===== PAGE 1 ===== # Value-Added Producer Grant Program Fiscal Year 2015 ===== PAGE 2 ===== ## Purpose
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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. ===== PAGE 3 ===== ## Eligibility • Applicant eligibility • Product eligibility • Purpose eligibility • Matching eligibility • Other eligibility requirements ===== PAGE 4 ===== ## Applicant Eligibility • Independent Producer • Farmer or Rancher Cooperative • Agricultural Producer Group • Majority-Controlled Producer-Based Business Venture ===== PAGE 5 ===== ## 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 ===== PAGE 6 ===== ## Purpose Eligibility • Planning Activities (e.g. feasibility study, business plan, marketing plan) OR • Working Capital (e.g. labor, inventory, advertising) ===== PAGE 7 ===== ## 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 ===== PAGE 8 ===== ## 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 ===== PAGE 9 ===== ## Other Points of Interest • Grant period eligibility • Completeness eligibility • Market Expansion Proposals ===== PAGE 10 ===== ## 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. ===== PAGE 11 ===== ## Completeness Eligibility • Applications must contain all requested information to be considered for funding ===== PAGE 12 ===== ## 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. ===== PAGE 13 ===== ## Funding For FY'15 • $250,000 max on working capital • $75,000 max on planning grant • Notice of funding availability will be $30 million ===== PAGE 14 ===== ## Application Deadline - Technical Assistance provided up to 14 days prior to the application deadline • Dun & Bradstreet number is required • System for Awards Management required ===== PAGE 15 ===== ## Application Submission • Paper applications submitted to RD State Office in applicant's state • Electronic applications submitted through Grants.gov ===== PAGE 16 ===== ## Overview • Very competitive program • National Competition • Very unforgiving program • Grant Writers are available ===== PAGE 17 ===== ## 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 ===== PAGE 18 ===== ## BEAP # Rural Energy for America Program ## (Section 9007 - 2008 Farm Bill) ===== PAGE 19 ===== ## 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 ===== PAGE 20 ===== ## 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 ===== PAGE 21 ===== ## 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. ===== PAGE 22 ===== ## 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. ===== PAGE 23 ===== ## 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). ===== PAGE 24 ===== ## 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. ===== PAGE 25 ===== ## 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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===== PAGE 26 ===== ## 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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===== PAGE 27 ===== ## Solar Energy
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Active Indirect System
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===== PAGE 28 ===== Energy Efficiency Improvement – Improvements to a facility, building, or process that reduces energy consumption, or reduces energy consumed per square foot. ===== PAGE 29 ===== ## 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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===== PAGE 30 ===== ## 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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===== PAGE 31 ===== ## 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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===== PAGE 32 ===== ## 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 ===== PAGE 33 ===== ## Contact Information Program Website: http://www.rurdev.usda.gov/Energy.html Scott Maas Rural Energy Coordinator (859) 224-7319 Scott.Maas@ky.usda.gov