[Federal Register Volume 70, Number 43 (Monday, March 7, 2005)]
[Notices]
[Pages 10938-10951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4310]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Announcement of Value-Added Producer Grant Application Deadlines 
and Funding Levels

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of solicitation of applications.

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SUMMARY: The Rural Business-Cooperative Service (RBS) announces the 
availability of approximately $14.3 million in competitive grant funds 
for fiscal year (FY) 2005 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) Planning activities needed to establish a 
viable value-added marketing opportunity for an agricultural product 
(e.g. conduct a feasibility study, develop a business plan, develop a 
marketing plan); or (2) acquire working capital to operate a value-
added business venture that will allow 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. The 
maximum award per grant is $100,000 for planning grants and $150,000 
for working capital grants and matching funds are required.

DATES: You may submit completed applications for grants on paper or 
electronically by 4 p.m. Eastern time on May 6, 2005.

ADDRESSES: You may obtain application guides and materials for a Value-
Added Producer Grant at the following Internet address: http://www.rurdev.usda.gov/rbs/coops/vadg.htm or by contacting the Agency 
Contact for your state listed in Section VII of this notice.
    Submit final paper applications via the postal service for a grant 
to Cooperative Services, Attn: VAPG Program, Mail Stop 3250, 1400 
Independence Ave., SW., Washington, DC 20250-3250. Submit final paper 
applications via UPS or Federal Express for a grant to Cooperative 
Services, Attn: VAPG Program, Room 4016, 1400 Independence Ave., SW., 
Washington, DC 20250. The phone number that should be used for FedEx 
packages is (202) 720-7558.

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    Submit electronic grant applications using http://www.grants.gov.

FOR FURTHER INFORMATION CONTACT: The Agency Contact for your state is 
listed in Section VII of this notice or visit the program Web site at 
http://www.rurdev.usda.gov/rbs/coops/vadg.htm. The program Web site 
contains application guidance, including a Frequently Asked Questions 
section and an application outline.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Business-Cooperative Service (RBS).
    Funding Opportunity Title: Value-Added Producer Grants.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance Number: 10.352.
    Dates: Application Deadline: Final applications must be received on 
or before 4 p.m. Eastern time on May 6, 2005. Draft applications must 
be received by 4 p.m. local time on April 22, 2005.

I. Funding Opportunity Description

    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, also known as Value-
Added Producer Grants (VAPG). 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-
controlled producer-based business ventures develop strategies to 
create marketing opportunities and to help develop business plans for 
viable marketing opportunities. Eligible agricultural producer groups, 
farmer and rancher cooperatives, and majority-controlled 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. No more than 10 percent of program funds can go to 
applicants that are majority-controlled producer-based business 
ventures.

Definitions

    Agency--Rural Business-Cooperative Service (RBS), an agency of the 
United States Department of Agriculture (USDA), or a successor agency.
    Agricultural Producer--Persons or entities, including farmers, 
ranchers, loggers, agricultural harvesters and fishermen, that engage 
in the production or harvesting of an agricultural product. Producers 
may or may not own the land or other production resources, but must 
have majority ownership interest in the agricultural product to which 
Value-Added is to accrue as a result of the project. Examples of 
agricultural producers include: A logger who has a majority interest in 
the logs harvested that are then converted to boards, a fisherman that 
has a majority interest in the fish caught that are then smoked, a wild 
herb gatherer that has a majority interest in the gathered herbs that 
are then converted into essential oils, a cattle feeder that has a 
majority interest in the cattle that are fed, slaughtered and sold as 
boxed beef, and a corn grower that has a majority interest in the corn 
produced that is then converted into corn meal.
    Agriculture Producer Group--An organization that represents 
Independent Producers, whose mission includes working on behalf of 
Independent Producers and the majority of whose membership and board of 
directors is comprised of Independent Producers.
    Agricultural Product--Plant and animal products and their by-
products to include forestry products, fish and other seafood products.
    Applicant--An entity or individual applying for a VAPG that has a 
unique Employer Identification Number (EIN).
    Cooperative Services--The office within RBS, and its successor 
organization, that administers programs authorized by the Cooperative 
Marketing Act of 1926 (7 U.S.C. 451 et seq.) and such other programs so 
identified in USDA regulations.
    Economic development--The economic growth of an area as evidenced 
by increase in total income, employment opportunities, decreased out-
migration of population, increased value of production, increased 
diversification of industry, higher labor force participation rates, 
increased duration of employment, higher wage levels, or gains in other 
measurements of economic activity, such as land values.
    Emerging Market--A new or developing market for the applicant, 
which the applicant has not traditionally supplied.
    Farm--Any place from which $1,000 or more of agricultural products 
(crops and livestock) were sold or normally would have been sold during 
the year under consideration.
    Farmer or Rancher Cooperative--A farmer or rancher-owned and 
controlled business from which benefits are derived and distributed 
equitably on the basis of use by each of the farmer or rancher owners.
    Fixed equipment--Tangible personal property used in trade or 
business that would ordinarily be subject to depreciation under the 
Internal Revenue Code, including processing equipment, but not 
including property for equipping and furnishing offices such as 
computers, office equipment, desks or file cabinets.
    Independent Producers--Agricultural producers, individuals or 
entities (including for profit and not for profit corporations 
(excluding Farmer or Rancher Cooperatives), LLCs, partnerships or 
LLPs), where the entities are solely owned or controlled by 
Agricultural Producers who own a majority ownership interest in the 
agricultural product that is produced. An independent producer can also 
be a steering committee composed of independent producers in the 
process of organizing an association to operate a Value-Added venture 
that will be owned and controlled by the independent producers 
supplying the agricultural product to the market. Independent Producers 
must produce and own the agricultural product to which value is being 
added. Producers who produce the agricultural product under contract 
for another entity but do not own the product produced are not 
independent producers.
    Majority-Controlled Producer-Based Business Venture--A venture 
where more than 50% of the ownership and control is held by Independent 
Producers, or, partnerships, LLCs, LLPs, corporations or cooperatives 
that are themselves 100 percent owned and controlled by Independent 
Producers.
    Matching Funds--Cash or confirmed funding commitments from non-
Federal sources unless otherwise provided by law. Matching funds must 
be at least equal to the grant amount. In-kind contributions that 
conform to the provisions of 7 CFR 3015.50 and 7 CFR 3019.23, as 
applicable, 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. Matching funds must be provided in advance of grant funding, 
such that for every dollar of grant that is advanced,

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not less than an equal amount of matching funds shall have been funded 
prior to submitting the request for reimbursement. Matching funds are 
subject to the same use restrictions as grant funds. Funds used for an 
ineligible purpose will not be considered matching funds.
    National Office--USDA RBS headquarters in Washington, DC.
    Nonprofit institution--Any organization or institution, including 
an accredited institution of higher education, where no part of the net 
earnings of which may inure, to the benefit of any private shareholder 
or individual.
    Planning Grants--Grants to facilitate the development of a defined 
program of economic activities to determine the viability of a 
potential Value-Added venture, including feasibility studies, marketing 
strategies, business plans and legal evaluations.
    Product segregation--Physical separation of a product or commodity 
from similar products. Physical separation requires a barrier to 
prevent mixing with the similar product.
    Public body--Any state, county, city, township, incorporated town 
or village, borough, authority, district, economic development 
authority, or Indian tribe on federal or state reservations or other 
federally recognized Indian tribe in rural areas.
    Rural and rural area--Includes all the territory of a state that is 
not within the outer boundary of any city or town having a population 
of 50,000 or more and the urbanized area contiguous and adjacent to 
such city or town, as defined by the U.S. Bureau of the Census using 
the latest decennial census of the United States.
    Rural Development--A mission area within the USDA consisting of the 
Office of Under Secretary for Rural Development, Office of Community 
Development, Rural Business-Cooperative Service, Rural Housing Service 
and Rural Utilities Service and their successors.
    State--Includes each of the several States, the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and, as may be 
determined by the Secretary to be feasible, appropriate and lawful, the 
Freely Associated States and the Federated States of Micronesia.
    State Office--USDA Rural Development offices located in most 
states.
    Total Project Cost--The sum of the amount of requested VAPG funds 
and the proposed matching funds.
    Value-Added--The incremental value that is realized by the producer 
from an agricultural commodity or product as the result of:
    (1) A change in its physical state,
    (2) Differentiated production or marketing, as demonstrated in a 
business plan, or
    (3) Product segregation. Also,
    (4) The economic benefit realized from the production of farm or 
ranch-based renewable energy.
    Incremental value may be realized by the producer as a result of 
either an increase in value to buyers or the expansion of the overall 
market for the product. Examples include milling wheat into flour, 
slaughtering livestock or poultry, making strawberries into jam, the 
marketing of organic products, an identity-preserved marketing system, 
wind or hydro power produced on land that is farmed and collecting and 
converting methane from animal waste to generate energy. Identity-
preserved marketing systems include labeling that identifies how the 
product was produced and by whom.
    Working Capital Grants--Grants to provide funds to operate ventures 
and pay the normal expenses of the venture that are eligible uses of 
grant funds.

II. Award Information

    Type of Award: Grant.
    Fiscal Year Funds: FY 2005.
    Approximate Total Funding: $14.3 million.
    Approximate Number of Awards: 117.
    Approximate Average Award: $125,000.
    Floor of Award Range: None.
    Ceiling of Award Range: $100,000 for planning grants and $150,000 
for working capital grants.
    Anticipated Award Date: September 30, 2005.
    Budget Period Length: 12 months.
    Project Period Length: 12 months.

III. Eligibility Information

A. Eligible Applicants

    Applicants 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 notice. If the applicant is an unincorporated group (steering 
committee), it must form a legal entity before the grant period can 
begin.

B. Cost Sharing or Matching

    Matching funds are required. Applicants must verify in their 
applications that matching funds are available for the time period of 
the grant. Matching funds must be at least equal to the amount of grant 
funds requested. Unless provided by other authorizing legislation, 
other Federal grant funds cannot be used as matching funds. Matching 
funds must be spent at a rate equal to or greater than the rate at 
which grant funds are expended. Matching funds must be provided by 
either the applicant or by a third party in the form of cash or in-kind 
contributions. Matching funds must be spent on eligible expenses and 
must be from eligible sources if they are in-kind contributions.

C. Other Eligibility Requirements

     Product Eligibility: The project proposed must involve a 
Value-Added product as defined in the ``Definitions'' section of this 
notice. Applicants should note that a project falling under the second 
definition of Value-Added must already have a business plan in place at 
the time of application. The applicant must reference this business 
plan in the application. Because of this requirement, it is unlikely 
that projects falling under the second definition of Value-Added will 
be eligible to apply for a planning grant. In order to be eligible 
under the farm or ranch-based renewable energy category, the project 
must include energy generated on-farm through the use of agricultural 
commodities, wind power, water power or solar power.
     Activity Eligibility: The project proposed must specify 
whether grant funds are requested for planning activities or for 
working capital. Applicants may not request funds for both types of 
activities in one application. Applications requesting funds for both 
planning activities and for working capital will not be considered for 
funding. Applicants other than independent producers applying for a 
working capital grant must demonstrate that the venture has not been in 
operation more than two years at the time of application.
     Grant Period Eligibility: Applications that have a 
timeframe of more than 365 days will be considered ineligible and will 
not be considered for funding. Applications that request funds for a 
time period ending after December 31, 2006, will not be considered for 
funding.
     Applications without sufficient information to determine 
eligibility will not be considered for funding.
     Applications that are non-responsive to the submission 
requirements detailed in Section IV of this notice will not be 
considered for funding.

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     Applications that are missing any required elements (in 
whole or in part) will not be considered for funding.
     Applicants may submit more than one application, but in 
the event that more than one application for any applicant scores high 
enough to be funded, only the highest ranking application will be 
funded.
     Applicants who have already received a planning grant for 
the proposed project shall not receive another planning grant for the 
same project. Applicants who have already received a working capital 
grant for a project shall not receive any additional grants for that 
project. Applicants may receive a planning grant for a project in one 
funding cycle and receive a working capital grant for the same project 
in a subsequent funding cycle. Please note that the Agency penalizes an 
applicant who is applying for a planning grant when it has already 
received a planning grant or who is applying for a working capital 
grant when it has already received a working capital grant by deducting 
ten points from the applicant's score under criterion 10.
     Applicants may also receive one grant in any given funding 
year and be eligible to receive another grant in a subsequent funding 
year, subject to the above restrictions.
     If an applicant currently has a VAPG, the grant period for 
that grant must be scheduled to expire by December 31, 2005.

IV. Application and Submission Information

    A. Address to Request Application Package: If you plan to apply 
using a paper application, you can obtain the application package for 
this funding opportunity at the following Internet address: http://www.rurdev.usda.gov/rbs/coops/vadg.htm. If you do not have access to 
the Internet, or if you have difficulty accessing the forms online, you 
may contact the representative listed for your state from the list in 
the ``Agency Contacts'' in Section VII. Application forms can be mailed 
to you. If you plan to apply electronically, you must visit http://www.grants.gov to obtain the correct forms.
    B. Content and Form of Submission: You may submit your application 
in paper or in an electronic format. To view an application outline, 
please visit the program Web site at: http://www.rurdev.usda.gov/rbs/coops/vadg.htm. If you submit your application in paper form, you must 
submit a signed original and one copy of your complete application. The 
application must be in the following format:
     Font size: 12 point unreduced.
     Paper size: 8.5 by 11 inches.
     Page margin size: 1 inch on the top, bottom, left, and 
right.
     Printed on only one side of each page.
     Held together only by rubber bands or metal or plastic 
clips; not bound in any other way.
     Language: English, avoid jargon.
     The submission must include all pages of the application.
     It is recommended that the application is in black and 
white, and not color. All paper applications will be scanned 
electronically for further review upon receipt by the Agency and the 
scanned images will all be in black and white. Those evaluating the 
application will only receive black and white images.
    If you submit your application electronically, you must follow the 
instructions given at the Internet address: http://www.grants.gov. 
Applicants are advised to visit the site well in advance of the 
application deadline if they plan to apply electronically to insure 
that they have obtained the proper authentication and have sufficient 
computer resources to complete the application.
    An application must contain all of the following elements. Any 
application that is missing any element or contains an incomplete 
element will not be considered for funding:
    1. Form SF-424, ``Application for Federal Assistance.'' In order 
for this form to be considered complete, it must contain the legal name 
of the applicant, the applicant's DUNS number, the applicant's complete 
mailing address, the name and telephone number of a contact person, the 
employer identification number, the start and end dates of the project, 
the federal funds requested, other funds that will be used as matching 
funds, an answer to the question, ``Is applicant delinquent on any 
federal debt?'', the name and signature of an authorized representative 
(if the signature is of anyone other than a stated owner of the 
proposed venture, the application should include a signed statement by 
either the owner(s) of the entity or the governing board stating that 
the signature is made by an authorized person), the telephone number of 
the authorized representative, and the date the form was signed. Other 
information requested on the form may be applicable, but the above-
listed information is required for an application to be considered 
complete.
    You are required to have a Dun and Bradstreet Data Universal 
Numbering System (DUNS) number to apply for a grant from RBS. The DUNS 
number is a nine-digit identification number, which uniquely identifies 
business entities. Obtaining a DUNS number is easy and there is no 
charge. To obtain a DUNS number, access http://www.dnb.com/us/ or call 
(866) 705-5711. For more information, see the VAPG Web site at: http://www.rurdev.usda.gov/rbs/coops/vadg.htm or contact the program 
representative in your state from the list in Section VII.
    2. Form SF-424A, ``Budget Information--Non-Construction Programs.'' 
In order for this form to be considered complete, the applicant must 
fill out Sections A, B, C, and D. The applicant must include both 
federal and matching funds.
    3. Form SF-424B, ``Assurances--Non-Construction Programs.'' In 
order for this form to be considered complete, the form must be signed 
by an authorized official (if the signature is of anyone other than a 
stated owner of the proposed venture, the application should include a 
signed statement by either the owner(s) of the entity or the governing 
body stating that the signature is made by an authorized person) and 
include the title, name of applicant, and date submitted.
    4. Survey on Ensuring Equal Opportunity for Applicants. Submission 
of this form is voluntary for non-profit applicants only. For-profit 
applicants should not submit this form.
    5. Title Page. The Title Page should include the title of the 
project as well as any other relevant identifying information. The 
length should not exceed one page.
    6. Table of Contents. For ease of locating information, each 
proposal must contain a detailed Table of Contents (TOC) immediately 
following the Title Page. The TOC should include page numbers for each 
component of the proposal. Pagination should begin immediately 
following the TOC. In order for this element to be considered complete, 
the TOC should include page numbers for the Executive Summary, an 
Eligibility Discussion, the Proposal Narrative and its subcomponents 
(Project Title, Information Sheet, Goals of the Project, Work Plan, 
Performance Evaluation Criteria and Proposal Evaluation Criteria), 
Verification of Matching Funds and Certification of Matching Funds.
    7. Executive Summary. A summary of the proposal, not to exceed one 
page, should briefly describe the project, including goals, tasks to be 
completed and other relevant information that provides a general 
overview of the project. In this section the applicant

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must clearly state whether the proposal is for a planning grant or a 
working capital grant and the amount requested. In the event an 
applicant submits more than one page for this element, only the first 
page submitted will be considered.
    8. Eligibility Discussion. A detailed discussion, not to exceed 
four (4) pages, describing how the applicant, project, and purpose meet 
the eligibility requirements. In the event that more than 4 pages are 
submitted, only the first 4 pages will be considered.
    The applicant must first describe how it meets the definition of an 
independent producer, agricultural producer group, farmer or rancher 
cooperative, or a majority-controlled producer-based business venture 
as defined in the ``Definitions'' section of this funding announcement. 
The applicant must apply as only one type of applicant.
    If the applicant is an independent producer, the proposal must 
demonstrate that the owners of the business applying own and produce 
more than 50 percent of the raw commodity that will be used for the 
value-added product. The applicant must also demonstrate that the 
product is owned by the producers from its raw commodity state through 
the production of the value-added product.
    If the applicant is an agricultural producer group, it must 
identify the independent producers on whose behalf the work will be 
done. These producers must own and produce the commodity to which value 
will be added. Note that applicants tentatively selected for a grant 
award must verify that the work will be done on behalf of the 
Independent Producers identified in the application.
    If the applicant is a farmer or rancher cooperative, the applicant 
must reference the business' standing as a cooperative in its state of 
incorporation. The applicant must also explain how the cooperative is 
100 percent owned and controlled by Independent Producers. If a 
cooperative is not 100 percent owned and controlled by Independent 
Producers, it may still be eligible to apply as a Majority-Controlled 
Producer-Based Business Venture, provided it meets the definition in 
Section I. If the applicant is applying on behalf of only a portion of 
its membership, that portion must be identified. Note that applicants 
tentatively selected for a grant award must verify that the work will 
be done on behalf of the Independent Producers identified in the 
application.
    If the applicant is a majority-controlled producer-based business 
venture, the proposal must state the percentage of the venture owned by 
independent producers, or partnerships, LLCs, LLPs, corporations or 
cooperatives that are themselves 100 percent owned and controlled by 
Independent Producers (eligible producers). The percentage must be 
calculated by dividing the ownership interest of the eligible producers 
by the ownership interest of all owners. These eligible producers must 
own and produce the commodity to which value will be added. The 
applicant must also demonstrate that eligible producers have majority 
control over the business. Majority control must be demonstrated 
through voting rights on the governing body of the business venture. 
The majority of voting rights must belong to eligible producers who own 
and produce the commodity to which value will be added.
    In addition, the applicant must describe all organizations that are 
involved in the project.
    The applicant must next describe how the value-added product to be 
produced meets the definition of ``Value-Added'' as defined in the 
``Definitions'' section of this funding announcement.
    If the product meets the first definition, the application must 
explain the change in physical state or form of the product.
    If the product meets the second definition, the proposal must 
explain how the production or marketing of the commodity enhances the 
value-added product's value. The enhancement of value should be 
quantified by using a comparison with value-added products produced or 
marketed in the standard manner. Also, a business plan that has been 
developed for the applicant for the project must be referenced.
    If the product meets the third definition, the proposal must 
explain how the physical segregation of a commodity or product enhances 
its value. The enhancement of value should be quantified, if possible, 
by using a comparison with commodities marketed without segregation.
    If the product meets the fourth definition, the proposal must 
explain how the renewable energy will be generated on a farm or ranch.
    Finally, the applicant must describe how the project purpose is 
eligible for funding. The project purpose is comprised of two 
components. First, the project activities must be planning activities 
or working capital activities, but not both. Second, the activities 
must be directly related to the processing and/or marketing of a value-
added product. Agricultural production activities are not eligible for 
funding.
    If the grant request is for planning activities, working capital 
expenses are not eligible for funding. If more than 20 percent of the 
total project cost (both grant and matching funds) for a planning 
activities application is for working capital expenses, the entire 
application will be determined to be ineligible and will not be 
considered for funding. If 20 percent or less of the total project cost 
for a planning activities application is for working capital expenses, 
the application may still be considered for funding, but any subsequent 
award will only be for eligible project expenses.
    If the grant request is for working capital, planning activities 
are not eligible for funding. If more than 20 percent of the total 
project cost (both grant and matching funds) for a working capital 
application is for planning activities, the entire application will be 
determined to be ineligible and will not be considered for funding. If 
20 percent or less of the total project cost for a working capital 
application is for planning activities, the application may still be 
considered for funding, but any subsequent award will only be for 
eligible project expenses.
    If the applicant has already received a planning grant for a 
project, it is only eligible to apply for a working capital grant. If 
an applicant has already received a working capital grant for a 
project, it is not eligible to apply for any further grants for that 
project.
    An applicant may not receive more than one grant in any one funding 
cycle. An applicant may submit multiple applications, but if more than 
one application scores high enough to be funded, only the highest 
ranked application will be funded.
    9. Proposal Narrative. The narrative, not to exceed 35 pages (Times 
New Roman, 12 point font, 1 inch margins) must include the following 
information. In the event that more than 35 pages are submitted, only 
the first 35 pages submitted will be considered.
    i. Project Title. The title of the proposed project must be brief, 
not to exceed 75 characters, yet describe the essentials of the 
project. It should match the project title submitted on the SF-424. The 
Project Title does not need to appear on a separate page. It can be 
included on the Title Page and/or on the Information Sheet.
    ii. Information Sheet. A separate one page information sheet 
listing each of the evaluation criteria referenced in this funding 
announcement followed by the page numbers of all relevant material 
contained in the proposal that address or support each criterion.

[[Page 10943]]

    iii. Goals of the Project. A clear statement of the ultimate goals 
of the project. There must be an explanation of how a market will be 
expanded and the degree to which incremental revenue will accrue to the 
benefit of the agricultural producer(s).
    iv. Work Plan. The narrative must contain a description of the 
project and set forth the tasks involved in reasonable detail. The 
description should specify the activity, who will perform the activity, 
during what time frame the activity will take place, and the cost of 
the activity. Please note that one of the Proposal Evaluation Criteria 
evaluates the Work Plan and Budget. Applicants should only submit the 
Work Plan and Budget once, either as Section IV.B.9. or as part of the 
Work Plan/Budget evaluation criterion discussion.
    v. Working capital applications must also include three (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.
    vi. Performance Evaluation Criteria. The applicant must suggest 
criteria by which the project should be evaluated in the event that a 
grant is awarded. These suggested criteria are not binding on USDA. 
Please note that these criteria are different from the Proposal 
Evaluation Criteria and are a separate requirement. Failure to submit 
at least one performance criterion by the application deadline will 
result in a determination of incomplete and the proposal will not be 
considered for funding.
    vii. Proposal Evaluation Criteria. Each of the proposal evaluation 
criteria referenced in this funding announcement must be addressed, 
specifically and individually, in narrative form. Failure to address 
the appropriate evaluation criteria (planning grant proposals must 
address planning grant evaluation criteria and working capital grant 
proposals must address working capital grant evaluation criteria) by 
the application deadline will result in a determination of incomplete 
and the proposal will not be considered for funding.
    10. Conflict of Interest Disclosure. If the applicant plans to 
conduct business with any family members, company owners, or other 
identities of interest using grant or matching funds, the nature of the 
business to be conducted and the nature of the relationship between the 
applicant and the identity of interest must be disclosed. Examples 
include in-kind matching funds donated by the applicant's immediate 
family and contracting with someone who has a financial interest in the 
venture for services paid by grant or matching funds.
    11. Certification of Judgment or Debt Owed to the United States. 
Applicants must certify that they are not delinquent on a debt owned to 
the United States and that the United States has not obtained a 
judgment against them. No grant funds shall be used to pay a judgment 
or delinquent debt owed to the United States.
    12. Verification of Matching Funds. Applicants must provide a 
budget to support the work plan showing all sources and uses of funds 
during the project period. Applicants will be required to verify 
matching funds, both cash and in-kind. All proposed matching funds must 
be specifically documented in the application. If matching funds are to 
be provided by the applicant in cash, a copy of a bank statement with 
an ending date within 30 days of the application deadline is required. 
The bank statement must show an ending balance equal to or greater than 
the amount of cash matching funds proposed. If the matching funds will 
be provided through a loan or line of credit, the applicant must 
include a statement from the lending institution verifying the amount 
available, the time period of availability of the funds, and the 
purposes for which funds may be used. If the matching funds are to be 
provided by an in-kind contribution from the applicant, the application 
must include a signed letter from an authorized representative of the 
applicant verifying the goods or services to be donated, when the goods 
and services will be donated, and the value of the goods or services. 
Applicants should note that only goods or services for which no 
expenditure is made can be considered in-kind. If the applicant is 
paying for goods and services as part of the matching funds 
contribution, the expenditure is considered a cash match, and should be 
verified as such. If the matching funds are to be provided by a third 
party in cash, the application must include a signed letter from that 
third party verifying how much cash will be donated and when it will be 
donated. Verification for funds donated outside the proposed time 
period of the grant will not be accepted. If the matching funds are to 
be provided by a third party in-kind donation, the application must 
include a signed letter from the third party verifying the goods or 
services to be donated, when the goods and services will be donated, 
and the value of the goods or services. Verification for in-kind 
contributions donated outside the proposed time period of the grant 
will not be accepted. Verification for in-kind contributions that are 
over-valued will not be accepted. The valuation process for the in-kind 
funds does not need to be included in the application, especially if it 
is lengthy, but the applicant must be able to demonstrate how the 
valuation was achieved at the time of notification of tentative 
selection for the grant award. If the applicant cannot satisfactorily 
demonstrate how the valuation was determined, the grant award may be 
withdrawn or the amount of the grant may be reduced.
    If matching funds are in cash, they must be spent on goods and 
services that are eligible expenditures for this grant program. If 
matching funds are in-kind contributions, the donated goods or services 
must be considered eligible expenditures for this grant program. The 
matching funds must be spent or donated during the grant period and the 
funds must be expended at a rate equal to or greater than the rate 
grant funds are expended. Some examples of acceptable uses for matching 
funds are: skilled labor performing work required for the proposed 
project, office supplies, and purchasing inventory. Some examples of 
unacceptable uses of matching funds are: land, fixed equipment, 
buildings, and vehicles.
    Expected program income may not be used to fulfill the matching 
funds requirement at the time of application. If program income is 
earned during the time period of the grant, it may be used to replace 
other sources of matching funds if prior approval is received from the 
Agency. Any program income earned during the grant period is subject to 
the requirements of 7 CFR 3019.24.
    If acceptable verification for all proposed matching funds is 
missing from the application by the application deadline, the 
application will be determined to be incomplete and will not be 
considered for funding.
    13. Certification of Matching Funds. 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 in 
advance of grant funding, such that for every dollar of grant funds 
advanced, not less than an equal amount of

[[Page 10944]]

matching funds will have been expended prior to submitting the request 
for reimbursement. Please note that this certification is a separate 
requirement from the Verification of Matching Funds requirement. 
Applicants should include a statement for this section that reads as 
follows: ``[INSERT NAME OF APPLICANT] certifies that matching funds 
will be available at the same time grant funds are anticipated to be 
spent and that matching funds will be spent in advance of grant 
funding, such that for every dollar of grant funds advanced, not less 
than an equal amount of matching funds will have been expended prior to 
submitting the request for reimbursement.'' A separate signature is not 
required.

C. Submission Dates and Times

    Application Deadline Date: May 6, 2005. Drafts must be received by 
April 22, 2005.
    Explanation of Deadlines: Final applications must be received by 4 
p.m. Eastern Time on the deadline date (see Section IV.F. for the 
address). If you send your application by the United States Postal 
Service or commercial delivery service, you must ensure that the 
carrier will be able to guarantee delivery of the application by the 
closing date and time. If your application does not meet the deadline 
above, it will not be considered for funding. You will be notified that 
your application did not meet the submission deadline. You will also be 
notified by mail or by e-mail if your application is received on time.
    Draft applications may be submitted to an applicant's respective 
state office (Section VII) by 4 p.m. local time on April 22, 2005. 
Draft applications may be submitted in paper form or electronically. 
They may be hand-delivered or faxed at the discretion of the state 
office. Applicants are not required to submit a draft application, but 
may choose to do so. Draft applications will be reviewed by the state 
office for completeness only, and the Agency's official determination 
will not be made until the official application is received. Drafts 
submitted after April 22, 2005 may be reviewed for completeness at the 
discretion of the state office. More information regarding this process 
can be viewed in Section V.

D. Intergovernmental Review of Applications

    Executive Order 12372 does apply to this program.

E. Funding Restrictions

    Funding restrictions apply to both grant funds and matching funds. 
They include, but are not limited to, the following:
    1. Funds may only be used for planning activities or working 
capital for projects focusing on processing and marketing a value-added 
product.
    Examples of acceptable planning activities include to:
    i. Obtain legal advice and assistance related to the proposed 
venture;
    ii. Conduct a feasibility analysis of a proposed value-added 
venture to help determine the potential marketing success of the 
venture;
    iii. Develop a business plan that provides comprehensive details on 
the management, planning, and other operational aspects of a proposed 
venture; and
    iv. Develop a marketing plan for the proposed value-added product, 
including the identification of a market window, the identification of 
potential buyers, a description of the distribution system, and 
possible promotional campaigns.
    Examples of acceptable working capital uses include to:
    v. Design or purchase an accounting system for the proposed 
venture;
    vi. Pay for salaries, utilities, and rental of office space;
    vii. Purchase inventory, office equipment (e.g. computers, 
printers, copiers, scanners), and office supplies (e.g. paper, pens, 
file folders); and
    viii. Conduct a marketing campaign for the proposed value-added 
product.
    2. No funds made available under this solicitation shall be used 
to:
    i. Plan, repair, rehabilitate, acquire, or construct a building or 
facility, including a processing facility;
    ii. Purchase, rent, or install fixed equipment, including 
processing equipment;
    iii. Purchase vehicles, including boats;
    iv. Pay for the preparation of the grant application;
    v. Pay expenses not directly related to the funded venture;
    vi. Fund political or lobbying activities;
    vii. Fund any activities prohibited by 7 CFR parts 3015 and 3019;
    viii. Fund architectural or engineering design work for a specific 
physical facility;
    ix. Fund any expenses related to the production of any commodity or 
product to which value will be added, including seed, rootstock, labor 
for harvesting the crop, and delivery of the commodity to a processing 
facility; or
    x. Fund research and development.
    xi. Purchase land.

F. Other Submission Requirements

    You may submit your final application via the postal service for a 
grant to Cooperative Services, Attn: VAPG Program, Mail Stop 3250, 1400 
Independence Ave., SW., Washington, DC 20250-3250. Submit final paper 
applications via UPS or Federal Express for a grant to Cooperative 
Services, Attn: VAPG Program, Room 4016, 1400 Independence Ave., SW., 
Washington, DC 20250. The phone number that should be used for FedEx 
packages is (202) 720-7558. You may also choose to submit your final 
application electronically using the following internet address: http://www.grants.gov. Final applications may not be submitted by facsimile 
or by hand-delivery. Each final application submission must contain all 
required documents in one envelope, if by mail or express delivery 
service.

V. Application Review Information

    A. Criteria: All eligible and complete applications will be 
evaluated based on the following criteria. Failure to address any one 
of the following criteria by the application deadline will result in a 
determination of incomplete and the application will not be considered 
for funding. If you believe a criterion is not applicable, you must 
state that in your application. Applications for planning grants have 
different criteria to address than applications for working capital 
grants. Addressing the incorrect set of criteria will result in a 
determination of incomplete and the application will not be considered 
for funding. The total points available for each set of criteria is 98.
    1. Criteria for applications for Planning Grants are:
    i. Nature of the proposed venture (0-25 points). Projects will be 
evaluated for technological feasibility, operational efficiency, 
profitability, sustainability and the likely improvement to the local 
rural economy. The discussion for this criterion must include the 
agricultural commodity to which value will be added, the process by 
which value will be added, and a description of the value-added product 
produced. If the applicant has the information available, the 
discussion for this criterion should include references to independent, 
third-party information that the applicant has reviewed, a discussion 
of similar projects, cost and availability of inputs, the type of 
market where the value-added product will be marketed (e.g. local, 
regional, national, international) and the potential number

[[Page 10945]]

of customers, the cost of processing the commodity, how much value will 
be added to the raw commodity through the production of the value-added 
product, how the added value will be distributed among the producers, 
processors, and any other intermediaries, and any additional non-
monetary value that could be obtained by end-users of the product. 
Points will be awarded based on the greatest expansion of markets and 
increased returns to producers. Applications that do not discuss a 
specific commodity, process, and value-added product will receive the 
minimum points allowed. Two teams of technical experts will be 
appointed to evaluate this criterion: a team of three independent 
reviewers and the servicing state office (see Section V.A.1.ii. for 
more details). The independent reviewers will evaluate this criterion 
from a national and/or regional perspective, and the servicing state 
office will evaluate this criterion from a state perspective.
    ii. Qualifications of those doing work (0-10 points). Proposals 
will be reviewed for whether the personnel who are responsible for 
doing proposed tasks, including those hired to do the studies, have the 
necessary qualifications. If a consultant or others are to be hired, 
more points may be awarded if the proposal includes evidence of their 
availability and commitment as well. If staff or consultants have not 
been selected at the time of application, the application should 
include specific descriptions of the qualifications required for the 
positions to be filled. Also, rather than attaching resumes at the end 
of the application, it is preferred that the qualifications of the 
personnel and consultants are discussed directly within the response to 
this criterion. If resumes are included, they should be contained 
within the narrative section of the application within the response to 
this criterion. If resumes are attached at the end of the application, 
those pages will be counted toward the page limit for the narrative.
    iii. Project leadership (0-10 points). The leadership abilities of 
individuals who are proposing the venture will be evaluated as to 
whether they are sufficient to support a conclusion of likely project 
success. Credit may be given for leadership evidenced in community or 
volunteer efforts. Also, rather than attaching resumes at the end of 
the application, it is preferred that the leadership abilities are 
discussed directly within the response to this criterion. If resumes 
are included, they should be contained within the narrative section of 
the application within the response to this criterion. If resumes are 
attached at the end of the application, those pages will be counted 
toward the page limit for the narrative.
    iv. Commitments and support (0-10 points). Producer commitments 
will be evaluated on the basis of the number of Independent Producers 
currently involved as well as how many may potentially be involved, and 
the nature, level and quality of their contributions. End user 
commitments will be evaluated on the basis of potential markets and the 
potential amount of output to be purchased. Proposals will be reviewed 
for evidence that the project enjoys third party support and 
endorsement, with emphasis placed on financial and in kind support as 
well as technical assistance. Letters of support should not be included 
with the application. If they are submitted, they will not be 
considered for the purpose of evaluating this criterion. Also, letters 
demonstrating end-user commitments should not be submitted. If they are 
submitted, they will not be considered for the purpose of evaluating 
this criterion. The applicant should reference all support groups and 
commitments in the discussion of this criterion, and have the support 
letters and commitment letters available upon request. These support 
and commitment letters are not the same as the documentation required 
as part of the verification of matching funds requirement. All 
documentation needed to properly verify matching funds must be 
submitted with the application in a separate section.
    v. Work plan/Budget (0-10 points). The work plan will be reviewed 
to determine whether it provides specific and detailed planning task 
descriptions that will accomplish the project's goals and the budget 
will be reviewed for a detailed breakdown of estimated costs associated 
with the planning activities. The budget must present a detailed 
breakdown of all estimated costs associated with the planning 
activities and allocate these costs among the listed tasks. Points may 
not be awarded unless sufficient detail is provided to determine 
whether or not funds are being used for qualified purposes. Matching 
funds as well as grant funds must be accounted for in the budget to 
receive points. Budgets that include more than 10% of total project 
costs that are ineligible will result in a determination of ineligible 
and the application will not be considered for funding. However, if an 
application with ineligible costs is selected for funding, all 
ineligible costs must be removed from the project and replaced with 
eligible activities or the amount of the grant award will be reduced 
accordingly. Logical, realistic, and economically efficient work plans 
and budgets will result in higher scores.
    vi. Amount requested (0-1 points). One (1) point will be awarded 
for grant requests of $50,000 or less. In addressing this criterion, 
the applicant should simply state the amount requested.
    vii. Project cost per owner-producer (0-2 points). This is 
calculated by dividing the amount of Federal funds requested by the 
total number of producers that are owners of the venture. The 
allocation of points for this criterion shall be as follows: $1-$25,000 
equals 2 points, $25,001-$50,000 equals 1 point, $50,001-$100,000 
equals 0 points. The applicant must state the number of owner-producers 
that are part of the venture. For independent producers, farmer- and 
rancher-cooperatives, and majority-controlled producer-based business 
ventures, the applicant must state the number of owners of the venture 
that are independent producers and are also owners of the venture. An 
owner cannot be considered an independent producer unless he/she is a 
producer of the agricultural commodity to which value will be added as 
part of this project. For agricultural producer groups, the number used 
should be the number of producers represented who produce the commodity 
to which value will be added. In cases where family members (including 
husband and wife) are owners and producers in a venture, each family 
member shall count as one owner-producer.
    Applications without enough information to determine the number of 
producer-owners will be determined to be incomplete and will not be 
considered for funding. Applicants must be prepared to prove that the 
numbers and individuals identified meet the requirements specified upon 
notification of a grant award. Failure to do so shall result in 
withdrawal of the grant award.
    viii. Community and industry support (0-10 points). Applicants must 
submit a description of the local business associations, industry 
associations, and any political institutions that support their 
projects. Letters of support should not be submitted, but a description 
of each letter of support should be included. The description must 
include the following: the name of the supporting organization, the 
date of the letter of support, and the name of the person signing the 
letter. The applicant should also include a brief description of why 
the support of each group is valuable to the project. National

[[Page 10946]]

Congressional support will not be considered for the purpose of 
evaluating this criterion. Applicants must be able to present a letter 
of support for each group listed at the time of award. Failure to 
demonstrate the support claimed in the application shall result in 
withdrawal of the grant award. Ventures that only demonstrate one type 
of support will not score as high for this criterion as ventures that 
demonstrate multiple types of support.
    ix. Business size (10 points if the application meets the criterion 
or 0 points if the application does not meet the criterion). Applicants 
must demonstrate their amount of gross sales for their most recent 
complete fiscal year. Applicants that have less than $100 million in 
gross sales will receive 10 points. Applicants that have $100 million 
or more in gross sales will receive 0 points. For this criterion, 
applicants should simply state the amount of gross sales for their most 
recent fiscal year. If an applicant is tentatively selected for 
funding, the applicant will need to verify the gross sales amount at 
the time of award. Applicants that do not have a complete fiscal year 
should so state in their applications. Failure to verify the amount 
stated in the application will be grounds for withdrawing the award.
    x. Number of grants (0 points if the application meets the 
criterion or -10 points if the application does not meet the 
criterion). Applicants must indicate whether they have received any 
previous grants under the VAPG program since its inception in 2001. 
Applicants who have already received a planning grant will receive -10 
points. Applicants who have not received a planning grant will receive 
0 points.
    xi. Presidential initiative of bio-energy (0 points if application 
does not meet the criterion or 5 points if application does meet the 
criterion). Applicants must indicate whether they believe their project 
has a bio-energy component. Those applications that have at least 51% 
of project costs dedicated to planning activities for a bio-energy 
project will receive 5 points. Partial credit will not be given.
    Applicants should note that the energy must be produced primarily 
(i.e. more than 50 percent) for on-farm use, unless the energy produced 
qualifies as a value-added product in its own right (e.g. ethanol, bio-
diesel). Also, the energy must be produced from a bio-based source. 
Examples of qualifying bio-energy projects include ethanol, bio-diesel, 
and energy produced from a manure digester. On-farm wind energy, on-
farm solar energy, and on-farm hydro energy do not qualify for points 
under this criterion, even though they are eligible projects for this 
program. Bio-mass projects such as producing compost from manure and 
producing mulch from trees also do not qualify for points under this 
criterion, although they are eligible projects for this program.
    xii. Administrator points (up to 5 points, but not to exceed 10 
percent of the total points awarded for the other 11 criteria). The 
Administrator of the Rural Business-Cooperative Service may award 
additional points to recognize innovative technologies, insure 
geographic distribution of grants, or encourage value-added projects in 
under-served areas. Applicants may submit an explanation of how the 
technology proposed is innovative and/or specific information verifying 
that the project is in an under-served area.
    2. Criteria for working capital applications are:
    i. Business viability (0-25 points). Proposals will be evaluated on 
the basis of the technical and economic feasibility and sustainability 
of the venture and the efficiency of operations. The discussion for 
this criterion must include the agricultural commodity to which value 
will be added, the process by which value will be added, and a 
description of the value-added product produced. The application should 
also include references to independent, third-party information that 
the applicant has reviewed, a discussion of similar projects, cost and 
availability of inputs, the type of market where the value-added 
product will be marketed (e.g. local, regional, national, 
international) and the potential number of customers, the cost of 
processing the commodity, how much value will be added to the raw 
commodity through the production of the value-added product, how the 
added value will be distributed among the producers, processors, and 
any other intermediaries, and any additional non-monetary value that 
could be obtained by end-users of the product. The application must 
also reference the feasibility study and business plan that has been 
developed for the project. The feasibility study must have been 
completed by an independent third party. The business plan may have 
been completed by the applicant, but should have included third party 
consultation in its development. The applicant should also discuss the 
financial statements submitted to assist in the demonstration of 
economic feasibility and sustainability. Points will be awarded based 
on how well the project is described, the feasibility of the project, 
the greatest expansion of markets, and increased returns to producers. 
Applications that do not discuss a specific commodity, process, and 
value-added product will receive the minimum points allowed. Failure to 
reference both a third-party feasibility study and a business plan by 
the application deadline will result in a determination that the 
application is incomplete and it will not be considered for funding. 
Applicants are reminded that they must produce the feasibility study 
and business plan referenced at the time of notification of grant 
award. Failure to produce both documents will result in withdrawal of 
the grant award. Also, the feasibility study and business plan are 
subject to Agency approval. If the feasibility study and business plan 
do not meet the Agency's approval, the grant award will be withdrawn. 
Two teams of technical experts will be appointed to evaluate this 
criterion: a team of three independent reviewers and the servicing 
state office (see Section V.A.1.ii. for more details). The independent 
reviewers will evaluate this criterion from a national and/or regional 
perspective, and the servicing state office will evaluate this 
criterion from a state perspective.
    ii. Customer base/increased returns (0-10 points). Proposals that 
demonstrate strong growth in a market or customer base and greater 
Value-Added revenue accruing to producer-owners will receive more 
points than those that demonstrate less growth in markets and realized 
Value-Added returns. 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 producers that are owners of the venture. Applicants 
should also reference the financial statements submitted. More points 
will be awarded to those applications that demonstrate the greatest 
expansion of the customer base and increased returns to producers.
    iii. Commitments and support (0-10 points). Producer commitments 
will be evaluated on the basis of the number of Independent Producers 
currently involved as well as how many may potentially be involved, and 
the nature and level and quality of their contributions. End user 
commitments will be evaluated on the basis of identified markets, 
letters of intent or contracts from potential buyers and the amount of 
output to be purchased. Proposals will be reviewed for evidence that 
the project enjoys third party support and endorsement, with emphasis 
placed on financial and in-

[[Page 10947]]

kind support as well as technical assistance. 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 
criterion. These documents will be requested at the time of grant 
award. Failure to produce them shall result in the withdrawal of the 
grant award. Points will be awarded based on the greatest level of 
documented commitment.
    iv. Management team/work force (0-10 points). The education and 
capabilities of project managers and those who will operate the venture 
must reflect the skills and experience necessary to effect project 
success. The availability and quality of the labor force needed to 
operate the venture will also be evaluated. Applicants must provide the 
information necessary to make these determinations. Proposals that 
reflect successful track records managing similar projects will receive 
higher points for this criterion than those that do not reflect 
successful track records.
    v. Work plan/Budget (0-10 points). The work plan will be reviewed 
to determine whether it provides specific and detailed task 
descriptions that will accomplish the project's goals and the budget 
will be reviewed for a detailed breakdown of estimated costs associated 
with the proposed activities. The budget must present a detailed 
breakdown of all estimated costs associated with the venture's 
operations and allocate these costs among the listed tasks. Points may 
not be awarded unless sufficient detail is provided to determine 
whether or not funds are being used for qualified purposes. Matching 
funds as well as grant funds must be accounted for in the budget to 
receive points. Budgets that include more than 10% of total project 
costs that are ineligible will result in a determination of ineligible 
and the application will not be considered for funding. However, if an 
application with ineligible costs is selected for funding, all 
ineligible costs must be removed from the project and replaced with 
eligible activities or the amount of the grant award will be reduced 
accordingly. Applications without a work plan and detailed budget 
submitted by the application deadline will be determined to be 
incomplete and will not be considered for funding. Logical, realistic, 
and economically efficient work plans and budgets will result in higher 
scores.
    vi. Amount requested (0-1 points). One (1) point will be awarded 
for grant requests of $75,000 or less. In addressing this criterion, 
the applicant should simply state the amount requested.
    vii. Project cost per owner-producer (0-2 points). This ratio is 
calculated by dividing the amount of VAPG funds requested by the total 
number of producers that are owners of the venture. The allocation of 
points for this criterion shall be as follows: $1-$50,000 equals 2 
points, $50,001-$100,000 equals 1 point, and $100,001-$150,000 equals 0 
points. The applicant must state the number of owner-producers that are 
part of the venture. For independent producers, farmer- and rancher-
cooperatives, and majority-controlled producer-based business ventures, 
the applicant must state the number of owners of the venture that are 
independent producers and are also owners of the venture. An owner 
cannot be considered an independent producer unless he/she is a 
producer of the agricultural commodity to which value will be added as 
part of this project. For agricultural producer groups, the number used 
should be the number of producers represented who produce the commodity 
to which value will be added. In cases where family members (including 
husband and wife) are owners and producers in a venture, each family 
member shall count as one owner-producer. Applications without enough 
information to determine the number of producer-owners will be 
determined to be incomplete and will not be considered for funding. 
Applicants must be prepared to prove that the numbers and individuals 
identified meet the requirements specified upon notification of a grant 
award. Failure to do so shall result in withdrawal of the grant award.
    viii. Community and industry support (0-10 points). Applicants must 
submit a description of the local business associations, industry 
associations, and any political institutions that support their 
projects. Letters of support should not be submitted, but a description 
of each letter of support should be included. The description must 
include the following: the name of the supporting organization, the 
date of the letter of support, and the name of the person signing the 
letter. The applicant should also include a brief description of why 
the support of each group is valuable to the project. National 
Congressional support will not be considered for the purpose of 
evaluating this criterion. Applicants must be able to present a letter 
of support for each group listed at the time of award. Failure to 
demonstrate the support claimed in the application shall result in 
withdrawal of the grant award. Ventures that only demonstrate one type 
of support will not score as high for this criterion as ventures that 
demonstrate multiple types of support.
    ix. Business size (10 points if the application meets the criterion 
or 0 points if the application does meet the criterion). Applicants 
must demonstrate their amount of gross sales for their most recent 
complete fiscal year. Applicants that have less than $100 million in 
gross sales will receive 10 points. Applicants that have $100 million 
or more in gross sales will receive 0 points. For this criterion, 
applicants should simply state the amount of gross sales for their most 
recent fiscal year. If an applicant is tentatively selected for 
funding, the applicant will need to verify the gross sales amount at 
the time of award. Applicants that do not have a complete fiscal year 
should state so state in their applications. Failure to verify the 
amount stated in the application will be grounds for withdrawing the 
award.
    x. Number of grants (0 points if the application meets the 
criterion or -10 points if the application does not meet the 
criterion). Applicants must indicate whether they have received any 
previous grants under the VAPG program since its inception in 2001. 
Applicants who have already received a working capital grant will 
receive -10 points. Applicants who have not received a working capital 
grant will receive 0 points.
    xi. Presidential initiative of bio-energy (0 points if application 
does not meet the criterion or 5 points if application does meet the 
criterion). Applicants must indicate whether they believe their project 
has a bio-energy component. Those applications that have at least 51% 
of project costs dedicated to working capital for a bio-energy project 
will receive 5 points. Partial credit will not be given. Applicants 
should note that the energy must be produced primarily (i.e. more than 
50 percent) for on-farm use, unless the energy produced qualifies as a 
value-added product in its own right (e.g. ethanol, bio-diesel). Also, 
the energy must be produced from a bio-based source. Examples of 
qualifying bio-energy projects include ethanol, bio-diesel, and energy 
produced from a manure digester. On-farm wind energy, on-farm solar 
energy, and on-farm hydro energy do not qualify for points under this 
criterion, even though they are eligible projects for this program. 
Bio-mass projects such as producing compost from manure and producing 
mulch from trees also do not qualify for points under this criterion, 
although they are eligible projects for this program.

[[Page 10948]]

    xii. Administrator points (up to 5 points, but not to exceed 10 
percent of the total points awarded for the other 11 criteria). The 
Administrator of RBS may award additional points to recognize 
innovative technologies, insure geographic distribution of grants, or 
encourage value-added projects in under-served areas. Applicants may 
submit an explanation of how the technology proposed is innovative and/
or specific information verifying that the project is in an under-
served area.
    B. Review and Selection Process: Applicants may choose to submit a 
draft application to their respective state offices (contact 
information is listed at the end of this notice). This draft will be 
reviewed by the state office for completeness only, in accordance with 
a standardized checklist. Applicants submitting a draft application 
that is received by April 22, 2005 will have a completed checklist for 
their draft returned to them by 4 p.m. local time on May 2, 2005. 
Applicants may submit draft applications after the April 22, 2005 
deadline at the discretion of their state office; however, no guarantee 
is made regarding whether the state office will complete its 
completeness review of the draft and return the checklist to the 
applicant in sufficient time for the applicant to use the information 
to revise its application and submit it on time. Final applications 
still need to be sent to the Washington, DC (Section IV.F.) address by 
the application deadline or submitted electronically through the 
Internet address: http://www.grants.gov. Draft applications will not be 
accepted in lieu of a final application. Applicants who choose not to 
submit a draft application will not be penalized during the application 
review and selection process.
    Each final application will be assigned to a particular Rural 
Development State Office, based on the address of the applicant or the 
location of the project. This state will be known as the servicing 
State Office. For example, if an applicant has an address in Kansas, 
the application will be assigned to the Rural Development State Office 
in Kansas and the Kansas State Office will be the servicing State 
Office. Applications will then be initially reviewed by Rural 
Development field office personnel from the servicing State Office for 
completeness and eligibility. Ineligible and incomplete applications 
will not be further evaluated and will not be considered for funding.
    All eligible and complete proposals will be evaluated by three 
reviewers based on criteria one through five described in section V.1. 
(with criteria one receiving 0-10 points for this portion of the review 
process). One of these reviewers will be a Rural Development employee 
not from the servicing State Office and the other two reviewers will be 
non-Federal persons. All reviewers must meet the following 
qualifications. Reviewers must have obtained at least a bachelors 
degree in one or more of the following fields: agri-business, business, 
economics, finance, or marketing. They must also have a minimum of 
three years of experience in an agriculture-related field (e.g. 
farming, marketing, consulting, university professor, research, officer 
for trade association, government employee for an agricultural 
program). If the reviewer does not have a degree in one of those 
fields, he/she must possess at least five years of working experience 
in an agriculture-related field.
    Once the scores for criteria one through five have been completed 
by the three reviewers, the scores will be normalized, using an 
accepted statistical procedure. This procedure corrects for any 
reviewer tendencies to score applications ``high'' or ``low.'' After 
the normalization is complete, the three scores will be averaged to 
obtain an initial ranking. Then, the high and low scores for each 
application will be analyzed for statistically significant deviation. 
For those applications with significant deviation, the ranking of that 
application with respect to all other scored applications will be 
considered. In cases where the ranking indicates that the application 
could either move out of funding range or into funding range, two 
supplemental reviews will be conducted by Rural Development employees 
not from the state where the application was assigned. These reviews 
will be normalized and compared with the initial three scores. The high 
and low scores from all five reviews will then be discarded. Each 
application will then be assigned a score that is the normalized 
average of three scores based on criteria one through five. The score 
will be converted to a value that can be added to the servicing State 
Office score (see below).
    Concurrent to the evaluation based on criteria one through five, 
the application will also receive one score from the Rural Development 
servicing State Office based on criteria one and six through eleven 
(with criteria one receiving 0-15 points for this portion of the review 
process). The State Office may enlist the support of qualified 
technical experts, approved by the State Director, to assist the State 
Office scoring process. The score will be added to the average 
normalized converted score obtained from criteria one through five.
    Finally, the Administrator of RBS will award any Administrator 
points based on criteria twelve. These points will be added to the 
cumulative score for criteria one through eleven. A final ranking will 
be obtained based solely on the scores received for criteria one 
through twelve. Applications will be funded in rank order until 
appropriated funds are expended. After the award selections are made, 
all applicants will be notified of the status of their applications by 
mail. No information regarding the status of an application will be 
released until after the award selections are made. Awardees must meet 
all statutory and regulatory program requirements in order to receive 
their award. Applicants for working capital grants must submit 
complete, independent third-party feasibility studies and business 
plans before the grant award can be finalized. In the event that an 
awardee cannot meet the requirements, the award will be withdrawn.

C. Anticipated Announcement and Award Dates

    Award Date: The announcement of award selections is expected to 
occur on or about September 30, 2005.

VI. Award Administration Information

A. Award Notices

    Successful applicants will receive a notification of tentative 
selection for funding from Rural Development. Applicants must comply 
with all applicable statutes, regulations, and this notice before the 
grant award will receive final approval.
    Unsuccessful applicants will receive notification, including 
mediation procedures and appeal rights, by mail.

B. Administrative and National Policy Requirements

    7 CFR parts 3015, 3019, and 4284.
    To view these regulations, please see the following Internet 
address: http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1.
    The following additional requirements apply to grantees selected 
for this program:
     Grant Agreement.
     Letter of Conditions.
     Form RD 1940-1, ``Request for Obligation of Funds.''
     Form RD 1942-46, ``Letter of Intent to Meet Conditions.''
     Form AD-1047, ``Certification Regarding Debarment, 
Suspension, and Other Responsibility Matters-Primary Covered 
Transactions.''
     Form AD-1048, ``Certification Regarding Debarment, 
Suspension,

[[Page 10949]]

Ineligibility and Voluntary Exclusion-Lower Tier Covered 
Transactions.''
     Form AD-1049, ``Certification Regarding a Drug-Free 
Workplace Requirements (Grants).''
     Form RD 400-1, ``Equal Opportunity Agreement.''
     Form RD 400-4, ``Assurance Agreement.''
     RD Instruction 1940-Q, Exhibit A-1, ``Certification for 
Contracts, Grants and Loans.''
    Additional information on these requirements can be found on the 
RBS Web site at the following Internet address: http://www.rurdev.usda.gov/rbs/coops/vadg.htm.
    Reporting Requirements: You must provide Rural Development with a 
hard copy original or an electronic copy that includes all required 
signatures of the following reports. The reports should be submitted to 
the Agency contact listed for your assigned state in Section VII. 
Failure to submit satisfactory reports on time may result in suspension 
or termination of your grant. RBS is currently developing an online 
reporting system. Once the system is developed, you may be required to 
submit some or all of your reports online instead of in hard copy.
    1. Form SF-269 or SF-269A. A ``Financial Status Report,'' listing 
expenditures according to agreed upon budget categories, on a semi-
annual basis. Reporting periods end each March 31 and September 30. 
Reports are due 30 days after the reporting period ends.
    2. Semi-annual performance reports that compare accomplishments to 
the objectives stated in the proposal. Identify all tasks completed to 
date and provide documentation supporting the reported results. If the 
original schedule provided in the work plan is not being met, the 
report should discuss the problems or delays that may affect completion 
of the project. Objectives for the next reporting period should be 
listed. Compliance with any special condition on the use of award funds 
should be discussed. Reports are due as provided in paragraph (1) of 
this section. The supporting documentation for completed tasks 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. Planning grant projects must also 
report the estimated increase in revenue, increase in customer base, 
number of jobs created, and any other relevant economic indicators 
generated by continuing the project into its operational phase. Working 
capital grants must report the increase in revenue, increase in 
customer base, number of jobs created, and any other relevant economic 
indicators generated by the project during the grant period. Projects 
with significant energy components must also report expected or actual 
capacity (e.g. gallons of ethanol produced annually, megawatt hours 
produced annually) and any emissions reductions incurred during the 
project.
    3. Final project performance reports, inclusive of supporting 
documentation. The final performance report is due within 90 days of 
the completion of the project.

VII. Agency Contacts

    For general questions about this announcement and for program 
technical assistance, please contact the Representative listed for the 
state in which the applicant is based. If you are unable to contact the 
Representative for your state, please contact a Representative from a 
nearby state or you may contact the RBS National Office at Mail Stop 
3250, 1400 Independence Avenue SW., Washington, DC 20250-3250, 
Telephone: (202) 720-7558, e-mail: [email protected].

Alabama

    Mary Ann Clayton, USDA Rural Development, Sterling Center, Ste. 
601, 4121 Carmichael Rd., Montgomery, AL 36106-3683, (334) 279-3624, 
[email protected].

Alaska

    Dean Stewart, USDA Rural Development, 800 West Evergreen, Ste. 201, 
Palmer, AK 99645, (907) 761-7722, [email protected].

Arizona

    Hanna Schwartz, USDA Rural Development, 2585 N. Grand Ave., Ste. 5, 
Nogales, AZ 85621, (520) 281-0221, ext. 101, 
[email protected].

Arkansas

    Tim Smith, USDA Rural Development, 700 West Capitol Ave., Rm. 3416, 
Little Rock, AR 72201-3225, (501) 301-3280, [email protected].

California

    Karen Spatz, USDA Rural Development, 430 G St., Agency 4169, Davis, 
CA 95616, (530) 792-5829, [email protected].

Colorado

    Dolores Sanchez-Maes, USDA Rural Development, 655 Parfet St., Rm. 
E-100, Lakewood, CO 80215, (720) 544-2927, [email protected].

Connecticut

    Richard J. Burke, USDA Rural Development, 451 West St., Ste. 2, 
Amherst, MA 01002, (413) 253-4319, [email protected].

Delaware

    Signe Hippert, USDA Rural Development, 4607 S. DuPont Hwy., Camden, 
DE 19934, (302) 697-4327, [email protected].

Florida

    Joe Mueller, USDA Rural Development, 4440 NW. 25th Pl., 
Gainesville, FL 32606, (352) 338-3482, [email protected].

Georgia

    J. Craig Scroggs, USDA Rural Development, 333 Phillips Dr., 
McDonough, GA 30253, (678) 583-0866, [email protected].

Hawaii

    Timothy O'Connell, USDA Rural Development, Federal Building, Rm. 
311, 154 Waianuenue Ave., Hilo, HI 96720, (808) 933-8313, 
[email protected].

Idaho

    Rhonda Merritt, USDA Rural Development, 9173 W. Barnes, Ste. A1, 
Boise, ID 83709, (208) 378-5623, [email protected].

Illinois

    Patrick Lydic, USDA Rural Development, 2118 West Park Ct., Ste. A, 
Champaign, IL 61821, (217) 403-6211, [email protected].

Indiana

    Jerry Hay, USDA Rural Development, 2411 N. 1250 W., Deputy, IN 
47230, (812) 873-1100, [email protected].

Iowa

    Jeff Jobe, USDA Rural Development, 210 Walnut St., Rm. 873, Des 
Moines, IA 50309, (515) 284-5192, [email protected].

Kansas

    F. Martin Fee, USDA Rural Development, 1303 SW First American Pl., 
Ste. 100, Topeka, KS 66604-4040, (785) 271-2744, 
[email protected].

Kentucky

    Jeff Jones, USDA Rural Development, 771 Corporate Dr., Ste. 200, 
Lexington, KY 40503, (859) 224-7435, [email protected].

Louisiana

    Judy Meche, USDA Rural Development, 3727 Government St.,

[[Page 10950]]

Alexandria, LA 71302, (318) 473-7960, [email protected].

Maine

    Michael Grondin, USDA Rural Development, P.O. Box 405, Bangor, ME 
04402-0405, (207) 990-9168, [email protected].

Maryland

    Signe Hippert, USDA Rural Development, 4607 S. DuPont Hwy., Camden, 
DE 19934, (302) 697-4327, [email protected].

Massachusetts

    Richard J. Burke, USDA Rural Development, 451 West St., Ste. 2, 
Amherst, MA 01002, (413) 253-4319, [email protected].

Michigan

    Bobbie Morrison, USDA Rural Development, 3001 Coolidge Rd., Ste. 
200, East Lansing, MI 48823, (517) 324-5222, 
[email protected].

Minnesota

    Robyn J. Holdorf, USDA Rural Development, 375 Jackson St., Ste. 
410, St. Paul, MN 55101-1853, (651) 602-7812, 
[email protected].

Mississippi

    Charlie Joiner, USDA Rural Development, Federal Building, Ste. 831, 
100 W Capitol St., Jackson, MS 39269, (601) 965-5457, 
[email protected].

Missouri

    Nathan Chitwood, USDA Rural Development, 601 Business Loop 70 W, 
Parkade Center, Ste. 235, Columbia, MO 65203, (573) 876-9320, 
[email protected].

Montana

    William W. Barr, USDA Rural Development, 900 Technology Blvd., Ste. 
B, P.O. Box 850, Bozeman, MT 59771, (406) 585-2545, 
[email protected].

Nebraska

    Deb Yocum, USDA Rural Development, 201 N 25th St., Beatrice, NE 
68310, (402) 223-3125, ext. 4, [email protected].

Nevada

    Dan Johnson, USDA Rural Development, 555 W Silver St., Ste. 101, 
Elko, NV 89801, (775) 738-8468, ext. 112, [email protected].

New Hampshire

    Lyn Millhiser, USDA Rural Development, Third Floor City Center, 89 
Main St., Montpelier, VT 05602, (802) 828-6069, 
[email protected].

New Jersey

    Michael P. Kelsey, USDA Rural Development, 5th Floor North Tower, 
Ste. 500, 8000 Midlantic Dr., Mount Laurel, NJ 08054, (856) 787-7751, 
[email protected].

New Mexico

    Eric Vigil, USDA Rural Development, 6200 Jefferson St. NE, Rm. 255, 
Albuquerque, NM 87109, (505) 761-4952, [email protected].

New York

    Scott Collins, USDA Rural Development, The Galleries of Syracuse, 
441 South Salina St., Ste. 357, Syracuse, NY 13202, (315) 477-6409, 
[email protected].

North Carolina

    Bruce Pleasant, USDA Rural Development, 4405 Bland Rd., Ste. 260, 
Raleigh, NC 27609, (919) 873-2031, [email protected].

North Dakota

    Dennis Rodin, USDA Rural Development, Federal Building, Rm. 211, 
220 E Rosser Ave., Bismarck, ND 58502-1737, (701) 530-2065, 
[email protected].

Ohio

    Deborah E. Rausch, USDA Rural Development, Federal Building, Rm. 
507, 200 North High St., Columbus, OH 43215, (614) 255-2425, 
[email protected].

Oklahoma

    Mike Schrammel, USDA Rural Development, 100 USDA, Ste. 108, 
Stillwater, OK 74074-2654, (405) 742-1061, 
[email protected].

Oregon

    Dan Streng, USDA Rural Development, 101 SW Main St., Ste. 1401, 
Portland, OR 97204-3222, (503) 414-3366, [email protected].

Pennsylvania

    Gerald Ely, USDA Rural Development, One Hollowcrest Complex, 
Tunkhannock, PA 18657, (570) 836-5111, ext. 119, 
[email protected].

Puerto Rico

    Luis Garcia, USDA Rural Development, Mu[ntilde]oz Rivera, 654 Plaza 
Bldg., Ste. 601, San Juan, Puerto Rico 00918, (787) 766-5095, ext. 239, 
[email protected].

Rhode Island

    Richard J. Burke, USDA Rural Development, 451 West St., Ste. 2, 
Amherst, MA 01002, (413) 253-4319, [email protected].

South Carolina

    Debbie Turbeville, USDA Rural Development, Strom Thurmond Federal 
Building, 1835 Assembly St., Ste. 1007, Columbia, SC 29201, (843) 354-
9613, ext. 118, [email protected].

South Dakota

    Gary L. Korzan, USDA Rural Development, Federal Building, Rm. 210, 
200 4th St. SW, Huron, SD 57350, (605) 352-1142, 
[email protected].

Tennessee

    Dan Beasley, USDA Rural Development, 3322 West End Ave., Ste. 300, 
Nashville, TN 37203, (615) 783-1341, [email protected].

Texas

    Billy Curb, USDA Rural Development, Federal Building, 101 South 
Main, Ste. 102, Temple, TX 76501, (254) 742-9775, 
[email protected].

Utah

    Richard Carrig, USDA Rural Development, Wallace F. Bennett Federal 
Building, 125 South State St., Rm. 4311, Salt Lake City, UT 84138, 
(801) 524-4328, [email protected].

Vermont

    Lyn Millhiser, USDA Rural Development, Third Floor City Center, 89 
Main St., Montpelier, VT 05602, (802) 828-6069, 
[email protected].

Virgin Islands

    Joe Mueller, USDA Rural Development, 4440 NW. 25th Pl., 
Gainesville, FL 32606, (352) 338-3482, [email protected].

Virginia

    Laurette Tucker, USDA Rural Development, Culpeper Building, Ste. 
238, 1606 Santa Rosa Rd., Richmond, VA 23229, (804) 287-1594, 
[email protected].

Washington

    John Brugger, USDA Rural Development, 8815 E. Mission, Ste. B, 
Spokane Valley, WA 99212-2445, (509) 924-7350, ext. 114, 
[email protected].

West Virginia

    John M. Comerci, USDA Rural Development, 481 Ragland Rd., Beckley,

[[Page 10951]]

WV 25801, (304) 252-8644, ext. 146, [email protected].

Wisconsin

    Barbara Brewster, USDA Rural Development, 4949 Kirschling Ct., 
Stevens Point, WI 54481, (715) 345-7610, [email protected].

Wyoming

    Janice Stroud, USDA Rural Development, 100 East B St., Rm. 1005, 
Casper, WY 82601, (307) 233-6710, [email protected].

VIII. Other Information

    It is suggested that applicants visit the Agricultural Marketing 
Resource Center (AgMRC) Web site (http://www.agmrc.org) for additional 
information on value-added agriculture. AgMRC brings together experts 
from three of the nation's leading agricultural universities--Iowa 
State University, Kansas State University and the University of 
California--into a dynamic, electronically based center to create and 
present information about value-added agriculture. The center draws on 
the abilities, skills and knowledge of leading economists, business 
strategists and outreach specialists to provide reliable information 
needed by independent producers to achieve success and profitability in 
value-added agriculture. Partial support for the center is derived from 
a grant administered by RBS.

    Dated: February 25, 2005.
Peter Thomas,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 05-4310 Filed 3-4-05; 8:45 am]
BILLING CODE 3410-XY-P