[Federal Register Volume 74, Number 168 (Tuesday, September 1, 2009)]
[Notices]
[Pages 45165-45177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21030]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Announcement of Value-Added Producer Grant Application Deadlines
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice of withdrawal of Solicitation of Applications (NOSA) and
republication of Notice of Funds Available (NOFA) Announcement of
Value-Added Producer Grant Application Deadlines.
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SUMMARY: Rural Development (RD) previously withdrew the May 6, 2009
Federal Register notice (74 FR 20900), which was published in error,
announcing the availability of approximately $18 million in competitive
grants for fiscal year (FY) 2009 to help independent agricultural
producers enter into value-added activities. This notice announces the
availability of approximately $18 million in competitive grants for
fiscal year (FY) 2009 to help independent agricultural producers enter
into or expand value-added activities, with the following
clarifications and alterations: (1) Highlights the inclusion of
Beginning and Socially Disadvantaged farmers and ranchers, as well as
operators of Small and Medium-sized farms or ranches that are
structured as a Family Farm, and provides more weight in the scoring
process, (2) deletes contradictory language related to the eligibility
of applicants under the newly allowable mid-tier value chain provision
by clarifying that the applicant entity must be eligible under the
legislatively-stated categories (but the network they are part of can
include virtually any type of organization), (3) establishes the upper
limit of ``medium-sized farm'' at between $250,001 and $700,000 in
annual gross sales of agricultural product, (4) revises the list of
renewable energy technologies that are eligible for funding, (5)
clarifies that different documentation standards apply for Planning
Grants versus Working Capital Grants, (6) deletes ``Innovation'' as a
specific scoring criteria, (7) allows branding, packaging and other
means of product differentiation as a component of a value added
strategy in all product eligibility categories, and (8) provides a 90-
day application period.
USDA Rural Development welcomes projects that highlight innovative
uses of agricultural products. This may include using existing
agricultural products in non-traditional ways and/or merging
agricultural products with technology in creative ways. As with all
value-added efforts, generating new products, creating expanded
marketing opportunities and increasing producer income are the end
goal. Applications proposing to develop innovative, sustainable
products, businesses, or marketing opportunities that accelerate
creation of new economic opportunities and commercialization in the
agri-food, agri-science, or agriculture products integrated or merged
with other sciences or technologies are invited. This may include
alternative uses of agricultural products as well as, value-added
processing of agricultural commodities to produce bio-materials (e.g.
plastics, fiberboard), green chemicals, functional foods (e.g. lutin
enhanced ``power bar'' snacks, soy enhanced products), nutraceuticals,
on-farm renewable energy, and biofuels (e.g. ethanol, bio-diesel).
Awards may be made for planning activities or for working capital
expenses, but not for both. The
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maximum grant amount for a planning grant is $100,000 and the maximum
grant amount for a working capital grant is $300,000.
Ten percent of available funds are reserved to fund applications
submitted by Beginning Farmers or Ranchers and Socially Disadvantaged
Farmers or Ranchers, with working definitions derived from 7 U.S.C.
1991(a) and 2003(e) and provided in section I of this notice. An
additional ten percent of available funds are reserved to fund Mid-Tier
Value Chain projects, as defined in section I of this notice (both
collectively referred to as ``reserved funds'').
DATES: Applications for grants must be submitted on paper or
electronically according to the following deadlines:
Paper applications for both reserved and unreserved funds must be
postmarked and mailed, shipped, or sent overnight no later than
November 30, 2009, to be eligible for FY 2009 grant funding. Late
applications are not eligible for FY 2009 grant funding.
Electronic applications for both reserved and unreserved funds must
be received by November 30, 2009, to be eligible for FY 2009 grant
funding. Late applications are not eligible for FY 2009 grant funding.
ADDRESSES: Paper applications must be submitted to the Rural
Development State Office for the State in which the Project will
primarily take place. Addresses may be found at: http://www.rurdev.usda.gov/recd_map.html.
Electronic applications must be submitted through the Grants.gov
Web site at: http://www.grants.gov, following the instructions therein.
FOR FURTHER INFORMATION CONTACT: For assistance, applicants should
visit the program Web site at http://www.rurdev.usda.gov/rbs/coops/vadg.htm. In addition, applicants should contact their USDA Rural
Development State Office by calling 800-670-6553 and pressing ``1,'' or
by selecting the Contact Information link at the above Web site.
Applicants are encouraged to contact their State Offices well in
advance of the deadline to discuss their projects and ask any questions
about the application process. Applicants may submit drafts of their
applications to their State Offices for a preliminary review anytime
prior to October 1, 2009. The preliminary review will only assess the
eligibility of the application and its completeness. The results of the
preliminary review are not binding on the Agency.
SUPPLEMENTARY INFORMATION:
Overview
Federal Agency: USDA Rural Business Cooperative Services.
Funding Opportunity Title: Value-Added Producer Grants.
Announcement Type: Reissued announcement.
Catalog of Federal Domestic Assistance Number: 10.352.
Dates: Applications for grants must be submitted on paper or
electronically according to the following deadlines:
Paper applications for both reserved and unreserved funds must be
postmarked and mailed, shipped, or sent overnight no later than
November 30, 2009, to be eligible for FY 2009 grant funding. Late
applications are not eligible for FY 2009 grant funding.
Electronic applications for both reserved and unreserved funds must
be received by November 30, 2009, to be eligible for FY 2009 grant
funding. Late applications are not eligible for FY 2009 grant funding.
I. Funding Opportunity Description
This solicitation is issued pursuant to section 231 of the
Agriculture Risk Protection Act of 2000 (Pub. L. 106-224) as amended by
section 6202 of the Food, Conservation, and Energy Act of 2008 (Pub. L.
110-246) (see 7 U.S.C. 1621 note)) authorizing the establishment of the
Value-Added Agricultural Product Market Development grants, also known
as Value-Added Producer Grants. The Secretary of Agriculture has
delegated the program's administration to USDA Rural Development
Cooperative Programs.
The primary objective of this grant program is to help Independent
Producers of Agricultural Commodities, Agriculture Producer Groups,
Farmer and Rancher Cooperatives, and Majority-Controlled Producer-Based
Business Ventures develop strategies to create marketing opportunities
and to help develop Business Plans for viable marketing opportunities
regarding production of bio-based products from agricultural
commodities. Cooperative Programs will competitively award funds for
Planning Grants and Working Capital Grants. In order to provide program
benefits to as many eligible applicants as possible, applicants must
apply only for a Planning Grant or for a Working Capital Grant, but not
both. Grants will only be awarded if Projects are determined to be
economically viable and sustainable.
USDA Rural Development is encouraging applications from Beginning
Farmers or Ranchers, Socially Disadvantaged Farmers or Ranchers, and
operators of Small or Medium-Sized Farms and Ranches that are
structured as a Family Farm, as defined in this notice. Priority points
will be assigned to eligible applicants in those categories. As with
all value-added efforts, generating new products, creating expanded
marketing opportunities and increasing producer income are the end
goal. Please note that businesses of all sizes may apply. In FY 2008,
31 percent of awards were $50,000 or less.
Definitions
The definitions at 7 CFR 4284.3 and 4284.904 are incorporated by
reference, with the exception of the definition of Value-Added, which
is superseded by the definition of Value-Added Agricultural Product as
published in the 2008 Farm Bill and is included below. In addition, the
Agency uses the following terms in this NOSA: Agricultural Commodity,
Beginning Farmer or Rancher, Business Plan, Conflict of Interest,
Family Farm, Feasibility Study, Local and Regional Supply Network,
Locally Produced Agricultural Food Product, Marketing Plan, Medium-
Sized Farm, Mid-Tier Value Chain, Pro Forma Financial Statements,
Project, Small Farm, Socially Disadvantaged Farmer or Rancher, and
Venture. It is the Agency's position that those terms are defined as
follows.
Agricultural Commodity--An unprocessed product of farms, ranches,
nurseries, and forests. Agricultural Commodities include: Livestock,
poultry, and fish; fruits and vegetables; grains, such as wheat,
barley, oats, rye, triticale, rice, corn, and sorghum; legumes, such as
field beans and peas; animal feed and forage crops; seed crops; fiber
crops, such as cotton; oil crops, such as safflower, sunflower, corn,
and cottonseed; trees grown for lumber and wood products; nursery stock
grown commercially; Christmas trees; ornamentals and cut flowers; and
turf grown commercially for sod. Agricultural Commodities do not
include horses or animals raised as pets, such as cats, dogs, and
ferrets.
Beginning Farmer or Rancher--An entity in which: (1) All owners
have operated a farm or a ranch for not more than 10 years; and (2) all
owners materially and substantially participate in the operation of a
farm or a ranch; and (3) all owners provide substantial day-to-day
labor and management of a farm or a ranch. For VAPG, a Beginning Farmer
or Rancher must currently be producing the agricultural commodity to
which value will be added.
Business Plan--A formal statement of a set of business goals, the
reasons why they are believed attainable, and the
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plan for reaching those goals, including three years of pro forma
financial statements. It may also contain background information about
the organization or team attempting to reach those goals.
Conflict of Interest--A situation in which a person or entity has
competing professional or personal interests that make it difficult for
the person or business to act impartially. An example of a Conflict of
Interest is a grant recipient or an employee of a recipient that
conducts or significantly participates in conducting a Feasibility
Study for the recipient.
Family Farm--See 7 CFR 761.2.
Feasibility Study--An independent, third party analysis that shows
how the Venture would operate under a set of assumptions--the
technology used (the facilities, equipment, production process, etc.),
the qualifications of the management team, and the financial aspects
(capital needs, volume, cost of goods, wages, etc.). The analysis
should answer the following questions about the Venture.
(1) Where is it now?
(2) Where do the owners of the Venture want to go?
(3) Why do the owners of the Venture want to go forward with the
Venture?
(4) How will the owners of the Venture accomplish the Venture?
(5) What resources are needed?
(6) Who will provide assistance?
(7) When will the Venture be completed?
(8) How much will the Venture cost?
(9) What are the risks?
Local and Regional Supply Network--An interconnected group of food-
related entities through which food products move from production
through consumption in a local or regional area of the U.S. Examples of
food-related entities include, but are not limited to, Agricultural
Producers, processors, distributors, wholesalers, retailers, consumers,
and any other related organizations, including entities that organize
or provide technical assistance for such networks or help to establish
new or emerging networks. Locally Produced Agricultural Food Product--
Any agricultural food product that is raised, produced, and distributed
in--
(1) The locality or region in which the final product is marketed,
so that the total distance that the product is transported is less than
400 miles from the origin of the product; or
(2) The State in which the product is produced.
Marketing Plan--A plan for the Venture conducted by a qualified
consultant that identifies a market window, potential buyers, a
description of the distribution system and possible promotional
campaigns.
Medium-Sized Farm--A farm or ranch that has averaged between
$250,001 and $700,000 in annual gross sales of agricultural products in
the previous three years.
Mid-Tier Value Chain--Local and regional supply networks that link
independent producers with businesses and cooperatives that market
Value-Added Agricultural Products in a manner that--
(1) Targets and strengthens the profitability and competitiveness
of small and medium-sized farms and ranches that are structured as a
family farm; and
(2) Obtains agreement from an eligible Agricultural Producer Group,
Farmer or Rancher Cooperative, or Majority-Controlled Producer-Based
Business Venture that is engaged in the value chain on a marketing
strategy.
(3) For Mid-Tier Value Chain projects the Agency recognizes that,
in a supply chain network, a variety of raw agricultural commodity and
value-added product ownership and transfer arrangements may be
necessary. Consequently, applicant ownership of the raw agricultural
commodity and value-added product from raw through value-added is not
necessarily required, as long as the mid-tier value chain proposal can
demonstrate an increase in customer base and an increase in revenue
returns to the applicant producers supplying the majority of the raw
agricultural commodity for the project.
Pro Forma Financial Statements--Financial statements that identify
the future financial position of a company. They are part of the
Business Plan and include an explanation of all assumptions, such as
input prices, finished product prices, and other economic factors used
to generate the financial statements. They must include projections in
the form of cash flow statements, income statements, and balance
sheets. Income statements and cash flow statements must be monthly for
the first year, then annual for future years. The balance sheet should
be annual for all years.
Project--Includes all proposed activities to be funded by the VAPG
and Matching Funds.
Small Farm--A farm or ranch that has averaged $250,000 or less in
annual gross sales of agricultural products in the previous three
years.
Socially Disadvantaged Farmer or Rancher--A farmer or rancher who
is a member of a ``socially disadvantaged group.'' In this definition,
the term farmer or rancher means a person that is directly engaged in
farming or ranching or an entity solely owned by individuals who are
directly engaged in farming or ranching. A socially disadvantaged group
means a group whose members have been subjected to racial, ethnic, or
gender prejudice because of their identity as members of a group
without regard to their individual qualities. In the event that there
are multiple farmer or rancher owners of the applicant organization,
the Agency requires that at least 51 percent of the owners are members
of a socially disadvantaged group.
Value-Added Agricultural Product--Any agricultural commodity or
product that--
(1)(i) Has undergone a change in physical state;
(ii) Was produced in a manner that enhances the value of the
agricultural commodity or product, as demonstrated through a Business
Plan that shows the enhanced value, as determined by the Secretary;
(iii) Is physically segregated in a manner that results in the
enhancement of the value of the Agricultural Commodity or product;
(iv) Is a source of farm- or ranch-based renewable energy,
including E-85 fuel; or
(v) Is aggregated and marketed as a locally-produced agricultural
food product; and
(2) As a result of the change in physical state or the manner in
which the Agricultural Commodity or product was produced, marketed, or
segregated--
(i) The customer base for the agricultural commodity or product is
expanded; and
(ii) A greater portion of the revenue derived from the marketing,
processing, or physical segregation of the agricultural commodity or
product is available to the producer of the commodity or product.
Venture--Includes the Project and any other activities related to
the production, processing, and marketing of the Value-Added product
that is the subject of the VAPG grant request. Please note that not all
Venture-related expenses will be eligible for this program.
II. Award Information
Type of Award: Grant.
Fiscal Year Funds: FY 2009.
Approximate Total Funding: $18 million.
Approximate Number of Awards: 80.
Approximate Average Award: $140,000.
Floor of Award Range: None.
[[Page 45168]]
Ceiling of Award Range: $100,000 for Planning Grants and $300,000
for Working Capital Grants.
Anticipated Award Date: January 7, 2010.
Budget Period Length: Not to exceed 3 years.
Project Period Length: Not to exceed 3 years.
III. Eligibility Information
A. Eligible Applicants
Applicants must be an Independent Producer, Agriculture Producer
Group, Farmer or Rancher Cooperative, or Majority-Controlled Producer-
Based Business Venture as defined in 7 CFR part 4284, subpart A. An
applicant applying as an Independent Producer must be 100 percent owned
by Independent Producers. The owner(s) must currently own and produce
more than 50 percent of the Agricultural Commodity that will be used
for the Value-Added Agricultural Product, and that product must be
owned by the Independent Producer owners from its raw commodity state
through the marketing of the final product. Examples of Independent
Producers are steering committees, sole proprietorships, LLCs, LLPs,
other for-profit corporations, and non-profit corporations.
An applicant applying as an Agriculture Producer Group must have a
mission that includes working on behalf of Independent Producers. The
majority of its membership and board of directors must meet the
definition of an Independent Producer. The applicant must identify the
Independent Producers on whose behalf the proposed Project will be
completed. Note that this type of applicant may not apply on behalf of
its entire membership. The Independent Producers on whose behalf the
proposed Project will be completed must currently own and produce more
than 50 percent of the Agricultural Commodity that will be used for the
Value-Added Agricultural Product, and that product must be owned by the
Independent Producer owners from its raw commodity state through the
marketing of the final product. Examples of Agricultural Producer
Groups are trade or commodity associations.
An applicant applying as a Farmer or Rancher Cooperative must
demonstrate that it is a farmer or rancher-owned and controlled
business from which benefits are derived and distributed equitably on
the basis of use by each of the farmer or rancher owners. The
cooperative must be in good standing and incorporated as a cooperative
in its state of incorporation. The owners must currently own and
produce more than 50 percent of the Agricultural Commodity that will be
used for the Value-Added Agricultural Product, and that product must be
owned by the Independent Producer owners from its raw state through the
marketing of the final product.
Farmer or Rancher Cooperatives that are 100 percent owned by
farmers and ranchers must apply as Farmer or Rancher Cooperatives. It
is the Agency's position that if a cooperative is 100 percent owned and
controlled by agricultural harvesters (e.g., fishermen, loggers), it is
eligible only as an Independent Producer and not as a Farmer or Rancher
Cooperative. If a cooperative is not 100 percent owned and controlled
by farmers and ranchers or 100 percent owned and controlled by
agricultural harvesters, it may still be eligible to apply as a
Majority-Controlled Producer-Based Business Venture, provided it meets
the definition in 7 CFR part 4284, subpart A.
An applicant applying as a Majority-Controlled Producer-Based
Business Venture must have more than 50 percent of its ownership and
control held by Independent Producers; or partnerships, LLCs, LLPs,
corporations, or cooperatives that are themselves 100 percent owned and
controlled by Independent Producers. The Independent Producer owners
must currently own and produce more than 50 percent of the Agricultural
Commodity that will be used for the Value-Added Agricultural Product,
and that product must be owned by the Independent Producer owners from
its raw commodity state through the marketing of the final product.
Examples of Majority-Controlled Producer-Based Business Ventures are
LLCs, LLPs, and other for-profit corporations. No more than 10 percent
of program funds can go to applicants that are Majority-Controlled
Producer-Based Business Ventures.
Applicants other than Independent Producers must limit their
Projects to Emerging Markets. All applicants must demonstrate an
increase in customer base and an increase in revenue returns to the
producers.
If the applicant is an unincorporated group (steering committee),
it must form a legal entity before the Grant Agreement can be approved
by the Agency. A steering committee may only apply as an Independent
Producer. Therefore, the steering committee must be 100 percent
composed of Independent Producers and the business to be formed must
meet the definition of Independent Producer, as defined in 7 CFR 4284,
subpart A.
Entities that contract out the production of an Agricultural
Commodity are not considered Independent Producers.
Any businesses that are selected for awards must provide
documentation that they are in good standing with the state of
incorporation.
In addition to the above requirements, applicants may direct that
their applications be considered for reserved funds if they provide
documentation and discussion to demonstrate that they meet the
definition of a Beginning Farmer or Rancher, or a Socially
Disadvantaged Farmer or Rancher as defined in Section I of this notice.
In addition to the above requirements, applications may be
considered for reserved funds if the applicant provides discussion and
documentation to demonstrate that the proposed project meets the
definition of a Mid-Tier Value Chain as defined in Section I of this
notice. Applicants must be an eligible Independent Producer, Farmer or
Rancher Cooperative, Agricultural Producer Group, or Majority
Controlled Producer-Based Business Venture and must demonstrate that
they propose to develop an interconnected food-related supply network
of business enterprises through which food products move from
production through consumption in a local and/or regional area in the
United States. This supply network must link independent producers with
businesses and cooperatives that market Value-Added Agricultural
Products in a manner that targets and strengthens the profitability and
competitiveness of Small and Medium-Sized Farms and Ranches that are
structured as a Family Farm. The eligible Agricultural Producer Group,
Farmer or Rancher Cooperative, or Majority-Controlled Producer-Based
Business Venture applicant must obtain at least one agreement from
another member of the network engaged in the value chain on a marketing
strategy. The eligible Independent Producer applicant must obtain at
least one agreement from an eligible Agricultural Producer Group,
Farmer or Rancher Cooperative, or Majority-Controlled Producer Based
Business Venture engaged in the value-chain on a marketing strategy.
For Planning Grants, examples of agreements include, but are not
limited to, letters of intent to partner on marketing, distribution, or
processing. For Working Capital Grants, examples of agreements include,
but are not limited to, marketing agreements, distribution agreements,
and processing agreements.
For Mid-Tier Value Chain projects, the applicant must currently own
and
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produce more than 50% of the raw commodity that will be used for the
value-added product that is the subject of the proposal. Because the
Agency recognizes that, in a supply chain network, a variety of raw
agricultural commodity and value-added product ownership and transfer
arrangements may be necessary, applicant ownership of the raw
agricultural commodity and value-added product from raw through value-
added is not necessarily required, as long as the proposal can
demonstrate an increase in customer base and an increase in revenue
returns to the applicant producers supplying the majority of the raw
agricultural commodity for the project.
B. Cost Sharing or Matching
Matching Funds are required, must be at least equal to the amount
of grant funds requested, and are subject to the same use restrictions
as grant funds. Applicants must verify in their applications that
eligible Matching Funds are available for the time period of the grant.
Unless provided by other authorizing legislation, other Federal grant
funds cannot be used as Matching Funds. Matching Funds must be spent at
a rate equal to or greater than the rate at which grant funds are
expended. If Matching Funds are provided in an amount exceeding the
minimum requirement the applicant must spend their Matching Funds
contribution at a proportional rate. For example, if an applicant
proposes to provide 75 percent of the total Project cost in Matching
Funds and a grant is awarded, the Agency expects that the grantee will
expend at least $0.75 of Matching Funds for every $0.25 of grant funds
expended.
Matching Funds must be provided by either the applicant or by a
third party in the form of cash or eligible in-kind contributions.
Applicants that are awarded grants may not change the source, type, or
amount of Matching Funds proposed in their applications without prior
written approval from the Agency. Matching Funds must be spent on
eligible expenses and must be from eligible sources.
C. Other Eligibility Requirements
Product Eligibility: The project proposed must involve a Value-
Added product as defined in Section I of this notice. There are five
methods through which value-added can be demonstrated. Regardless of
which method is used, an expansion of customer base and an increase in
revenue to the agricultural producers must also be demonstrated.
1. A change in physical state occurs when an Agricultural Commodity
cannot be returned to its original state. Examples of value-added
products in this category are fish fillets, diced tomatoes, ethanol,
bio-diesel, and wool rugs. Common production or harvesting methods are
not considered a change in physical state. For example, dehydrated
corn, bottled milk, raw fiber, Christmas trees, and cut flowers are not
eligible in this category.
2. Production in a manner that enhances the value of the
Agricultural Commodity occurs when a nonstandard production method adds
value per unit of production over a standard production method. It is
the Agency's position that only Working Capital applications are
eligible for this category because the enhanced value must be
demonstrated using information from a Feasibility Study and Business
Plan developed for the Venture. Examples are organic carrots, eggs
produced from free-range chickens, and beef produced from cattle fed a
``natural'' diet.
3. Physical segregation that enhances the value of the Agricultural
Commodity occurs when a physical barrier (i.e. distance or a structure)
separates a commodity from other varieties of the same commodity on the
same farm during production and that the separation continues through
the harvesting, processing, and marketing of the product or commodity.
An example is genetically-modified corn and non-genetically modified
corn produced on the same farm, but physically separated so that no
cross-pollination occurs.
4. A source of farm- or ranch-based renewable energy is an
Agricultural Commodity or Product used to generate energy on a farm or
ranch. Technologies that convert agricultural commodities and products
into energy (e.g. biomass, such as anerobic digesters, algae, etc.) are
eligible in this category. On-farm generation of energy through wind,
solar, geothermaland hydroelectric are eligible ONLY when they are used
in the production of a value-added product. Wind, solar, geothermal and
hydroelectric are not eligible if they are simply converted to
electricity and sold off the farm. Fuels that are not generated on a
farm or ranch owned or leased by the owners of the Venture are not
eligible under this category, but may be considered under the first
category.
5. Aggregation and marketing of locally-produced agricultural food
products occurs when any food product made from an Agricultural
Commodity is raised, produced, and marketed within 400 miles of the
farm that produced the commodity or within the same State as that farm.
Applications should demonstrate and quantify how local sales and
marketing of an agricultural commodity or product will result in added
value to the product. Examples include local grapes with specific
characteristics attributable to the growing area, sold to a processor
that will produce a select/vintage local wine, or local sweet corn
advertised and sold at a premium as a fresher, locally produced
alternative to non-local produce. Please note that organic produce or
other types of products that are produced in a manner that enhances
their value can apply for grants under this category as long as 100
percent of the marketing of the product will occur within 400 miles of
the farm that produced the Agricultural Commodity.
Note: Applications that propose only branding, packaging, or
other similar means of product differentiation are not eligible in
any category. However, applications may propose branding, packaging,
or other product differentiation activities as a component of a
value-added strategy for products otherwise eligible in one of the
above categories. Eligible activities must be directly related to
the processing and marketing of the value-added agricultural
commodity or product, and cannot include evaluation or analysis of
related agricultural production activities for the agricultural
commodity.
Purpose Eligibility: The application must specify whether grant
funds are requested for planning or for working capital activities.
Applicants may not request funds for both types of activities in one
application. Working capital expenses are not considered eligible for
Planning Grants and planning expenses are not considered eligible for
Working Capital Grants. Applications requesting more than the maximum
grant amount will be considered ineligible.
It is the Agency's position that applicants other than Independent
Producers applying for a Working Capital Grant must demonstrate that
the Venture has not been in operation more than two years at the time
of application in order to show that the applicant is entering an
Emerging Market. All applicants must demonstrate an increase in
customer base and an increase in revenue returns to producers from
their project.
Grant Period Eligibility: Applicants may propose a timeframe for
the grant project up to a maximum 36 months in length. Projects cannot
begin earlier than March 1, 2010 and cannot end later than February 28,
2013. Applications that request funds for a time period beginning prior
to March 1, 2010 and/or ending after February 28, 2013 will be
considered ineligible, as will applications that exceed a maximum 36
months in length. Applicants may propose a start date falling any time
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during March 1, 2010 through September 30, 2010. If the project period
will be longer than one year, the applicant must identify a separate,
unique task(s) for the first year and for any subsequent year of the
proposed project. The Agency will consider requests for an extension on
a case-by-case basis if extenuating circumstances prevent a grantee
from completing an award within the approved grant period, but no
extensions can be approved to extend the grant period beyond a total of
three years.
Multiple Grant Eligibility: An applicant can submit only one
application in response to this notice. The application must designate
whether the application submitted should be considered for the general
funds program or for one of the reserved funding options.
Applicants who have already received a Planning Grant for the
proposed Project cannot receive another Planning Grant for the same
Project. Applicants who have already received a Working Capital Grant
for a Project cannot receive any additional grants for that Project.
Current Grant Eligibility: If an applicant currently has a VAPG, it
must be completed prior to November 30, 2009.
Judgment Eligibility: In accordance with 7 CFR 4284.6.
IV. Application and Submission Information
A. Address To Request Application Package
The application package for applying on paper for this funding
opportunity can be obtained at http://www.rurdev.usda.gov/rbs/coops/vadg.htm. Alternatively, applicants may contact their USDA Rural
Development State Office. The State Office can be reached by calling
800-670-6553 and pressing ``1.'' For electronic applications,
applicants must visit http://www.grants.gov and follow the instructions
therein.
B. Content and Form of Submission
Applications must be submitted on paper or electronically. An
Application Guide may be viewed at http://www.rurdev.usda.gov/rbs/coops/vadg.htm. It is strongly recommended that applicants use the
template provided on the Web site. The template can be filled out
electronically and printed out for submission with the required forms
for a paper submission or it can be filled out electronically and
submitted as an attachment through Grants.gov.
If an application is submitted on paper, one signed original and
one copy of the complete application must be submitted.
If the application is submitted electronically, the applicant must
follow the instructions given at http://www.grants.gov. Applicants are
strongly advised to visit the site well in advance of the application
deadline to insure that they have obtained the proper authentication
and have sufficient computer resources to complete the application.
The Agency will conduct an initial screening of all applications
for eligibility and to determine whether the application is complete
and sufficiently responsive to the requirements set forth in this
notice to allow for an informed review. Information submitted as part
of the application will be protected from disclosure to the extent
permitted by law.
Applicants must complete and submit the elements listed below,
except as noted in the next paragraph. Please note that the
requirements in the following locations within 7 CFR part 4284 have
been combined with other requirements to simplify the application and
reduce duplication: 7 CFR 4284.910(c)(5)(i), 4284.910(c)(5)(ii), and
4284.910(c)(5)(iv).
Applicants requesting less than $50,000 are not required to submit
the following items at the time of application. However, if selected
for an award, the applicants will be required to submit these items as
part of the conditions of the award: Form SF-424A (section IV, B.2),
Form SF-424B (section IV, B.3), Title Page (section IV, B.4), Goals of
the Project (section IV, B.8.i), and Performance Evaluation Criteria
(section IV, B.8.ii).
1. Form SF-424, ``Application for Federal Assistance.'' The form
must be completed, signed and submitted as part of the application
package. All applicants are also required to have an Employer
Identification Number (or a Social Security Number if the applicant is
an individual or steering committee) and a DUNS number (including
individuals and sole proprietorships). The DUNS number is a nine-digit
identification number which uniquely identifies business entities. To
obtain a DUNS number, access http://www.dnb.com/us, or call (866) 705-
5711.
2. Form SF-424A, ``Budget Information--Non-Construction Programs.''
This form must be completed and submitted as part of the application
package.
3. Form SF-424B, ``Assurances--Non-Construction Programs.'' This
form must be completed, signed, and submitted as part of the
application package.
4. Title Page (limited to one page). The title page must include
the title of the project and may include other relevant identifying
information.
5. Table of Contents. A detailed Table of Contents (TOC)
immediately following the title page is required.
6. Executive Summary (limited to one page). The Executive Summary
should briefly describe the Project, including goals, tasks to be
completed and other relevant information that provides a general
overview of the Project. The applicant must specify whether they intend
to compete in the General Funds or one of the Reserved Funds
competitions and clearly state whether the application is for a
Planning Grant or a Working Capital Grant and the grant amount
requested.
7. Eligibility Discussion (limited to six pages). The applicant
must provide the following information so that the Agency can assess
the eligibility of the applicant and the proposed Project. Answers of
zero or none may not disqualify an applicant, depending on what type of
applicant organization is applying.
i. Applicant Eligibility. Applicants must provide the following
information so that the Agency can determine the eligibility of the
applicant organization for assistance.
Describe the applicant in a brief statement (for example,
individual farm or membership organization, etc.) and identify its
legal structure (for example sole proprietorship, LLC, LLP,
cooperative, non-profit organization, or others described in detail).
Identify the owners or members who will be contributing
the Agricultural Commodity to which value will be added to the Project.
Applicants must provide the names of the individuals who are owners or
members, as well as the percentage of their ownership in the
organization. If the applicant organization is owned by entities other
than individuals, it must identify those entities and provide a list of
the individuals who own each entity. If the list is longer than a few
lines, it should be attached as an appendix to the application and will
not be counted toward the page limit of this section.
A statement that certifies that these owners or members
are actively and currently engaged in the production of the
Agricultural Commodity.
Describe how the applicant organization is governed or
managed, including a description of whom and how many owners/members
have voting rights, if applicable.
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The number of individuals on the governing board (e.g.
board of directors).
The number of individuals on the governing board who have
voting rights and are currently engaged in the production of the
Agricultural Commodity to which value will be added and will be
providing that commodity to the Project.
If the applicant organization is a membership
organization, include the organization's mission statement, which must
be copied from the organization's articles of incorporation, bylaws, or
other governing documents.
The amount of the Agricultural Commodity needed for the
Project. Planning applications must provide an estimate.
The amount of the Agricultural Commodity that will be
provided by the owners or members of the applicant organization.
Planning applications must provide an estimate.
The amount of the Agricultural Commodity that will be
purchased or donated from third-party sources.
How the owners or members providing the Agricultural
Commodity to the Project will maintain ownership of the commodity from
its raw state to marketing the Value-Added Agricultural Product.
ii. Product Eligibility. Applicants must provide the following
information so that the Agency can determine the eligibility of the
Value-Added Agricultural Product to be marketed.
The Agricultural Commodity to which value will be added.
Describe the method or process through which value will be
added. This must include at least one of the following: A change in
physical state, a non-standard production method that enhances the
commodity's value, physical segregation, on-farm or on-ranch generation
of renewable energy, and/or a locally-produced agricultural food
product.
The dollar amount of value added per production unit to
the Agricultural Commodity that is attributed to the value-added
process. Applicants for planning grants must estimate this amount while
applicants for working capital grants must use the amount from their
Feasibility Study and Business Plan results.
The Value-Added Agricultural Product that will be
produced.
Describe the expansion of customer base for the Value-
Added Agricultural Product. Those applying for a planning grant must
provide an estimate for the expansion of customer base. Those applying
for a working capital grant must supply the relevant information from
the Feasibility Study and Business Plan that was completed for the
Venture. If no expansion of customer base exists or is likely to exist,
the application is not eligible for funding.
The amount of the increased portion of revenue derived
from marketing the Value-Added Agricultural Product that will be
available to the producers of the Agricultural Commodity to which value
is added. Applicants for a planning grant must provide an estimate for
the increase in revenue. Those applying for a working capital grant
must supply the relevant information from the Feasibility Study and
Business Plan that was completed for the Venture. If no increase in
revenue exists or is likely to exist, the application is not eligible
for funding.
iii. Purpose Eligibility. Applicants should specify whether grant
funds will be used for eligible planning activities or working capital
activities directly related to the processing and/or marketing of the
value-added product. Applicants should specify the grant amount
requested. The Agency will also evaluate the budget and work plan
submitted in response to the Proposal Evaluation Criteria to determine
eligibility. In addition, applicants for working capital activities
should provide the following information that will be evaluated when
determining Purpose Eligibility.
A statement that an independent, third-party Feasibility
Study has been conducted for the proposed Venture. The applicant must
provide the name of the party who conducted the Feasibility Study and
the date it was completed. The Feasibility Study should not be
submitted with the application, but the Agency may request it at any
time in order to facilitate its eligibility review.
A statement that a Business Plan has been developed for
the proposed Venture. The applicant must provide the name of the party
who developed the Business Plan and the date it was completed. The
Business Plan should not be submitted with the application, but the
Agency may request it at any time in order to facilitate its
eligibility review.
Describe how long the applicant organization has been
engaged in the Venture that is the subject of the application.
iv. Reserved Funds Eligibility (The information below will not
count towards proposal page limitation constraints.)
(a) In addition to the above information, if applying for Beginning
Farmer or Rancher or Socially Disadvantaged Farmer or Rancher reserved
funds, provide documentation demonstrating that the applicant
organization meets the definition of a Beginning Farmer or Rancher or a
Socially Disadvantaged Farmer or Rancher.
(b) In addition to the above information, if applying for Mid-Tier
Value Chain reserved funds, applicants must:
(1) Demonstrate that the project proposes development of a Local or
Regional Supply Network of interconnected food-related business
enterprises through which food products move from production through
consumption in a local or regional area of the USA, including a
description of the network, its component members, and its purpose;
(2) Describe at least two alliances, linkages or partnerships
within the value chain that link independent producers with businesses
and cooperatives that market Value-Added Agricultural Products in a
manner that benefits Small- or Medium-Sized Farms that are structured
as a Family Farm, including the names of the parties and the nature of
their collaboration;
(3) Demonstrate how the project, due to the manner in which the VA
product is marketed, will increase the profitability and
competitiveness of at least two eligible Small- or Medium-Sized Farms
or Ranches that are structured as a Family Farm ;
(4) Document that the eligible Agriculture Producer Group (APG)/
Farmer or Rancher Cooperative (COOP)/Majority-Controlled Producer Based
Business Venture (MCPBBV) applicant organization has obtained at least
one agreement with another member of the supply network that is engaged
in the value chain on a marketing strategy; or that the eligible
Independent Producer applicant has obtained at least one agreement from
an eligible APG/COOP/MCPBBV engaged in the value-chain on a marketing
strategy;
(5) Demonstrate that the applicant currently owns and produces more
than 50% of the raw agricultural commodity that will be used for the
value-added product that is the subject of the proposal; and
(6) Demonstrate that the project will result in an increase in
customer base and an increase in revenue returns to the applicant
producers supplying the majority of the raw agricultural commodity for
the project.
8. Proposal Narrative (limited to 15 pages).
i. Goals of the Project. The application must include a clear
statement of the ultimate goals of the Project, including an
explanation of how a market will be expanded and the degree to which
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incremental revenue will accrue to the benefit of the Agricultural
Producer(s).
ii. Performance Evaluation Criteria. Applicants applying for
Planning Grants must suggest at least one criterion by which their
performance under a grant could be evaluated. Applicants applying for
Working Capital Grants must identify the projected increase in customer
base, revenue accruing to Independent Producers, and number of jobs
attributed to the Project. Working capital projects with significant
energy components must also identify the projected increase in capacity
(e.g. gallons of ethanol produced annually, megawatt hours produced
annually) attributed to the Project. Please note that these criteria
are different from the Proposal Evaluation Criteria and are a separate
requirement.
iii. Proposal Evaluation Criteria. Each of the proposal evaluation
criteria referenced in Section V.A. of this funding announcement must
be addressed, specifically and individually, in narrative form.
Applications that do not address the appropriate criteria (Planning
Grant applications must address Planning Grant evaluation criteria and
Working Capital Grant applications must address Working Capital Grant
evaluation criteria) will be considered ineligible.
9. Certification of Matching Funds. Applicants must certify that
Matching Funds will be available at the same time grant funds are
anticipated to be spent and that Matching Funds will be spent in
advance of grant funding, such that for every dollar of grant funds
advanced, not less than an equal amount of Matching Funds will have
been expended prior to submitting the request for reimbursement. This
certification is a separate requirement from the verification of
Matching Funds requirement. To fulfill this requirement, applicants
must include a statement for this section that reads as follows:
``[INSERT NAME OF APPLICANT] certifies that matching funds will be
available at the same time grant funds are anticipated to be spent and
that matching funds will be spent in advance of grant funding, such
that for every dollar of grant funds advanced, not less than an equal
amount of matching funds will have been expended prior to submitting
the request for reimbursement.'' A separate signature is not required.
10. Verification of Matching Funds. Applicants must provide
documentation of all proposed Matching Funds, both cash and in-kind.
The documentation below must be included in the Appendix. Template
letters for each type of matching funds are available at http://www.rurdev.usda.gov/rbs/coops/verifymatch031407.htm.
i. Matching funds provided by the applicant in cash. A copy of a
bank statement with an ending date within one month of the application
submission and showing an ending balance equal to or greater than the
amount of cash Matching Funds proposed is required.
ii. Matching funds provided through a loan or line of credit. The
applicant must include a signed letter from the lending institution
verifying the amount available, the purposes for which funds may be
used, and the time period of availability of the funds. Specific dates
(month/day/year) corresponding to the proposed grant period or to dates
within the grant period when matching funds will be made available,
must be included.
iii. Matching funds provided by the applicant through an in-kind
contribution. The application must include a signed letter from the
applicant verifying the goods or services to be donated, the value of
the goods or services, and when the goods and services will be donated.
Specific dates (month/day/year) corresponding to the proposed grant
period or to dates within the grant period when matching contributions
will be made available, must be included. Note that applicant in-kind
match for planning grants should not include values for applicant time
spent on feasibility or business planning activities due to a possible
conflict of interest. Although applicants may participate with their
consultant in the feasibility and business planning activities, they
may not include their time as an in-kind match contribution to the
project. This represents a possible conflict of interest and should be
avoided in the application. Also note that if the applicant
organization is purchasing goods or services for the grant (e.g.
salaries, inventory), the contribution is considered a cash
contribution and must be verified as described in paragraph i. above.
Also, if an owner or employee of the applicant organization is donating
goods or services, the contribution is considered a third-party in-kind
contribution and must be verified as described in paragraph v. below.
iv. Matching funds provided by a third party in cash. The
application must include a signed letter from that third party
verifying how much cash will be donated and when it will be donated.
Specific dates (month/day/year) corresponding to the proposed grant
period or to dates within the grant period when matching funds will be
made available, must be included.
v. Matching Funds provided by a third party in-kind donation. The
application must include a signed letter from the third party verifying
the goods or services to be donated, the value of the goods or
services, and when the goods and services will be donated. Specific
dates (month/day/year) corresponding to the proposed grant period or to
dates within the grant period when matching contributions will be made
available, must be included.
Verification for cash or in-kind contributions donated outside the
proposed time period of the grant will not be accepted. Verification
for in-kind contributions that are over-valued will not be accepted.
The valuation process for the in-kind funds does not need to be
included in the application, especially if it is lengthy, but the
applicant must be able to demonstrate how the valuation was achieved at
the time of notification of tentative selection for the grant award. If
the applicant cannot satisfactorily demonstrate how the valuation was
determined, the grant award may be withdrawn or the amount of the grant
may be reduced.
Matching Funds are subject to the same use restrictions as grant
funds. Matching Funds must be spent or donated during the grant period
and the funds must be expended at a rate equal to or greater than the
rate grant funds are expended. Some examples of acceptable uses for
matching funds are: Skilled labor performing work required for the
proposed Project, office supplies, and purchasing inventory. Some
examples of unacceptable uses of matching funds are: Real property,
fixed equipment, buildings, and vehicles.
Expected program income may not be used to fulfill the Matching
Funds requirement at the time of application. If program income is
earned during the time period of the grant, it is subject to the
requirements of 7 CFR part 3015, subpart F and 7 CFR 3019.24 and any
provisions in the Grant Agreement.
C. Submission Dates and Times
Application Deadline Date: November 30, 2009 for unreserved funds.
November 30, 2009 for reserved funds.
Explanation of Deadlines: Paper applications must be postmarked,
mailed, shipped, or sent overnight by the deadline date (see Section
IV.F. for the address). Final electronic applications must be received
by Grants.gov by the deadline date. If an application does not meet the
deadline above, it will not be considered for funding. Applicants will
be notified that their applications did not meet the submission
deadline.
[[Page 45173]]
D. National Environmental Policy Act
All grants made under this NOFA are subject to the requirements of
7 CFR 1940 subpart G. Applications for planning purposes and technical
assistance are generally categorically excluded from the environmental
review process by Sec. 1940.333, provided that the assistance is not
related to the development of a specific site.
E. Intergovernmental Review of Applications
Executive Order (EO) 12372, Intergovernmental Review of Federal
Programs, applies to this program. This EO requires that Federal
agencies provide opportunities for consultation on proposed assistance
with State and local governments. Many States have established a Single
Point of Contact (SPOC) to facilitate this consultation. A list of
States that maintain an SPOC may be obtained at http://www.whitehouse.gov/omb/grants/spoc.html. If an applicant's State has an
SPOC, the applicant may submit the application directly for review. Any
comments obtained through the SPOC must be provided to Rural
Development for consideration as part of the application. If the
applicant's State has not established an SPOC, or the applicant does
not want to submit the application, Rural Development will submit the
application to the SPOC or other appropriate agency or agencies.
Applicants are also encouraged to contact their Rural Development
State Office for assistance and questions on this process. The Rural
Development State Office can be reached by calling 800-670-6553 and
selecting option ``1'' or by viewing the following Web site: http://www.rurdev.usda.gov/.
F. Funding Restrictions
Funding restrictions apply to both grant funds and matching funds.
Funds may only be used for planning activities or working capital for
Projects focusing on processing and marketing a value-added product.
1. Examples of acceptable planning activities include:
i. Obtaining legal advice and assistance related to the proposed
Venture;
ii. Conducting a Feasibility Study of a proposed Value-Added
Venture to help determine the potential marketing success of the
Venture;
iii. Developing a Business Plan that provides comprehensive details
on the management, planning, and other operational aspects of a
proposed Venture; and
iv. Developing a marketing plan for the proposed Value-Added
product, including the identification of a market window, the
identification of potential buyers, a description of the distribution
system, and possible promotional campaigns.
2. Examples of acceptable working capital uses include:
i. Designing or purchasing an accounting system for the proposed
Venture;
ii. Paying for salaries, utilities, and rental of office space;
iii. Purchasing inventory, office equipment (e.g. computers,
printers, copiers, scanners), and office supplies (e.g. paper, pens,
file folders); and
iv. Conducting a marketing campaign for the proposed Value-Added
product.
3. No funds made available under this solicitation shall be used
to:
i. Plan, repair, rehabilitate, acquire, or construct a building or
facility, including a processing facility;
ii. Purchase, rent, or install fixed equipment, including
processing equipment;
iii. Purchase vehicles, including boats;
iv. Pay for the preparation of the grant application;
v. Pay expenses not directly related to the funded Venture;
vi. Fund political or lobbying activities;
vii. Fund any activities prohibited by 7 CFR parts 3015 and 3019;
viii. Fund architectural or engineering design work for a specific
physical facility;
ix. Fund any expenses related to the production of any commodity or
product to which value will be added, including seed, rootstock, labor
for harvesting the crop, and delivery of the commodity to a processing
facility. The Agency considers these expenses to be ineligible because
the intent of the program is to assist producers with marketing value-
added products rather than producing Agricultural Commodities;
x. Fund research and development;
xi. Purchase land;
xii. Duplicate current services or replace or substitute support
previously provided;
xiii. Pay costs of the Project incurred prior to the date of grant
approval;
xiv. Pay for assistance to any private business enterprise which
does not have at least 51 percent ownership by those who are either
citizens of the United States or reside in the United States after
being legally admitted for permanent residence;
xv. Pay any judgment or debt owed to the United States; or
xvi. Conduct activities on behalf of anyone other than a specific
Independent Producer or group of Independent Producers. The Agency
considers conducting industry-level Feasibility Studies and Business
Plans that are also known as feasibility study templates or guides or
business plan templates or guides to be ineligible because the
assistance is not provided to a specific group of Independent
Producers.
xvii. Pay for any goods or services provided by a person or entity
who has a Conflict of Interest. Also, note that in-kind Matching Funds
may not be provided by a person or entity that has a Conflict of
Interest. See Section IV.B.10.iii of this notice for additional
information.
G. Other Submission Requirements
Paper applications must be submitted to the Rural Development State
Office for the State in which the Project will primarily take place.
Addresses can be found online at: http://www.rurdev.usda.gov/recd_map.html or in the ADDRESSES section at the beginning of this Notice.
Applications can also be submitted electronically at http://www.grants.gov. Applications submitted by electronic mail or facsimile
will not be accepted. Each application submission must contain all
required documents in one envelope, if by mail or courier delivery
service.
V. Application Review Information
A. Criteria
All eligible and complete applications will be evaluated based on
the following criteria. Applications for Planning Grants have different
criteria to address than applications for Working Capital Grants.
Unless otherwise noted, all scoring for both Planning and Working
Capital Grant applications will be done on a graduated scale reflecting
how the criteria were addressed.
1. Criteria for Planning Grant Applications
i. Nature of the proposed venture (0-8 points). Projects will be
evaluated for technological feasibility, operational efficiency,
profitability, sustainability and the likely improvement to the local
rural economy. Evaluators may rely on their own knowledge and examples
of similar ventures described in the proposal to form conclusions
regarding this criterion. Points will be awarded based on the greatest
expansion of markets and increased returns to producers.
ii. Qualifications of those doing work (0-8 points). Proposals will
be reviewed for whether the personnel who are
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responsible for doing proposed tasks, including those hired to do the
studies, have the necessary qualifications. If a consultant or others
are to be hired, more points may be awarded if the proposal includes
evidence of their availability and commitment as well. If staff or
consultants have not been selected at the time of application, the
application should include specific descriptions of the qualifications
required for the positions to be filled. Qualifications of the
personnel and consultants should be discussed directly within the
response to this criterion. If resumes are included, those pages will
count toward the page limit for the narrative.
iii. Commitments and support (0-5 points). Producer commitments
will be evaluated on the basis of the number of Independent Producers
currently involved as well as how many may potentially be involved, and
the nature, level and quality of their contributions. End-user
commitments will be evaluated on the basis of potential markets and the
potential amount of output to be purchased. Proposals will be reviewed
for evidence that the project enjoys third party support and
endorsement, with emphasis placed on financial and in-kind support as
well as technical assistance. Support should be discussed directly
within the response to this criterion. If support letters are included,
those pages will count toward the page limit for the narrative. Points
will be awarded based on the greatest level of documented and
referenced commitment.
iv. Project leadership (0-8 points). The leadership abilities of
individuals (i.e. owners, not consultants) who are proposing the
Venture will be evaluated as to whether they are sufficient to support
a conclusion of likely project success. Credit may be given for
leadership evidenced in community or volunteer efforts. Leadership
abilities should be discussed directly within the response to this
criterion. If resumes are attached at the end of the application, those
pages will count toward the page limit for the narrative.
v. Work plan/budget (0-8 points). Applicants must submit a work
plan and budget. The work plan will be reviewed to determine whether it
provides specific and detailed descriptions of tasks that will
accomplish the project's goals. The budget must present a detailed
breakdown of all estimated costs associated with the planning
activities and allocate these costs among the listed tasks. The source
and use of grant and matching funds must be specified. Points may not
be awarded unless sufficient detail is provided to determine if funds
are being used for qualified purposes. Matching funds as well as grant
funds must be accounted for in the budget to receive points. If the
project period will be longer than one year, the work plan and budget
must identify a separate, unique task(s) for the first year and for any
subsequent year of the proposed project. Any applications proposing a
project of longer than one year with duplicative or similar activities
in each year is ineligible for funding.
vi. Amount requested (0 or 5 points). Two points will be awarded
for grant requests of $50,000 or less. To determine the number of
points to award, the Agency will use the amount indicated in the work
plan and budget.
vii. Project cost per owner-producer (0-3 points). The applicant
must state the number of Independent Producers that are owners of the
Venture. Points will be calculated by dividing the amount of Federal
funds requested by the total number of Independent Producers that are
owners of the Venture. The allocation of points for this criterion
shall be as follows:
0 points will be awarded to applications without enough
information to determine the number of owner-producers.
1 point will be awarded to applications with a project
cost per owner-producer of $70,001-$100,000.
2 points will be awarded to applications with a project
cost per owner-producer of $35,001-$70,000.
3 points will be awarded to applications with a project
cost per owner-producer of $1-$35,000.
An owner cannot be considered an Independent Producer unless he/she
is a producer of the Agricultural Commodity to which value will be
added as part of this Project. For Agriculture Producer Groups, the
number used must be the number of Independent Producers represented who
produce the commodity to which value will be added. In cases where
family members (including husband and wife) are owners and producers in
a Venture, each family member shall count as one owner-producer.
Applicants must be prepared to prove that the numbers and
individuals identified meet the requirements specified upon
notification of a grant award. Failure to do so shall result in
withdrawal of the grant award.
viii. Business management capabilities (0-10 points). Applicants
must discuss their financial management system, procurement procedures,
personnel policies, property management system, and travel procedures.
Up to two points can be awarded for each component of this criterion,
based on the appropriateness of the system, procedures or policies to
the size and structure of the business applying. Larger, more complex
businesses will be expected to have more complex systems, procedures,
and policies than smaller, less complex businesses.
ix. Sustainability and economic impact (0-15 points). Projects will
be evaluated based on the expected sustainability of the Venture and
the expected economic impact on the local economy.
x. Type of applicant (0 or 15 points). If an application is from an
applicant that is a Beginning Farmer or Rancher, a Socially
Disadvantaged Farmer or Rancher, or an operator of a Small or Medium-
Sized Farm or Ranch that is structured as a Family Farm, 15 points will
be awarded. Applicants must provide documentation that they meet one of
these definitions to receive points.
xi. Administrator points (up to 5 points, but not to exceed 10
percent of the total points awarded for the other 10 criteria). The
Administrator of USDA Rural Development Business and Cooperative
Programs may award additional points to recognize renewable energy,
insure geographic distribution of grants, or encourage Value-Added
Projects in under-served areas and groups. Applicants may submit an
explanation of how the technology proposed is innovative and/or
specific information verifying that the project is in an under-served
area.
2. Criteria for Working Capital Applications
i. Business viability (0-8 points). Proposals will be evaluated on
the basis of the technical and economic feasibility and sustainability
of the Venture and the efficiency of operations. When responding to
this criterion, applicants should reference critical data and
information identified in the venture-specific feasibility study and
business plan.
ii. Customer base/increased returns (0-8 points). Describe in
detail how the customer base for the product being produced will expand
because of the Value-Added Venture. Provide documented estimates of
this expansion. Describe in detail how a greater portion of the revenue
derived from the venture will be returned to the producers that are
owners of the Venture. Applicants should also reference the pro forma
financial statements developed for the Venture. Applications that
demonstrate strong
[[Page 45175]]
growth in a market or customer base and greater Value-Added revenue
accruing to producer-owners will receive more points than those that
demonstrate less growth in markets and realized Value-Added returns.
iii. Commitments and support (0-5 points). Producer commitments
will be evaluated on the basis of the number of Independent Producers
currently involved as well as how many may potentially be involved, and
the nature, level and quality of their contributions. End-user
commitments will be evaluated on the basis of identified markets,
letters of intent or contracts from potential buyers and the amount of
output to be purchased. Applications will be reviewed for evidence that
the Project enjoys third-party support and endorsement, with emphasis
placed on financial and in-kind support as well as technical
assistance. Support should be discussed directly within the response to
this criterion. If support letters are included, those pages will count
toward the page limit for the narrative. Points will be awarded based
on the greatest level of documented and referenced commitment.
iv. Management team/work force (0-8 points). The education and
capabilities of project managers and those who will operate the Venture
must reflect the skills and experience necessary to affect Project
success. The availability and quality of the labor force needed to
operate the Venture will also be evaluated. Applicants must provide the
information necessary to make these determinations. Applications that
reflect successful track records managing similar projects will receive
higher points for this criterion than those that do not reflect
successful track records.
v. Work plan/budget (0-8 points). The work plan will be reviewed to
determine whether it provides specific and detailed descriptions of
tasks that will accomplish the project's goals and the budget will be
reviewed for a detailed breakdown of estimated costs associated with
the proposed activities and allocation of these costs among the listed
tasks. The source and use of grant and matching funds must be
specified. Points may not be awarded unless sufficient detail is
provided to determine if funds are being used for qualified purposes.
Matching Funds as well as grant funds must be accounted for in the
budget to receive points. If the project period will be longer than one
year, the work plan and budget must identify a separate, unique task(s)
for the first year and for any subsequent year of the proposed project.
Any applications proposing a project of longer than one year with
duplicative or similar activities in each year is ineligible for
funding.
vi. Amount requested (0 or 5 points). Two points will be awarded
for grant requests of $150,000 or less. To determine the number of
points to award, the Agency will use the amount indicated in the work
plan and budget.
vii. Project cost per owner-producer (0-3 points). The applicant
must state the number of Independent Producers that are owners of the
Venture. Points will be calculated by dividing the amount of Federal
funds requested by the total number of Independent Producers that are
owners of the Venture. The allocation of points for this criterion
shall be as follows:
0 points will be awarded to applications without enough
information to determine the number of owner-producers.
1 point will be awarded to applications with a project
cost per owner-producer of $200,001-$300,000.
2 points will be awarded to applications with a project
cost per owner-producer of $100,001-$200,000.
3 points will be awarded to applications with a project
cost per owner-producer of $1-$100,000.
An owner cannot be considered an Independent Producer unless he/she
is a producer of the Agricultural Commodity to which value will be
added as part of this Project. For Agriculture Producer Groups, the
number used must be the number of Independent Producers represented who
produce the commodity to which value will be added. In cases where
family members (including husband and wife) are owners and producers in
a Venture, each family member shall count as one owner-producer.
Applicants must be prepared to prove that the numbers and
individuals identified meet the requirements specified upon
notification of a grant award. Failure to do so shall result in
withdrawal of the grant award.
viii. Business management capabilities (0-10 points). Applicants
should discuss their financial management system, procurement
procedures, personnel policies, property management system, and travel
procedures. Up to two points can be awarded for each component of this
criterion, based on the appropriateness of the system, procedures or
policies to the size and structure of business applying. Larger, more
complex businesses will be expected to have more complex systems,
procedures, and policies than smaller, less complex businesses.
ix. Sustainability and economic impact (0-15 points). Projects will
be evaluated based on the expected sustainability of the Venture and
the expected economic impact on the local economy.
x. Type of applicant (0 or 15 points). If an application is from an
applicant that is a Beginning Farmer or Rancher, a Socially
Disadvantaged Farmer or Rancher, or an operator of a Small or Medium-
Sized Farm or Ranch that is structured as a Family Farm, 15 points will
be awarded. Applicants must provide documentation that they meet one of
these definitions to receive points.
xi. Administrator points (up to 5 points, but not to exceed 10
percent of the total points awarded for the other 10 criteria). The
Administrator of USDA Rural Development Business and Cooperative
Programs may award additional points to recognize renewable energy,
insure geographic distribution of grants, or encourage Value-Added
projects in under-served areas and groups. Applicants may submit an
explanation of how the technology proposed is innovative and/or
specific information verifying that the project is in an under-served
area.
B. Review and Selection Process
The Agency will conduct an initial screening of all applications
for eligibility and to determine whether the application is complete
and sufficiently responsive to the requirements set forth in this
notice to allow for an informed review. As part of this review, the
Rural Development State Office may require Working Capital applicants
to submit their Feasibility Studies and Business Plans after the
application deadline, but prior to the selection of grantees to
facilitate the eligibility review process.
All eligible and complete proposals will be evaluated by three
reviewers based on criteria i through v described in Section V.A.1. or
2. One of these reviewers will be a Rural Development employee not from
the servicing State Office and the other two reviewers will be non-
Federal persons. All reviewers must either: (1) Possess at least five
years of working experience in an agriculture-related field, or (2)
have obtained at least a bachelors degree in one or more of the
following fields: Agri-business, business, economics, finance, or
marketing and have a minimum of three years of experience in an
agriculture-related field (e.g. farming, marketing, consulting,
university professor, research, officer for trade association,
government employee for an agricultural program). Once the scores for
criteria i through v have been
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completed by the three reviewers, they will be averaged to obtain the
independent reviewer score.
The application will also receive one score from the Rural
Development servicing State Office based on criteria vi through x. This
score will be added to the independent reviewer score.
Finally, the Administrator of USDA Rural Development Business and
Cooperative Programs will award any Administrator points based on
Proposal Evaluation Criterion xi. These points will be added to the
cumulative score for criteria i through x. A final ranking will be
obtained based solely on the scores received for criteria i through xi.
Applications will be funded in rank order until available funds are
expended. Any unfunded applications for reserved funds will
automatically be considered for unreserved funds, if eligible,
according to rank order.
After the award selections are made, all applicants will be
notified of the status of their applications by mail. Grantees must
meet all statutory and regulatory program requirements in order to
receive their award. In the event that a grantee cannot meet the
requirements, the award will be withdrawn. Applicants for Working
Capital Grants must submit complete, independent third-party
Feasibility Studies and Business Plans before the grant award can be
finalized. All Projects will be evaluated by the servicing State Office
prior to finalizing the award to ensure that funded Projects are likely
to be feasible in the proposed project area. Regardless of scoring, a
Project determined to be unlikely to be feasible by the servicing State
Office with concurrence by the National Office will not be funded.
C. Anticipated Announcement and Award Dates
Award Date: The announcement of award selections is expected to
occur on or about January 7, 2010.
VI. Award Administration Information
A. Award Notices
Successful applicants will receive a notification of tentative
selection for funding from Rural Development. Applicants must comply
with all applicable statutes, regulations, and this notice before the
grant award will receive final approval.
Unsuccessful applicants will receive notification, including
dispute resolution alternatives, by mail.
B. Administrative and National Policy Requirements
7 CFR parts 1901 subpart E, 3015, 3019, and 4284 are applicable and
may be accessed at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1.
The following additional requirements apply to grantees selected
for this program:
Grant Agreement.
Form RD 1942-46.
Form RD 1940-1, ``Request for Obligation of Funds.''
Form RD 1942-46, ``Letter of Intent to Meet Conditions.''
Form AD-1047, ``Certification Regarding Debarment, Suspension, and
Other Responsibility Matters--Primary Covered Transactions.''
Form AD-1048, ``Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion--Lower Tier Covered
Transactions.''
Form AD-1049, ``Certification Regarding a Drug-Free Workplace
Requirements (Grants).''
Form RD 400-4, ``Assurance Agreement.''
Additional information on these requirements can be found at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.
Reporting Requirements: Grantees must provide Rural Development
with a paper or electronic copy that includes all required signatures
of the following reports. The reports must be submitted to the Agency
contact listed on the Grant Agreement and Letter of Conditions. Failure
to submit satisfactory reports on time may result in suspension or
termination of the grant.
1. Form SF-269 or SF-269A. A ``Financial Status Report,'' listing
expenditures according to agreed upon budget categories, on a semi-
annual basis. Reporting periods end each March 31 and September 30,
regardless of when the grant period begins. Reports are due 30 days
after the reporting period ends.
2. Semi-annual written performance reports that compare
accomplishments to the objectives stated in the Grant Agreement,
identify all tasks completed to date, and provide documentation
supporting the reported results. The report should discuss any problems
or delays that may affect completion of the project, as well as
objectives for the next reporting period. Compliance with any special
condition on the use of award funds should also be discussed. Reports
are due as provided in paragraph 1. of this section. Supporting
documentation for completed tasks includes, but is not limited to,
Feasibility Studies, marketing plans, Business Plans, articles of
incorporation and bylaws and an accounting of how working capital funds
were spent.
3. A Final Project written performance report that compares
accomplishments to the objectives stated in the proposal is due within
90 days of the completion of the project. This report should identify
all tasks completed and provide documentation supporting the reported
results, as well as any problems or delays that affected completion of
the project. Compliance with any special condition on the use of award
funds should also be discussed. Supporting documentation for completed
tasks includes, but is not limited to, Feasibility Studies, marketing
plans, Business Plans, articles of incorporation and bylaws and an
accounting of how working capital funds were spent. Planning Grant
Projects must also report the estimated increase in revenue, increase
in customer base, number of jobs created, and any other relevant
economic indicators generated by continuing the project into its
operational phase. Working Capital Grants must report the increase in
revenue, increase in customer base, number of jobs created, any other
relevant economic indicators generated by the project during the grant
period in addition to total funds used for the Venture during the grant
period. Total funds must include other Federal, State, local, and other
funds used for the venture. Projects with significant energy components
must also report expected or actual capacity (e.g. gallons of ethanol
produced annually, megawatt hours produced annually) and any emissions
reductions incurred during the project.
VII. Agency Contacts
For general questions about this announcement and for program
technical assistance, applicants should contact their USDA Rural
Development State Office at http://www.rurdev.usda.gov/recd_map.html
The State Office can also be reached by calling 800-670-6553 and
pressing ``1.'' If an applicant is unable to contact their State
Office, a nearby State Office may be contacted or the RBS National
Office can be reached at Mail STOP 3250, Room 4016-South, 1400
Independence Avenue, SW., Washington, DC 20250-3250, Telephone: (202)
720-8460, e-mail: [email protected]. Applicants are also encouraged
to visit the application Web site for application tools including an
application guide and templates. The Web address is: http://www.rurdev.usda.gov/rbs/coops/vadg.htm.
VIII. Non-Discrimination Statement
The U.S. Department of Agriculture (USDA) prohibits discrimination
in all its programs and activities on the basis of race, color,
national origin, age,
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disability, and where applicable, sex, marital status, familial status,
parental status, religion, sexual orientation, genetic information,
political beliefs, reprisal, or because all or part of an individual's
income is derived from any public assistance program. (Not all
prohibited bases apply to all programs.) Persons with disabilities who
require alternative means for communication of program information
(Braille, large print, audiotape, etc.) should contact USDA's TARGET
Center at (202) 720-2600 (voice and TDD). To file a complaint of
discrimination, write to USDA, Director, Office of Civil Rights, 1400
Independence Avenue, SW., Washington, DC 20250-9410, or call (866) 632-
9992 (voice) or (202) 401-0216 (TDD). USDA is an equal opportunity
provider and employer.
Dated: August 25, 2009.
Judith A. Canales,
Administrator, Rural Business-Cooperative Service.
[FR Doc. E9-21030 Filed 8-31-09; 8:45 am]
BILLING CODE 3410-XY-P