New
USDA Grants Available for Value-Added Agribusiness, Renewable
Energy Ventures (6-10-04)
The National Corn Growers
Association (NCGA) applauds Agriculture Secretary Ann M. Veneman’s announcement this week that $13.2
million in grants is available to support value-added agriculture
business development. The grants are an integral element of the
administration’s plan to research and develop alternative
renewable energy sources.
"These grants will have an effect on the nation as a whole,” said
Ron Litterer, chair of NCGA’s Public Policy Action Team. ”Corn
growers will be able to expand their business opportunities, create
new jobs and play an important role in this country’s development
of a long-term solution to our energy shortfalls.”
Grants will be made available to independent producers, agriculture
producer groups, farmer or rancher cooperatives and majority-controlled
producer-based business ventures. The Value-Added Producer Grant
program was authorized by the Agriculture Risk Protection Act of
2000 and the 2002 Farm Bill. Litterer said the program is a step
in the right direction, but more government funding will be needed
to tap into the true potential of the value-added industry.
“This is a great start,” he said. “However,
higher levels of support for this and other programs are needed
in this year’s appropriation bills, which are currently under
consideration.”
According to Veneman, the administration has currently funded
$15 million in value-added development centers and more than $85
million in value-added grants, including nearly 70 energy projects.
The energy projects have included biodiesel, ethanol and wind energy
production along with the use of biomass to generate energy. USDA
reports that, 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 biodiesel plants have added
or will add 41 million gallons per year of capacity.
The grant funding is awarded on a competitive basis according
to one of the following two activities: