USDA programs targets small farms and beginning farmers

Here is a great concept - whether it works is another story. When will someone in Ontario have the guts to develop a program like this?

Wayne Black

http://www.rurdev.usda.gov/rbs/coops/vadg.htm

USDA plans to award approximately $18 million in value-added grants nationwide to farmers and business owners to help them add value to the commodities they produce.

USDA will award planning grants of up to $100,000 and working capital grants of up to $300,000 to successful applicants. Applicants are encouraged to propose projects that use existing agricultural products in non-traditional ways or merge agricultural products with technology in creative ways. Businesses of all sizes may apply, but priority will be given to operators of small to medium-sized farms operating as a family farm — those with average annual gross sales of less than $700,000 — USDA said.

Applicants must provide matching funds equal to the amount of the grant requested. Ten percent of the funding being made available is reserved for beginning and socially disadvantaged farmers or ranchers. An additional 10 percent is reserved for projects involving local and regional supply networks that link independent producers with businesses, and cooperatives that market value-added products.

Replies to This Discussion

Permalink Reply by Andrew Campbell on September 9, 2009 at 6:15am

It is about time Wayne. I would think it should work - as long as there is a solid business plan attached to it. I mean - a grant of up to 400K total would make a big difference to a small or medium sized operation. Now they just need something like this for young farmers who want in the business on some of the traditional commodities as well.

Permalink Reply by Wayne Black on September 9, 2009 at 7:30am

It would make a huge difference for farmers - you are correct. The benefit I see is the support for the "outside the box" thinking that the next generation wants to build and develop while still carrying on with traditional farming. An example I thought of when reading this was using new technology to further process traditional commodities to bring new products such as a bio-fuel process that can be used on farm.
New ideas and creative ideas often come from the younger generation - the generation with little capital.

Wayne

Andrew Campbell said:

It is about time Wayne. I would think it should work - as long as there is a solid business plan attached to it. I mean - a grant of up to 400K total would make a big difference to a small or medium sized operation. Now they just need something like this for young farmers who want in the business on some of the traditional commodities as well.

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