[Federal Register Volume 67, Number 121 (Monday, June 24, 2002)]
[Notices]
[Pages 42531-42538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15910]
[[Page 42531]]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Notice of Funds Availability (NOFA) Inviting Applications for the
Value-Added Agricultural Product Market Development Grant Program
(VADG) (Independent Producers)
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: The Rural Business-Cooperative Service (RBS) announces the
availability of approximately $33 million in competitive grant funds
for fiscal year 2002 to help independent agricultural producers enter
into value-added activities. RBS hereby requests proposals from
eligible 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) Developing feasibility studies or
business plans (including marketing plans or other planning activities)
needed to establish a viable value-added marketing opportunity for an
agricultural product; or (2) acquiring working capital to operate a
value-added business venture or an alliance that will allow the
producers to better compete in domestic and international markets. In
order to provide program benefits to as many eligible applicants as
possible, applications can only be for one or the other of these two
activities, but not both.
Value-added products are defined as follows: (1) A change in the
physical state or form of the product (such as milling wheat into flour
or making strawberries into jam); (2) the production of a product in a
manner that enhances its value, as demonstrated through a business plan
(such as organically produced products); (3) the physical segregation
of an agricultural commodity or product in a manner that results in the
enhancement of the value of that commodity or product (such as an
identity preserved marketing system). As a result of the change in
physical state or the manner in which the agricultural commodity or
product is produced or segregated, the customer base for the commodity
or product is expanded and a greater portion of revenue derived from
the marketing, processing, or physical segregation is made available to
the producer of the commodity or product. Value-added also includes
using any agricultural product or commodity to produce renewable energy
on a farm or ranch.
The maximum award per grant is $500,000. In order to maximize the
distribution of program benefits, smaller grant requests under $500,000
will receive priority points. Priority is also being given to projects
producing energy from biomass or demonstrating profitable use of
innovative technologies.
DATES: Applications must be completed and submitted to the appropriate
State USDA Rural Development office as soon as possible, but no later
than 4:00 pm on August 8, 2002. Applications received after August 8,
2002 will not be considered. Late applications will not be accepted and
will be returned to the applicant. Applicants must ensure that the
service they use to deliver their applications can do so by the
deadline. Due to recent security concerns, packages sent to the agency
by mail have been delayed several days or even weeks.
ADDRESSES: Submit proposals and other required materials to your State
USDA Rural Development Office. RBS is strongly encouraging the
electronic submission of proposals. If proposals are electronically
submitted, signed paper copies of the three required forms, SF-424
``Application for Federal Assistance,'' SF-424A ``Budget Information--
Non-Construction Programs,'' and SF-424B ``Assurances--Non-Construction
Programs,'' need to be mailed to the state office. A list of Rural
Development State Offices, addresses, e-mail addresses, and telephone
numbers follows.
Note: Telephone numbers listed are not toll free.
U.S. Department of Agriculture Rural Development State Offices
Alabama
Chris Harmon, USDA Rural Development, Sterling Center, Suite 601,
4121 Carmichael Road, Montgomery, AL 36106-3683, (334) 279-3415,
[email protected]
Alaska
Dean Stewart, USDA Rural Development, 800 West Evergreen, Suite 201,
Palmer, AK 99645, (907) 761-7722, [email protected]
Arizona
Gary Mack, USDA Rural Development, 3003 North Central Avenue, Suite
900, Phoenix, AZ 85012, (602) 280-8717, [email protected]
Arkansas
Tim Smith, USDA Rural Development, 700 West Capitol Avenue, Room
3416, Little Rock, AR 72201-3225, (501) 301-3200,
[email protected]
California
Karen Spatz, USDA Rural Development, 430 G Street, Agency 4169,
Davis, CA 95616, (530) 792-5829, [email protected]
Colorado
Leroy W. Cruz, USDA Rural Development, 655 Parfet Street, Lakewood,
CO 80215, (720) 544-2926, [email protected]
Delaware-Maryland
Vincent F. Murphy, USDA Rural Development, 4607 South DuPont
Highway, Camden, DE 19934, (302) 697-4323, [email protected]
Florida/Virgin Islands
Joe Mueller, USDA Rural Development, 4440 NW. 25th Place,
Gainesville, FL 32606, (352) 338-3482, [email protected]
Georgia
J. Craig Scroggs, USDA Rural Development, 333 Phillips Drive,
McDonough, GA 30253, (678) 583-0866, [email protected]
Hawaii
Timothy O'Connell, USDA Rural Development, Federal Building, Room
311, 154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313,
[email protected]
Idaho
Dale Lish, USDA Rural Development, 9173 West Barnes Drive, Suite A1,
Boise, ID 83709, (208) 785-5840, ext. 118, [email protected]
Illinois
Cathy McNeal, USDA Rural Development, 2118 West Park Court, Suite A,
Champaign, IL 61821, (217) 403-6210, [email protected]
Indiana
Jerry Hay, USDA Rural Development, 5975 Lakeside Boulevard,
Indianapolis, IN 46278, (812) 346-3411, ext. 4,
[email protected]
Iowa
Jeff Jobe, USDA Rural Development, Federal Building, Room 873, 210
Walnut Street, Des Moines, IA 50309, (515) 284-5192,
[email protected]
Kansas
Larry Carnahan, USDA Rural Development, 115 West Forth Street,
Altamont, KS 67330, (620) 784-5431, [email protected]
Kentucky
Jeff Jones, USDA Rural Development, 771 Corporate Drive, Suite 200,
Lexington, KY 40503, (859) 224-7300, [email protected]
Louisiana
Judy Meche, USDA Rural Development, 3727 Government Street,
Alexandria, LA 71302, (318) 473-7960, [email protected]
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Maine
Alan C. Daigle, USDA Rural Development, 967 Illinois Avenue, Suite
4, Bangor, ME 04402, (207) 990-9168, [email protected]
Massachusetts/Rhode Island/Connecticut
Richard J. Burke, USDA Rural Development, 451 West Street, Suite 2,
Amherst, MA 01002, (413) 253-4318, [email protected]
Michigan
Lee Bambusch, USDA Rural Development, 3001 Coolidge Road, Suite 200,
East Lansing, MI 48820, (517) 324-5216, [email protected]
Minnesota
Robyn J. Holdorf, USDA Rural Development, 375 Jackson Street, Suite
410, St. Paul, MN 55101-1853, (651) 602-7812,
[email protected]
Mississippi
Cecil Williams, USDA Rural Development, Federal Building, Suite 831,
100 West Capitol Street, Jackson, MS 39269, (601) 965-
5457[email protected]
Missouri
Nathan Chitwood, USDA Rural Development, 601 Business Loop 70 West,
Parkade Center, Suite 235, Columbia, MO 65203, (573) 876-9320,
[email protected]
Montana
William W. Barr, USDA Rural Development, 900 Technology Blvd., Suite
B, Bozeman, MT 59717, (406) 585-2545, [email protected]
Nebraska
Deb Yocum, USDA Rural Development, Federal Building, Room 152, 100
Centennial Mall North, Lincoln, NE 68508, (402) 223-3125, ext. 4,
[email protected]
Nevada
Dan Johnson, USDA Rural Development, 2002 Idaho Street, Elko, NV
89801, (775) 738-8468, ext. 28, [email protected]
New Hampshire
Scott D. Johnson, USDA, Rural Development, City Center, 3rd Floor,
80 Main Street, Montpelier, VT 05602, (603) 223-6034,
[email protected]
New Jersey
Michael P. Kelsey, USDA Rural Development, 5th Floor North Tower,
Suite 500, 8000 Midlantic Drive, Mount Laurel, NJ 08054, (856) 787-
7751, [email protected]
New Mexico
Eric Vigil, USDA Rural Development, 6200 Jefferson Street, NE, Room
255, Albuquerque, NM 87109, (505) 761-4952, [email protected]
New York
Robert Pestridge, USDA Rural Development, The Galleries of Syracuse,
441 South Salina Street, Suite 357, Syracuse, NY 13202, (315) 477-
6426, [email protected]
North Carolina
Ms. Delane Johnson, USDA Rural Development State Office, 4405 Bland
Road, Suite 260, Raleigh, NC 27609, (919) 873-2033,
[email protected]
North Dakota
Dennis Rodin, USDA Rural Development, Federal Building, Room 211,
220 East Rosser Avenue, Bismarck, ND 58501, (701) 530-2065,
[email protected]
Ohio
Deborah E. Rausch, USDA Rural Development, Federal Building, Room
507, 200 North High Street, Columbus, OH 43215, (614) 255-2425,
[email protected]
Oklahoma
Sally Vielma, USDA Rural Development, 100 USDA, Suite 108,
Stillwater, OK 74074, (405) 742-1000, [email protected]
Oregon
Robert F. Haase, USDA Rural Development, 625 Salmon Avenue, Suite 5,
Redmond, OR 97756, (541) 926-4358, ext. 124, [email protected]
Pennsylvania
Linda C. Hager, USDA Rural Development, One Credit Union Place,
Suite 330, Harrisburg, PA 17110, (717) 237-2287,
[email protected]
Puerto Rico
Mr. Luis Garcia, USDA Rural Development State Office, Munoz Rivera,
Number 654, IBM Plaza, Suite 601, San Juan, Puerto Rico 00918, (787)
766-5095, ext. 239, [email protected]
South Carolina
Ms. Debbie Turberville, USDA Rural Development State Office, Strom
Thurmond Federal Building, 1835 Assembly Street, Suite 1007,
Columbia, SC 29201, (843) 354-9613, [email protected]
South Dakota
Gary L. Korzan, USDA Rural Development, Federal Building, Room 210,
200 4th Street, SW., Huron, SD 57350, (605) 352-1142,
[email protected]
Tennessee
Dan Beasley, USDA Rural Development 3322 West End Avenue, Suite 300,
Nashville, TN 37203, (615) 783-1341, [email protected]
Texas
Billy curb, USDA Rural Development, Federal Building, Suite 102, 101
South Main, Temple, TX 76501, (254) 742-9700, [email protected]
Utah
Richard Carring, USDA Rural Development, Wallace F. Bennett Federal
Building, 125 South State Street, Room 4311, Salt Lake City, UT
84147-0350, (801) 524-4328, [email protected]
Vermont/New Hampshire
Michael R. Dolce, USDA Rural Development, City Center, 3rd Floor, 89
Main Street, Montpelier, VT 05602, (802) 775-7014 ext. 20,
[email protected]
Virginia
Laurette Tucker, USDA Rural Development, Culpeper Building, Suite
238, 1606 Santa Rosa Road, Richmond, VA 23229, (804) 287-1594,
[email protected]
Washington
John Brugger, USDA Rural Development, 1606 Perry Street, Suite E,
Yakima, WA 98908, (509) 924-7350, ext. 114, [email protected]
West Virginia
Mr. John M Comerci, USDA Rural Development, 481 Ragland Road,
Beckley, WV 25801, (304) 252-8644, ext. 165,
[email protected]
Wisconsin
Barbara Brewster, USDA Rural Development, 4949 Kirschling Court,
Stevens Point, WI 54481, (715) 345-7610,
[email protected]
Wyoming
Janice Stroud, USDA Rural Development, 100 East B Street, Room 1005,
Casper, WY 82601, (307) 261-6318, [email protected]
FOR FURTHER INFORMATION CONTACT: For further information contact your
USDA State Rural Development Office. You may also obtain information
from the RBS website at: www.rurdev.usda.gov/rbs/coops/vadg.htm.
SUPPLEMENTARY INFORMATION:
Background
This solicitation is issued pursuant to section 231 of the
Agriculture Risk Protection Act of 2000 (Pub. L. 106-224) as amended by
section 6401 of the Farm Security and Rural Investment Act of 2002
(Pub. L. 107-171) authorizing the establishment of the Value-Added
Agricultural Product Market Development grants. The Secretary of
Agriculture has delegated the program's administration to USDA's Rural
Business-Cooperative Service.
The primary objective of this grant program is to help eligible
independent producers of agricultural commodities, agricultural
producer groups, farmer and rancher cooperatives, and majority-owned
producer-based business ventures develop business plans for viable
marketing opportunities and develop strategies to create marketing
opportunities. Eligible agricultural producer groups, farmer and
rancher cooperatives, and majority-controlled
[[Page 42533]]
producer-based business ventures must limit their proposals to emerging
markets. These grants will facilitate greater participation in emerging
markets and new markets for value-added products. Grants will only be
awarded if projects or ventures are determined to be economically
viable and sustainable.
This grant program has a matching funds requirement. Applicants
must provide matching funds at least equal to the grant. Other Federal
grants cannot be used as matching funds. Grant funds and matching funds
must be spent proportionately during the timeframe stated in the grant
application. Grant funds will be disbursed pursuant to applicable
provisions of 7 CFR parts 3015 and 3019. Matching funds must be used to
support the overall purpose of the VADG program.
Definitions
Agency--The Rural Business-Cooperative Service (RBS) or its
successor.
Agricultural Producer Group--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 into emerging markets.
Agricultural Product--Plant and animal products and their by-
products to include fish and seafood products and forestry products.
Emerging Markets--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.
Farmer or Rancher Cooperative--A duly recognized farmer or rancher
cooperative in good standing under State law. Farmer or rancher owned
cooperatives must propose ventures that are entering into emerging
markets.
Independent Producer--A producer of agricultural commodities or
products including those products from aquaculture, fish harvesting,
and wood lot enterprises. This can be an individual producer; or a
producer owned corporation, LLC, or LLP solely owned by producers. An
independent producer can also be a steering committee composed of
independent agricultural producers in the process of organizing an
association to operate a value-added venture. The venture must be owned
and controlled by the independent producers who are supplying
agricultural product to the market. An independent producer cannot
produce under contract or joint ownership with any organization other
than their own.
Majority-Controlled Producer-Based Business Ventures--A
corporation, LLC, LLP, or other type of business structure where
producers have more than 50 percent of the ownership and control of the
entity. No more than 10 percent of the grant funds will be awarded to
these ventures. Majority-controlled producer-based business ventures
must propose ventures that are entering into emerging markets.
Matching Funds--Cash or confirmed funding commitments. Matching
funds cannot be from another Federal grant. Matching funds must be at
least equal to the grant amount. In-kind contributions as defined at 7
CFR part 3015, subpart G can be used as matching funds. Examples of in-
kind contributions include volunteer services furnished by professional
and technical personnel, donated supplies and equipment, and donated
office space.
National Office--The Rural Business-Cooperative Service (RBS)
office at USDA headquarters in Washington, DC.
Planning--A defined program of economic activities to determine the
viability of a potential value-added venture including feasibility
studies, marketing plans, business plans, and legal evaluations.
State Office--USDA Rural Development offices located in most
states.
Value-Added--(1) Any agricultural commodity or product that has
undergone a change in the physical state or form of the product (such
as milling wheat into flour, slaughtering livestock or poultry, or
making strawberries into jam.) (2) The production of an agricultural
commodity or product in a manner that enhances its value, as
demonstrated through a business plan (such as organically produced
products.) (3) The physical segregation of an agricultural commodity or
product in a manner that results in the enhancement of the value of
that commodity or product (such as an identity preserved marketing
system.) As a result of the change in physical state or the manner in
which the agricultural commodity or product is produced or segregated,
the customer base for the commodity or product is expanded and a
greater portion of revenue derived from the marketing, processing, or
physical segregation is made available to the producer of the commodity
or product. Value-added also includes using any agricultural product or
commodity to produce renewable energy on a farm or ranch.
Working Capital--Funds that are used to operate the venture and pay
the normal expenses associated with the operation of that venture.
Funds cannot be used to purchase or build facilities nor purchase or
install processing equipment.
Recipient and Product Eligibility Requirements
Potential recipients of the grant must be an independent producer,
agricultural producer group, farmer or rancher cooperative, or
majority-controlled producer-based business venture as defined in the
``Definitions'' section of this NOFA. If the applicant is an
agricultural producer group, it must be providing assistance directly
to a specifically identified group of independent producers. Grant
funds cannot be used to support the organization's general operations.
If the applicant is an unincorporated group (steering committee), they
must form a legal entity before grant funds can be disbursed.
The project proposed must involve a value-added product as defined
in the ``Definitions'' section of this NOFA.
Applications without sufficient information to determine their
eligibility will not be considered.
Proposal Preparation
A proposal must contain the following:
1. Form SF-424, ``Application for Federal Assistance.''
2. Form SF-424A, ``Budget Information--Non-Construction Programs.''
3. Form SF-424B, ``Assurances--Non-Construction Programs.''
4. Table of Contents. For ease of locating information, each
proposal must contain a detailed Table of Contents immediately
following the required SF-424 forms. The Table of Contents should
include page numbers for each component of the proposal. Pagination
should begin immediately following the Table of Contents.
5. Proposal Summary. A summary of the Project Proposal, not to
exceed one page, must include the following: 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 (which should normally not exceed one year.) The applicant must
also clearly state whether the application is for a planning grant or a
working capital grant. The application cannot be for both.
6. Eligibility. A detailed discussion, not to exceed two pages,
describing how the applicant meets the definition of an
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independent producer, agricultural producer group, farmer or rancher
cooperative, or majority-controlled producer-based business venture as
outlined in the ``Recipient Eligibility Requirements'' section of this
NOFA. If the applicant is an agricultural producer group, it must
specifically identify the group of independent producers on whose
behalf the work will be done. In addition, the applicant must describe
all organizations other than the applicant that are involved in the
project. Applicants must state the percentage of the venture that will
be owned and controlled by independent producers. No more than 10
percent of program funds can go to ventures that are majority-
controlled producer-based business ventures as defined in the
``Definitions'' section of this NOFA. The applicant must also discuss
the value-added product to be produced including the category of value-
added as defined in the ``Definitions'' section of this NOFA.
7. Proposal Narrative. The narrative portion of the project
proposal, not to exceed 35 pages (Times New Roman, 12 pt.) must include
the following:
i. Project Title. The title of the proposed project must be brief,
not to exceed 75 characters, yet represent the major thrust of the
project.
ii. Information sheet. A separate one page information sheet which
lists each of the evaluation criteria listed in this NOFA under the
``Evaluation Criteria'' section followed by the page numbers of all
relevant material and documentation contained in the proposal which
addresses or supports that criteria.
iii. Goals of the Project. A clear statement of the ultimate goal
of the project must be presented. It must describe the value-added
venture to be developed.
iv. Evaluation Criteria. Each of the evaluation criteria listed in
the ``Evaluation Criteria'' section of this NOFA must be addressed
specifically and individually by category. These criteria should be in
narrative form with any specific supporting documentation. Financial
statements used to support any evaluation criteria will not count as
part of the 35 page limit.
8. Verification of Matching Funds. You must furnish a copy of a
bank statement if matching funds are in cash or a copy of the confirmed
funding commitment from the funding source. If an in-kind match is
included, so state and provide verification of all commitments and how
those commitments are valued. Matching funds (in-kind and cash) must be
included on the SF-424 and SF-424A application forms. Applicants 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
at the same rate as grant funds throughout the duration of the project.
Other Federal grant funds cannot be used as matching funds.
Grant Amounts
The amount of funds available for VADG grants in FY 2002 is
approximately $33 million. The actual number of grants funded will
depend on the quality of proposals received and the amount of funding
requested. The maximum amount of Federal funds awarded for any one
proposal will be $500,000. However, priority points will be given to
grant requests of less than the maximum.
Number of Awards
No one applicant can receive more than one grant for any one
purpose. An applicant cannot receive a grant for planning activities
and a grant for working capital.
Eligible Grant and Matching Funds Uses
Grant funds may be used to pay up to 50 percent of the costs for
carrying out relevant projects. Grant funds and the applicant's
matching funds must be spent at approximately the same rate. The
applicant's matching contribution in cash or in-kind must be in
accordance with applicable provisions of 7 CFR parts 3015 and 3019.
For planning projects, grant and the recipient's matching funds may
be used for, but are not limited to, hiring personnel including
lawyers, accountants and other qualified consultants associated with
the following purposes:
1. Conducting a feasibility analysis of a proposed value-added
venture to help determine the potential success of the venture;
2. Developing a business operations plan that provides
comprehensive details on the management, planning, and other
operational aspects of a proposed venture;
3. Developing a business marketing plan for the proposed value-
added product or products including the identification of a market
window, the identification of potential buyers, a description of the
distribution system, and possible promotional campaigns; or
4. Obtaining legal advice and assistance related to the proposed
venture.
For working capital projects, grant and recipient's matching funds
may be used to establish a working capital account to fund operations.
Funds from this account can be used for, but are not limited to:
1. Hiring an attorney to provide legal advice and to draft articles
of incorporation, bylaws, and other legal documents related to the
proposed venture;
2. Hiring a Certified Public Accountant or other qualified
individuals to design an accounting system for the proposed venture; or
3. Paying salaries, utilities, and other operating costs; financing
inventories; purchasing office equipment, computers, and supplies; and
financing other related activities necessary to establish alliances or
business ventures that allow producers to better compete in domestic or
international markets for value-added products.
Ineligible Grant Uses
Grant and matching funds cannot be used to:
1. Plan, repair, rehabilitate, acquire, or construct a building or
facility (including a processing facility);
2. Purchase, rent, or install fixed equipment including mobile and
other processing equipment;
3. Pay for the preparation of the grant application;
4. Pay expenses not directly related to the funded venture;
5. Fund political or lobbying activities;
6. Pay costs incurred prior to receiving this grant;
7. Fund any activities prohibited by 7 CFR parts 3015 and 3019; and
8. Fund architectural or engineering design work for a specific
physical facility.
9. Grant and Matching funds cannot be used to pay any expenses
related to the production of any commodity or product to which value
will be added.
Methods for Evaluating and Ranking Applications
State office personnel will initially review applications for
eligibility, completeness, and responsiveness to this NOFA. Incomplete
or non-responsive applications will be returned to the applicant and
not evaluated further. If the submission deadline has not expired and
time permits, ineligible applications will be returned to the
applicants for possible revision. The State office will then conduct
one review of all complete and eligible applications based on the
selection criteria specified in the ``Evaluation Criteria'' section of
this NOFA. The National office will then obtain two additional
independent reviews. Points will be assigned based on the evaluation
[[Page 42535]]
criteria. All scored applications will then be forwarded to the
National Office, where the scoring will be reviewed and applications
ranked. Applications will be listed in initial rank order and
presented, along with funding level recommendations, to the
Administrator of RBS, who will award the grants.
Evaluation Criteria
Evaluations of proposals will be based on the following criteria.
Failure to address any one of the following criteria will disqualify
the application. All proposals must be in compliance with this NOFA and
applicable statutes.
Criteria for applications for Planning grants are:
1. Nature of the Proposed Venture (Maximum 5 points). Describe in
detail the proposed venture. This must include the value-added activity
being proposed, the technology to be used and its availability, and
examples of similar ventures. Discuss how the number of end-users for
the product will be increased and how more revenue derived from the
venture will be available to the producer-owners of the venture. Points
will be awarded based on the greatest expansion of markets and
increased returns to producers.
2. Qualifications of Those Doing the Studies (Maximum 5 points).
Describe the education and experience in performing the requested types
of studies, and the success rate for those individuals. Points will be
awarded based on demonstrated skills and a successful track record.
3. Project Leadership (Maximum 5 points). Describe the individuals
who are the members of the steering committee or the individual who is
leading this effort; provide information on education, business
experience, financial experience, knowledge of the venture to be
undertaken, and other relevant information. Points will be based on
demonstrated relevant leadership skills.
4. Commitment (Maximum 5 points). Describe the level of producer
commitment including the number of independent producers currently
involved, the number of potential producers who could become involved,
cash contributions and level of production from the producers. Describe
the potential commitment of end-users of the value-added product to be
produced including possible markets identified and potential buyers
contacted. Describe the commitment from local and state development
organizations, commodity associations, and local political institutions
including technical assistance support and financial support. Higher
producer commitment, higher end-user commitment, and higher local
support will result in more points.
5. Work Plan/Budget (Maximum 5 points). Discuss the specific tasks
to be completed using grant and matching funds. Each task must be
clearly defined and described in detail. The work plan must present the
order the tasks will be undertaken and the estimated time for
completing each task. If a group of producers want a feasibility study
conducted and a business plan drafted, the details of these two tasks
must be presented and discussed. The budget must present a detailed
breakdown of estimated costs associated with the project and allocate
these costs to each of the tasks to be undertaken. Matching funds as
well as grant funds must be accounted for in the budget. It is
important that reviewers understand what is being proposed. Logical,
realistic, and economically efficient plans and budgets will result in
higher scores.
6. Amount Requested. One half (\1/2\) point will be awarded for
grant requests between $450,000 and $350,001, one (1) point will be
awarded for grant requests between $350,000 and $250,001, one and one
half (1\1/2\) points will be awarded to grant requests between $250,000
and $150,001, two (2) points will be awarded for grant requests of
$150,000 or less.
7. Project cost per producer that are owners (Maximum 5 points).
Calculated by dividing the Federal requested funds by the total number
of producers that are owners of the venture. Points will be based on
the largest number of producers that are owners benefited for the least
cost.
8. For those applications proposing ventures that focus on the
Presidential initiative of biomass production, five percent of the
total score of the above seven criteria will be added to calculate the
final score. For example, if an application is proposing to do a bio-
energy project and scores a total of 30 points on criteria one through
seven, 1.5 additional points (30 x .05) will be added making the final
score 31.5.
Administrator priority points--Up to five (5) additional points may
be awarded by the Administrator of RBS to recognize innovative
technologies, insure geographic distribution of grants, or encourage
value-added projects in under-served areas.
Criteria for applications for Working Capital are:
1. Business Viability (Maximum 5 points). Describe in detail the
technical and economic feasibility of the venture. This includes the
organizational structure and operational aspects of the venture.
Discuss how the venture will operate efficiently and be sustainable.
More points will be awarded to those proposals demonstrating the
venture will be efficient and sustainable.
2. Customer Base/Increased Returns (Maximum 5 points). Describe in
detail how the customer base for the product being produced will expand
because of the value-added venture. Provide documented estimates of
this expansion. Describe in detail how a greater portion of the revenue
derived from the venture will be returned to the producer that are
owners of the venture. Provide 3 years of pro forma financial
statements, including 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.
Income statements and cash flow statements must be monthly for the
first year, then annual for the next two years. The balance sheet
should be annual for all three years. The financial statements will not
count as part of the 35 page limit for the narrative section of the
proposal. More points will be awarded to those proposals that
demonstrate the greatest expansion of the customer base and increased
returns to producers.
3. Commitment (Maximum 5 points). Describe in detail producer
commitment to the venture including the number of independent
agricultural producers who will participate in the venture and their
total level of production; financial resources invested in the venture;
and any contracts used between the producer that are owners and the
venture. Discuss the amount of funds raised from the independent
producer that are owners and the use of those funds. Also describe who
will purchase the output of the venture; the amount of output to be
purchased; markets that have been identified and any completed
marketing studies; and any letters of intent or contracts from the
potential end-users. Describe the commitment from local and state
development organizations, commodity associations, and local political
institutions including technical assistance support and financial
support. Do not submit specific contracts, letters of intent, or other
supporting documents at this time. However, be sure to cite their
existence when addressing this criteria. Points will be awarded based
on the greatest level of documented commitment.
4. Management Team/Work Force (Maximum 5 points). Describe in
detail
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the qualifications of the individuals 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. Points will be awarded based on the
greatest demonstrated level of relevant skills and experience.
5. Work Plan/Budget (Maximum 5 points). Discuss the specific tasks
to be completed using grant and matching funds. Each task must be
clearly defined and described in detail. The work plan must present the
order the tasks will be undertaken and the estimated time for
completing each task. The budget must present a detailed breakdown of
estimated costs associated with the project and allocate these costs to
each of the tasks to be undertaken. Matching funds as well as grant
funds must be accounted for in the budget. It is important that
reviewers understand what is being proposed. Logical, realistic, and
economically efficient plans and budgets will result in higher scores.
6. Amount Requested. One half (\1/2\) point will be awarded for
grant requests between $450,000 and $350,001, one (1) point will be
awarded for grant requests between $350,000 and $250,001, one and one
half (1\1/2\) points will be awarded to grant requests between $250,000
and $150,001, two (2) points will be awarded for grant requests of
$150,000 or less.
7. Project cost per producer that are owners (Maximum 5 points).
Calculated by dividing the Federal requested funds by the total number
of independent producers that are owners of the venture. Points will be
based on the largest number of producers that are owners benefited for
the least cost.
8. For those applications proposing ventures that focus on the
Presidential initiative of biomass production, five percent of the
total score of the above seven criteria will be added to calculate the
final score. For example, if an application is proposing to do a bio-
energy project and scores a total of 30 points on criteria one through
seven, 1.5 additional points (30 x .05) will be added making the final
score 31.5.
Administrator priority points--Up to five (5) points may be awarded
by the Administrator of RBS to recognize innovative technologies, to
insure geographic distribution of grants, or to encourage value-added
projects in under-served areas.
Copies of the score sheets will be posted on the VADG program's web
site.
What and Where To Submit
The Agency is strongly encouraging the electronic submission of
proposals to the appropriate USDA Rural Development State Office.
Electronic submissions must be in Microsoft Word, WordPerfect, or Rich
Text Format (RTF). If proposals are electronically submitted, signed
paper copies of the three required forms, SF-424 ``Application for
Federal Assistance,'' SF-424A ``Budget Information--Non-Construction
Programs,'' and SF-424B ``Assurances--Non-Construction Programs,'' need
to be mailed to the state office. For strictly a paper submission, an
original and two copies of the proposal, with all required forms, must
be submitted in one package to the appropriate USDA Rural Development
State Office. Do not submit any feasibility studies, marketing plans,
or business plans at this time. Please refer to the list above for the
address and e-mail of your State Office. Applications sent by facsimile
will not be accepted.
When To Submit
The deadline for receipt of all applications is August 8, 2002. The
Agency will not consider any application received after the deadline.
Grantee Requirements
Grantees will be required to do the following:
1. Sign a Value-Added Agricultural Product Market Development Grant
Agreement similar to the one published at the end of this NOFA.
2. Sign required Federal grant-making forms including Form AD-1047,
``Certification Regarding Debarment, Suspension, and Other
Responsibility Matters-Primary Covered Transactions;'' Form AD-1048,
``Certification Regarding Debarment, Suspension, Ineligibility and
Voluntary Exclusion-Lower Tier Covered Transactions;'' Form AD-1949,
``Certification Regarding a Drug-Free Workplace Requirements
(Grants);'' and Form RD 400-4, ``Assurance Agreement (Civil Rights).''
3. If the grant and matching funds are to be used as working
capital, submit a feasibility study and business plan demonstrating the
new venture is feasible and likely to be economically sustainable.
These documents are to be submitted to the appropriate USDA Rural
Development State Office. The plans must include 3 years of pro forma
financial statements, including an explanation of assumptions used to
generate the financial statements. The financial statements must
include cash flow statements, income statements, and balance sheets.
Income statements and cash flow statements must be monthly for the
first year, then annual for the next two years. The balance sheet
should be annual for all three years. These studies are not to be
submitted with the application. No funds will be released until these
documents have been received and approved.
4. If requested by the USDA Rural Development State Office, submit
copies of any contracts, letters of intent, or other documents cited in
addressing any of the various ``evaluation criteria''. If such a
request is made, no funds will be released until those documents have
been received and approved.
5. Use Standard Form 270, ``Request for Advance or Reimbursement''
to request advances and reimbursements. Requests are to be submitted on
a monthly basis.
6. Submit a Standard Form 269, ``Financial Status Report'' and list
expenditures according to agreed upon budget categories on a semi-
annual basis. Reports are due by April 30 and October 30 after the
grant is awarded.
7. Submit semi-annual performance reports which compare
accomplishments to the objectives; if established objectives are not
met, discuss problems, delays, or other problems that may affect
completion of the project; establish objectives for the next reporting
period; and discuss compliance with any special conditions on the use
of awarded funds.
8. Upon completion of each task outlined in the proposal, grant
recipients will deliver the results of the study or activity to the
appropriate state office, accompanied by all applicable supporting
data. These include, but are not limited to, feasibility studies,
marketing plans, business plans, articles of incorporation and bylaws,
and an accounting of how working capital funds were spent. All items
delivered to the state offices will be held in confidence to the extent
permitted by law.
9. Maintain a financial management system that is acceptable to the
Agency.
10. Collect and maintain data on race, sex, and national origin of
Grantee's membership/ownership.
11. Submit a final project performance report.
Other Federal Statutes and Regulations That Apply
Several other Federal statutes and regulations apply to proposals
considered for review and to grants awarded. These include but are not
limited to:
7 CFR part 15, subpart A--Nondiscrimination in Federally-
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Assisted Programs of the Department of Agriculture-Effectuation of
Title VI of the Civil Rights Act of 1964;
7 CFR part 3015--Uniform Federal Assistance Regulations;
7 CFR part 3017--Governmentwide Debarment and Suspension
(Nonprocurement) and Governmentwide Requirements for Drug-Free
Workplace (Grants);
7 CFR part 3018--New Restrictions on Lobbying;
7 CFR part 3019--Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals, and Other
Non-Profit Organizations; and
7 CFR part 3052--Audits of States, Local Governments, and Non-
Profit Organizations.
Paperwork Reduction Act
The reporting requirements contained in this notice have been
approved by the Office of Management and Budget (OMB) under Control
Number 0570-0039.
Dated: June 19, 2002.
John Rosso,
Administrator, Rural Business-Cooperative Service.
United States Department of Agriculture Rural Business-Cooperative
Service
Value-Added Agricultural Product Market Development Grant Agreement
(VADG)
This Grant Agreement (Agreement) dated ----------, between ----
------ (Grantee), and the United States of America, acting through
the Rural Business-Cooperative Service of the Department of
Agriculture (Grantor), for $---------- in grant funds under the VADG
program, delineates the agreement of the parties.
NOW, THEREFORE, in consideration of the grant;
The parties agree that:
1. All the terms and provisions of the VADG NOFA and application
submitted by the Grantee for this VADG grant, including any
attachments or amendments, are incorporated and included as part of
this Agreement. Any changes to these documents or this agreement
must be approved in writing by the Grantor.
2. As a condition of the Agreement, the Grantee certifies that
it is in compliance with and will comply in the course of the
Agreement with all applicable laws, regulations, Executive Orders,
and other generally applicable requirements, including those
contained in 7 CFR 3015.205(b), which are incorporated into this
agreement by reference, and such other statutory provisions as are
specifically contained herein. The Grantee will comply with title VI
of the Civil Rights Act of 1964, section 504 of the Rehabilitation
Act of 1973, and Executive Order 12250.
3. The provisions of 7 CFR part 3015, ``Uniform Federal
Assistance Regulations'' and part 3019, ``Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher
Education, Hospitals, and Other Nonprofit Organizations,'' as
applicable are incorporated herein and made a part hereof by
reference.
FURTHER, the Grantee agrees that it will:
1. Not use grant funds or matching funds to plan, repair,
rehabilitate, acquire, or construct a building or facility
(including a processing facility); or to purchase, rent, or install
fixed equipment.
2. Use Grant Funds and matching funds only for the purposes and
activities specified in the proposal approved by the Agency
including the approved budget. Any uses not provided for in the
approved budget must be approved in writing by the Agency in advance
of obligation by the Grantor.
3. Submit a feasibility study, business operations plans, and
other studies and plans required by the Grantor if any part of the
grant will be used to establish a working capital account.
4. Deliver the results of a study or activity to the Grantor
upon completion of each task outlined in the proposal. These
include, but are not limited to, feasibility studies, marketing
plans, business operations plans, articles of incorporation and
bylaws, and accounting of how working capital funds were spent. All
items delivered to the Grantor will be held in confidence to the
extent provided by law.
5. Request any cash advances in the minimum amount needed and
timed to the actual, immediate cash requirements for carrying out
the grant purpose. Standard Form 270, ``Request for Advance or
Reimbursement,'' will be used for this purpose.
6. Submit a Standard Form 269, ``Financial Status Report'' and
list expenditures according to agreed upon budget categories on a
semi-annual basis. Reports are due by April 30 and October 30 after
the grant is awarded.
7. Provide periodic reports as required by the Grantor. A
financial status report and a project performance report will be
required on a semi-annual basis (due April 30 and October 30). The
financial status report must show how grant funds and matching funds
have been used to date and project the funds needed and their
purposes for the next quarter. A final report may serve as the last
semi-annual report. Grantees shall constantly monitor performance to
ensure that time schedules are being met and projected goals by time
periods are being accomplished. The project performance reports
shall include the following:
a. A comparison of actual accomplishments to the objectives for
that period.
b. Reasons why established objectives were not met, if
applicable.
c. Reasons for any problems, delays, or adverse conditions which
will affect attainment of overall program objectives, prevent
meeting time schedules or objectives, or preclude the attainment of
particular objectives during established time periods. This
disclosure shall be accomplished by a statement of the action taken
or planned to resolve the situation.
d. Objectives and timetables established for the next reporting
period.
e. The final report will also address the following:
(i) What have been the most challenging or unexpected aspects of
this program?
(ii) What advice you would give to other organizations planning
a similar program. These should include strengths and limitations of
the program. If you had the opportunity, what would you have done
differently?
(iii) If an innovative approach was used successfully, the
grantee should describe their program in detail so that other
organizations might consider replication in their areas.
8. Collect and maintain data on race, sex, and national origin
of Grantee's membership/ownership.
9. Provide Financial Management Systems which will include:
a. Records that identify adequately the source and application
of funds for grant-supported activities. Those records shall contain
information pertaining to grant awards and authorizations,
obligations, unobligated balances, assets, liabilities, outlays, and
income.
b. Effective control over and accountability for all funds,
property, and other assets. Grantees shall adequately safeguard all
such assets and shall ensure that they are used solely for
authorized purposes.
c. Accounting records supported by source documentation.
d. Grantee tracking of fund usage and records that show matching
funds and grant funds are used in equal proportions. The grantee
will provide verifiable documentation regarding matching fund usage,
i.e., bank statements or copies of funding obligations from the
matching source.
10. Retain financial records, supporting documents, statistical
records, and all other records pertinent to the grant for a period
of at least 3 years after grant closing, except that the records
shall be retained beyond the 3-year period if audit findings have
not been resolved. Microfilm or photocopies or similar methods may
be substituted in lieu of original records. The Grantor and the
Comptroller General of the United States, or any of their duly
authorized representatives, shall have access to any books,
documents, papers, and records of the Grantee's which are pertinent
to the specific grant program for the purpose of making audits,
examinations, excerpts, and transcripts.
11. Not encumber, transfer or dispose of the equipment or any
part thereof, acquired wholly or in part with Grantor funds without
the written consent of the Grantor.
12. Not duplicate other program purposes for which monies have
been received, are committed, or are applied to from other sources
(public or private).
Grantor agrees to make available to Grantee for the purpose of
this Agreement funds in an amount not to exceed the Grant Funds. The
funds will be reimbursed or advanced based on submission of Standard
Form 270.
IN WITNESS WHEREOF, Grantee has this day authorized and caused
this Agreement to be executed by--
[[Page 42538]]
Attest
By---------------------------------------------------------------------
(Grantee)
(Title)----------------------------------------------------------------
UNITED STATES OF AMERICA
RURAL BUSINESS-COOPERATIVE SERVICE
By---------------------------------------------------------------------
(Grantor) (Name) (Title)
[FR Doc. 02-15910 Filed 6-21-02; 8:45 am]
BILLING CODE 3410-XY-P