USDA’s Tenn. Rural Development State Director Mary “Ruth” Tackett today announced the availability of more than $19 million in grant funding nationwide to support the development of value-added agricultural business ventures.  The grant is funded through Rural Development’s Business Program.
 “The Value Added Producer Grant program is designed to help farmers develop businesses that produce and market value-added agricultural products,” Tackett said. “The goal is to help increase the farmer’s customer base and share of the food and agricultural system profit. I encourage Tennesseans who are eligible to contact their local USDA Rural Development Office for assistance.”
To date, the program has funded $116 million in value-added grants for over 750 recipients nationwide, including $20.5 million to develop and market renewable energy projects in 29 states.  Renewable energy projects include biodiesel, ethanol or wind energy production, or the use of biomass to generate energy.
In 2005, U.S. Sen. Lamar Alexander joined Rural Development to present Ethanol Grain Processors, Inc., based in West Tennessee, a $150,000 nationally competitive grant to assist with the development and operation of an innovative value-added business venture which transforms corn into ethanol fuel. In East Tennessee, Appalachian Spring Cooperative – a 100 percent, producer-owned cooperative that markets value-added fruit and vegetable products – received a $39,800 Value-Added Producer Grant to further support the initiative. The cooperative has 80 members currently residing in 14 counties of East Tennessee. 
Grants may be used for planning activities, such as feasibility studies, marketing and business plans needed to establish a viable value-added marketing opportunity for an agricultural product, or to provide working capital for operating a value-added business venture, marketing value-added agricultural products and for farm-based renewable energy projects.  Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures.
Awards will be made on a competitive basis.  Applications must be received no later than March 31, 2006.  Interested applicants are encouraged to contact their local USDA Rural Development office or contact the State Office at 615-783-1300 to complete the application process. Detailed information on program requirements is also available on our web site at http://www.rurdev.usda.gov.
USDA’s Tennessee Rural Development Office is committed to the future of rural communities by assisting with financial and technical assistance through various housing, community and business-cooperative programs.  Further information on Tennessee USDA Rural Development programs or for local Area Office locations, please visit http://www.rurdev.usda.gov/tn.

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