USDA Financial Assistance Available for Small-Farm Owners and Organizations

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1 USDA Financial Assistance Available for Small-Farm Owners and Organizations If you are a small-farm owner, a beginning farmer or rancher, or part of an organization that works with these groups, you and/or your organization could qualify to receive financial assistance from the U.S. Department of Agriculture. Farms with annual sales of $250,000 or less are considered small farms by USDA standards. By 2002, there were an estimated 2.1 million farms in the United States. Of those, 91.2 percent were small farms, accounting for 71.5 percent of total farm assets in Because small farms are significant in both number and total assets represented, small-farm owners have a major impact on entrepreneurship, natural resources, and environmental stewardship. These numerous and diverse small farms provide a wellspring for the development of rural enterprises and marketing systems, and a replenishment of the agricultural population. Requests for proposal (RFPs), also called requests for application (RFAs) or notice of funds availability (NOFA), for most of the USDA grants can be found at At this site, you can subscribe to RSS feeds or notifications of new grant opportunity postings and updates based on specific criteria such as funding instrument type, eligibility, or sub-agency. The deadlines for funding events are also available at the Mississippi State University Extension Service High Tunnel webpage, 1. Community Outreach and Assistance Partnership Program (COAPP) The purpose of COAPP is to provide limited-resource, socially disadvantaged, and other traditionally underserved producers with training, informational opportunities, and assistance necessary to understand the kind of risks addressed by existing and emerging risk management tools, the features and appropriate use of these tools, and how to make sound risk management decisions. For example, Alcorn State University received $75,000 to provide innovative risk management options to small-scale and limited-resource farmers in Mississippi in agreements. Lydia Astorga lydia.astorga@rma.usda.gov (202) David Wiggins david.wiggins@rma.usda.gov (202) Specialty Crop Block Grant Program (SCBGP) To be eligible for an SCBGP grant in Mississippi, the project must solely enhance the competitiveness of Mississippi-grown specialty crops in either domestic or foreign markets. Specialty crops are defined as fruits and vegetables,

2 Table 1. Quick guide to USDA grants for small farmers and organizations. Matching USDA Agency Program Name Who Is Eligible? Grant Amount Requirement Risk Management Community Outreach organizations No limit No Agency and Assistance Partnership Program Agricultural Marketing Specialty Crop farmers or Not specified in Service Block Grant Program organizations Mississippi, but usually No below $50,000 Farmers Market organizations $2,500 to $100,000 No Promotion Program total for up to 2 years Federal State Marketing organizations Average $50,000 Yes Improvement Program National Institute of Beginning Farmer organizations Up to $250,000 per Yes Food and Agriculture and Rancher year for up to 3 years Development Program Community Food Projects organizations $10,000 to $300,000 Yes Competitive Grant Program for 1 3 years Sustainable Agriculture farmers or Producer grant: up to $10,000 No Research and Education organizations for an individual producer or $15,000 for a producer organization; the other SARE programs range from $10,000 to $300,000 Rural Business Value-Added farmers or Planning grants Yes Cooperative Service Producer Grants organizations up to $100,000 and operating grants up to $300,000 Rural Business organizations No limits No Enterprise Grants Rural Business organizations Up to $250,000 No Opportunity Grants for up to 2 years Rural Cooperative organizations Up to $200,000 Yes Development Grants for 1 year Small Socially Disadvantaged cooperatives or Up to $175,000 No Producer Grants crop associations Business and Industry farmers or Guaranteed loans No Loan Program organizations up to $10 million Office of Advocacy Outreach and Assistance organizations Up to $400,000 per year No and Outreach to Socially Disadvantaged for up to 3 years Farmers and Ranchers 2

3 tree nuts, dried fruits, and horticulture and nursery crops, including floriculture. Examples of enhancing the competitiveness of specialty crops include but are not limited to these: increasing child and adult nutrition knowledge and consumption of specialty crops improving efficiency and reducing cost of distribution systems assisting all entities in the specialty crop distribution chain to develop good agricultural practices and good handling practices assisting in cost-share arrangements for funding audits of specialty crop distribution systems for small-farm owners, packers, and processors investing in specialty crop research, including organic research to focus on conservation and environmental outcomes enhancing food safety developing new and improved seed varieties and specialty crops controlling pests and diseases increasing sustainability For example, Mississippi State University was awarded a grant to develop best management practices with a focus on nutrient management to benefit transitional and organic vegetable and cut-flower production systems in high tunnels. Paige Manning paige@mdac.state.ms.us (601) Andy Prosser andy@mdac.state.ms.us (601) Farmers Market Promotion Program (FMPP) FMPP funds have been used in these ways: provide educational workshops to farmers market managers and farmers/vendors acquire permanent signage for markets to identify location and operation hours purchase supplies for underserved farmers and markets conduct promotional campaigns through newspaper, radio, and television advertising Through these activities, the Agricultural Marketing Service gains useful insights into efforts to promote, train, and educate farmers and vendors, linking the market to more widespread community outreach programs. For example, $85,800 was awarded to Hancock County to provide infrastructure, education, and other training workshops for local farmers and vendors to sell and promote their products at the new Hancock County Farmers Market. Carmen Humphrey carmen.humphrey@ams.usda.gov (202) Federal State Marketing Improvement Program (FSMIP) FSMIP provides matching funds to state departments of agriculture, state agricultural experiment stations, and other state agencies to assist in exploring new market opportunities for U.S. food and agricultural products. The program also encourages research and innovation aimed at improving the efficiency and performance of the marketing system. Eligible agricultural categories include livestock, livestock products, food and feed crops, fish and shellfish, horticulture, viticulture, apiary, forest products, and processed or manufactured products derived from such commodities. FSMIP grants must be matched one-to-one with non-federal resources. For example, $47,150 was awarded to the Mississippi Department of Agriculture and Commerce in cooperation with Mississippi State University to conduct on-farm trials and laboratory analyses to demonstrate the importance to producers of adopting postharvest handling practices that will improve sweet potato quality and enhance the competitiveness of Mississippi sweet potatoes in domestic and foreign markets. Paige Manning paige@mdac.state.ms.us (601) Beginning Farmer and Rancher Development Program (BFRDP) The primary goal of the BFRDP is to enhance food security by providing beginning farmers and ranchers and their families with the knowledge, skills, and tools needed to make informed decisions for their operations. Other goals include enhanced sustainability of resources and inputs for biofuel production. Priority is given to applications from partnerships and collaborations that are led by or include non-governmental and community-based organizations with 3

4 expertise in new agricultural producer training and outreach. At least 25 percent of this program s funds each year are allocated to address the needs of limitedresource or socially disadvantaged beginning farmers and ranchers, and immigrant or other farm workers who plan to become beginning farmers or ranchers. Please note that all of the applications do not need to address the needs of limited-resource beginning farmers and ranchers. The recipient must match at least 25 percent of the funds provided. For example, the Arkansas Land and Farm Development Corporation received $313,000 to provide continuing training, mentoring, and technical assistance to a minimum of 80 beginning, black, and limited-resource farmers in 42 counties in Arkansas. Participants will receive regular developmental assistance for up to 2 years from staff who will mentor farmers. Siva Sureshwaran ssureshwaran@nifa.usda.gov (202) Community Food Projects Competitive Grant Program (CFP) CFPs should be designed to 1) meet the food needs of low-income people; increase the self-reliance of communities in providing for their own food needs; and promote comprehensive responses to local food, farm, and nutrition issues; and/or 2) meet specific state, local, or neighborhood food and agriculture needs for infrastructure improvement and development; planning for long-term solutions; or the creation of innovative marketing activities that mutually benefit agricultural producers and low-income consumers. CFPs are intended to bring together stakeholders from the distinct parts of the food system and to foster understanding of national food security trends and how they might improve local food systems. Only private, nonprofit entities meeting specific requirements are eligible to apply as described in the RFP. Project partners and collaborators need not meet the eligibility requirements. For example, the Southern Sustainable Agriculture Working Group at Loyola University of New Orleans has received grant funding through this program. communityfoodprojects.cfm. Elizabeth Tuckermanty etuckermanty@nifa.usda.gov (202) Sustainable Agriculture Research and Education (SARE) The SARE program helps advance farming systems that are profitable, environmentally sound, and good for communities through a nationwide research and education grant program. SARE has four regional centers that support activities for farming, research, extension, and education. In addition, each state has a coordinator who facilitates a statewide training program in sustainable agricultural concepts and systems for field employees. Coordinators also serve as a point of contact for activities and information about sustainable agriculture specific to their states. Southern Region Jeff Jordan jjordan@uga.edu (770) Value-Added Producer Grants These grants may be used for planning activities, working capital for marketing value-added agricultural products, and farm-based renewable energy. Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. 9. Rural Business Enterprise Grants (RBEG) The RBEG program provides grants to public agencies, private non-profit corporations, or American Indian groups for financing and facilitating the development of small and emerging private business enterprises (defined as having less than $1 million in revenues and fewer than 50 employees). Grant funds can be used to provide needed infrastructure, fund technical assistance needs, and establish or fund revolving loan programs. Projects must be located in an area of fewer than 50,000 in population. Examples of eligible fund use include acquisition or development of land, easements, or rights of way; 4

5 construction, conversion, or renovation of buildings, plants, machinery, equipment, access streets and roads, parking areas, and utilities; pollution control and abatement; capitalization of revolving loan funds including funds that will make loans for start-ups and working capital; training and technical assistance; adult distance learning for job training and advancement; rural transportation improvement; and project planning. Priority is given when the project is located in a community where the unemployment rate exceeds the state rate is located in a community that has a median household income that is less than the state s median household income, as determined by the 2000 census includes a commitment of funds from non-federal sources includes a firm commitment from a business to locate or expand to the community, thereby creating jobs Rural Business Opportunity Grants (RBOG) This program is designed to promote sustainable economic development in rural communities with exceptional needs. It provides funding for technical assistance, training, and planning activities to improve economic conditions in rural areas. The program focuses on communities that have experienced trauma due to natural disasters or fundamental structural changes, and those communities that are persistently poor or have experienced long-term population decline or job deterioration. This program focuses on communities where the project is sustainable over a long term through local effort without long-term external subsidies. Nonprofit corporations, public bodies, American Indian tribes, and cooperatives whose members are primarily rural residents may apply. This program does not directly fund individual growers; growers can get involved through local nonprofits, cooperatives, and development organizations Rural Cooperative Development Grant (RCDG) RCDGs are made for establishing and operating centers for cooperative development for the primary purpose of improving the economic condition of rural areas. Eligible applicants are nonprofit corporations including institutions of higher education. This program does not directly fund individual growers; growers can get involved in the projects through local nonprofits, cooperatives, development organizations, colleges, and universities Small Socially Disadvantaged Producer Grant (SSDPG) Formerly known as the Small Minority Producer Grant Program, the primary objective of the SSDPG program is to provide technical assistance to small, socially disadvantaged agricultural producers through eligible cooperatives and associations of cooperatives (also see 11. Rural Cooperative Development Grant above). Grants are awarded on a competitive basis. Growers are not eligible to apply directly to this program but can seek technical assistance and involve themselves in the projects through local cooperatives. ssdpg.htm. 5

6 13. Business and Industry Guaranteed Loan Program (B&I GLP) The purpose of this loan program is to improve, develop, or finance business, industry, and employment, and to improve the economic and environmental climate in rural communities. It is not intended that the guarantee authority will be used for marginal or substandard loans or for relief of lenders having such loans. A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an American Indian tribe; a public body; or an individual. A borrower must be engaged in or proposing to engage in a business that will provide employment; improve the economic or environmental climate; promote the conservation, development, and use of water for aquaculture; or reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems. Loan purposes include but are not limited to the following: business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities; business conversion, enlargement, repair, modernization, or development; purchase and development of land, easements, rightsof-way, buildings, or facilities; purchase of equipment, leasehold improvements, machinery, supplies, or inventory Outreach and Assistance to Socially Disadvantaged Farmers and Ranchers (OASDFR) The purpose of OASDFR is to deliver outreach and technical assistance to ensure opportunities for socially disadvantaged farmers and ranchers to successfully acquire, own, operate, and retain farms and ranches, and to ensure equitable participation in the full range of USDA programs. Projects funded by this program should examine factors that have, in the past, been identified as barriers to successful use of USDA programs by socially disadvantaged farmers and ranchers, and seek to eliminate those barriers. To accomplish goals of these projects, it may be necessary to gather the skills of multiple organizations through partnership with, for example, an institution of higher education (for information gathering and analysis), a regional technical assistance organization (for outreach including interviews and focus groups), and/or a community-based organization (for outreach and technical assistance). Partnering groups must be able to document prior successful experience in serving or working with socially disadvantaged farmers and ranchers within the geographic area of focus. Note that individuals are not eligible to apply for this program but can work through eligible organizations to participate in the programs. outreach.html. oasdfr@osec.usda.gov (202)

7 Copyright 2011 by Mississippi State University. All rights reserved. This publication may be copied and distributed without alteration for nonprofit educational purposes provided that credit is given to the Mississippi State University Extension Service. By Dr. Mengmeng Gu, Assistant Extension Professor, Plant and Soil Sciences; Dr. William Evans, Assistant Research Professor, Truck Crops Branch Experiment Station; and Dr. Guihong Bi, Assistant Research Professor, Truck Crops Branch Experiment Station. Discrimination based upon race, color, religion, sex, national origin, age, disability, or veteran s status is a violation of federal and state law and MSU policy and will not be tolerated. Discrimination based upon sexual orientation or group affiliation is a violation of MSU policy and will not be tolerated. Publication 2664 Extension Service of Mississippi State University, cooperating with U.S. Department of Agriculture. Published in furtherance of Acts of Congress, May 8 and June 30, GARY B. JACKSON, Director (POD-03-11)