WASHINGTON, June 8, 2004—Agriculture
Secretary Ann M. Veneman today announced the availability of $13.2 million
in grants that will support the development of value-added agriculture business
ventures and support President Bush’s energy plan to develop alternative
sources of renewable energy.
“Since 2001, the Bush Administration
has committed over $100 million to support the development and enhancement
of value-added agricultural investments,” said Veneman. “These
funds will help create new job opportunities in rural communities.”
Veneman said priority consideration will
be given to those grant applications that have at least 51% of project
costs dedicated to planning activities for a bio-energy project. To date,
the Bush Administration has funded $15 million in value-added development
centers and over $85 million in value-added grants, including nearly 70
energy projects. The renewable energy projects involve bio-diesel, ethanol
or wind energy production or the use of bio-mass to generate energy. As
a result of these projects, 669 jobs were created. Additionally, the ethanol
plants have added or will add 679 million gallons per year of capacity
and the bio-diesel plants have added or will add 41 million gallons per
year of capacity.
The Value-Added Producer Grant program
was authorized by the Agriculture Risk Protection Act of 2000 (P.L. 106-224)
and the 2002 Farm Bill (P.L. 107-171). Grants are available to independent
producers, agricultural producer groups, farmer or rancher cooperatives,
and majority-controlled producer-based business ventures interested in
a competitively-awarded grant to fund one of the following two activities:
(1) planning activities needed to establish a viable value-added marketing
opportunity for an agricultural product (e.g. conduct a feasibility study,
develop a business plan, develop a marketing plan); or (2) acquire working
capital to operate a value-added business venture that will allow producers
to better compete in domestic and international markets.
Awards will be made on a competitive basis. Applications must be received no later than July 30, 2004. Detailed information about application and program requirements will be included in the June 15, 2004 publication of the Federal Register.
USDA Rural Development's mission is to deliver programs
in a way that will support increasing economic opportunity and improve
the quality of life of rural residents. As a venture capital entity, Rural
Development provides equity and technical assistance to finance and foster
growth in homeownership, business development, and critical community
and technology infrastructure. Further information on rural programs is
available at a local USDA Rural Development office or by visiting USDA's
web site at http://www.rurdev.usda.gov.
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