Value Added Producer Grants

Value Added Producer Grants

I’m Lacy Gray with Washington Ag Today.

USDA Senior Loan Specialist, Melanie Drecksel, will be conducting workshops this month to help producers learn about and apply for USDA Value Added Producer Grants. The goal behind the value added producer grant program is to increase a farmer’s income through the processing and sale of value added product. Drecksel explains what a value added product is.

DRECKSEL: A value added product refers to taking a raw commodity and turning it into something more valuable. For example, making jam from berries, or making cheese out of milk.

Grant funds can be used for planning or working capital. Planning grants can be made for up to $75,000, and can be used for feasibility studies, market studies, and marketing plans.

DRECKSEL: These studies need to be prepared by an independent third party and will help determine if there is a market for the product and if the product will turn a profit.

As far as working capital grants, Drecksel says they can be made for up to $200,000, and can be used for labor, utilities, packaging, labeling, supplies, advertising and other expenses related to the production and marketing of the value added product. There is a one to one match requirement, which means that grant funds have to be matched with an equal amount of cash or eligible in-kind contribution. Drecksel explains.

DRECKSEL: A match could be the applicants match, bank loan, the value of the applicant or a family member’s labor, third part contribution, and the value of the raw commodity itself.

Tomorrow Drecksel will talk about the workshops scheduled around the state January 8th, 9th, and 14th which will explain the program and the application process in more detail. Tomorrow’s workshop will be in Burlington from 10 a.m. to 1:00 p.m. at Skagit Farmers Supply, Burlington Main Office.

That’s Washington Ag Today.

I’m Lacy Gray on the Ag Information Network.