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ValueAdded Producer Grant

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Title: ValueAdded Producer Grant


1
Value-Added Producer Grant
  • J. Craig Scroggs
  • USDA Rural Development
  • Business Cooperative Specialist

April 11, 2007 Macon, GA
2
Outline
  • Application Criteria
  • Scoring
  • Grant Preparation
  • Forms
  • Questions

3
Notice of Funding Availability
  • Published in the Federal Register on April 17,
    2007
  • Funding level is 19.475 million
  • Application deadline is 30 days after the Funding
    Notice is published May 16, 2007

4
What is Value-Added?
  • The incremental value that is realized by the
    producer from an agricultural commodity or
    product as the result of
  • (1) A change in its physical state,
  • (2) Differentiated production or marketing, as
    demonstrated in a business plan
  • (3) Product segregation
  • (4) The economic benefit realized from the
    production of farm or ranch-based renewable
    energy.
  • Incremental value may be realized by the
    producer as a result of either an increase in
    value to buyers or the expansion of the overall
    market for the product.

5
What is Value Added?
6
What is Value Added?
7
What is Value Added?
8
What is Value Added?
9
What is Value Added?
10
Application Processing
  • Eligibility
  • Completeness
  • Scoring

11
Eligibility
  • Applicant eligibility
  • Product eligibility
  • Activity eligibility
  • Other eligibility requirements

12
Applicant Eligibility
  • Independent Producer
  • Cooperative
  • Agricultural Producer Group
  • Majority-Controlled Producer-Based Business
    Venture

13
Applicant Eligibility
  • Independent Producer
  • Agricultural producers, include individuals,
    LLCs, partnerships, where the entity is solely
    owned or controlled by producers who own a
    majority interest in the product that is
    produced.
  • A steering committee composed of agricultural
    producers in the process of organizing an
    association to operate a value-added venture.

14
Applicant Eligibility
  • Farmer or Rancher Cooperative
  • A business incorporated under state cooperative
    or corporation statutes that is farmer or ranched
    owned, farmer or rancher controlled, and benefits
    are returned to the farmer or rancher owner on
    the basis of patronage of the cooperative.
    Cooperatives must propose ventures that are
    entering emerging markets.

15
Applicant Eligibility
  • Agricultural Producer Groups
  • Any organization that represents independent
    producers such as a producer trade association or
    a state or national commodity group. Agricultural
    Producer Groups must propose ventures that are
    entering emerging markets.

16
Applicant Eligibility
  • Majority-Controlled Producer Based Business
    Ventures
  • A corporation, LLC, LLP, or other type of
    business structures where producers have more
    than 50 percent ownership and control of the
    entity. Majority-Controlled Producer Based
    Business Ventures must propose project activities
    that are entering emerging markets.

17
What is an emerging market?
  • An emerging market is a new or developing market
    for the applicant. That is, a market the
    applicant has not traditionally supplied. The
    venture must be focused on this new or developing
    market.

18
Product Eligibility
  • Change in physical state (e.g. wheat into flour,
    fresh tomatoes into diced)
  • Differentiated production or marketing (e.g.
    organic) - must reference a business plan
    (working capital only)
  • Product segregation (e.g. non-GMO corn)
  • Farm-based renewable energy (bio-diesel, ethanol,
    methane)

19
What is a change in physical state?
Product Eligibility
  • What is the raw commodity that will be used?
  • What is the process used to add value?
  • What is the Value-Added product that will be
    marketed?
  • What is the incremental increase in value
    attributed to the change in physical state?
  • If planning application, the applicant must
    estimate this number.
  • If working capital application, the applicant
    must quote from the Feasibility Study and
    Business Plan.

20
What is differentiated production or marketing?
Product Eligibility
  • What is the raw commodity that will be used?
  • What is the process used to add value?
  • What is the Value-Added product that will be
    marketed?
  • What is the incremental increase in value
    attributed to the differentiated production or
    marketing (i.e. what is the difference between
    the value of the product to be marketed and one
    produced/marketed in the standard manner)?
  • If working capital application, the applicant
    must quote from the FS and BP.

21
What is product segregation?
Product Eligibility
  • What is the raw commodity that will be used?
  • What is the process used to add value? This
    description must include a description of the
    physical barrier (i.e. distance or structure)
    that separates the commodity during production,
    processing, and marketing.
  • What is the Value-Added product that will be
    marketed?
  • What is the incremental increase in value
    attributed to the product segregation (i.e. what
    is the difference between the value of the
    product to be marketed and one produced and
    marketed without segregation)?
  • If planning application, the applicant must
    estimate this number.
  • If working capital application, the applicant
    must quote from the FS and BP.

22
What is on-farm or on-ranch renewable energy?
Product Eligibility
  • What is the raw commodity/element that will be
    used?
  • What is the process used to add value?
  • What is the Value-Added product (i.e. Renewable
    Energy) that will be marketed or used?
  • Will the renewable energy be generated on a farm
    or ranch owned/leased by the owners of the
    venture?
  • Do the owners produce an agricultural commodity
    on the farm or ranch?

23
Examples of Products Approved
  • Milk into butter and cheese
  • Corn into ethanol
  • Grapes into wine
  • Wheat into pasta
  • Shelled peanuts
  • Organic vegetables
  • Olive Oil
  • Citrus juices
  • Grass-fed Beef

24
Activity Eligibility
  • Planning Activities (e.g. feasibility study,
    business plan, marketing plan)
  • Maximum Grant - 100,000
  • Working Capital (e.g. labor, inventory,
    advertising, supplies, utilities)
  • Maximum Grant - 300,000
  • Grant funds can only pay up to 50 of the costs
    of the eligible activity.

25
What grant period is eligible?
  • Time frame - Does the work plan show that the
    Project will have a timeframe of one year or
    less?
  • Start date - Does the work plan show that the
    Project will begin by the date specified in the
    NOSA?
  • End date - Does the work plan show that the
    Project will end by the date specified in the
    NOSA?

26
Planning Grant
  • May be used to
  • Develop a business plan
  • Develop a feasibility study
  • Establish a marketing plan

27
Working Capital
  • May be used to
  • Establish a working capital account to fund
    operations
  • Hire counsel to provide legal advice
  • Hire a CPA to design an accounting system
  • Pay salaries, utilities and other operating costs
    (i.e. inventory, office equipment, supplies,
    computers)

28
Grant Limitations
  • Funds cannot be used for
  • Buy or build a facility
  • Buy or lease machinery or equipment
  • Pay for architectural drawings for a facility
  • Do repairs to a facility
  • Pay any expenses incurred prior to receiving a
    grant
  • Preparation of the grant package
  • Lobbying

29
Other Eligibility Requirements
  • Sufficient information to determine eligibility
  • Responsive to submission requirements
  • Complete application
  • Only one application funded per applicant
  • Only one planning grant and/or one working
    capital grant per recipient
  • Any previous grant must expire within 90 days of
    expected award date
  • Request cannot be for more than 300,000
  • Funds must be used within one (1) year

30
Application Requirements
31
Completeness
  • Forms (SF-424, SF-424A, SF-424B)
  • Survey on Ensuring Equal Opportunity (non-profits
    only)
  • Table of Contents
  • Title Page
  • Executive Summary
  • Eligibility Discussion
  • Proposal Narrative
  • Verification of Matching Funds

32
Completion of SF 424
33
Insert Date submitted
X
Applicants Legal Name
DUNS Number needed for all except individuals
Complete
Complete
Needed
L. Individual M. Profit Corp. O. Non-Profit
X
Rural Business Cooperative Service
34
10-352
Value Added Producer Grant
Insert short description of project.
Local city, county, region or state
Insert anticipated dates, usually 10-1 9-30
Where project is located
Where applicant is located
Amount of grant
Applicants Matching funds
Contributions from others
X
Gross income from products sold processed under
the grant
Complete
Sign
35
DUNS Number
  • New regulations taking affect Oct. 1, 2003
    mandate that a DUNS number be provided on all
    federal grant and cooperative agreement
    applications. The DUNS number will offer a way
    for the federal government to better match
    information across all agencies.
  • The DUNS number is a unique nine-character
    identification number provided by the commercial
    company Dun Bradstreet (DB). You may call DB
    at 1-866-705-5711 to register and obtain a DUNS
    number. The process to request a DUNS number
    takes about 10 minutes and is free of charge.

36
DUNS Number
  • Use the following instructions to navigate
    through the voice prompts
  • Enter "3" to register your business and obtain a
    DUNS number
  • Enter "2" for assistance
  • Enter "1" to create a new listing
  • Enter "1" for Federal Registration. At this
    point, a service representative will answer, and
    suggest that you buy the Credit Builder Service.
    This is not necessary to do business with the
    Government. If you want to do business with other
    vendors outside the government, this is an
    optional service that allows you to do business
    using a line of credit.

37
DUNS Number
  • Individuals who would personally receive a grant
    from the Federal government apart from any
    business or non-profit organization they may
    operate are exempt from this requirement.

38
State Clearinghouse (Executive Order 12372)
  • Clearinghouse approval is needed for projects
    involving construction, renovation, or
    rehabilitation that will involve state funds or
    for those projects that will have a state-wide
    impact.
  • Intergovernmental Review is waived in certain
    cases that involve technical assistance,
    equipment purchases, or other miscellaneous
    issues i.e. refinancing, inventory, or working
    capital. 
  • The Georgia State Clearinghouse is managed by
    Barbara Jackson.  Her phone number is
    404-656-3855.  The web site for the Clearinghouse
    is http//www.opb.state.ga.us/SC20Web20Page201/
    testfsp.html. 

39
VAPG
10-352
Blank
Grant
Match
Feasibility Study
Business Plan
Marketing
All costs, both grant and matching funds, should
be included here
20,000
20,000
20,000
60,000
40
List matching contributors and amounts
25,000
25,000
5,000
5,000
30,000
10,000
10,000
10,000
30,000
30,000
10,000
10,000
10,000
60,000
20,000
20,000
20,000
None
41
Signature
Title
Organization
42
Proposal Supporting Documentation
43
Executive SummaryApplication for Planning
Grantor Working Capital
  • The executive summary (must not exceed one page)
    must include the title of the project,
    description of the project (including goals and
    tasks to be accomplished), names of the
    individuals responsible for conducting and
    completing the tasks, and the expected timeframe
    for completing all tasks (not to exceed one
    year).

44
Eligibility
  • Not to exceed 4 pages. Items to be included
  • Applicant Eligibility
  • Describe how you meet the definition of an
    independent producer, agricultural producer
    group, farmer or rancher cooperative, or
    majority-controlled producer-based business
    venture.
  • Describe all organizations that are involved in
    the project.
  • Agricultural Producer Groups must identify the
    group of independent producers on whose behalf
    the work will be done.
  • State percentage of venture that will be owned
    and controlled by independent producers.
  • Product Eligibility
  • Discuss the value-added product to be produced.
  • Purpose Eligibility
  • Discuss how the project purpose is eligible for
    funding.

45
Proposal Narrative
  • Not to exceed 35 pages.
  • Other suggestions
  • Use 12 point font
  • Adobe Acrobat 5.0 or higher
  • Page Margins 1 all around
  • Black and White no color
  • Printed on one side of paper
  • Fastened by paper clips or rubber bands not
    bound in any way

46
Proposal Narrative
  • Project Title
  • Goals of the Project
  • Performance Evaluation Criteria
  • Proposal Evaluation Criteria

47
Project Title
  • Keep it brief and to the point not to exceed 75
    characters.
  • This title should match the one used on the SF
    424.

48
Goals of the Project
  • Clearly state what the ultimate goal of the
    project is.
  • Describe the value-added venture to be developed.
  • You should also explain how a market will be
    expanded and the degree to which incremental
    revenue will accrue to the benefit of the
    agricultural producer.

49
What does a complete Performance Evaluation
Criteria section include?
Completeness Eligibility
  • Planning applications
  • Is there at least one criterion by which the
    applicants performance under a grant could be
    evaluated?

50
What does a complete Performance Evaluation
Criteria section include?
Completeness Eligibility
  • Working Capital applications
  • Does the application identify a projected
    increase in customer base attributed to the
    project?
  • Does the application identify the projected
    revenue accruing to Independent Producers
    attributed to the project?
  • Does the application identify the projected
    number of jobs attributed to the project?
  • If the application includes a significant energy
    component, does the application identify the
    projected increase in capacity (e.g. gallons of
    ethanol produced annually, megawatt hours
    produced annually) attributed to the project?

51
Performance Evaluation Criteria (Planning)
  • You should suggest criteria by which your
    project will be evaluated in the event that a
    grant is awarded. These criteria will be used by
    USDA in determining the ultimate success of your
    project. These suggestions are not binding on
    USDA but may be used in the review process.

52
Proposal Evaluation Criteria
  • Each evaluation criteria must be addressed
    specifically and individually, in narrative form.
    Any supporting documentation you have for the
    criteria should be included in an Appendix.

53
Evaluation Criteria PlanningIndependent
Reviewers
  • Nature of the Proposed Venture (0-10 points)
  • Qualifications of Those Doing the Work (0-5
    points)
  • Commitments and Support (0-10 points)
  • Project Leadership (0-5 points)
  • Work Plan/Budget (0-10 points)

54
Evaluation Criteria PlanningServicing State
Office
  • Amount Requested (0 or 2 points)
  • Project Cost per Owner-Producer (0-3 points)
  • Business Management Capability (0 to 10 points)
  • Sustainability and Economic Impact (0 to 15
    points)
  • Business Size (0 or 5 points)

55
Evaluation Criteria WCIndependent Reviewers
  • Business Viability (0-10 points)
  • Customer Base/Increased Returns (0-10 points)
  • Commitments and Support (0-5 points)
  • Management Team/Work Force (0-5 points)
  • Work Plan/Budget (0-10 points)

56
Evaluation Criteria Working CapitalServicing
State Office
  • Amount Requested (0 or 2 points)
  • Project Cost per Owner-Producer (0-3 points)
  • Business Management Capability (0 to 10 points)
  • Sustainability and Economic Impact (0 to 15
    points)
  • Business Size (0 or 5 points)

57
Performance Evaluation Criteria (Working Capital)
  • You must identify the projected increase in
  • your customer base
  • revenues accruing to independent producers
  • the number of jobs existing for the venture
  • energy applicants must also report the increase
    in capacity attributed to the grant
  • You may also suggest additional performance
    evaluation criteria (similar to planning grants)

58
Nature of Proposed Venture
  • Describe the project in detail, include
  • the value-added activity
  • any technology you plan on using and its
    availability
  • any examples of existing ventures (if you know of
    any).
  • Discuss expanding markets and increased returns
    to producers (since points will be awarded for
    the greatest expansion of markets and increased
    returns to producers.
  • Make sure you write about how your proposed
    venture will accomplish expanding markets and
    increased returns to producers).

59
Nature of Proposed Venture Planning Purposes
  • Projects will be evaluated for technological
    feasibility, operational efficiency,
    profitability, sustainability and the likely
    improvement to the local rural economy.
  • Discussion should include
  • references to independent, third-party
    information that you have reviewed
  • a discussion of similar projects
  • cost and availability of inputs
  • the type of market where the value-added product
    will be marketed (e.g. local, regional, national,
    international)
  • the potential number of customers
  • the cost of processing the commodity
  • how much value will be added to the raw commodity
    through the production of the value-added product
  • how the added value will be distributed among the
    producers, processors, and any other
    intermediaries
  • any additional non-monetary value that could be
    obtained by end-users of the product.

60
Qualifications of Those Doing the Studies
  • Tell who is doing the project and explain what
    their qualifications are. Talk about any past
    experiences they may have that is important in
    completing this project.. The qualifications of
    the personnel and consultants should be discussed
    directly within this section. Resumes are not
    the best way to document these qualifications.
  • Points will be awarded based on demonstrated
    skills and a successful track record.

61
Qualifications of Those Doing the Studies
  • Proposals will be reviewed for whether the
    personnel who are 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.

62
Commitment and Support
  • Producer commitment will be evaluated based on
    the number of independent producers involved as
    well as potentially involved and the nature,
    level, and quality of the involvement.
  • End-user commitment will be evaluated on the
    basis of potential markets and potential output
    to be produced.

63
Commitment and Support
  • Projects will be reviewed for evidence that they
    have third-party support and endorsement, with
    emphasis on financial, in-kind services and
    technical assistance.
  • Letters of support can be provided with the
    application but they do count against your 35
    page limit.
  • Additional letters can be referenced in the
    application but will not be considered when
    evaluating this criteria.

64
Project Leadership
  • Describe the persons responsible for the project.
    Again, discuss their skills and talents.
    Include education, business experience, financial
    experience, knowledge of the venture and other
    relevant leadership skills. Resumes can be
    attached but will count against the 35 page
    limit.
  • Points will be awarded based on demonstrated
    skills and a successful track record.

65
Project Leadership
  • The leadership abilities of individuals 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.

66
Work Plan/Budget
  • Prepare a budget narrative that specifically
    discusses how you plan to use the grant money and
    the matching money. Describe and justify each of
    the tasks you will work on, the amount of time to
    complete the task, and the order the task will be
    completed in.
  • The budget will need to detail the estimated
    costs associated with the project and the
    specific dollar amount should be allocated to
    each task. Both matching and grant funds must be
    accounted for.

67
Work Plan/Budget
  • The work plan will be reviewed to see if it
    provides specific and detailed planning task
    descriptions that will accomplish the project's
    goals and the budget will be reviewed for a
    detailed breakdown of estimated costs associated
    with the planning activities.
  • Matching funds as well as grant funds must be
    accounted for in the budget to receive points.
  • Applications without a work plan and detailed
    budget will be determined to be incomplete and
    will not be considered for funding.

68
(No Transcript)
69
Amount Requested
  • Points will be awarded based upon the amount of
    grant funds that are requested, as follows
  • Two (2) points will be awarded for grant requests
    of 50,000 or less
  • In addressing this criterion, you should simply
    state the amount requested.

70
Project Cost per Producer that are Owners
  • Divide the Federal requested funds by the total
    number of producers that are owners of the
    venture.
  • Points are based on the largest number of
    producers that are owners benefited for the least
    cost. Points are awarded as follows
  • 1 - 35,000 will get 3 points
  • 35,001 - 70,000 will get 2 point
  • 70,001 - 100,000 will get 1 point
  • Over 100,000 will get 0 points

71
Project Cost per Owner-Producer
  • For independent producers, cooperatives and
    majority-controlled producer-based business
    ventures, the applicant must state the number of
    owners of the venture that are independent
    producers and also owners of the venture.
  • For producer groups, the number used should be
    the number of owners that produce the commodity
    to which value will be added
  • In cases where family members (including husband
    and wife) are owners and producers, each family
    member shall count as one owner-producer.

72
Business Management Capability
  • Applicants must discuss the following items in
    this section
  • Financial Management
  • Procurement Procedures
  • Personnel Policies
  • Property Management System
  • Travel Procedures

73
Business Management Capability
  • Up to two points can be awarded for each
    component of this criterion, based upon the
    appropriateness of the system, procedure or
    policy as it relates to the size and structure of
    the business.
  • Larger, more complex businesses will be expected
    to have more complex systems, procedures and
    policies than small, less complex businesses.

74
Sustainability and Economic Impact
  • Projects will be evaluated based on the expected
    sustainability of the venture and the expected
    impact on the local economy.

75
Business Size
  • Applicants must state the amount of annual gross
    sales for their most recent fiscal year.
  • Applicants having less than 10m in annual sales
    will receive 5 points.
  • Applicants must be able to verify the gross sales
    amount at the time of the award.

76
Administrator Priority Points
  • The Administrator of the Rural Business-Cooperativ
    e Service may award additional points to
    recognize innovative technologies, ensure
    geographic distribution of grants, or encourage
    value-added projects in under-served areas.
  • If you wish to be considered for these points,
    you must submit an explanation of how the
    technology proposed is innovative and/or where
    the project is located, with specific information
    included that verifies the project is in an
    under-served area.
  • If you can describe any of these in your grant do
    so. If not, then you can delete this whole
    section including the heading, Administrator
    Priority Points

77
What are the matching funds requirements?
Matching Funds Eligibility
  • Amount Does the applicant propose matching
    funds of at least 50 of total project costs?
  • Source Are the matching funds provided by the
    applicant or a third-party in the form of cash or
    in-kind funds?
  • Use Does the work plan and budget show that the
    matching funds will be used for eligible
    purposes?
  • Rate Does the work plan and budget show that
    there is a reasonable expectation that matching
    funds will be spent at a rate equal to or greater
    than grant funds?
  • Value Are the matching funds correctly valued?

78
Verification of Matching Funds
  • If you are committing cash as matching funds, you
    must include a copy of a bank statement or a copy
    of the confirmed funding commitment from the
    funding source.
  • In-kind donations must be verified by a signed
    letter from the provider identifying the good or
    service to be donated, the value of the goods or
    service and when the donation will occur.
  • Certification that matching funds will be
    available at the same time grant funds are
    anticipated to be spent and that matching funds
    will be spent at the same rate as grant funds
    throughout the duration of the project is also
    required
  • Documentation should be included in Appendix A to
    your application.

79
Verification of Matching Funds
  • Some of the sources of matching funds are
  • Cash match
  • -Cash thats used toward projects
  • -Salary dollars of person or persons working on
    project (Cash Transaction
  • -Travel expenses to get to meetings or to
    participate in any training
  • -LB 1348 Funds or non-federal funds received
    that have not yet been spent.
  • In-Kind
  • -Donation of office space or meeting rooms.
  • -Donation of person time working on project
    (non-cash transaction)
  • -Value of hours of non-federally funded
    personnel assisting with project. Ex. State
    Department of Ag, other University staff, local
    economic development agencies, volunteer board
    members
  • Donation of inventory to the venture. (Note
    you cannot be paid for the value of the
    inventory.

80
Certification of Matching Funds
  • You 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.
  • Failure to submit this certification will result
    in the application being determined as incomplete
    and it will not be considered for funding.

81
Certification of Matching Funds
  • Statement
  • (Name) 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.

82
Working Capital
83
Proposal Narrative
  • Project Title
  • Information Sheet
  • Goals of the Project
  • Performance Evaluation Criteria
  • Proposal Evaluation Criteria

84
Similarities between Working Capital and Planning
Grants
  • Title Page
  • SF 424
  • Table of Contents
  • Proposal Summary
  • Eligibility
  • Proposal Narrative
  • Project Title
  • Goals of the Project
  • Performance Evaluation Criteria
  • Verification of Matching Funds
  • Certification of Matching Funds

85
Proposal Evaluation Criteria
  • Business Viability
  • Customer Base/Increased Returns
  • Commitment and Support
  • Management Team/Work Force
  • Work Plan/Budget
  • Amount Requested
  • Project Cost per Owner-Producer
  • Business Management Ability
  • Sustainability and Economic Impact
  • Business Size
  • Administrator Priority Points

86
Business Viability
  • Describe in detail the technical and economic
    feasibility of the venture, as well as its
    sustainability and efficiency of the operation.

87
Business Viability
  • Proposals will be evaluated on the basis of the
    technical and economic feasibility and
    sustainability of the venture and the efficiency
    of operations.
  • The discussion for this criterion should include
    the agricultural commodity to which value will be
    added, the process by which value will be added,
    and a description of the value-added product
    produced.

88
Customer Base/Increased Returns
  • Describe how the customer base for the product
    being produced will expand because of the
    value-added venture. Provide documented
    estimates of this expansion.
  • Describe how a greater portion of the revenue
    derived from the venture will be returned to the
    producers that are owners of the venture
  • You should also reference your financial
    statements that were submitted.

89
Customer Base/Increased Returns
  • Proposals that demonstrate strong 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

90
Customer Base/Increased Returns (WC)
  • Applicants should reference the pro forma
    financial statements that were prepared for the
    venture. These statements should include an
    explanation of all assumptions, such as input
    prices, finished product prices, and other
    economic factors used to generate the financial
    statements. The financial statements must
    include cash flow statements, income statements,
    and balance sheets.

91
Commitment and Support
  • Producer commitment will be evaluated based on
    the number of independent producers involved as
    well as potentially involved and the nature,
    level, and quality of the involvement.
  • End-user commitment will be evaluated on the
    basis of potential markets and potential output
    to be produced.

92
Commitment and Support
  • Projects will be reviewed for evidence that they
    have third-party support and endorsement, with
    emphasis on financial, in-kind services and
    technical assistance.
  • Letters of support can be provided with the
    application, however they will count against your
    35 page limit.
  • Additional letters can be referenced in the
    application but will not be considered when
    evaluating this criteria.

93
Management Team/Work Force
  • Describe in detail the qualifications of the
    individual who will manage and operate the
    venture.
  • Discuss the education and experience of the
    management team, especially their experience in
    managing similar ventures.
  • Describe in detail the availability and quality
    of the labor force needed to operate the
    value-added venture.

94
Amount Requested
  • Applicants requesting a grant of less than
    150,000 will receive two (2) extra points.
  • You should simply state the amount being
    requested.

95
Project Cost per Owner-Producer
  • 1 - 100,000 - 3 Points
  • 100,001 - 200,000 - 2 Points
  • 200,001 - 300,000 - 1 Point
  • Does not address - 0 Points

96
Work Plan/BudgetBusiness Management
CapabilitySustainability and Economic
Impact Administrator Priority Points
  • Same as the planning grant

97
Evaluation Process
98
Funding Decisions
  • The Administrator of RBS makes the final funding
    decisions
  • Applications will be funded in rank order until
    all available funds are expended

99
VAPG Awards in Georgia
  • Farmers Oilseed Cooperative - 149,000
  • Georgia Pecan Commission - 25,000
  • Concordia, LLC - 15,000
  • Winegrowers Assn. Of GA - 18,973
  • Paulk Vineyards - 126,350
  • American Peanut Growers - 250,000
  • Green Hill Dairy - 15,000
  • Tifton Quality Peanuts - 150,000
  • Will Harris White Oak Pastures - 149,904

100
Application Submission
  • Applications should be submitted to
  • Cooperative Programs
  • ATTN VAPG Program
  • Mail Stop 3250
  • Room 4016-South
  • 1400 Independence Ave. SW
  • Washington, D.C. 20250-3250
  • Electronic submissions www.grants.gov

101
Useful Links
  • Program Website
  • http//www.rurdev.usda.gov/rbs/coops/vadg.htm
  • http//www.rurdev.usda.gov/ga/vadg.htm
  • Federal Register
  • http//www.gpoaccess.gov/fr/index.html
  • Code of Federal Regulations
  • http//www.gpoaccess.gov/cfr/index.html
  • Office of Management and Budget
  • http//www.whitehouse.gov/omb/
  • Agricultural Marketing Resource Center
  • http//www.agmrc.org
  • Center for Agribusiness and Economic Development
  • http//www.caed.uga.edu/

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Questions?
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J. Craig Scroggs111 E. Spring St.Monroe, GA
30655770-267-1413 ext. 113craig.scroggs_at_ga.usda.
gov
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