.00 project.
Estimated energy
savings per year of
31.3% with a return
on investment of
5.47 years
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## Energy Efficiency Improvements Dairy Ventilation System
$50,000 Grant with a
$50,000 REAP
Guaranteed Loan on
a $200,000 project.
Estimated energy savings per year exceeds $60,000
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## REAP Application Deadlines
• Deadlines to be published in the NOFA
• Funding will also be defined within the NOFA
• Projected $2 million allocation for FY15
• Accepting applications throughout the year
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## Contact Information
Program Website: http://www.rurdev.usda.gov/Energy.html
Scott Maas
Rural Energy Coordinator
(859) 224-7319
Scott.Maas@ky.usda.gov