|
|
|
|
|
|
|
|
|
Brief Description and Legislative Authority
The Federal-State Marketing Improvement Program (FSMIP) provides matching funds to State Departments of Agriculture and other appropriate State agencies to assist in exploring new market opportunities for food and agricultural products, and to encourage research and innovation aimed at improving the efficiency and performance of the marketing system. Legislative authority for FSMIP is provided under Section 204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.). The law authorizes the Secretary of Agriculture "to make available...allotments to State departments of agriculture, State bureaus and departments of markets,...and other appropriate State agencies for cooperative projects in marketing service and...research... provided that no...allotments be in excess of the amount which such State agency makes available out of its own funds for such research...for any fiscal year....Such allotments shall be covered by cooperative agreements between the Secretary of Agriculture and the cooperating agency." 7 U.S.C. 1623. The relevant legal citation is available at Title 7-Agriculture, Chapter 38-Distribution and Marketing of Agricultural Products: www.access.gpo.gov/congress/cong013.html.
FSMIP is funded by annual appropriations to the Agricultural Marketing Service (AMS), USDA. AMS anticipates that approximately $1.3 million will be available for support for this program in fiscal year (FY) 2004. Approximately 25 to 35 projects are funded each year. The average grant award is $50,000.
Program Scope and Eligibility Requirements
FSMIP funds can be requested for a wide range of marketing projects, including, but not limited to, the following:
- Developing and testing new or
more efficient methods of processing, packaging, handling, storing,
transporting, and distributing food and other agricultural products.
- Assessing customer response
to new or alternative agricultural products or marketing services, and
evaluating potential marketing opportunities for
- Identifying problems and barriers in existing channels of trade and exploring improvements to marketing practices, facilities, or systems to address such problems.
Note that proposals which predominantly involve foreign market development or which are designed to specifically assist individual businesses, including agricultural cooperatives, may be more appropriate for other USDA grant programs.
In accordance with authorizing legislation, FSMIP funds can be allotted to "...State departments of agriculture, State bureaus and departments of markets, State agricultural experiment stations, and other appropriate State agencies..." (7 U.S.C. 1623). State agencies specifically named under the authorizing legislation should assume the lead role in FSMIP projects, and use cooperative or contractual linkages with other agencies, universities, institutions, and producer, industry or community-based organizations, as appropriate. Multi-State projects are encouraged, as long as one State is willing to assume the coordinating role, using appropriate cooperative arrangements with the other States involved.
Requests for FSMIP funds must be matched, at minimum, on a one-to-one basis, from non-Federal sources. The match may consist of cash and/or properly valued, in-kind resources. State appropriations, as well as funds or other resources contributed by farm organizations, trade associations, or other project participants, can be used to satisfy the matching requirement. However, it is essential that the State agency maintains control of the project's objectives, sets policy, and ensures that FSMIP funds are matched appropriately with non-Federal funds.
Generally, FSMIP funds are awarded for a period of one year, although proposals of up to two years' duration will be considered. A proposal that builds on a previous FSMIP project may also be submitted, but the narrative should make clear how the new proposal will compliment previous work. It is generally FSMIP's policy not to fund successive projects beyond a period of three years.
Fiscal Year 2004 Research Priorities
Each year, FSMIP identifies several research priorities for applicants to consider when developing proposals for FSMIP. Although such proposals are particularly encouraged, all other proposals that fall within the scope of topics authorized for study under the 1946 Act will receive equal and full consideration. As in the past, proposals that reflect a collaborative approach between the States, academia, the farm sector and other appropriate entities are of particular interest. We also urge States to consider developing proposals that have regional or national significance. Research priorities for FY 2004 are:
- Market Analysis--collecting
and analyzing unique and relevant economic data and transportation and
marketing statistics relating to targeted domestic and international markets.
- Transportation and Distribution--finding ways to improve efficiency and reduce barriers in local, regional, national and international transportation and distribution systems to promote free movement of U.S. food and agricultural products..
- Competitiveness and New Markets--identifying new opportunities for traditional and non-traditional products and by-products of agricultural production and processing in domestic and international markets. Assessing consumer preferences and consumer response to marketing and labeling claims.
- Quality and Variety--enhancing the value of food and agricultural products through improvements in product quality and traceability. Using technology to address marketing challenges and opportunities such as developing new products and innovative packaging, or improving handling and storage methods.
FSMIP is AMS's point of contact for guidance and assistance in developing proposals, submitting applications, and meeting the administrative and reporting requirements involved in managing a funded project. FSMIP's principal responsibilities are to:
- Convey suggestions or recommendations to the States regarding possible marketing projects, and encourage multi-State or regional marketing projects.
- Help arrange for specialized technical assistance from AMS and other USDA agencies in developing FSMIP proposals and conducting approved projects.
- Establish and conduct appropriate internal review and evaluation procedures for project proposals and funding requests.
- Make recommendations to the AMS Administrator regarding grant awards.
- Review progress reports, final reports, requests for reimbursement and final financial statements.
- Post completed projects on the FSMIP web site, and disseminate project findings at appropriate meetings and conferences.
- Conduct spot reviews of project-related expenditures and assess project activities during on-site visits.
- Help plan and participate in marketing workshops, conferences, and other forums to facilitate interaction among State project leaders, USDA representatives, and industry marketing organizations.
Responsibilities of State Agencies
State agencies bears the primary responsibility for formulating and administering projects, including:
- If appropriate, and to the extent practicable, solicit input from other State or local organizations, producer groups, and/or academia when developing projects.
- If a proposal builds on a previously-funded FSMIP project, be clear in the narrative as to what has been accomplished already and how the new proposal will further the ultimate goals of the project.
- Although FSMIP will consider all proposals that meet the basic requirements, applicants who submit proposals that replicate previous FSMIP-funded work done in another State or under another project should indicate how the new project will add to the general body of knowledge on this topic.
- Ensure that the application is complete and submitted by the announced deadline.
- Ensure that proposals contain sufficient detail as to the need, objectives, work plan, resource requirements, and expected results.
- Provide complete contact information, including and email address, for the State contact responsible for overseeing the project and for the principal investigator.
- In the case of multiple proposals, a State has the option to indicate a priority project or to rank projects in order of priority to the State.
- Monitor the performance of all work plan activities, and ensure that the work is completed within the required time frame. Contact FSMIP if problems arise that will interfere with or delay the work.
- Ensure that both FSMIP and matching funds are used only for activities covered by the approved project and work plan statements.
- Ensure that proper accounting procedures are followed.
- Send FSMIP a copy of any contract or secondary agreement relating to the project.
- Submit semiannual progress reports. No later than 90 days after the expiration date of the cooperative agreement, submit a final report summarizing findings and accomplishments, including quantitative measures of results whenever possible. The final report and any supporting documents should be provided to FSMIP in both hard copy and electronic format.
- Submit quarterly financial reports (SF-270) and, no later than 90 days after the grant expiration date, submit a final financial report (form SF-269A unless there is program income, in which case the SF 269 is required).
- If for any reason the project cannot be completed within the time frame established in the cooperative agreement, contact the FSMIP office within 60 days of the ending date to request a no-cost time extension. A letter from the State contact explaining the need for the extension and specifying a new ending date is required. FSMIP reserves the option to deny an extension of the grant period if the request is submitted after the ending date of the grant.
Application Procedures and Requirements
Federal grant applicants now have the option to apply electronically for grants through a central Federal 'storefront': http://grants.gov . Applicants who apply for a FSMIP grant via the Federal storefront are not required to submit any hard copy documents to FSMIP.
Funding decisions are made on the basis of one round of competition. The deadline for submitting FY 2004 applications is February 13, 2004. Hard copy applications will meet the deadline if postmarked on or before February 13, 2004. For applications submitted via the Federal storefront web site, the date the proposal was received and accepted by the Federal storefront will be considered the postmark date. FSMIP reserves the option to return to the grantee and not consider any proposal postmarked after the February 13, 2004, deadline.
The FSMIP application package consists of Standard Form (SF)-424, Application for Federal Assistance, SF-424A, Budget Information--Non-Construction Programs, a narrative summary and supporting documents. For hard copy applications, submit one unstapled original and one unstapled copy of the application package. The SF-424 must be signed (with an original signature) by an official who has authority to apply for Federal assistance and can assure the availability of the required matching non-Federal resources on behalf of the State agency. Hard copy applications should be sent via express mail because USPS mail sent to Washington DC headquarters is still being treated, resulting in possible delays, loss, and physical damage to enclosures.
Applicants who submit hard copy applications are also encouraged to submit electronic versions of their proposals. Proposals may be transmitted by attachment to an email message addressed to fsmip@usda.gov in one of the following formats: Word (*.doc); WordPerfect (*.wpd); or Adobe Acrobat (*.pdf). Alternatively, a standard 3.5 " HD diskette may be enclosed with the required hard copies of the proposal.
Applicants who apply via http://grants.gov do not have to submit an original signature SF 424 but all other applicants, including those who send electronic files directly to FSMIP without going through the Federal storefront, must submit an original signature SF 424.
Copies of the required application forms (SF 424 and SF 424A) may be requested from FSMIP or can be obtained from local offices of other Federal or State agencies that commonly receive or submit applications for Federal funds. The required forms are also available from the OMB web site at http://www.whitehouse.gov/omb/grants/index.html#forms.
Most information blocks on the required forms are either self-explanatory or
adequately explained in the instructions. However, the following
information or supplemental instructions associated with specific blocks on
forms SF-424 and SF-424A should be used for FSMIP proposals.
|
SF-424 and SF
424A - supplemental instructions |
|
|
Block # |
Instruction |
|
SF-424 #5 |
"Legal Name" and "Address" refer to the State agency submitting the application. "Name of person to be contacted" refers to the State agency employee responsible for the project. |
|
SF-424 #9 |
"Name of Federal Agency" is AMS, USDA. |
|
SF-424 #10 |
"Catalog of Federal Domestic Assistance Number" is 10.156; and "TITLE" is FSMIP. |
|
SF-424 #15 |
"Estimated Funding" categories include:
|
|
SF-424A Section B |
Column (1) - show distribution of FSMIP funds requested
among cost categories. |
Supplemental forms required of grant recipients (NOT applicants) include:
AD1047.pdf
AD1048.pdf
AD1049.pdf
SF-424B.pdf
Narrative Summary and Supporting Documents
A narrative description for each proposal is required. The specific format, style of presentation, and length may vary, depending on the nature of the project and the requirements of the State agency submitting the proposal. Narratives generally range from 10-15 pages, exclusive of supporting documents. The acceptable font size for the narrative is 12-pitch. The narrative should include the following sections:
- Cover page and Abstract--include the names, titles, and roles of the State agency contact and other principal participants, along with an abstract of 200 or fewer words.
- Background and Justification--identify the issue or problem to be addressed and explain why the project is important and timely. Include data that demonstrate the extent of the problem, the number of people or operations affected, and/or potential economic impact if available and relevant to the project. If a proposal builds on a previous FSMIP project, the narrative should make clear how the new proposal will compliment previous work.
- Goal(s) and Objectives--describe the overall goal(s) in one or two statements. List and describe the essential objectives of the project.
- Work Plan--explain briefly how each objective will be accomplished. Include appropriate time lines. Be clear about who will do the work. If collaborative arrangements or subcontracts will be used, specify the role and responsibilities of each.
- Expected Outcome--describe what is to be accomplished and how success will be measured at the conclusion of the project.
- Supplemental Budget Information--provide additional details or explanations, as needed, regarding the specific uses to be made of Federal funds, as well as the sources and uses of matching funds and in-kind resources. Provide a breakdown of how the estimates were derived (for example, show hourly rates and number of hours to be spent on the project by project principals; clearly indicate the particulars of any travel that is essential to the project including mileage, destinations, hotels, etc.). Be clear about who will contribute what to the project.
Letters and/or other evidence of commitment by secondary cooperators, contractors, or resource providers are strongly encouraged. Letters from others who support the project but are not providing matching resources are optional. Brief summaries of experience or qualifications of principal investigators are preferred to lengthy resumes.
To ensure that proposals reach FSMIP in a timely manner, applicants should send hard copy applications via express mail service to FSMIP at the contact address at the end of the web site. FSMIP will send an email confirmation when applications are received in the FSMIP office.
Applications meeting the basic eligibility requirements for FSMIP funding are reviewed and evaluated by subject matter specialists within AMS and elsewhere in USDA or another Federal agency, as appropriate. Proposals must deal with some basic aspect of marketing, include a significant research component, and they must potentially benefit multiple producers or agribusinesses, not just one or a few private entities. Proposals that do not meet these basic requirements will not be considered. As a basis for allocating available funds among competing proposals, AMS is guided by the following criteria:
- The relative need for the proposed activity or the relative importance of the problem to be addressed.
- The benefits likely to be derived from the project in relation to the amount of FSMIP funds requested.
- The level and nature of State and other non-Federal support (including, but not limited to, the required matching funds or in-kind resources) pledged to the project or activity.
- The potential impact of an individual project on other States or on issues of national importance.
- The measures which will be used to evaluate the success of the project.
- Unique and innovative features of the project, particularly if the project is similar to others funded in the past.
Grants will be awarded at the requested amount or, if mutually agreed upon, at a reduced level. Upon announcement of the grant awards, FSMIP will prepare and send cooperative agreements to State agencies for signature by the appropriate official. Grants will likely begin September 1, 2004. Unsuccessful applicants will be contacted by FSMIP and upon request, will receive feedback, advice and/or recommendations with regard to possible revision and resubmission of their proposals.
Restrictions and Limitations on Program Activities and Expenditures
Use of FSMIP and matching funds must conform to the budget submitted with the application as accepted or modified by mutual consent when the proposal is selected for funding. However, it is FSMIP's policy to allow State agencies to shift expenditures from any one cost category or project element to another without obtaining prior approval from FSMIP, provided that the budget for cost categories or project elements is not increased or decreased by more than 20 percent of the total FSMIP grant amount.
Unless otherwise specified in these guidelines or in the cooperative agreement, all expenditures and accounting shall be done in accordance with applicable parts of USDA's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (7 CFR 3015, et. seq. or as they may later be revised) and with successive published regulations, as appropriate. Records of receipts and expenditures of Federal funds must be identifiable within the State accounting system. State agencies also must agree to furnish such records or reports as requested by AMS to document that both the Federal funds and the matching non-Federal funds or in-kind resources have been expended in accordance with terms specified in the approved project cooperative agreement.
See http://www.access.gpo.gov/nara/cfr/waisidx_99/7cfr3016_99.html for applicable regulations.
Following are some specific restrictions:
|
Specific
restrictions |
|
|
Category |
Restriction |
|
Advertising and Promotion |
FSMIP will not approve the used of grant funds for the following activities: · Product advertising through any media, either directly or indirectly, through an advertising agency or other firm.
|
|
Equipment and Facilities |
FSMIP will not approve the use of grant funds for the construction of facilities but, with prior approval from FSMIP, grant funds can be used to pay the cost of building rental. Purchases of supplies and other materials necessary for the effective conduct of an approved project can be paid from the project account. Prior approval is necessary for purchases of equipment costing more than $500. Payments for necessary equipment rentals may be charged to project funds with prior approval from FSMIP. |
|
Salary and Travel |
If State employees work part-time on FSMIP projects, appropriate records must be maintained to document all salary and travel expenses against the project account. FSMIP funds cannot be used to pay salary and travel of employees of trade associations, cooperatives, commodity groups, and other industry organizations, or of State personnel while engaged in managing market orders, cooperatives, or other group endeavors. Commissioners, directors, and secretaries of State departments of agriculture should not charge their salaries and travel to the project account. The only exception is travel to workshops or conferences relating to FSMIP. If they are not working full-time on a FSMIP project, marketing directors and other individuals responsible for FSMIP activities can charge the project account for the pro rata share of their salary and travel devoted to the FSMIP project as long as such charges are documented. |
|
Printing |
Grant funds can be used to cover the cost of printing
reports and publications of results. However, all such publications
should show AMS as a cooperator in the project and bear a statement such as
the following: "State funds for this project were matched with
Federal funds under the Federal-State Marketing Improvement Program of the
Agricultural Marketing Project funds may be used to pay the cost of printing informational leaflets, such as commodity availability reports; grading, packing, and handling manuals; and publications on new uses of agricultural products. |
|
Administrative and Indirect Cost |
Administrative costs attributable to the project may be charged, on a shared basis, to both the Federal and matching funds allocated to the project or may be credited entirely toward the matching funds requirement. FSMIP retains the long-held policy of not paying overhead or indirect charges of either the State agency or its secondary contractors or cooperators from the Federal funds allocated to the project. It is permissible, however, for the State agency to include such charges as part of the matching funds requirement, provided that rates are established in accordance with appropriate cost principles for Federal grant programs. |
|
Political Activity |
Provisions of the Hatch Act (5 U.S.C., pages 1501-1508 and 7324-7328), which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds, apply to FSMIP projects. |
| Program Income |
Program income is gross income earned by a grant recipient from
activities supported by a grant. It includes income in the form of fees
for services performed during the life of the grant, real property, usage or
rental fees, or patent or copyright royalties. FSMIP projects may involve program income. For example, registration fees for a conference held under a FSMIP project would be considered program income. Federal regulations require that the total grant award be reduced by an amount equal to the program income unless written permission is obtained from the grant agency. Acceptable uses of program income that FSMIP may approve include: 1) expanding the project or program; 2) continuing the project or program after the grant or subgrant support ends; 3) supporting other projects or programs that further the broad objectives of the statute; or 4) obtaining equipment or other assets needed for the project or program or for other activities that further the statute's objectives. Applicants should indicate in the grant application if the project is anticipated to generate program income, and if so, it should be factored into the request for Federal funds. |
Progress reports are required at the midpoint of projects approved for one year and at six-month intervals for projects of longer duration. Progress reports should briefly summarize activities performed and milestones achieved for each objective or sub-element of the narrative. Unexpected delays or impediments as well as favorable or unusual developments should be noted. Work to be performed during the succeeding period should be outlined.
A final report of results and accomplishments is due within 90 days following the termination date of the grant. The final report should include the following:
- An outline of the issue or problem.
- How the issue or problem was approached via the project.
- Contribution of public or private agency cooperators.
- Results, conclusions, and lessons learned.
- Current or future benefits to be derived from the project.
- Additional information available (e.g. publications, web sites).
- Contact person for more information.
Reports are required to fulfill the terms of the grant agreement, but they also represent an important vehicle for sharing research findings with Federal and State agencies and the public. To further this goal, the final report should be prepared in a format which can be reproduced for wide print distribution and is suitable for posting on the FSMIP web site. The formats and procedures described in the section Electronic Submission are acceptable.
Requests for Payment and Financial Status Reports
Payments of grant funds must be requested by the State agency using Form SF 270, Request for Advance or Reimbursement. Payment requests are typically approved upon receipt by the FSMIP staff of a SF 270 indicating that the State agency has already expended funds to carry out project. Advances are limited to the minimum amount needed to meet current disbursement needs and should be scheduled so the funds are available to the recipient as close as possible to the actual disbursements. Payments will go to the State agency unless FSMIP receives a written request from the State agency specifying a third party payee.
A final SF 269A Financial Status Report (SF 269 if the project had program income) is required within 90 days following the termination date of the cooperative agreement.
Copies of the referenced forms may be available in the financial offices of State agencies as well as on line (Application Forms). Completed forms are to be signed by the appropriate State official, and submitted to FSMIP by express mail service.
Receiving electronic payment of grant funds is now an option for grantees. In order to process a SF 270 for electronic payment, a VXP number is required. If the State agency does not have a VXP number but would like one, contact the National Finance Center (NFC) at 800-421-0323 and request a Vendor Express Package. NFC will assign a VXP number which should in turn appear on any future SF 270 requests for reimbursement.
In accordance with Federal regulations, States should retain all records relating to the grant for a period of three years from the date the final SF 269A or SF 269 financial status report was submitted to FSMIP.
Janise Zygmont, Staff Officer
Federal-State Marketing Improvement Program
Transportation and Marketing Programs
Agricultural Marketing Service, USDA
1400 Independence Avenue, SW.
Room 4009-South
Washington, DC 20250
Telephone: (202) 720-2704
Fax: (202) 690-4948
E-mail: janise.zygmont@usda.gov
Go Back