[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Pages 16396-16404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05470]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket No. RBS-22-BUSINESS-0028]


Notice of Funding Opportunity for the Value-Added Producer Grants 
for Fiscal Year 2023

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of funding opportunity.

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SUMMARY: The Rural Business-Cooperative Service (RBCS, Agency), a Rural 
Development (RD) agency of the United States Department of Agriculture 
(USDA), announces acceptance of applications under the Value-Added 
Producer Grant (VAPG) program for Fiscal Year (FY) 2023, subject to the 
availability of funding. This Notice is being issued in order to allow 
applicants sufficient time to leverage financing, prepare and submit 
their applications, and give the Agency time to process applications 
within FY 2023. The Agency currently estimates that approximately $31 
million will be available for FY 2023. Successful applications will be 
selected by the Agency for funding and subsequently awarded to the 
extent that funding may ultimately be made available through 
appropriations. All applicants are responsible for any expenses 
incurred in developing their applications.

DATES: Electronic applications e-filed through https://www.grants.gov 
must be filed by 11:59 p.m. Eastern Time (ET) on May 11, 2023.
    Complete paper applications must be submitted by close of business 
on May 16, 2023 in the USDA RD State Office of the State where the 
project is located, Paper applications must be postmarked and mailed, 
shipped or sent overnight, hand carried or emailed by this date.
    Late applications are not eligible for grant funding under this 
Notice.

ADDRESSES: This funding announcement will also be announced on 
www.grants.gov. Electronic applications are to be submitted through 
www.grants.gov.
    To submit a paper application, send it to the USDA RD State Office 
located in the state where the project will primarily take place. 
Applicants can find USDA RD State Office contact information at http://www.rd.usda.gov/contact-us/state-offices. To submit an application 
through email, contact the respective USDA RD State Office to obtain 
the Agency email address where the application will be submitted.
    Application materials are also available at http://www.rd.usda.gov/programs-services/value-added-producer-grants.

FOR FURTHER INFORMATION CONTACT: Greg York at 202-281-5259, 
[email protected] or Mike Daniels at 715-345-7637, 
[email protected], Program Management Division, RBCS, USDA, 1400 
Independence Avenue SW, Mail Stop 3226, Room 5801-S, Washington, DC 
20250-3226.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Awarding Agency Name: Rural Business-Cooperative Service.
    Funding Opportunity Title: Value-Added Producer Grant.
    Announcement Type: Notice of Funding Opportunity (NOFO).
    Funding Opportunity Number: RDBCP-VAPG-2023.
    Assistance Listing: 10.352.
    Dates: Electronic applications filed through https://www.grants.gov 
must be

[[Page 16397]]

filed by 11:59 p.m. Eastern Time (ET) on May 11, 2023.
    A complete paper application must be submitted by close of business 
on May 16, 2023 in the USDA RD State Office of the State where the 
project is located, or it will not be considered for funding. Paper 
applications must be postmarked and mailed, shipped or sent overnight, 
hand carried or emailed by this date.
    Late applications are not eligible for grant funding under this 
Notice.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
(more details available at https://www.rd.usda.gov/priority-points):
     Assisting rural communities recover economically through 
more and better market opportunities and through improved 
infrastructure;
     Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects; and
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.

A. Program Description

    1. Purpose of the Program. The objective of this grant program is 
to assist viable Independent Producers, Agricultural Producer Groups, 
Farmer and Rancher Cooperatives, and Majority-Controlled Producer-Based 
Businesses in starting or expanding value-added activities related to 
the processing and/or marketing of 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 of the program. All proposals must demonstrate economic viability 
and sustainability to compete for funding.
    2. Statutory and Regulatory Authority: The VAPG program is 
authorized under section 231 of the Agriculture Risk Protection Act of 
2000 (Pub. L. 106-224), as amended by section 10102 of the Agriculture 
Improvement Act of 2018 (Pub. L. 115-334) (see 7 U.S.C. 1627c) and 
implemented by 7 CFR part 4284, subpart J.
    3. Definitions. The definitions applicable to this Notice are 
published at 7 CFR 4284.902. In addition, the following definitions 
apply to this notice:
    (a) Majority-Controlled Producer-Based Business Venture, 
incorporated from Section 10102 of the Agriculture Improvement Act of 
2018, means a venture greater than 50 percent of the ownership and 
control of which is held by--
    (1) 1 or more producers; or
    (2) 1 or more entities, 100 percent of the ownership and control of 
which is held by 1 or more producers. The term `entity' means--
    (i) a partnership;
    (ii) a limited liability corporation;
    (iii) a limited liability partnership; or
    (iv) a corporation.
    (b) Market Expansion Project means a project in which the 
Independent Producer applicant seeks to expand the market for an 
existing value-added product (produced and marketed by the applicant 
for at least 2 years at the time of application) through sales to 
demonstrably new markets or to new customers in existing markets.
    4. Application of Awards. The Agency will review, evaluate and 
score applications received in response to this Notice based on the 
provisions found in 7 CFR 4284.940, Sec.  4284.942 and as indicated in 
this Notice. Awards under the VAPG program will be made on a 
competitive basis using specific selection criteria contained in 7 CFR 
4284.942. The Agency advises all interested parties that the applicant 
bears the full burden in preparing and submitting an application in 
response to this Notice.

B. Federal Award Information

    Type of Awards: Grant.
    Fiscal Year Funds: FY 2023.
    Available Funds: The Agency currently estimates that approximately 
$31 million will be available for FY 2023. RBCS may at its discretion, 
increase the total amount of funding available in this funding round 
from any authorized source provided the awards meet the requirements of 
the statute which made the funding available to the Agency.
    Ten percent of available funds for applications will be reserved 
for applicants qualifying as Beginning, Veteran, and Socially-
Disadvantaged Farmers or Ranchers. 7 CFR 4284.927(f)(1). An additional 
10 percent of available funds will be reserved for applications from 
farmers or ranchers proposing development of Mid-Tier Value Chains. 7 
CFR 4284.927(f)(2). Beginning, Veteran, and Socially-Disadvantaged 
Farmers or Ranchers and applicants proposing Mid-Tier Value Chains not 
awarded for reserved funds will compete with other eligible VAPG 
applications. In addition, any funds that become available for 
persistent poverty counties through enactment of FY 2023 appropriations 
will be allocated for assistance in persistent poverty counties. Funds 
not obligated from these reserves by September 30, 2023, will be used 
for the VAPG general competition and made available in a subsequent 
application cycle.
    Award Amounts: Maximum Planning $75,000; Maximum Working Capital 
$250,000.
    Anticipated Award Date: September 30, 2023.
    Performance Period: Up to 36 months depending on the complexity of 
the project.
    Renewal or Supplemental Awards: None.
    Type of Assistance Instrument: Financial Assistance Agreement.

C. Eligibility Information

    1. Eligible Applicants. Applicants must comply with other 
applicable Federal laws per 7 CFR 4284.905(a). Eligible applicants must 
meet the eligibility requirements of 7 CFR part 4284 subpart J and this 
Notice. Applications that fail to meet any of these requirements by the 
application deadline will be deemed ineligible and will not be 
evaluated further.
    The application narrative must demonstrate that all applicant 
eligibility requirements of 7 CFR 4284.920 and Sec.  4284.921 have been 
met. Application narratives should also take note of the definition 
requirements at 7 CFR 4284.902, such as by demonstrating that the 
applicant satisfies the definition for an ``Agricultural Producer''; 
how you qualify for one of the following applicant types: Independent 
Producer, Agricultural Producer Group, Farmer or Rancher Cooperative or 
Majority-Controlled Producer-Based Business Venture; and that the 
applicant meets the Emerging Market, Citizenship, Legal Authority and 
Responsibility, Multiple Grants and Active Grants requirements of the 
section. Required documentation to support eligibility is specified at 
7 CFR 4284.931 and this Notice.
    RBCS encourages applications from Federally-recognized Tribes and 
Tribal Entities. Federally-recognized Tribes and Tribal entities must 
demonstrate that they meet the definition requirements for one of the 
four eligible applicant types. RD State Offices and posted application 
toolkits will provide additional information on Tribal eligibility. 
Tribal applicants are encouraged to contact Agency staff early in the 
process to discuss applicant and project eligibility. In addition to 
contacting program staff Tribal applicants can contact USDA Rural 
Development's Tribal Relations Team with Tribal specific questions and 
concerns at [email protected].

[[Page 16398]]

    Factors rendering an applicant ineligible are provided at 7 CFR 
4284.921. The Agency will check the Do Not Pay (DNP) system to 
determine if the applicant or its principals has been debarred or 
suspended (see 7 CFR 4284.921(a)). Per the Consolidated Appropriations 
Act, sections 520, 744, and 745, 2023 (Pub. L. 117-328) any corporation 
(i) that has been convicted of a felony criminal violation under any 
Federal law within the past 24 months or (ii) that has 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, is not 
eligible for financial assistance provided with funds appropriated by 
this or any other act, unless a Federal agency has considered 
suspension or debarment of the corporation and has made a determination 
that this further action is not necessary to protect the interests of 
the Government.
    2. Cost-Sharing or Matching. There is a matching fund (cost-
sharing) 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 Cost). Matching funds may be in the form of cash 
or eligible in-kind contributions. Matching contributions and grant 
funds may be used only for eligible project purposes, including any 
contributions exceeding the minimum amount required. 7 CFR 4282.925; 7 
CFR 4284.926.
    Applicant matching contributions in the form of raw commodity, time 
contributed to the project, or goods or services for which no out-of-
pocket expenditure is made during the grant period, must be 
characterized as in-kind contributions, subject to the requirements and 
limitations specified in 7 CFR 4284.925(a)-(b). Donations of goods and 
services from third parties must be characterized as in-kind 
contributions. Tribal applicants may utilize grants made available 
under Public Law 93-638 sec. 104(C), the Indian Self-Determination and 
Education Assistance Act of 1975, as their matching contribution, and 
should check with appropriate tribal authorities regarding the 
availability of such funding. Non-tribal applicant cannot provide 
matching funds paid by the Federal Government under another Federal 
award. 7 CFR 4284.931(b)(4)(iv).
    Matching funds must be available at the time of application and 
must be certified and verified as described in 7 CFR 4284.931(b)(3) and 
(4). Do not include projected income as a matching contribution because 
it cannot be verified as available. Note that matching funds must also 
be discussed as part of the scoring criterion Commitments and Support 
as described below in section E.1.(c).
    3. Other.
    (a) Project Eligibility. Applicants must demonstrate within the 
application narrative that the project meets all the project 
eligibility requirements of 7 CFR 4284.922.
    (1) Product eligibility. Applicants for both planning and working 
capital grants must meet all requirements at 7 CFR 4284.922(a), 
including that the value-added product must result from one of the five 
methodologies identified in the definition of Value-Added Agricultural 
Product at 7 CFR 4284.902. In addition, it must be demonstrated that, 
as a result of the project, the customer base for the agricultural 
commodity or value-added product will be expanded, by including a 
baseline of current customers for the commodity, and an estimated 
target number of customers that will result from the project; and that, 
a greater portion of the revenue derived from the marketing or 
processing of the value-added product is available to the applicant 
producer(s) of the agricultural commodity, by including a baseline of 
current revenues from the sale of the agricultural commodity and an 
estimate of increased revenues that will result from the project. Note 
that working capital grants for market expansion projects per 7 CFR 
4284.922(b) must demonstrate expanded customer base and increased 
revenue resulting only from sales of existing products to new 
customers. The VAPG recognizes that market expansion projects may 
involve marketing and promotion activities such as trade shows, farmers 
markets, and various media advertising which also result in increased 
sales to existing customers. However, market expansion award recipients 
must use grant and matching funds only on activities that demonstrably 
focus on marketing products they have produced and sold for at least 
two years, to new markets and/or to new customers in existing markets, 
such that the producer's customer base (number of customers) is 
expanded, per program requirements. Grant and matching funds cannot be 
deliberately expended on sales of existing products to existing 
customers.
    In addition, per the Agriculture Improvement Act of 2018 (Pub. L. 
115-334), working capital applications must include a statement 
describing the direct or indirect producer benefits intended to result 
from the proposed project within a reasonable period of time after the 
receipt of a grant.
    (2) Purpose eligibility. Applicants' purpose for the grant 
application, for both planning and working capital grants, must meet 
all requirements at 7 CFR 4284.922 regarding maximum grant amounts, 
verification of matching funds, eligible and ineligible uses of grant 
and matching funds, and a substantive, detailed work plan and budget.
    (i) Planning grants. A planning grant is used to fund development 
of a defined program of economic planning activities to determine the 
viability of a potential value-added venture, specifically for paying a 
qualified consultant to conduct and develop a feasibility study, 
business plan, and/or marketing plan associated with the processing 
and/or marketing of a value-added agricultural product. Planning grant 
funds may not be used to fund working capital activities. 7 CFR 
4284.925(a).
    (ii) Working Capital Grants. This type of grant provides funds to 
operate a value-added project, specifically to pay the eligible project 
expenses directly related to the processing and/or marketing of the 
value-added products that are eligible uses of grant funds. Working 
capital funds may not be used for planning purposes.
    (3) Reserved funds eligibility. To qualify for reserved funds as a 
Beginning, Veteran, or Socially-Disadvantaged Farmer or Rancher or for 
proposed development of a Mid-Tier Value Chain, the requirements found 
at 7 CFR 4284.923 must be met. Documentation must also be provided 
indicating that the applicant meets all the requirements for the 
applicable definition specified in 7 CFR 4284.902 and provide all of 
the required documentation specified in 7 CFR 4284.931. If the 
application is eligible, but is not awarded under the reserved funds, 
it will automatically be considered for general funds in that same 
fiscal year, as funding levels permit.
    (b) Eligible Uses of Grant and Matching Funds. Eligible uses of 
grant and matching funds are discussed, along with examples, in 7 CFR 
4284.925. In general, grant and cost-share matching funds have the same 
use restrictions and must be used to fund only the costs for eligible 
purposes as defined at 7 CFR 4284.925(a) and (b).
    (c) Ineligible Uses of Grant and Matching Funds. Federal 
procurement standards prohibit transactions that involve a real or 
apparent conflict of interest for owners, employees, officers, agents, 
or their immediate family members having a personal,

[[Page 16399]]

professional, financial or other interest in the outcome of the 
project, including organizational conflicts, and conflicts that 
restrict open and free competition for unrestrained trade. A list (not 
all-inclusive) of ineligible uses of grant and matching funds is found 
in 7 CFR 4284.926.
    (d) Application limit. An applicant may submit only one application 
in response to a solicitation and must explicitly direct that it 
competes in either the general funds competition or in one of the named 
reserved funds competitions. 7 CFR 4284.920(e). Multiple applications 
from separate entities with identical or greater than 75 percent common 
ownership, or from a parent, subsidiary or affiliated organization 
(with ``affiliation'' defined by Small Business Administration 
regulation 13 CFR 121.103, or successor regulation) are not permitted. 
Further, applicants who have already received a Planning Grant for the 
proposed project cannot receive another Planning Grant for the same 
project. Applicants who have already received a Working Capital Grant 
for the proposed project cannot receive any additional grants for that 
project. Proposals from previous award recipients should be 
substantially different in terms of products and/or markets and should 
not merely be extensions of previously funded projects. Applicant 
entities regardless of ownership percentage that are comprised of the 
same individuals of a previously awarded VAPG project (recipient) can 
only submit proposals documenting how the new project is substantially 
different in terms of products and/or markets from the previously 
funded project.
    (e) Alcohol Projects. Applicants who are proposing working capital 
grants to produce and market value-added products in the industries of 
wine, beer, distilled spirits or other alcoholic merchandise must 
comply with Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations 
published at 27 CFR chapter 1, including but not limited to permitting, 
filing of taxes and operational reports. Please visit TTB's website at 
https://www.ttb.gov/ for more information. Applicant's that are not in 
compliance with TTB's requirements may be deemed ineligible by the 
Agency. If, at any time after a VAPG award has been received, the 
Applicant is found to be in noncompliance with TTB's operational 
reporting or tax requirements, the Agency may determine that the 
Applicant is not in compliance with the grant terms and conditions.
    (f) Hemp Projects. In determining eligibility for the applicant, 
project or use of funds, any project applying for funding under the 
Value-Added Producer Grant program and proposing to produce, procure, 
supply or market any component of the hemp plant or hemp related by-
products, must have a valid license from an approved State, Tribal or 
Federal plan pursuant to Section 10113 of the 2018 Farm Bill, be in 
compliance with regulations published by the Agricultural Marketing 
Service at 7 CFR part 990, and meet any applicable U.S. Food and Drug 
Administration and U.S. Drug Enforcement Administration regulatory 
requirements. Verification of valid hemp licenses will occur prior to 
award.

D. Application and Submission Information

    1. Address to Request Application Toolkit. The application toolkit, 
regulation, and official program notification for this funding 
opportunity can be obtained online at http://www.rd.usda.gov/programs-services/value-added-producer-grants. You may also contact your USDA RD 
State Office by visiting http://www.rd.usda.gov/contact-us/state-offices. The toolkit contains an application checklist, templates, 
required grant forms, and suggestions. Based upon success of past 
applicants, the Agency highly recommends the use of the templates in 
the application toolkit. However, it is not mandatory to use the 
application toolkit, and only this Notice or information from 
www.grants.gov, and applicable regulations and statutes should be 
relied on when evaluating application requirements, grant awards, and 
reporting requirements.
    2. Content and Form of Application Submission. Applications must 
contain all the required forms and proposal elements described in 7 CFR 
4284.931, unless otherwise clarified in this notice. Applicants must 
become familiar with the program regulation at 7 CFR part 4284 subpart 
J to submit a complete and eligible application. Basic application 
contents are outlined below:
    (a) Standard Form (SF)-424, ``Application for Federal Assistance,'' 
is required. 7 CFR 42484.931(a)(1). The forms require the applicant to 
include their Unique Entity Identifier (UEI) and expiration date (or 
evidence that the System for Award Management (SAM) registration 
process has begun). If the UEI is not included in the application, it 
will not be considered for funding.
    (b) SF-424A, ``Budget Information--Non-Construction Programs'' is 
required. 7 CFR 4284.931(a)(2).
    (c) Permit. Applicants must provide a valid permit or evidence of 
having begun the permitting process if proposing a working capital 
grant to produce and market value-added products in the industries of 
wine, beer, distilled spirits or other alcoholic merchandise; or 
tobacco or tobacco products, as specified in 27 CFR chapter 1.
    (d) Producer license. Applicants must provide a valid producer 
license issued by a State, Tribe, or USDA, as applicable, or in 
accordance with 7 CFR part 990 if proposing to market value-added hemp 
products.
    (e) Executive Summary and Abstract. 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 the project, whether it is a simplified 
application, and whether reserved funds are being requested. Also 
include a separate abstract of up to 100 words briefly describing the 
project.
    (f) Eligibility discussion. 7 CFR 4284.931(b)(1).
    (g) Work plan and budget.
    (h) Performance evaluation criteria. 7 CFR 4284.931(b)(2)(i).
    (i) Proposal evaluation criteria. 7 CFR 4284.931(b)(2)(ii).
    (j) Certification and verification of matching funds. 7 CFR 
4284.931(b)(3)-(4).
    (k) Optionally, reserved Funds and Priority Point documentation. 7 
CFR 4284.924.
    (l) Feasibility studies, business plans, and/or marketing plans, as 
applicable. 7 CFR 4284.931(b)(5)-(6).
    (m) Appendices containing required supporting documentation.
    (n) Applicants requesting less than $50,000 are permitted to submit 
a simplified application, the contents of which are specified in this 
notice. Applicants requesting Working Capital Grants of less than 
$50,000 are not required to provide Feasibility Studies or Business 
Plans but must provide information demonstrating increases in customer 
base and revenue returns to the producers supplying the majority of the 
Agricultural Commodity as a result of the project. 7 CFR 4284.932.
    3. System for Award Management and Unique Entity Identifier.
    (a) At the time of application, each applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR 25. In order to register in 
SAM, entities will be required to create a Unique Entity Identifier 
(UEI). Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.

[[Page 16400]]

    (b) Applicant must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    (c) Applicant must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    (d) Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110.
    (e) The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a Federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times. Electronic applications filed 
through https://www.grants.gov must be filed by 11:59 p.m. Eastern Time 
(ET) on May 11, 2023. Grants.gov will not accept applications submitted 
after the deadline.
    Paper applications must be postmarked and mailed, shipped, sent 
overnight, hand carried, or emailed by close of business on May 16, 
2023 to the USDA RD State Office where the project is located. USDA RD 
State Office contact information is located at http://www.rd.usda.gov/contact-us/state-offices. The Agency will determine if the application 
is late based on the date shown on the postmark or shipping invoice.
    If the due date falls on a Saturday, Sunday, or Federal holiday, 
the application is due the next business day. The Agency will not 
solicit or consider new scoring or eligibility information that is 
submitted after the application deadline. The Agency also reserves the 
right to ask applicants for clarifying information and additional 
verification of assertions in the application. Late applications will 
automatically be considered ineligible and will not be evaluated 
further.
    5. Intergovernmental Review. Executive Order (E.O.) 12372, 
``Intergovernmental Review of Federal Programs,'' applies to this 
program. This E.O. requires that Federal agencies provide opportunities 
for consultation on proposed assistance with State and local 
governments. Many states have established a Single Point of Contact 
(SPOC) to facilitate this consultation. For a list of States that 
maintain a SPOC, please see the White House website: https://www.whitehouse.gov/omb/management/office-federal-financial-management/. 
If your State has a SPOC, you may 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. If your state has not established a SPOC, you may submit 
your application directly to the Agency. Applications from Federally 
recognized Indian Tribes are not subject to this requirement.
    6. Funding Restrictions. Funding limitations and reservations found 
in the program regulation at 7 CFR 4284.927 will apply, including:
    (a) Use of Funds. Grant and matching funds may only be used for 
eligible purposes. Eligible and ineligible uses are provided in 7 CFR 
4284.925 and Sec.  4284.926, respectively. Grant funds may not be used 
to pay any costs of the project incurred prior to the date of grant 
approval.
    (b) Period of Performance (grant period). The project timeframe or 
grant period can be a maximum of 36 months in length from the date of 
award, depending on the complexity of the project. 7 CFR 
4284.922(5)(iv); 7 CFR 4284.927(c). The proposed grant period should 
begin no earlier than the anticipated award announcement date in this 
notice and should end no later than 36 months following that date. If 
an Applicant receives an award, the grant period will be revised to 
begin on the actual date of award--the date the grant agreement is 
executed by the Agency--and the grant period end date will be adjusted 
accordingly. The project activities should begin within 90 days of that 
date of award. 7 CFR 4284.927(c). The length of the grant period should 
be based on the project's complexity, as indicated in the application 
work plan. For example, it is expected that most planning grants can be 
completed within 12 months.
    (c) Program Income. If Program Income is earned during the grant 
period as a result of the project activities, it is subject to the 
requirements in 2 CFR 200.307 and must be managed and reported 
accordingly.
    (d) Majority Controlled Producer-Based Business. The aggregate 
amount of funds awarded 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. 7 
CFR 4284.927(d).
    (e) Local Agriculture Marketing Program (LAMP) Food Safety 
Implementation. Until Farm Bill implementation is finalized via the 
Agency rulemaking process, there will not be food safety reserve 
funding. Food safety training, certifications, and supplies that are 
eligible under the current program regulation may continue to be 
included in the work plan/budget.
    (f) Reserved Funds. Ten percent of all funds available will be 
reserved to fund projects that benefit Beginning Farmers or Ranchers, 
Veteran 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 Network. See related definitions 
in 7 CFR 4284.902. In addition, any funds that become available for 
persistent poverty counties through enactment of FY 2023 appropriations 
will be allocated for assistance in persistent poverty counties.
    (g) Disposition of Reserved Funds Not Obligated. For this notice, 
any reserved funds that have not been obligated by September 30, 2023, 
will be available to the Secretary to make VAPG grants in the next 
Fiscal Year in accordance with section 210A(i)(3)(D)(ii) of the 
Agricultural Marketing Act of 1946, as amended.
    7. Other Submission Requirements.
    (a) Electronic submission. To apply electronically, applicant must 
follow the instructions for this funding announcement at http://www.grants.gov. Use the search features along with a keyword, program 
name, or the Assistance Listing Number to find the Grant Opportunity 
for this Notice.
    To use Grants.gov, Applicants must already have a Unique Entity 
Identifier (UEI) and must also be registered and maintain registration 
in SAM. The UEI is assigned by SAM and replaces the formerly known Dun 
& Bradstreet D-U-N-S Number. The UEI must be associated with the 
correct tax identification number of the VAPG applicant. It is strongly 
recommended that Applicants do not wait until the application deadline 
date to begin the application process through Grants.gov.
    If submitting the application electronically, all application 
documents must be submitted through Grants.gov.
    After electronically applying through Grants.gov, Applicants will 
receive an automatic acknowledgement from Grants.gov that contains a 
Grants.gov tracking number.
    (b) Paper submission. Paper or email submittals should be sent to 
the USDA RD State Office located in the state

[[Page 16401]]

where the project will primarily take place. USDA RD State Offices 
contact information is at http://www.rd.usda.gov/contact-us/state-offices . Fax submittals will not be accepted. USDA RD State Offices 
should be contacted if there are any questions about eligibility or 
submission requirements. Applicants should contact USDA RD State 
Offices well in advance of the application deadline to discuss the 
project and to ask any questions about the application process.

E. Application Review Information

    1. Criteria. 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. 
Applications will be scored in accordance with the procedures and 
criteria specified in 7 CFR 4284.942, and with tiered scoring 
thresholds as specified below. For each criterion, Applicants must show 
how the project has merit and why it is likely to be successful. The 
justification for each criterion must be included in the body of the 
application, including summarizations of any feasibility studies, 
business and marketing plans. Scoring information must be readily 
identifiable in the application or it will not be considered. 7 CFR 
4284.942(a). If Applicants do not address all parts of the criterion, 
or do not sufficiently communicate relevant project information, low 
scores will be received. The VAPG is a competitive program therefore 
scores received are based on the quality of the Applicant's responses. 
Simply addressing the criteria will not guarantee higher scores. The 
total maximum number of points that can be awarded for an application 
is 100. For this Notice, the total minimum score requirement for 
funding is 50 points.
    The Agency application toolkit provides additional instructions to 
help you to respond to the criteria below.
    (a) Nature of the proposed venture (graduated score 0-30 points). 
For both planning and working capital grants, Applicants must discuss 
the technological feasibility of the project, as well as operational 
efficiency, profitability, and overall economic sustainability 
resulting from the project. Applicants must also 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. Working capital applicants must 
also provide the potential number of jobs that will result from the 
project, along with a justifiable basis for these projections. Please 
see the application template for more information. All applicants must 
reference and summarize third-party data and other information that 
specifically supports value-added projects; discuss the value-added 
process being proposed; potential markets and distribution channels; 
the value to be added to the raw commodity through the value-added 
process; cost and availability of inputs, applicant's experience in 
marketing the proposed or similar product; business financial 
statements; and any other relevant information that supports the 
viability of the project. Working capital applicants should demonstrate 
that these outcomes will result from the project and include 
supportable projections of increase in customer base, revenue returned 
to producers and jobs resulting from the project in order to receive up 
to the maximum number of points. Planning grant applicants should 
describe the expected results, and the reasons supporting those 
expectations. Points will be awarded as follows:
    0 points will be awarded if the application does not address the 
criterion.
    1-5 points will be awarded if the application does not address each 
of the following: technological feasibility, operational efficiency, 
profitability, and overall economic sustainability.
    6-13 points will be awarded if the application addresses 
technological feasibility, operational efficiency, profitability, and 
overall economic sustainability, but do not reference third-party 
information that supports the success of the project.
    14-22 points will be awarded if the application addresses 
technological feasibility, operational efficiency, profitability, and 
overall economic, supported by third-party information demonstrating a 
reasonable likelihood of success.
    23-30 points will be awarded if all criterion components are well 
addressed, supported by third-party information, and demonstrate a high 
likelihood of success.
    (b) Qualifications of project personnel (graduated score 0-20 
points). Applicants must identify all individuals who will be 
responsible for managing and completing the proposed tasks in the work 
plan, including the roles and activities that owners, staff, 
contractors, consultants or new hires may perform; and show that these 
individuals have the necessary qualifications and expertise, including 
those hired to do market or feasibility analyses, or to develop a 
business operations plan for the value-added venture. Applicants must 
include the qualifications of those individuals responsible for leading 
or managing the total project (applicant owners or project managers), 
as well as those individuals responsible for conducting the various 
individual tasks in the work plan (such as consultants, contractors, 
staff or new hires). Applicants must discuss the commitment and the 
availability of any consultants or other professionals to be hired for 
the project; especially those who may be consulting on multiple VAPG 
projects. If staff or consultants have not been selected at the time of 
application, specific descriptions of the qualifications required for 
the positions to be filled must be provided. Applications that 
demonstrate the strong credentials, education, capabilities, experience 
and availability of project personnel that will contribute to a high 
likelihood of project success will receive more points than those that 
demonstrate less potential for success in these areas. Points will be 
awarded as follows:
    0 points will be awarded if you do not address the criterion.
    1-4 points will be awarded if qualifications and experience of all 
staff is not addressed and/or if necessary, qualifications of unfilled 
positions are not provided.
    5-9 points will be awarded if all project personnel are identified 
but do not demonstrate qualifications or experience relevant to the 
project.
    10-14 points will be awarded if most key personnel demonstrate 
strong credentials and/or experience, and availability indicating a 
reasonable likelihood of success.
    15-20 points will be awarded if all personnel demonstrate strong, 
relevant credentials or experience, and availability indicating a high 
likelihood of project success.
    (c) Commitments and support (cumulative score 0-10 points). 
Producer, end-user, and third-party commitments will be evaluated under 
this criterion. Sole proprietors can receive a maximum of 9 points. 
Multiple producer applications can receive a maximum of 10 points.
    (1) Independent Producer Commitments to the project will be 
evaluated based on the number of named and documented independent 
producers currently involved in the project; and the nature, level and 
quality of their contributions. Points will be awarded as follows:
    Sole Proprietor (one owner/producer applicant): 1 point.

[[Page 16402]]

    Multiple Independent Producers (note that in cases where family 
members, such as husband and wife, are eligible Independent Producers, 
each family member will count as one Independent Producer): 2 points.
    (2) End-User Commitments will be evaluated based on potential or 
identified markets and the potential amount of output to be purchased, 
as indicated by letters of intent or contracts (purchase orders) from 
potential buyers referenced within the application. Applications that 
demonstrate documented intent to purchase the value-added product will 
receive more points. Note that for planning grants, this criterion can 
be addressed by evidence of interest or support from identified or 
potential customers. Points will be awarded as follows:
    No, or insufficiently documented, commitment from end-users: 0 
points.
    Well-documented commitment from one end-user: 1 point.
    Well-documented commitment from more than one end-user: 2 points.
    (3) Third-party Commitments to the project will be evaluated based 
on the critical and tangible nature of their contribution to the 
project, such as technical assistance, storage, processing, marketing, 
or distribution arrangements that are necessary for the project to 
proceed; and the level and quality of these contributions. Applications 
that demonstrate strong technical and logistical support to 
successfully complete the project will receive more points. Points will 
be awarded as follows:
    No, or insufficiently documented, commitment from third parties: 0 
points.
    Well-documented commitment from one third party: 1 point.
    Well-documented commitment from more than one third party: 2 
points.
    (4) Letters of Commitment by producers, end-users, and third 
parties should be summarized as part of the response to this criterion, 
and the letters must be included in Appendix B. Please note that VAPG 
does not require Congressional letters of support, nor do they carry 
any extra weight during the evaluation process. Also, note that because 
applications with cash matching contributions are awarded more points 
than those pledging only in-kind contributions, applicants will not be 
able to substitute an in-kind match for cash after awards are made. 
Points will be awarded as follows:
    No cash match: 0 points.
    Cash match equals less than 50 percent of the matching 
contribution: 1 point.
    Cash match equals 50 percent or more of the matching contribution: 
2 points.
    Cash match equals 100 percent of the matching contribution: 4 
points.
    (d) Work plan and budget (graduated score 0-20 points). A 
comprehensive work plan and budget must be submitted in accordance with 
7 CFR 4284.922(b)(5). The 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 and description of all estimated costs of project activities 
(including source and basis for their valuation) and allocate those 
costs among the listed tasks. Applicants 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 entire project, as well as for each 
individual project task must be clearly shown. The project timeframe 
must not exceed 36 months and should be scaled to the complexity of the 
project. Working capital applications must include an estimate of 
program income expected to be earned during the grant period (see 2 CFR 
200.307). Points will be awarded as follows:
    0 points will be awarded if the application does not address the 
criterion.
    1-7 points will be awarded if the work plan and budget do not 
account for all project goals, tasks, costs, timelines, and responsible 
personnel.
    8-14 points will be awarded if the application provides a clear, 
comprehensive work plan detailing all project goals, tasks, timelines, 
costs, and responsible personnel in a logical and realistic manner that 
demonstrates a reasonable likelihood of success.
    15-20 points will be awarded if the application provides a clear, 
comprehensive work plan detailing all project goals, tasks, timelines, 
costs, and responsible personnel in a logical and realistic manner that 
demonstrates a high likelihood of success.
    (e) Priority points up to 10 points (lump sum 0 or 5 points plus, 
cumulative score 0-5 points). Priority points may be awarded in both 
the general funds and reserved funds competitions.
    (1) Five (5) points will be awarded if the applicant meets the 
requirements for one of the following categories and provide the 
documentation described in 7 CFR 4284.923 and 4284.924 as applicable: 
Beginning Farmer or Rancher, Socially-Disadvantaged Farmer or Rancher, 
Veteran Farmer or Rancher, or Operator of a Small or Medium-sized Farm 
or Ranch that is structured as a Family Farm, Farmer or Rancher 
Cooperative, or are proposing a Mid-Tier Value Chain project.
    (2) Up to 5 priority points will be awarded if the Applicant is an 
Agricultural Producer Group, Farmer or Rancher Cooperative, or 
Majority-Controlled Producer-Based Business Venture (referred to below 
as ``applicant group'') whose project ``best contributes to creating or 
increasing marketing opportunities'' for Operators of Small and Medium-
sized Farms and Ranches that are structured as Family Farms, Beginning 
Farmers and Ranchers, Socially-Disadvantaged Farmers and Ranchers, and 
Veteran Farmers and Ranchers (referred to below as ``priority 
groups''). For each of the priority point levels below, applications 
must demonstrate how the proposed project will contribute to new or 
increased marketing opportunities for respective priority groups. 
Applicants will not be awarded more than 5 points even if they qualify 
for more than one of the priority categories.
    (i) Two (2) priority points will be awarded if the existing 
membership of the applicant group is comprised of either more than 50 
percent of any one of the four priority groups or more than 50 percent 
of any combination of the four priority groups.
    (ii) One (1) additional priority point will be awarded if the 
existing membership of the applicant group is comprised of two or more 
of the priority groups. One point is awarded regardless of whether a 
group's membership is comprised of two, three, or all four of the 
priority groups.
    (iii) Two (2) additional priority points will be awarded if the 
applicant's proposed project will increase the number of priority 
groups that comprise applicant membership by one or more priority 
groups. However, if an applicant group's membership is already 
comprised of all four priority groups, such an applicant would not be 
eligible for points under this criterion because there is no 
opportunity to increase the number of priority groups. Note also that 
this criterion does not consider either the percentage of the existing 
membership that is comprised of the four priority groups or the number 
of priority groups currently comprising the applicant group's 
membership.
    (f) Administrator priority categories (cumulative score 0-10 
points). The Administrator of the Agency may choose to award priority 
points to improve the geographic diversity of awardees and to 
applications for projects that will advance RD Key

[[Page 16403]]

Priorities (https://www.rd.usda.gov/priority-points) as defined and 
measured on the RD Key Priorities website.
    (1) Applications may also be awarded points for the following three 
priorities:
    (i) Assisting rural communities recover economically through more 
and better market opportunities and through improved infrastructure. 
Proposals where the project is located in or serving one of the top 10% 
of counties or county equivalents based upon county risk score in the 
United States. Information on this priority may be found at: https://www.rd.usda.gov/priority-points.
    (ii) Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects. Direct technical 
assistance to a project located in or serving a community with a score 
0.75 or above on the CDC Social Vulnerability Index. Information on 
this priority may be found at: https://www.rd.usda.gov/priority-points.
    (iii) Reduce climate pollution and increasing resilience to the 
impacts of climate change through economic support to rural 
communities. Direct technical assistance to a project addressing 
climate impacts shown as either quantitative or qualitative. Additional 
information on this priority may be found at: https://www.rd.usda.gov/priority-points.
    (A) Quantitative: Project is located in or serving coal, oil and 
gas, and power plant communities whose economic well-being ranks in the 
most distressed tier of the Distressed Communities Index.
    (B) Qualitative: Demonstrating how proposed climate-impact projects 
improve the livelihoods of community residents and meet pollution 
mitigation or clean energy goals.
    (2) The Agency will confirm if the project is located in an area 
qualifying for these priorities. However, the applicant can provide a 
written narrative in the application on how the project reduces climate 
pollution and increases resilience to the impacts of climate change if 
the project is not located in or serving coal, oil and gas, and power 
plant communities whose economic well-being ranks in the most 
distressed tier.
    2. Review and Selection Process. Applications will be reviewed and 
processed as described at 7 CFR 4284.940. The Agency will review 
applications to determine if they are complete and eligible. If at any 
time, the Agency determines that the application is ineligible, the 
Applicant will be notified in writing as to the reasons it was 
determined ineligible and will be informed of review and appeal rights. 
Funding of successfully appealed applications will be limited to 
available funds.
    The Agency will select applications for award under this notice in 
accordance with the provisions specified in 7 CFR 4284.950(a).
    If an application is eligible and complete, it will be 
qualitatively scored by at least two reviewers based on criteria 
specified in section E.1. of this Notice. One of these reviewers will 
be an experienced RD employee from the applicable servicing State 
Office and at least one additional reviewer will be a non-Federal, 
independent reviewer. Independent reviewers must have at least a 
bachelor's degree in one or more of the following fields: agri-
business, agricultural economics, agriculture, animal science, 
business, marketing, economics or finance; or a minimum of 8 years of 
experience in an agriculture-related field (e.g., farming, marketing, 
consulting, or research; or as university faculty, trade association 
official, or non-Federal government official in an agriculturally 
related field). Each reviewer will score evaluation criteria (a) 
through (d) and the totals for each reviewer will be added together and 
averaged. The RD State Office reviewer will also assign priority points 
based on criterion (e) and (f) in section E.1. of this notice. These 
will be added to the average score. The sum of these scores will be 
ranked highest to lowest and this will comprise the initial ranking. To 
become a non-federal independent reviewer, please contact Grant 
Solutions at [email protected].
    The Administrator of the Agency may choose to award up to 10 
Administrator priority points based on criteria (f) in section E.1. 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 (a) through (d) and priority point under (e) and 
(f). A minimum score of 50 points is required for funding. Applications 
for reserved funds will be funded in rank order until funds are 
depleted. Unfunded reserve applications will be returned to the general 
funds where applications will be funded in rank order until the funds 
are expended. Funding for Majority Controlled Producer-Based Business 
Ventures is limited to 10 percent of total grant funds expected to be 
obligated as a result of this notice. These applications will be funded 
in rank order until the funding limitation has been reached. Grants to 
these applicants from reserved funds will count against this funding 
limitation. In the event of tied scores, the Administrator shall have 
discretion in breaking ties. The Agency reserves the right to offer the 
applicant less than the grant funding requested.
    If the application is ranked, but not funded, it will not be 
carried forward into the next application funding cycle.

F. Federal Award Administration Information

    1. Federal Award Notices. If you are selected for funding, you will 
receive a signed Notice of Federal award containing instructions on 
requirements necessary to proceed with execution and performance of the 
award.
    If you are not selected for funding, you will be notified in 
writing and informed of any review and appeal rights. Funding of 
successfully appealed applications will be limited to available 
funding.
    2. Administrative and National Policy Requirements. Additional 
requirements that apply to grantees selected for this program can be 
found in 7 CFR part 4284 subpart J; the Grants and Agreements 
regulations of the Department of Agriculture codified in 2 CFR 180, 
200, 400, 415, 417, 418, 421; 2 CFR 25 and 170; and 48 CFR 31.2, and 
successor regulations to these parts.
    In addition, all recipients of Federal financial assistance are 
required to report information about first-tier subawards 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 Federal 
Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282) 
reporting requirements (see 2 CFR 170.200(b), unless you are exempt 
under 2 CFR 170.110(b)). More information on these requirements can be 
found at http://www.rd.usda.gov/programs-services/value-added-producer-grants.
    The following additional requirements apply to grantees selected 
for this program:
    (i) Agency approved Financial Assistance Agreement.
    (ii) Letter of Conditions.
    (iii) Form RD 1940-1, ``Request for Obligation of Funds.''
    (iv) Form RD-400-4, ``Assurance Agreement.''
    (v) SF LLL, ``Disclosure of Lobbying Activities,'' if applicable.
    (vi) Form RD 1942-46, ``Letter of Intent to Meet Conditions.''
    (vii) Use Form SF 270, ``Request for Advance or Reimbursement.''
    3. Reporting. After grant approval and through grant completion, 
you will be required to provide the following, as indicated in the 
Financial Assistance Agreement and specified at 7 CFR 4284.960:
    (a) An SF-425, ``Federal Financial Report,'' and a project 
performance

[[Page 16404]]

report will be required on a semiannual basis (due 30 working days 
after end of the semiannual period). For the purposes of this grant, 
semiannual periods end on March 31st and September 30th. The project 
performance reports shall include the elements prescribed in the 
Financial Assistance Agreement.
    (b) A final project and financial status report within 120 days 
after the expiration or termination of the grant.
    (c) Provide outcome project performance reports and final 
deliverables.

G. Federal Awarding Agency Contacts

    If you have questions about this notice, please contact the USDA RD 
State Office as identified in the ADDRESSES section of this notice. You 
may also contact National Office staff at [email protected] or call 
the main line at (202) 720-1400.

H. Other Information

    1. In accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. chapter 35), the information collection requirements associated 
with the programs, as covered in this Notice, have been approved by the 
Office of Management and Budget (OMB) under OMB Control Number 0570-
0064.
    2. National Environmental Policy Act. All recipients under this 
Notice are subject to the requirements of 7 CFR part 1970. However, 
awards for planning and working capital grants under this Notice are 
classified as a Categorical Exclusion according to 7 CFR 1970.53(b), 
and usually do not require any additional documentation. The Agency 
will review each grant application to determine its compliance with 7 
CFR part 1970. The applicant may be asked to provide additional 
information or documentation to assist the Agency with this 
determination.
    3. Federal Funding Accountability and Transparency Act. All 
applicants, in accordance with 2 CFR part 25, must be registered in SAM 
and have a UEI as stated in Section D.3. of this Notice. All recipients 
of Federal financial assistance are required to report information 
about first-tier subawards and executive total compensation in 
accordance with 2 CFR part 170.
    4. Civil Rights Act. All grants made under this Notice are subject 
to title VI of the Civil Rights Act of 1964 as required by the USDA (7 
CFR part 15 subpart A--Nondiscrimination in Federally-Assisted Programs 
of the Department of Agriculture--Effectuation of title VI of the Civil 
Rights Act of 1964) and section 504 of the Rehabilitation Act of 1973, 
title VIII of the Civil Rights Act of 1968, title IX, Executive Order 
13166 (Limited English Proficiency), Executive Order 11246, and the 
Equal Credit Opportunity Act of 1974.
    5. Nondiscrimination Statement. In accordance with Federal civil 
rights laws and USDA civil rights regulations and policies, the USDA, 
its Mission Areas, agencies, staff offices, employees, and institutions 
participating in or administering USDA programs are prohibited from 
discriminating based on race, color, national origin, religion, sex, 
gender identity (including gender expression), sexual orientation, 
disability, age, marital status, family/parental status, income derived 
from a public assistance program, political beliefs, or reprisal or 
retaliation for prior civil rights activity, in any program or activity 
conducted or funded by USDA (not all bases apply to all programs). 
Remedies and complaint filing deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the 711 Relay Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint from any USDA office, by calling 
(866) 632-9992, or by writing a letter addressed to USDA. The letter 
must contain the complainant's name, address, telephone number, and a 
written description of the alleged discriminatory action in sufficient 
detail to inform the Assistant Secretary for Civil Rights (ASCR) about 
the nature and date of an alleged civil rights violation. The completed 
AD-3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected]
    USDA is an equal opportunity provider, employer, and lender.

Karama Neal,
Administrator, Rural Business--Cooperative Service, USDA Rural 
Development.
[FR Doc. 2023-05470 Filed 3-16-23; 8:45 am]
BILLING CODE 3410-XY-P