1. Intertribal Agriculture Council National Webinar Series: USDA Value Added Producer Grant (VAPG) June 4 th, 2015 Audio Connect Info: Audio should play through your computer speakers. To enable microphone, click on phone icon (or may show up as microphone) on top toolbar and select “Connect Microphone”. Phone line below is available for question-and-answer if computer connection does not work. 866-614-2162, 987 114 7244

2. 2015 Value-Added Producer Grant Program For Tribal Applicants

3. VAPG Purpose Provides funds for economic planning activities or eligible working capital expenses to enable viable Agricultural Producers to develop businesses that produce and market Value- Added Agricultural Products and to create marketing opportunities for such businesses. VAPG

4. Value-Added Producer Grant Authorization Section 231 of the Agriculture Risk Protection Act of 2000 (P. L. 106-224), as amended by section 6203 of the Agricultural Act of 2014 (P. L. 113-79) (see 7 U.S.C. 1632a) Program Regulation Final Rule 7 CFR part 4284 subpart J published May 8, 2015

5. National Competition FY2015 Available Funding: $30 million Application Deadlines: July 2, 2015 for Grants.gov July 7, 2015 for paper Maximum Award Amounts: $75,000 Planning $250,000 Working Capital Matching Requirement: 1-to-1 match (50 percent of total project costs) cash or eligible in-kind contributions to be used only for eligible project purposes. Grant Period: Up to 36 months, depending on project complexity. Value-Added Producer Grant

6. Recent Tribal Project Examples Oneida Tribe of Indians of Wisconsin -Joanie Buckley Ute Mountain Ute Tribe Farm & Ranch -Paul Evans / Marcie Reichenau Intertribal Maple Syrup Cooperative -Dan Cornelius VAPG

7. Oneida White Corn

10. Changes in 2015 Program Regulation Final Rule 7 CFR 4284-J Changes resulting from the 2014 Farm Bill. Agency responses to public comments on Farm Bill and previous version of program regulation Clarifications, revision to conform to other USDA definitions, and information previously included only in the annual notice. VAPG

11. Changes affecting Tribal Applicants VAPG Revised definition of ‘Agricultural producer:’ (1)An individual or entity that produces an Agricultural Commodity through participation in the day-to-day labor, management, and field operations; or that has the legal right to harvest an Agricultural Commodity that is the subject of the VAPG project. Individuals and entities that may have ownership and/or financial control without being engaged in the day-to-day labor, management, and field operations will no longer be eligible for a value-added producer grant.

12. What does this change mean for Tribal applicants? VAPG Agricultural producer 2) The Agency shall determine the Agricultural producer status of Tribes and Tribal entities without regard to day-to-day labor, management, and field operation and right to harvest status.

13. How will the Agency determine eligibility “without regard to day-to-day labor, management, and field operation and right to harvest status?” VAPG Tribes and tribal entities should address the questions in application template Appendix A regarding composition, structure and relationship of the entity to the tribe, the beneficiaries of returns generated by the project, etc.; AND MUST meet all other eligibility requirements.

14. Basic Program Requirements VAPG Applicant eligibility Project eligibility Purpose eligibility Evaluation criteria

15. Four Eligible Applicant Types Independent Producers Agricultural Producer Groups Farmer or Rancher Cooperatives Majority-Controlled Producer-Based Businesses VAPG

16. All Four Applicant Types Must : Currently produce and own more than 50 percent of the raw commodity that will be used for the Value-Added product. Own the product from its raw commodity state through the production of the Value-Added product during the Project (except for MTVC). VAPG

17. Emerging Market Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority- Controlled Producer-Based Businesses, must show that they are entering an emerging market as a result of the proposed project. Applicants cannot have supplied the proposed product, geographic or demographic market for more than two years at time of application submission. VAPG

18. Key Questions for Tribes VAPG Is the tribe or tribal entity the applicant? Does the tribe or tribal entity produce and own more than 50 percent of the raw commodity needed for the project? Does the tribe or tribal entity own the product from raw commodity through the Value-Added process. Will participant tribal members and/or the tribe as a whole benefit from increased returns resulting from the project?

19. Project Eligibility Value-added product methodology Expansion of customer base Greater portion of revenue from the process returned to the producer VAPG

20. Five Value-Added Methodologies Change in physical state Produced in a manner that enhances the value of the agricultural commodity Physical segregation Farm- or ranch-based renewable energy Locally-produced agricultural food product Project Eligibility

21. Increase in customer base Greater portion of revenue derived from the value-added process returned to the producer. All applicants must demonstrate: Project Eligibility

22. Purpose Eligibility 2 types of grants Use of funds Budget & work plan VAPG

23. 2 Types of VAPG Grants 1)Planning Grant To pay a qualified (third-party) consultant for development of feasibility, marketing, business plan related to the processing and/or marketing of a value- added product. 2) Working Capital Grant To pay eligible project expenses related to the processing and/or marketing of a value-added product. Purpose Eligibility

24. Working Capital Grants 1)Requests of $50,000 or more (emerging market)-feasibility study required 2)Requests of $50,000 or more (market expansion)-business plan only required 3)Requests of less than $50,000-no feasibility study or business plan requirement. Purpose Eligibility

25. Use of Funds Examples of Eligible Costs: Processing costs including labor, utilities, packaging and labeling, ingredients; Additional raw commodity inventory from third parties (up 49% of the total amount required for the project) Advertising and promotion Financial/accounting systems Purpose Eligibility

26. Use of Funds Examples of Ineligible Costs: Purchase of land, buildings or equipment Preparation of the grant application, Research and development, architectural or engineering design work Expenses for the production, harvesting or delivery to a processing facility of any agricultural commodity or product Purpose Eligibility

27. Matching Funds Applicant cash, loan, or line of credit; and/or Applicant or family member in-kind contributions of fairly valued time spent on the project (applicant provided services limited to 25 percent of total project costs); and/or Third-party cash or Third-party in-kind contributions Purpose Eligibility

28. Matching Funds must be… Equal to at least the grant amount (at least 50 percent of total project costs). Spent only on eligible expenses; Spent in advance of grant; From eligible sources without a real or apparent conflict of interest Verified at application and confirmed at award Purpose Eligibility

29. Other Eligibility Requirements VAPG Multiple Grant Active Grant Grant Period Completeness

30. Evaluation Criteria Performance evaluation criteria Proposal evaluation criteria VAPG

31. Applicant suggests one or more relevant criterion to be used to evaluate whether or not the primary goals and objectives of the project are being met. All applicants estimate how many jobs are expected to be created or saved as a result of the project? Working capital applicants record data on expansion of customer base and increase in revenue from the Applicant eligibility section. Performance Evaluation Criteria

32. Proposal Evaluation Criteria The Agency selects and ranks applications based on responses to 5 criteria: 1.Nature of the proposed project (0-30) 2.Qualifications of project personnel (0-20) 3.Commitments and support (0-10) 4.Work plan and budget (0-20) 5.Priority points (5 and/or additional 5) VAPG

33. Scoring Priority Five points will be awarded to eligible: Beginning Farmers or Ranchers Veteran Farmers or Ranchers* Socially-Disadvantaged Farmers or Ranchers Small- or Medium-Sized Family Farms Farmer or Rancher Cooperatives Applications proposing Mid-Tier Value Chain projects VAPG

34. Scoring Priority Up to 5 additional points will be awarded to Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority Controlled Producer-Based Businesses that propose projects that best contribute to new or expanded marketing opportunities for : Beginning Farmers or Ranchers Veteran Farmers or Ranchers* Socially-Disadvantaged Farmers or Ranchers Small- or Medium-Sized Family Farms VAPG

35. Tools for Applicants VAPG

36. Program Information & Materials http://www.rd.usda.gov/programs-services/value-added- producer-grants

37. Outreach Fact sheets General program Info Locally-produced food Harvesters Mid-tier value chains …and more! TOOLS

38. Comprehensive Toolkits for Planning and Working Capital

39. Checklists to ensure complete applications TOOLS

40. Links to required forms and necessary resources, including: SF 424s AD 3030 Program regulation NOFA And more!

41. Links to DUNS and SAM

42. Individual OPTIONAL templates for Planning and Working Capital applications. TOOLS

43. Guidance for: Tribal applicants Required documentation Matching fund verification templates Reserve fund and priority point eligibility TOOLS

44. USDA Rural Development State Office Contacts http://www.rd.usda.gov/contact-us/state-offices USDA Rural Development National Office Amy Cavanaugh Director, Grants Division amy.cavanaugh@wdc.usda.gov Tracey Kennedy tracey.kennedy@wdc.usda.gov Shantelle Gordon shantelle.gordon@wdc.usda.gov