[Federal Register Volume 77, Number 158 (Wednesday, August 15, 2012)]
[Notices]
[Pages 48951-48959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-20082]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Inviting Applications for Value-Added Producer Grants

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: USDA announces the availability of grants through the Value-
Added Producer Grant (VAPG) program for Fiscal Year 2012. Approximately 
$14 million in competitive grant funds for FY 2012 is available to help 
agricultural producers enter into value-added activities. At the 
discretion of the Secretary, additional funds may be made available to 
qualified ranking applications that respond to this announcement from 
prior year carry-over funds.
    Awards may be made for either economic planning or working capital 
activities related to the processing and/or marketing of valued-added 
agricultural products. The maximum grant amount for a planning grant is 
$100,000 and the maximum grant amount for a working capital grant is 
$300,000.
    There is a matching funds requirement of at least $1 for every $1 
in grant funds provided by the Agency (matching funds plus grant funds 
must equal proposed total project costs). Matching funds may be in the 
form of cash or eligible in-kind contributions and may be used only for 
eligible project purposes. Matching funds must be available at time of 
application and must be certified and verified as described in 7 CFR 
4284.931(b)(3) and (4). See 7 CFR 4284.923 and 7 CFR 4284.924 for 
examples of eligible and ineligible uses of matching funds.
    Ten percent of available funds are reserved to fund applications 
submitted by Beginning Farmers or Ranchers and Socially Disadvantaged 
Farmers or Ranchers, and an additional 10 percent of available funds 
are reserved to fund applications from farmers or ranchers that propose 
development of Mid-Tier Value Chain projects (both collectively 
referred to as ``reserved funds''). See 7 CFR 4284.925 and 7 U.S.C. 
1632(a).

DATES: You must submit your application by October 15, 2012 or it will 
not be considered for funding announced in this Notice. Paper 
applications must be postmarked and mailed, shipped or sent overnight 
by this date. Electronic applications are permitted via www.grants.gov 
only, and must be received before midnight on this date.

ADDRESSES: You should contact your USDA Rural Development State Office 
if you have questions about eligibility or submission requirements. You 
are encouraged to contact your State Office well in advance of the 
application deadline to discuss your project and to ask any questions 
about the application process. You may request technical assistance 
from your State Office up to 14 days prior to the application deadline. 
Application materials are available at http://www.rurdev.usda.gov/BCP_VAPG.html.
    If you want to submit an electronic application, follow the 
instructions for the VAPG funding announcement on http://www.grants.gov. If you want to submit a paper application, send it to 
the State Office located in the State where your project will primarily 
take place. You can find State Office Contact information at http://www.rurdev.usda.gov/recd_map.html or see the following list:

Alabama

USDA Rural Development State Office, Sterling Centre, Suite 601, 
4121 Carmichael Road, Montgomery, AL 36106-3683, (334) 279-3400/TDD 
(334) 279-3495.

Alaska

USDA Rural Development State Office, 800 West Evergreen, Suite 201, 
Palmer, AK 99645-6539, (907) 761-7705/TDD (907) 761-8905.

American Samoa (see Hawaii)

Arizona

USDA Rural Development State Office, 230 N. 1st Ave., Suite 206, 
Phoenix, AZ 85003, (602) 280-8701/TDD (602) 280-8705.

Arkansas

USDA Rural Development State Office, 700 West Capitol Avenue, Room 
3416, Little Rock, AR 72201-3225, (501) 301-3200/TDD (501) 301-3279.

California

USDA Rural Development State Office, 430 G Street,  4169, 
Davis, CA 95616-4169, (530) 792-5800/TDD (530) 792-5848.

Colorado

USDA Rural Development State Office, Denver Federal Center, Building 
56, Room 2300, PO Box 25426, Denver, CO 80225-0426, (720) 544-2903.

Commonwealth of the Northern Marianas Islands-CNMI (see Hawaii)

Connecticut (see Massachusetts)

Delaware-Maryland

USDA Rural Development State Office, 1221 College Park Drive, Suite 
200, Dover, DE 19904, (302) 857-3580/TDD (302) 857-3585.

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Federated States of Micronesia (see Hawaii)

Florida/Virgin Islands

USDA Rural Development State Office, 4440 NW 25th Place, P.O. Box 
147010, Gainesville, FL 32614-7010, (352) 338-3400/TDD (352) 338-
3499.

Georgia

USDA Rural Development State Office, Stephens Federal Building, 355 
E. Hancock Avenue, Athens, GA 30601-2768, (706) 546-2162/TDD (706) 
546-2034.

Guam (see Hawaii)

Hawaii/Guam/Republic of Palau/Federated States of Micronesia/Republic 
of the Marshall Islands/American Samoa/Commonwealth of the Northern 
Marianas Islands--CNMI

USDA Rural Development State Office, Federal Building, Room 311, 154 
Waianuenue Avenue, Hilo, HI 96720, (808) 933-8380/TDD (808) 933-
8321.

Idaho

USDA Rural Development State Office, 9173 West Barnes Drive, Suite 
A1, Boise, ID 83709, (208) 378-5600/TDD (208) 378-5644.

Illinois

USDA Rural Development State Office, 2118 West Park Court, Suite A, 
Champaign, IL 61821, (217) 403-6200/TDD (217) 403-6240.

Indiana

USDA Rural Development State Office, 5975 Lakeside Boulevard, 
Indianapolis, IN 46278, (317) 290-3100/TDD (317) 290-3343.

Iowa

USDA Rural Development State Office, Federal Building, Room 873, 210 
Walnut Street, Des Moines, IA 50309, (515) 284-4663/TDD (515) 284-
4858.

Kansas

USDA Rural Development State Office, 1303 S.W. First American Place, 
Suite 100, Topeka, KS 66604-4040, (785) 271-2700/TDD (785) 271-2767.

Kentucky

USDA Rural Development State Office, 771 Corporate Drive, Suite 200, 
Lexington, KY 40503, (859) 224-7300/TDD (859) 224-7422.

Louisiana

USDA Rural Development State Office, 3727 Government Street, 
Alexandria, LA 71302, (318) 473-7921/TDD (318) 473-7655.

Maine

USDA Rural Development State Office, 967 Illinois Avenue, Suite 4, 
P.O. Box 405, Bangor, ME 04402-0405, (207) 990-9160/TDD (207) 942-
7331.

Marshall Islands (see Hawaii)

Maryland (see Delaware)

Massachusetts/Rhode Island/Connecticut

USDA Rural Development State Office, 451 West Street, Suite 2, 
Amherst, MA 01002-2999, (413) 253-4300/TDD (413) 253-4590.

Michigan

USDA Rural Development State Office, 3001 Coolidge Road, Suite 200, 
East Lansing, MI 48823, (517) 324-5190/TDD (517) 324-5169.

Minnesota

USDA Rural Development State Office, 375 Jackson Street, Suite 410, 
St. Paul, MN 55101-1853, (651) 602-7800/TDD (651) 602-3799.

Mississippi

USDA Rural Development State Office, Federal Building, Suite 831, 
100 West Capitol Street, Jackson, MS 39269, (601) 965-4316/TDD (601) 
965-5850.

Missouri

USDA Rural Development State Office, 601 Business Loop 70 West, 
Parkade Center, Suite 235, Columbia, MO 65203, (573) 876-0976/TDD 
(573) 876-9480.

Montana

USDA Rural Development State Office, 2229 Boot Hill Court, Bozeman, 
MT 59715-7914, (406) 585-2580/TDD (406) 585-2562.

Nebraska

USDA Rural Development State Office, Federal Building, Room 152, 100 
Centennial Mall North, Lincoln, NE 68508, (402) 437-5551/TDD (402) 
437-5093.

Nevada

USDA Rural Development State Office, 1390 South Curry Street, Carson 
City, NV 89703-5146, (775) 887-1222/TDD 7-1-1.

New Hampshire (see Vermont)

New Jersey

USDA Rural Development State Office, 8000 Midlantic Drive, 5th Floor 
North, Suite 500, Mt. Laurel, NJ 08054, (856) 787-7700/TDD (856) 
787-7784.

New Mexico

USDA Rural Development State Office, 6200 Jefferson Street NE, Room 
255, Albuquerque, NM 87109, (505) 761-4950/TDD (505) 761-4938.

New York

USDA Rural Development State Office, The Galleries of Syracuse, 441 
South Salina Street, Suite 357, Syracuse, NY 13202-2541, (315) 477-
6400/TDD (315) 477-6447.

North Carolina

USDA Rural Development State Office, 4405 Bland Road, Suite 260, 
Raleigh, NC 27609, (919) 873-2000/TDD (919) 873-2003.

North Dakota

USDA Rural Development State Office, Federal Building, Room 208, 220 
East Rosser, P.O. Box 1737, Bismarck, ND 58502-1737, (701) 530-2037/
TDD (701) 530-2113.

Northern Mariana Islands (see Hawaii)

Ohio

USDA Rural Development State Office, Federal Building, Room 507, 200 
North High Street, Columbus, OH 43215-2418, (614) 255-2400/TDD (614) 
255-2554.

Oklahoma

USDA Rural Development State Office, 100 USDA, Suite 108, 
Stillwater, OK 74074-2654, (405) 742-1000/TDD (405) 742-1007.

Oregon

USDA Rural Development State Office, 1201 NE Lloyd Blvd., Suite 801, 
Portland, OR 97232, (503) 414-3300/TDD (503) 414-3387.

Palau (see Hawaii)

Pennsylvania

USDA Rural Development State Office, One Credit Union Place, Suite 
330, Harrisburg, PA 17110-2996, (717) 237-2299/TDD (717) 237-2261.

Puerto Rico

USDA Rural Development State Office, IBM Building, Suite 601, 654 
Munos Rivera Avenue, San Juan, PR 00918-6106, (787) 766-5095/TDD 
(787) 766-5332.

Rhode Island (see Massachusetts)

South Carolina

USDA Rural Development State Office, Strom Thurmond Federal 
Building, 1835 Assembly Street, Room 1007, Columbia, SC 29201, (803) 
765-5163/TDD (803) 765-5697.

South Dakota

USDA Rural Development State Office, Federal Building, Room 210, 200 
Fourth Street SW., Huron, SD 57350, (605) 352-1100/TDD (605) 352-
1147.

Tennessee

USDA Rural Development State Office, 3322 West End Avenue, Suite 
300, Nashville, TN 37203-1084, (615) 783-1300

Texas

USDA Rural Development State Office, Federal Building, Suite 102, 
101 South Main, Temple, TX 76501, (254) 742-9700/TDD (254) 742-9712.

Utah

USDA Rural Development State Office, Wallace F. Bennett Federal 
Building, 125 South State Street, Room 4311, Salt Lake City, UT 
84138, (801) 524-4321/TDD (801) 524-3309.

Vermont/New Hampshire

USDA Rural Development State Office, City Center, 3rd Floor, 89 Main 
Street, Montpelier, VT 05602, (802) 828-6080/TDD (802) 223-6365.

Virginia

USDA Rural Development State Office, 1606 Santa Rosa Road, Suite 
238, Richmond, VA

[[Page 48953]]

23229-5014, (804) 287-1550/TDD (804) 287-1753.

Virgin Islands (see Florida)

Washington

USDA Rural Development State Office, 1835 Black Lake Boulevard SW., 
Suite B, Olympia, WA 98512-5715, (360) 704-7740/TDD (360) 704-7760.

West Virginia

USDA Rural Development State Office, 1550 Earl Core Road, Suite 101, 
Morgantown, WV 26505, (304) 284-4860/TDD (304) 284-4836.

Western Pacific (see Hawaii)

Wisconsin

USDA Rural Development State Office, 4949 Kirschling Court, Stevens 
Point, WI 54481, (715) 345-7600/TDD (715) 345-7614.

Wyoming

USDA Rural Development State Office, 100 East B, Federal Building, 
Room 1005, P.O. Box 11005, Casper, WY 82602-5006, (307) 233-6700/TDD 
(307) 233-6733.


FOR FURTHER INFORMATION CONTACT: Office of the Deputy Administrator, 
Cooperative Programs, Rural Business-Cooperative Service, United States 
Department of Agriculture, 1400 Independence Avenue SW., MS-3250, Room 
4016-South, Washington, DC 20250-3250, (202) 720-8460.

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act, the paperwork 
burden associated with this Notice has been approved by the Office of 
Management and Budget (OMB) under OMB Control Number 0570-0039.

Overview

    Federal Agency Name: Rural Business-Cooperative Service.
    Funding Opportunity Title: Value-Added Producer Grants.
    Announcement Type: Funding Announcement.
    Catalog of Federal Domestic Assistance Number: 10.352.

I. Funding Opportunity Description

A. Purpose of the Program

    The primary objective of this grant program is to help Independent 
Producers of agricultural commodities, Agriculture Producer Groups, 
Farmer and Rancher Cooperatives, and Majority-Controlled Producer-Based 
Business Ventures enter into value-added activities related to the 
processing and/or marketing of bio-based value-added agricultural 
products. Grants will be awarded competitively for either planning or 
working capital projects directly related to the processing and/or 
marketing of value-added products. Generating new products, creating 
and expanding marketing opportunities, and increasing producer income 
are the end goals. Applications that support aspects of regional 
strategic planning, cooperative development, sustainable farming, and 
local and regional food systems are encouraged. Proposals must 
demonstrate economic viability and sustainability in order to compete 
for funding.
    As part of this funding initiative, funding priority will be 
available to Beginning Farmers and Ranchers, Socially-Disadvantaged 
Farmers and Ranchers, Operators of Small and Medium-Sized Farms and 
Ranches that are structured as a Family Farm, Farmer or Rancher 
Cooperatives, and projects proposing to develop a Mid-Tier Value Chain. 
See 7 CFR 4284.922(c) for Reserved Funding and 7 CFR 4284.922(d) for 
Priority Point categories and requirements.
    The VAPG Program is authorized under section 231 of the Agriculture 
Risk Protection Act of 2000 (Pub. L. 106-224), as amended by section 
6202 of the Food, Conservation, and Energy Act of 2008 (Pub. L. 110-
246) (see 7 U.S.C. 1632a). Applicants must adhere to the program 
requirements contained in the program regulation, 7 CFR 4284, subpart 
J, which is incorporated by reference in this Notice.

B. Definition of Terms

    The terms you need to understand are defined in 7 CFR 4284.902. In 
addition, there has been some confusion on the Agency's meaning of the 
terms ``Harvester,'' and ``Steering Committee,'' because these terms 
are only referenced as part of the Independent Producer definition and 
are not specifically defined in the regulation used for the program. 
Therefore, these terms are defined below and should be understood as 
follows.
    Harvester: Harvesters are individuals or entities that demonstrate 
their legal right to access and harvest a primary agricultural 
commodity; and are not individuals or entities that merely glean, 
gather or collect residual commodities that result from an initial 
harvesting or production of a primary agricultural commodity. Examples 
of Harvesters may include, but are not limited to, a logger who has a 
legal right to access and harvest logs from the forest that are then 
converted into boards; a fisherman that has the legal right to access 
and harvest fish from the ocean or river that are then smoked. For 
clarification, it is the Agency's position that Harvesters may only 
apply as an Independent Producer applicant type because harvester 
operations do not meet Agency definition requirements for a Farm or 
Ranch. Harvester applicants will not be eligible to receive Reserve 
Funds for a Beginning Farmer or Rancher or a Socially Disadvantaged 
Farmer or Rancher; and will not be eligible to receive Priority Points 
for a Beginning Farmer or Rancher, a Socially Disadvantaged Farmer or 
Rancher, Operator of a Small or Medium-sized Farm or Ranch structured 
as a Family Farm, or a Farmer or Rancher Cooperative. However, 
Harvesters may request Reserve Funds and/or Priority Points for a 
qualifying Mid-Tier Value Chain project if eligibility is documented in 
the application.
    Steering Committee: A Steering Committee is an unincorporated group 
of specifically identified Agricultural Producers that lacks a legal 
structure or identity and is in the process of organizing one of the 
four program eligible entity types that will operate a value-added 
venture and will supply the majority of the agricultural commodity for 
the value-added project. For clarification, it is the Agency's position 
that a Steering Committee may only apply as an Independent Producer 
applicant type and must be 100 percent comprised of Independent 
Producers at time of application submission. If selected for award of 
funds, and before the grant agreement will be approved by the Agency, 
the Steering Committee members must form a legally authorized 
organization that meets requirements for one of the four program 
eligible applicant types and provide the necessary documentation for 
approval by the Agency.
    Finally, in support of the Value-Added Agricultural Product 
definition requirements in 7 CFR 4284.902, the Agency directs that 
applicants demonstrate expansion of customer base for the agricultural 
commodity by including a baseline of current customers for the 
commodity, and an estimated target number of customers that will result 
from the project; and demonstrate the estimated amount of the increased 
portion of the revenue derived from the marketing, processing or 
physical segregation of the agricultural commodity that will be 
available to the applicant's producers of the agricultural commodity, 
by including a baseline of current revenues from the sale of the 
agricultural commodity and an estimated target number of increased 
revenues that will result from the project.

II. Award Information

    Type of Instrument: Grant.

[[Page 48954]]

    Fiscal Year Funds: FY 2012.
    Approximate Number of Awards: 120.
    Available Total Funding: Approximately $14 million.
    Minimum Award Amount: Not restricted for planning or working 
capital. In FY 2011, 49 percent of awards were $50,000 or less.
    Maximum Award Amount: Planning--$100,000; Working Capital--
$300,000.
    Anticipated Award Date: January 18, 2013.
    Grant Period Length: The maximum grant period is 3 years from date 
of award. Proposed grant periods should be scaled to the complexity of 
the objectives of the project.

III. Eligibility Information

A. Eligible Applicants

    You must be an Independent Producer, Agricultural Producer Group, 
Farmer or Rancher Cooperative, or a Majority Controlled Produced-Based 
Business to apply to this program; and you must meet all related 
requirements for Emerging Market (as applicable), Citizenship, Legal 
Authority and Responsibility, Multiple Grants and Active Grants. In 
addition, you must meet Departmental requirements related to debarment, 
suspension and exclusion from participation in Federal assistance 
programs, as well as requirements related to outstanding Federal income 
taxes, judgments and delinquencies. For detailed requirements, see 7 
CFR 4284.920 and 7 CFR 4284.921.
    As a special emphasis, Rural Development encourages applications 
from Federally Recognized Tribal Groups and corporations and 
subdivisions of Tribal Groups undertaking or planning to undertake 
eligible value-added projects. For further tribal eligibility 
questions, please contact your local Rural Development office.
    As part of applicant eligibility, it is important to clarify that 
all four applicant types must meet the Independent Producer and 
Agricultural Producer definition requirements in 7 CFR 4284.902, 
including, but not limited to, production and ownership of the majority 
of the raw agricultural commodity that will be transformed into the 
proposed value-added product for the project. All applicants must 
maintain ownership of the raw agricultural commodity through the 
production and marketing of the value-added product, with one partial 
exception for Mid-Tier Value Chain projects noted in its definition in 
7 CFR 4284.902. Businesses that contract out the production of an 
agricultural commodity are not considered Independent Producers, and 
businesses that produce the agricultural commodity under contract for 
another business and do not own the raw commodity or value-added 
product produced are not considered Independent Producers.
    Finally, all applicants for working capital funds must document the 
quantity of the agricultural commodity that will be used for the value-
added product, expressed in an appropriate unit of measure (acres, 
pounds, bushels, etc.) to demonstrate the scale of the applicant's 
project. This quantification must include an estimated total quantity 
of the agricultural commodity needed for the project, the quantity that 
will be provided (produced and owned) by the agricultural producers of 
the applicant organization, and the quantity that will be purchased or 
donated from third-party sources. The application must demonstrate that 
the amount of applicant commodity contributed to the project is the 
majority of the total agricultural commodity needed for the value-added 
project.

B. Project Eligibility

    Your project must meet (1) Product Eligibility requirements related 
to the definition of Value-Added Agricultural Product, including value-
added methodologies, expansion of customer base for the agricultural 
commodity, and increased revenues returning to the applicant's 
producers of the agricultural commodity as a result of the project; (2) 
Purpose Eligibility requirements related to maximum grant amounts, 
certification and verification of matching funds, eligible and 
ineligible uses of grant and matching funds for planning or working 
capital activities, including requirements related to conflicts of 
interest and ineligible expenses in excess of 10 percent of total 
project costs, a substantive work plan and budget, independent 
feasibility study and/or business plan requirements for working capital 
projects (subject to Agency concurrence of financial feasibility, as 
defined in 7 CFR 4284.902), including demonstration of readiness to 
implement the working capital activities, and identification of the 
number of jobs expected to be created or saved as a result of the 
project; (3) Reserved Funds Eligibility requirements if you choose to 
compete for Reserved Funds as a Beginning Farmer or Rancher, a Socially 
Disadvantaged Farmer or Rancher, or if you propose to develop a Mid-
Tier Value Chain; and (4) Priority Status Eligibility requirements if 
you request priority points in the competition for a project that 
contributes to increasing opportunities for Beginning Farmers or 
Ranchers, Socially Disadvantaged Farmers or Ranchers, or if you are an 
Operator of a Small or Medium-sized farm or ranch that is structured as 
a Family Farm, propose a Mid-Tier Value Chain project, or are a Farmer 
or Rancher Cooperative. For detailed requirements, see 7 CFR 4284.922, 
7 CFR 4284.923 and 7 CFR 4284.924.

    Note:  If you are applying for a working capital grant that 
requires a project-specific independent feasibility study and/or 
business plan, you must submit those documents with your 
application. In addition, you must summarize relevant results of the 
feasibility study and business plan in response to the scoring 
criteria, as applicable, because reviewers will not receive copies 
of your feasibility study or business plan when scoring your 
application. Based on the information presented in the application, 
including a feasibility study and/or business plan where required, 
the applicant must demonstrate that the project is financially 
feasible and can achieve the income, credit and cash flows to 
sustain the venture over the long term. Applications with inadequate 
information or projects deemed not financially feasible by the 
Agency will be deemed not eligible to compete for grant funding. See 
7 CFR 4284.922(b)(6).


    Note:  If you request Reserve Funds, you must document 
eligibility for the requirements stated in 7 CFR 4284.922(c). Ten 
percent of available funds are reserved to fund applications 
submitted by Beginning Farmers or Ranchers and Socially 
Disadvantaged Farmers or Ranchers, as defined in 7 CFR 4284.902. An 
additional 10 percent of available funds are reserved to fund Mid-
Tier Value Chain projects. If your application is eligible, but does 
not receive Reserve Funding, it will automatically be considered for 
general funds in that same fiscal year, as funding levels permit and 
in accord with project ranking. As previously noted, Harvester 
operations are not considered a Farm or Ranch and are not eligible 
for Reserve Funds for a Beginning Farmer or Rancher or a Socially 
Disadvantaged Farmer or Rancher; however, Harvester operations may 
request Reserve Funds for a qualifying Mid-Tier Value Chain project, 
as applicable.

C. Other Eligibility Requirements

1. Grant Period Eligibility
    Your project timeframe or grant period can be a maximum of 36 
months in length from the date of award. Your proposed grant period 
should begin no earlier than the anticipated award announcement date 
herein, January 18, 2013, and should end no later than 36 months 
following that date. If you receive an award, your grant period will be 
revised to begin on the actual date of award--the date the grant 
agreement is executed by the Agency--and your grant

[[Page 48955]]

period end date will be adjusted accordingly. Your project activities 
must begin within 90 days of that date of award. If you request funds 
for a time period beginning before January 18, 2013, and/or ending 
later than 36 months from that date, your application will be 
ineligible. The length of your grant period should be based on your 
project's complexity, as indicated in your application work plan. For 
example, it is expected that most planning grants can be completed 
within 12 months. If you cannot finish your project during the approved 
timeframe, you may request an extension of up to 1 year from your local 
Rural Development office. Extensions will be considered only if 
unavoidable or unforeseen circumstances prevent you from finishing your 
project. Extensions beyond 3 years from the actual date of award will 
not be considered.
2. Ineligible Expenses
    Applications with ineligible expenses of more than 10 percent of 
total project costs will be ineligible to compete for funds. Eligible 
applications that are selected for award but contain ineligible 
expenses of 10 percent or less of total project costs must remove those 
ineligible expenses from the final project budget that is subject to 
approval by the Agency. See 7 CFR 4284.923 for examples of eligible 
planning and working capital use of funds, and see 7 CFR 4284.924 for 
examples of ineligible use of funds.
3. Completeness
    If your application is incomplete, it is ineligible to compete for 
funds.
4. Registrations
    (i) Please note that grant applicants must obtain a Dun and 
Bradstreet Data Universal Numbering System (DUNS) number pursuant to 2 
CFR 25.200(b). You must provide your DUNS number in the application, or 
it will be ineligible for funding. A DUNS number can be obtained at no 
cost via a toll-free request line at (866) 705-5711 or online at http://www.dnb.com.
    (ii) Please note also that pursuant to 2 CFR 25.200(b) grant 
applicants must register in the Central Contractor Registration (CCR) 
database, or its successor database known as the System for Award 
Management (SAM), prior to submitting an application; unless you are 
exempt under 2 CFR 25.110. Grant applicants must maintain an active 
CCR/SAM registration with current information at all times during which 
you have an active Federal award or an application under consideration 
by the Agency. An active CCR/SAM Registration Cage Code and expiration 
date must be included in your application or it will not be eligible 
for funding.
    To register in the database, visit https://www.sam.gov/ or call the 
Federal Service Desk for assistance by dialing 1-(866) 606-8220 and 
press `1' (See 2 CFR part 25). Since there are no specific fields for a 
Registration Cage Code and expiration date, please enter them in field 
5(a) ``Federal Entity Identifier'' on Form SF 424.
    (iii) Similarly, all recipients of Federal financial assistance are 
required to report information about first-tier sub-awards and 
executive compensation in accordance with 2 CFR part 170. So long as an 
entity applicant does not have exception under 2 CFR 170.110(b), the 
applicant must have the necessary processes and systems in place to 
comply with the reporting requirements should the applicant receive 
funding. See 2 CFR 170.200(b).

IV. Fiscal Year 2012 Application and Submission Information

A. Address To Request Applications

    The application guide, government forms, regulation, and official 
program notifications for this funding opportunity can be obtained 
online at http://www.rurdev.usda.gov/BCP_VAPG.html. Or, you can 
contact your USDA Rural Development State Office by visiting http://www.rurdev.usda.gov/recd_map.html.

B. Form of Submission

    You may submit your application in paper form or electronically 
through Grants.gov. Your application must contain all required 
information.
    To submit an application electronically, you must follow the 
instructions for this funding announcement at http://www.grants.gov. 
Please note that we cannot accept emailed or faxed applications. You 
can locate the Grants.gov downloadable application package for this 
program by using a keyword, the program name, or the Catalog of Federal 
Domestic Assistance Number for this program. When you enter the 
Grants.gov Web site, you will find information about submitting an 
application electronically through the site, as well as the hours of 
operation. We strongly recommend that you do not wait until the 
application deadline date to begin the application process through 
Grants.gov. You must submit all of your application documents 
electronically through Grants.gov. After electronically submitting an 
application through Grants.gov, you will receive an automatic 
acknowledgement from Grants.gov that contains a Grants.gov tracking 
number.
    If you want to submit a paper application, send it to the State 
Office located in the State where your project will primarily take 
place. You can find State Office Contact information at http://www.rurdev.usda.gov/recd_map.html or see the list of State Offices at 
the beginning of this Notice. An optional-use Agency application 
template is available online at http://www.rurdev.usda.gov/BCP_VAPG.html.

C. Application Contents

    Your application must contain all of the required forms and 
proposal elements described in 7 CFR 4284.931, unless otherwise 
clarified in this notice. Specifically, your application must include 
(1) the required forms as described in 7 CFR 4284.931(a), except (i) 
you do not need to submit Form RD 1940-20, ``Request for Environmental 
Information,'' because planning and working capital requests in this 
program are generally excluded from the environmental review process, 
and (ii) corporate applicants must also complete Form AD-3030, 
``Representations Regarding Felony Conviction and Tax Delinquent Status 
for Corporate Applicants''; and (2) the required proposal elements as 
described in 7 CFR 4284.931(b). Further clarification of application 
requirements is as follows:
    In addition, you must include a one-page Executive Summary 
containing the following information: legal name of applicant entity, 
application type (planning or working capital), applicant type, amount 
of grant request, a summary of your project, whether you are submitting 
a simplified application, and whether you are competing for reserve 
funds.
    Further, certifications for the following, among others specified 
elsewhere, must be included in the application:
    1. Awards made under this Notice are subject to the provisions 
contained in the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2012, Public 
Law 112-55, Division A sections 738 and 739 regarding corporate felony 
convictions and corporate federal tax delinquencies. To comply with 
these provisions, all applicants must complete paragraph (A) of this 
representation, and all corporate applicants also must complete 
paragraphs (B) and (C) of this representation:

    (A) Applicant, [insert applicant name], ---- is ---- is not 
(check one) an entity that has

[[Page 48956]]

filed articles of incorporation in one of the fifty states, the 
District of Columbia, or the various territories of the United 
States including American Samoa, Federated States of Micronesia, 
Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, 
Republic of Palau, Republic of the Marshall Islands, U.S. Virgin 
Islands.
    (B) Applicant, [insert applicant name], ---- has ---- has not 
(check one) been convicted of a felony criminal violation under 
Federal or state law in the 24 months preceding the date of 
application. Applicant ---- has ---- has not (check one) had any 
officer or agent of the Applicant convicted of a felony criminal 
violation for actions taken on behalf of the Applicant under Federal 
or State law in the 24 months preceding the date of the signature on 
the application.
    (C) Applicant, [insert applicant name], ---- has ---- does not 
have (check one) any unpaid Federal tax liability that has been 
assessed, for which all judicial and administrative remedies have 
been exhausted or have lapsed, and that is not being paid in a 
timely manner pursuant to an agreement with the authority 
responsible for collecting the tax liability.

    2. You must certify that there are no current outstanding Federal 
judgments against your property and that you will not use grant funds 
to pay for any judgment obtained by the United States. To satisfy this 
certification requirement, you should include this statement in your 
application: ``[INSERT NAME OF APPLICANT] certifies that the United 
States has not obtained an unsatisfied judgment against its property 
and will not use grant funds to pay any judgments obtained by the 
United States.'' A separate signature is not required.

D. Simplified Applications

    If you are requesting less than $50,000 in working capital grant 
funds, you may submit a simplified application. See 7 CFR 4284.932. You 
are not required to provide an independent feasibility study or 
business plan. You are required to provide information to show the 
increases in customer base and revenues expected to be derived from the 
project that will benefit the producer applicants supplying the 
majority of the agricultural commodity for the project. References to 
information from third-party sources that support your conclusions will 
enhance your application and improve scoring. Also see 7 CFR 
4284.922(b)(6)(ii).
    If you are an Independent Producer applicant type applying for a 
working capital grant of $50,000 or more, and your project is for 
market expansion of an existing value-added product(s) that you have 
successfully produced and marketed for at least 2 years prior to the 
submission of the application, and is a value-added product that you 
have produced from more than 50 percent of your own agricultural 
commodity, you must submit a business or marketing plan for the 
project, but are not required to submit a feasibility study. Your 
application must contain adequate information to demonstrate the 
increases in customer base and revenues expected to be derived from the 
project that will benefit the applicant producers supplying the 
majority of the agricultural commodity for the project. References to 
information from third-party sources that support your conclusions will 
enhance your application and improve scoring. See 7 CFR 
4284.922(b)(6)(i).

E. Funding Restrictions

    Funding limitations and reservations found in the program 
regulation will apply. See 7 CFR 4284.925.
1. Use of Funds
    Grant funds may be used to pay up to 50 percent of the total 
eligible project costs, subject to the limitations established for 
maximum total grant amount. Grant and matching funds may only be used 
for eligible purposes (see 7 CFR 4284.923) and may not be used for 
ineligible purposes (see 7 CFR 4284.924). If Program Income is earned 
during the grant period as a result of the project activities, it is 
subject to the requirements in 7 CFR 3019.24, and must be managed and 
reported accordingly.
2. Majority Controlled Producer-Based Business
    The aggregate amount of awards to Majority Controlled Producer-
Based Businesses in response to this announcement shall not exceed 10 
percent of the total funds obligated for the program during the fiscal 
year.
3. Reserved Funds
    In response to this announcement, 10 percent of total funding 
available will be used to fund projects that benefit Beginning Farmers 
or Ranchers, or Socially-Disadvantaged Farmers or Ranchers. In 
addition, 10 percent of total funding available will be used to fund 
projects that propose development of Mid-Tier Value Chains as part of a 
Local or Regional Supply Chain Network. See related definitions in 7 
CFR 4284.902.
4. Disposition of Reserved Funds Not Obligated
    For this announcement, any Reserved Funds that have not been 
obligated by June 30, 2012, will be available to the Secretary to make 
VAPG grants from the fund categories addressed at 7 CFR 4284.922 (c). 
After awards have been selected from each Reserved Fund, any excess 
unobligated funds will revert to general funds.

F. Intergovernmental Review

    Executive Order (EO) 12372, ``Intergovernmental Review of Federal 
Programs,'' applies to this program. This EO requires that Federal 
agencies provide opportunities for consultation on proposed assistance 
with State and local governments that have chosen to participate in 
that process. Those states have established a Single Point of Contact 
(SPOC) to facilitate this consultation. For a list of states that 
maintain an SPOC, please see the White House Web site: http://www.whitehouse.gov/omb/grants_spoc. If your state has an SPOC, you 
must submit a copy of the application directly for review. Any comments 
obtained through the SPOC must be provided to your State Office for 
consideration as part of your application.

V. Application Review Information

    Applications will be reviewed and processed as described at 7 CFR 
4284.940.

A. Application Eligibility and Notifications

    The Agency will conduct a review of your application to determine 
if it is complete and eligible. If the Agency determines that your 
application is ineligible at any time, then you will be notified in 
writing as to the reasons it was determined ineligible and you will be 
informed of any review or appeal rights.
    If, at any time after you have submitted your application, you 
decide that you no longer want to request grant funding, you must 
notify the Agency in writing. Upon receipt of your notification, the 
Agency will rescind the award or withdraw the application, as 
applicable.

B. Application Scoring

    The Agency will only score applications in which the applicant and 
project are eligible, which are complete and sufficiently responsive to 
program requirements, and in which the Agency agrees on the likelihood 
of financial feasibility for working capital requests. We will score 
your application according to the procedures and criteria specified in 
7 CFR 4284.942, and with tiered scoring thresholds as specified below.
    For each criterion, you must show how the project has merit and why 
it is likely to be successful. If you do not address all parts of the 
criterion, or do

[[Page 48957]]

not sufficiently communicate relevant project information, you will 
receive lower scores. The maximum number of points that can be awarded 
to your application is 100. For this announcement, there is no minimum 
score requirement for funding. Note: If you are submitting a working 
capital application that requires a feasibility study and/or business 
plan, you must submit those documents along with your application. In 
addition, you must summarize within your application relevant results 
of the feasibility study/business plan in response to the scoring 
criteria, as applicable, because reviewers will not receive copies of 
your feasibility study/business plan when evaluating your proposal and 
assigning scores. The Agency application package provides additional 
instruction to help you to respond to the criteria below.
1. Nature of the Proposed Venture (Graduated Score 0-30 Points)
    For both planning and working capital grants, you should discuss 
the technological feasibility of the project, as well as the 
operational efficiency, profitability, and overall economic 
sustainability resulting from the project. In addition, demonstrate the 
potential for expanding the customer base for the agricultural 
commodity or value-added product, and the expected increase in revenue 
returns to the producer-owners providing the majority of the raw 
agricultural commodity to the project. You should reference third-party 
information that specifically supports your value-added project; 
discuss the value-added process you are proposing; potential markets 
and distribution channels; the value to be added to the raw commodity 
through the value-added process; cost and availability of inputs, your 
experience in marketing the proposed or similar product; business 
financial statements; and any other relevant information that supports 
the viability of your project. Working capital applicants should 
demonstrate these concepts that will result from the project. Planning 
grant applicants should describe the expected results, and the reasons 
supporting those expectations.
    Points will be awarded as follows:
    (i) 0 points will be awarded if you do not substantively address 
this criterion.
    (ii) 10 points will be awarded if the criterion is poorly 
addressed.
    (iii) 20 points will be awarded if the criterion is partially 
addressed.
    (iv) 30 points will be awarded if you clearly articulate the 
rationale for the project and show a high likelihood of success based 
on technological feasibility and economic sustainability.
2. Qualifications of Project Personnel (Graduated Score 0-20 Points)
    You should identify and describe the qualifications of each person 
responsible for leading or managing the total project, as well as the 
people responsible for actually conducting the individual tasks in the 
work plan. You should discuss the credentials, education, capabilities, 
experience, availability and commitment of each person working on the 
project. If staff or consultants have not been selected at the time of 
application, you should describe the qualifications required for the 
positions to be filled. Points will be awarded as follows:
    (i) 0 points will be awarded if you do not substantively address 
this criterion.
    (ii) 10 points will be awarded if at least one of the identified 
staff or consultants demonstrates 5 or more years of relevant 
experience; or, if no project personnel have been identified but 
necessary qualifications for the positions to be filled are clearly 
described.
    (iii) 20 points will be awarded if all of the identified staff 
demonstrates relevant qualifications and experience.
3. Commitments and Support (Graduated Score 0-10 Points)
    Your application must show that the project has strong direct 
financial, technical and logistical support from agricultural 
producers, end-users, and other third party contributors who are 
necessary for the successful completion of the project. All cash or in-
kind contributions from producers, end users, or other contributors 
should be discussed. End-user commitments may include contracts or 
letters of intent or interest in purchasing the value-added product. 
Third-party commitments may include evidence of critical partnerships, 
logistical, or technical support necessary for the project to succeed. 
Points will be awarded as follows:
    (i) 0 points will be awarded if you do not show that you have 
quality commitments or support from producers, end-users or other 
critical third party contributors.
    (ii) 5 points will be awarded if you partially show real, high 
quality direct support or commitments from at least one producer, end 
user, or other third party contributor.
    (iii) 10 points will be awarded if you show real, high quality 
direct support or commitments from multiple producers, end-users and 
critical third-party contributors.
4. Work Plan and Budget (Graduated Score 0-20 Points)
    You must submit a comprehensive work plan and budget (for full 
details, see 7 CFR 4284.922(b)(5)). Your work plan must provide 
specific and detailed descriptions of the tasks and the key project 
personnel that will accomplish the project's goals. The budget must 
present a detailed breakdown of all estimated costs of project 
activities and allocate those costs among the listed tasks. You must 
show the source and use of both grant and matching funds for all tasks. 
Matching funds must be spent at a rate equal to, or in advance of, 
grant funds. An eligible start and end date for the project and for 
individual project tasks must be clearly shown and may not exceed 
Agency specified timeframes for the grant period. Working Capital 
applications must include an estimate of Program Income expected to be 
earned during the grant period (see 7 CFR 3019.24).
    (i) 0 points will be awarded if the work plan and budget do not 
substantively address this criterion.
    (ii) 10 points will be awarded if the work plan and budget only 
partially address this criterion.
    (iii) 20 points will be awarded if a detailed, comprehensive work 
plan and budget is provided.
5. Priority Points (Lump Sum Score 0 or 10 Points)
    Priority points may be awarded in both the general funds 
competition, as well as the Reserve Funds competitions. You may request 
priority points if you meet the requirements for one of the following 
categories and provide the documentation described in 7 CFR 
4284.922(d), as applicable:
    Beginning Farmer or Rancher, or
    Socially Disadvantaged Farmer or Rancher, or
    Operator of a Small or Medium-sized farm or ranch that is 
structured as a Family Farm, or
    Farmer or Rancher Cooperative, or
    Mid-Tier Value Chain project.
    It is recommended that you use the Agency application package when 
applying for priority points and refer to the documentation 
requirements specified in 7 CFR 4284.922(d). Harvester operations are 
not considered a Farm or Ranch and are not eligible for priority points 
for a Beginning Farmer or Rancher, a Socially Disadvantaged Farmer or 
Rancher, an Operator of a Small or Medium-sized farm or ranch that is 
structured as a Family Farm, or a Farmer or Rancher Cooperative; 
however, Harvester operations may request priority points for a 
qualifying

[[Page 48958]]

Mid-Tier Value Chain project, as applicable. All qualifying applicants 
will receive 10 points. If you do not provide sufficient documentation 
you will receive 0 points.
6. Administrator Priority Categories (Graduated Score 0-10 Points)
    The Administrator of USDA Rural Development Business-Cooperative 
Service (RBS) may choose to award up to 10 points to an application to 
improve the geographic diversity of awardees in a fiscal year.

C. Selection of Applications

    The Agency will select applications for award under this Notice in 
accordance with the provisions specified in 7 CFR 4284.950(a).
    We will first review your application for eligibility and to 
determine if it is complete and sufficiently responsive to the 
requirements of the program to allow for an informed review (see 7 CFR 
4284.940).
    If your application is eligible and complete, it will be scored by 
two reviewers based on criteria specified in section V.B. of this 
Notice. One of these reviewers will be a Rural Development employee 
from your servicing State Office and the other reviewer will be a non-
Federal, independent reviewer. The State Office may enlist the support 
of technical experts, qualified as described below and approved by the 
State Director, to assist the State Office scoring process. All 
reviewers must meet the following qualifications. Reviewers must have 
at least a bachelor's degree in one or more of the following fields: 
agri-business, business, economics, finance, or marketing. They must 
also have a minimum of 3 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 have at least 5 years of working experience 
in an agriculture-related field.
    Both reviewers will score evaluation criteria 1 through 4 and the 
totals for each reviewer will be added together and averaged. The Rural 
Development reviewer will also assign priority points based on 
criterion 5 in section V.B. of this Notice. These will be added to the 
average score. The sum of these scores will be ranked high to low and 
this will comprise the initial ranking.
    The Administrator of RBS may choose to award up to 10 Administrator 
priority points based on criterion 6 in section V.B. of this Notice. 
These points will be added to the cumulative score for a total possible 
score of 100.
    A final ranking will be obtained based solely on the scores 
received for criteria 1 through 6. Applications for reserved funding 
will be funded in rank order until funds are depleted. Unfunded reserve 
category applications will be returned to the general funds category 
where applications will be funded in rank order until the funds are 
depleted. Funding for Majority Controlled Producer-Based Business 
Ventures (MAJ) is limited to 10 percent of total grant funds expected 
to be obligated as a result of this Notice. MAJ applications will be 
funded in rank order until the funding limitation has been reached. 
Grants to MAJ applicants from reserved funds will count against this 
funding limitation.
    If your application is ranked, but not funded, it will not be 
carried forward into the next competition. We will notify you in 
writing if your application is not selected for funding and inform you 
of any appeal rights. You may submit an updated application for 
consideration during the next round of funding.

VI. Award Administrative Information

A. Award Notices

    If your application is successful, you will receive notification 
regarding funding from the State Office where your application is 
submitted or where the project will primarily take place if you submit 
your application via Grants.gov. You must comply with all applicable 
statutes, regulations, and notice requirements before the grant award 
will be approved. See 7 CFR 4284.951. If your application is not 
successful, you will receive notification, including review, mediation 
procedures and appeal rights, by mail. See 7 CFR part 11.

B. Administrative and National Policy Requirements

1. Review or Appeal Rights
    A person may seek a review of an Agency decision or appeal to the 
National Appeals Division in accordance with 7 CFR part 11.
2. Transparency Act Requirements
    All recipients of Federal financial assistance are required to 
report information about first-tier sub-awards and executive 
compensation (see 2 CFR part 170). You will be required to have the 
necessary processes and systems in place to comply with the 
Transparency Act reporting requirements (see 2 CFR 170.200(b), unless 
you are exempt under 2 CFR 170.110(b)).
3. Compliance With Other Laws and Regulations
    The provisions of 7 CFR 4284.905 applies to this Notice, which 
includes requiring applicants to be in compliance with other applicable 
Federal laws.
4. Monitoring and Reporting Program Performance
    The provisions of 7 CFR 4284.960 applies to this Notice.
5. Grant Servicing
    All grants awarded under this Notice shall be serviced in 
accordance with 7 CFR part 1951, subparts E and O as applicable, and 
the Departmental Regulations (7 CFR parts 3000-3099), with the 
exception that delegation of the post-award servicing of the program 
does not require the prior approval of the Administrator.
6. Transfer of Obligations
    Any transfer of funds obligated under this Notice from an applicant 
to a different applicant must comply with the requirements specified in 
7 CFR 4284.962.
7. Grant Close-Out and Related Activities
    The provisions of 7 CFR 4284.963 applies to this Notice.
8. Exception Authority
    The provisions of 7 CFR 4284.904 applies to this Notice.
9. Departmental Regulations
    Unless specifically stated otherwise in this Notice or in 7 CFR 
part 4284, subpart J, this Notice incorporates by reference the 
regulations of the Department of Agriculture's Office of Chief 
Financial Officer (or successor office) as codified in 7 CFR parts 3000 
through 3099, including, but not necessarily limited to, 7 CFR parts 
3015 through 3019, 7 CFR part 3021, 7 CFR part 3052, and 2 CFR parts 
25, 170 and 417; and successor regulations to these parts.
10. Cost Principles
    This Notice incorporates by reference the cost principles found in 
2 CFR part 230 and in 48 CFR 31.2.

D. Environmental Review

    All recipients under this Notice are subject to the requirements of 
7 CFR part 1940, subpart G and any successor regulations. However, 7 
CFR 1940.333, 7 CFR 1940.310(c)(1) and 7 CFR 1940.317(g)(2) generally 
exclude applications for both planning and working capital grants.

[[Page 48959]]

VII. Agency Contacts

    If you have questions about this Notice, please contact the State 
Office as identified in the ADDRESSES section of this Notice. You are 
also encouraged to visit the application Web site for application 
tools, including an application guide and templates. The web address 
is: http://www.rurdev.usda.gov/BCP_VAPG.html.

VIII. Nondiscrimination Statement

    USDA prohibits discrimination in all its programs and activities on 
the basis of race, color, national origin, age, disability, and where 
applicable, sex, marital status, familial status, parental status, 
religion, sexual orientation, genetic information, political beliefs, 
reprisal, or because all or part of an individual's income is derived 
from any public assistance program. Not all prohibited bases apply to 
all programs. Persons with disabilities who require alternative means 
for communication of program information (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD).
    To file a complaint of discrimination write to USDA, Director, 
Office of Adjudication and Compliance, 1400 Independence Avenue SW., 
Washington, DC 20250-9410 or call (800) 795-3272 (voice) or (202) 720-
6382 (TDD). USDA is an equal opportunity provider, employer, and 
lender.

    Dated: August 8, 2012.
Curtis A. Wiley,
Acting Administrator, Rural Business--Cooperative Service.
[FR Doc. 2012-20082 Filed 8-14-12; 8:45 am]
BILLING CODE 3410-XY-P