The Value Added Producer Grant, administered by USDA Rural Development, provides economic assistance to farmers and ranchers so that they can develop plans or receive working capital to expand their customer base for the products or commodities they produce.  

Categories of funding:

• Planning - Funding for a defined program of economic activities used to determine the viability of a potential value-added venture, including feasibility studies, marketing plans, business plans, and legal evaluations.

• Working Capital – Funds which are used to operate the venture and pay the normal expenses associated with the operation of that venture.  Funds cannot be used to purchase long-term assets.

Unlike most USDA Rural Development programs, there is no population restriction on this grant, so Bernalillo County residents are eligible for funding.

Eligible applicants include:

• Independent producers
• Farmer or rancher cooperatives
• Agricultural producer groups
• Majority-controlled producer based business ventures

In the words of Deputy Agriculture Secretary Kathleen Merrigan, "By creating value-added products, farmers and ranchers can expand economic opportunities, create jobs, and keep wealth in rural communities. These funding opportunities will promote business expansion and entrepreneurship by helping local businesses get access to capital, technical assistance, and new markets for their products and services."

The maximum award amount is $100,000 for planning grants and $300,000 for working capital grants. There is no minimum award amount.  Awards may only be made for planning activities or for working capital expenses, but not for both. Ten percent of available funds are reserved to fund applications submitted by beginning farmers or ranchers and socially disadvantaged farmers or ranchers.

Paper applications must be postmarked and mailed, shipped, or sent overnight no later than August 29, 2011 to be eligible for FY 2011 grant funding. Electronic applications must be received by midnight, Eastern Time, August 29, 2011 to be eligible for FY 2011 funding.  Late applications will not be eligible for FY 2011 assistance. 

More Information:

Official Notice of Funding Availability

USDA Rural Development - New Mexico