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Texas Agriculture Archive

October 3, 2003

Rural development
grants available

By Adam Sims
TFB Intern

Texas producers wishing to add value to their agricultural commodities should check out USDA Rural Development's Agricultural Product Market Development Grant Program (VADG).

The program is an effort to allow farms and ranches nationwide to realize a higher net return and to promote new jobs in rural communities, according to Bryan Daniel, state director, USDA Rural Development.

"Increased net income really has a positive impact on a rural community and leads to further growth and more jobs," Daniel said in a meeting announcing the program in Waco.

VADG has some $27.7 million in funding. Maximum grant available to any single applicant is $500,000.

Two types of projects are funded. First is a feasibility study, to determine if an idea to add extra value to an existing commodity is practical. The second type is a working capital grant—subject to a number of rules and regulations—that can be used for such projects as marketing or hiring help. The working capital grant may not be used to purchase equipment.

The program is not new. Texas producers and cooperatives have received VADG grants in the past. Grants have funded projects such as studying the potential of guar, investigating the feasibility of marketing cut flowers and exploring ethanol potential in Central Texas.

"I'm excited about the program," said Johnny Smith, USDA Rural Development Area 5 director. "I'm looking forward to working with farmers and ranchers again."

Applications must be made to the state office by Oct. 20 at 4 p.m. Applicants must have a business plan or write-up giving a detailed description of the idea, and each applicant must meet a one-on-one matching funds requirement.

The funds, however, do not have to be of a monetary nature. Providing a building where work could be done, for example, might be sufficient to meet the matching funds requirement.

Daniel encourages farmers and ranchers across the state to contact their nearest USDA Rural Development office and ask about the program.

"We are here to make sure rural Texas gets some of these grants," Daniel said, noting that office personnal can help applicants fill out the forms. "We are here to make sure the rural Texas economy prospers."

There is a limit of one grant per year per person or cooperative. Successful grant applicants will be notified in early 2004.