$30M Rural Business development grant available

HILO, Hawaii—Chris J. Kanazawa, State Director for USDA Rural Development, announced that $30 million is now available to farmers, ranchers and food entrepreneurs to develop new product lines. Funding will be made available through USDA’s Value-Added Producer Grant program.

“The Value Added Producers Grant program not only enables farmers and ranchers with opportunities to increase their income from their farming activities, it also increases jobs and expands the food choices for Hawaii’s families” said Kanazawa. “Hawaii’s agriculture community has demonstrated a long history of innovation and the VAPG program provides an excellent resource to perpetuate this tradition.”

USDA plans to make approximately $30 million in grants available. Applications will be accepted through July 8, 2015. More information on how to apply can be found on page 26528 of the May 8, Federal Register (http://www.gpo.gov/fdsys/pkg/FR-2015-05-08/pdf/2015-10440.pdf ).

VAPG grants can be used to develop new product lines from raw agricultural products or additional uses for already developed product lines. Military veteran, socially-disadvantaged, and beginning farmers and ranchers; operators of small- and medium-sized family farms and ranches; farmer and rancher cooperatives; and for applicants that propose mid-tier value chain projects are given special priority in applying for VAPGs. Additional priority is given to group applicants who seek funding for projects that “best contribute” to creating or increasing marketing opportunities for these type of operators.

Since 2009, USDA has awarded 853 Value-Added Producer Grants totaling $104.5 million. Approximately 19 percent of the grants and 13 percent of total funding has been awarded to beginning farmers and ranchers. During the 2013-2014 funding cycle, nearly half of VAPG awards went to farmers and ranchers developing products for the local food sector. Value Added Producer Grants are a key element of the USDA’s Know Your Farmer, Know Your Food Initiative which coordinates the department’s work on local and regional food systems. Secretary Vilsack has identified local and regional food systems as one of the four pillars of rural economic development.

Congress increased funding for the VAPG program when it passed the 2014 Farm Bill. That law builds on historic economic gains in rural America over the past six years, while achieving meaningful reform and billions of dollars in savings for taxpayers.

Since the bill’s enactment, USDA has made significant progress to implement each provision of this critical legislation, including expanding access to rural credit, developing new markets for rural-made products, and investing in infrastructure, housing and community facilities to help improve the quality of life in rural America. For more information, visit www.usda.gov/farmbill.

For more information on the VAPG program, contact one of the following Business Programs Specialist:

Shirley Heatherly at (808) 541-2600, Ext. 139 or shirley.heatherly@hi.usda.gov for Oahu, Kauai; and American Samoa;

Lori Nekoba at (808) 933-8312 or lori.nekoba@hi.usda.gov for Maui and Hawaii County;

Anthony Barcinas at (671) 300-8567 or anthony.barcinas@pb.usda.gov for Western Pacific. (USDA)