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Intertribal Agriculture CouncilNational Webinar Series:USDA Value Added Producer Grant (VAPG)June 4th, 2015
Audio Connect Info:Audio should play through your computer speakers. To enable microphone, click on phone icon (or may show up as microphone) on top toolbar and select “Connect Microphone”. Phone line below is available for question-and-answer if computer connection does not work.
866-614-2162, 987 114 7244
2015 Value-Added Producer Grant Program
For Tribal Applicants
VAPG Purpose
Provides funds for economic planning activities or eligible working capital expenses
to enable viable Agricultural Producers to develop businesses that produce and market
Value-Added Agricultural Products and to create marketing opportunities for such
businesses.
VAPG
Value-Added Producer Grant
Authorization Section 231 of the Agriculture Risk Protection Act of 2000 (P. L. 106-224), as amended by section 6203 of
the Agricultural Act of 2014 (P. L. 113-79)
(see 7 U.S.C. 1632a)
Program RegulationFinal Rule 7 CFR part 4284 subpart J
published May 8, 2015
National Competition
FY2015 Available Funding: $30 million
Application Deadlines: July 2, 2015 for Grants.gov
July 7, 2015 for paper
Maximum Award Amounts: $75,000 Planning
$250,000 Working Capital
Matching Requirement: 1-to-1 match (50 percent of total project costs) cash or eligible in-kind contributions to be used only for eligible project purposes.
Grant Period: Up to 36 months, depending on project complexity.
Value-Added Producer Grant
Recent Tribal Project Examples
Oneida Tribe of Indians of Wisconsin- Joanie Buckley
Ute Mountain Ute Tribe Farm & Ranch- Paul Evans / Marcie Reichenau
Intertribal Maple Syrup Cooperative- Dan Cornelius
VAPG
Oneida White Corn
Changes in 2015
Program Regulation Final Rule 7 CFR 4284-J
• Changes resulting from the 2014 Farm Bill.
• Agency responses to public comments on Farm Bill and previous version of program regulation
• Clarifications, revision to conform to other USDA definitions, and information previously included only in the annual notice.
VAPG
Changes affecting Tribal Applicants
VAPG
Revised definition of ‘Agricultural producer:’
(1) An individual or entity that produces an Agricultural Commodity through participation in the day-to-day labor, management, and field operations; or that has the legal right to harvest an Agricultural Commodity that is the subject of the VAPG project.
Individuals and entities that may have ownership and/or financial control without being engaged in the day-to-day labor , management, and field operations will no longer be eligible for a value-added producer grant.
What does this change mean for Tribal applicants?
VAPG
Agricultural producer
2) The Agency shall determine the Agricultural producer status of Tribes and Tribal entities without regard to day-to-day labor, management, and field operation and right to harvest status.
How will the Agency determine eligibility “without regard to day-to-day labor, management, and field
operation and right to harvest status?”
VAPG
Tribes and tribal entities should address the questions in application template Appendix A regarding composition, structure and relationship of the entity to the tribe, the beneficiaries of returns generated by the project, etc.; AND MUST meet all other eligibility requirements.
Basic Program Requirements
VAPG
• Applicant eligibility• Project eligibility• Purpose eligibility• Evaluation criteria
Four Eligible Applicant Types
• Independent Producers• Agricultural Producer Groups• Farmer or Rancher Cooperatives• Majority-Controlled Producer-Based
Businesses
VAPG
All Four Applicant Types Must :
• Currently produce and own more than 50 percent of the raw commodity that will be used for the Value-Added product.
• Own the product from its raw commodity state through the production of the Value-Added product during the Project (except for MTVC).
VAPG
Emerging Market
• Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority-Controlled Producer-Based Businesses, must show that they are entering an emerging market as a result of the proposed project.
• Applicants cannot have supplied the proposed product, geographic or demographic market for more than two years at time of application submission.
VAPG
Key Questions for Tribes
VAPG
• Is the tribe or tribal entity the applicant?
• Does the tribe or tribal entity produce and own more than 50 percent of the raw commodity needed for the project?
• Does the tribe or tribal entity own the product from raw commodity through the Value-Added process.
• Will participant tribal members and/or the tribe as a whole benefit from increased returns resulting from the project?
Project Eligibility
• Value-added product methodology• Expansion of customer base• Greater portion of revenue from the
process returned to the producer
VAPG
Five Value-Added Methodologies
• Change in physical state• Produced in a manner that enhances
the value of the agricultural commodity• Physical segregation• Farm- or ranch-based renewable
energy• Locally-produced agricultural food
product
Project Eligibility
• Increase in customer base• Greater portion of revenue derived from
the value-added process returned to the producer.
All applicants must demonstrate:
Project Eligibility
Purpose Eligibility
• 2 types of grants• Use of funds• Budget & work plan
VAPG
2 Types of VAPG Grants
1) Planning Grant
To pay a qualified (third-party) consultant for development of feasibility, marketing, business plan related to the processing and/or marketing of a value-added product.
2) Working Capital Grant
To pay eligible project expenses related to the processing and/or marketing of a value-added product.
Purpose Eligibility
Working Capital Grants
1) Requests of $50,000 or more (emerging market)-feasibility study required
2) Requests of $50,000 or more (market expansion)-business plan only required
3) Requests of less than $50,000-no feasibility study or business plan requirement.
Purpose Eligibility
Use of Funds
Examples of Eligible Costs:
• Processing costs including labor, utilities, packaging and labeling, ingredients;
• Additional raw commodity inventory from third parties (up 49% of the total amount required for the project)
• Advertising and promotion
• Financial/accounting systems
Purpose Eligibility
Use of Funds
Examples of Ineligible Costs:
• Purchase of land, buildings or equipment• Preparation of the grant application,• Research and development, architectural or
engineering design work• Expenses for the production, harvesting or delivery
to a processing facility of any agricultural commodity or product
Purpose Eligibility
Matching Funds
• Applicant cash, loan, or line of credit; and/or
• Applicant or family member in-kind contributions of fairly valued time spent on the project (applicant provided services limited to 25 percent of total project costs); and/or
• Third-party cash or
• Third-party in-kind contributions
Purpose Eligibility
Matching Funds must be…
• Equal to at least the grant amount (at least 50 percent of total project costs).
• Spent only on eligible expenses;
• Spent in advance of grant;
• From eligible sources without a real or apparent conflict of interest
• Verified at application and confirmed at award
Purpose Eligibility
Other Eligibility Requirements
VAPG
• Multiple Grant• Active Grant• Grant Period• Completeness
Evaluation Criteria
• Performance evaluation criteria• Proposal evaluation criteria
VAPG
• Applicant suggests one or more relevant criterion to be used to evaluate whether or not the primary goals and objectives of the project are being met.
• All applicants estimate how many jobs are expected to be created or saved as a result of the project?
• Working capital applicants record data on expansion of customer base and increase in revenue from the Applicant eligibility section.
Performance Evaluation Criteria
Proposal Evaluation Criteria
The Agency selects and ranks applications based on responses to 5 criteria:
1. Nature of the proposed project (0-30)
2. Qualifications of project personnel (0-20)
3. Commitments and support (0-10)
4. Work plan and budget (0-20)
5. Priority points (5 and/or additional 5)
VAPG
Scoring Priority
Five points will be awarded to eligible:• Beginning Farmers or Ranchers• Veteran Farmers or Ranchers*• Socially-Disadvantaged Farmers or
Ranchers• Small- or Medium-Sized Family Farms• Farmer or Rancher Cooperatives• Applications proposing Mid-Tier Value Chain
projects
VAPG
Scoring Priority
Up to 5 additional points will be awarded to Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority Controlled Producer-Based Businesses that propose projects that best contribute to new or expanded marketing opportunities for:
• Beginning Farmers or Ranchers• Veteran Farmers or Ranchers*• Socially-Disadvantaged Farmers or Ranchers• Small- or Medium-Sized Family Farms
VAPG
Tools for Applicants
VAPG
Program Information & Materialshttp://
www.rd.usda.gov/programs-services/value-added-producer-grants
Outreach Fact sheets• General program Info• Locally-produced food• Harvesters• Mid-tier value chains• …and more!
TOOLS
TOOLS
Comprehensive Toolkits for
Planning and Working Capital
Checklists to ensure complete applications
TOOLS
Links to required forms and necessary resources, including:• SF 424s• AD 3030• Program
regulation• NOFA• And more!
Links to DUNS and SAM
Individual OPTIONAL templates for Planning and Working Capital applications.
TOOLS
Guidance for:• Tribal applicants
• Required documentation• Matching fund verification templates
• Reserve fund and priority point eligibility
TOOLS
Where to go for assistance:
USDA Rural Development State Office Contacts
http://www.rd.usda.gov/contact-us/state-offices
USDA Rural Development National Office
Amy CavanaughDirector, Grants Division
Tracey [email protected]
Shantelle [email protected]
QUESTIONS?
Webinar recording available at:
“IndianAg” Channel on YouTubeor check
http://IndianAgLink.com