FY2017 VAPG Application Toolkit_Planning.docx

USDA Value-Added Producer Grant Application Toolkit for Planning

Value-Added Producer Grant 2017 APPLICATION TOOLKIT for PLANNING GRANTS

TABLE OF CONTENTS

APPENDICES

APPENDIX F. Alcohol and Tobacco Tax and Trade Bureau Compliance…………………………………………………………………………F.

Optional Feedback S

PROGRAM OVERVIEW

The purpose of the Value Added Producer Grant (VAPG) Program is to help U.S. agricultural producers enter into value-added activities. 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 $75,000 and the maximum grant amount for a working capital grant is $250,000. Please see for the Notice of Funding Availability (NOSA) published August 29 , 2017 in the Federal Register.

DOCUMENT PURPOSE

The purpose of this Application Toolkit is to assist eligible applicants to navigate through the program requirements as detailed in the NOFA (forthcoming) and the Final Rule 7 CFR part 4284 subpart J, published May 8, 2015 and ensure a complete application submission of all required details and documents for PLANNING grant proposals. While this Application Toolkit is not required, applicants are highly encouraged to utilize this as a tool.

CHECKLIST

(Optional, do not included in completed application)

Program requirements are detailed in Final Rule 7 CFR part 4284, subpart J (published May 8, 2015), the forthcoming Notice of Funding Availability (NOFA) and information contained in this toolkit. You must become familiar with these documents before applying in order to comply with all requirements.

Before you submit your application, please be sure you have addressed all of the following elements.

Required forms (see links below for fillable forms) ☐Form SF-424, “Application for Federal Assistance” ☐Form SF-424A, “Budget Information-Non-Construction Programs” ☐Form SF-424B, “Assurances - Non-Construction Programs” ☐Form AD-3030, “Representations Regarding Felony Conviction and Tax Delinquency Status for Corporate Applicants” (required only for corporate applicants)

Section 1. Summary Information ☐Legal Name of Applicant ☐DUNS Number ☐SAM Registration Cage Code and Expiration Date ☐Employer Identification Number (EIN) ☐Applicant Type ☐Purpose ☐Requested Grant Amount ☐Priority Point Request (if applicable) ☐Priority Points for Group Applicants (if applicable) ☐Brief Summary of Proposed Project

Section 2. Executive Summary ☐One page description of your proposed project.

Section 3. General Eligibility Requirements ☐Citizenship ☐Legal Authority and Responsibility ☐Multiple Grant Eligibility ☐Currently Active VAPG Grant ☐Certification of Federal Judgments ☐Certification of Federal Tax Delinquencies ☐Certification of Alcohol and Tobacco Tax and Trade Bureau Compliance

Section 4. Applicant Eligibility ☐Applicant Eligibility ☐Applicant Type Requirements

Section 5. Project Eligibility ☐Product Eligibility ☐Value-Added Methodology ☐Expansion of Customer Base ☐Increased Revenue ☐Purpose Eligibility ☐Use of Funds ☐Work Plan ☐Budget

Section 6. Proposal Evaluation Criteria ☐Performance Evaluation Criteria

☐Proposal Evaluation/Scoring Criteria ☐Nature of the Proposed Venture ☐Qualifications of the Project Personnel ☐Commitments and Support ☐Work Plan and Budget ☐Priority Points (if applicable)

Section 7. Matching Funds ☐Certification of Matching Funds ☐Verification of Matching Funds

Appendices ☐Appendix A - Tribes and Tribal Entities as VAPG Applicants ☐Appendix B - Legal Authority and Responsibility ☐Appendix C - Supporting Documentation and Letters of Commitment/Support ☐Appendix D - Matching Funds Verification ☐Appendix E – Priority Point Eligibility and Documentation ☐Appendix F – Alcohol and Tobacco Tax and Trade Bureau Compliance

REQUIRED STANDARD FORMS

Form SF-424 Instructions http://www.grants.gov/web/grants/form-instructions/sf-424-instructions.html

Form SF-424, “Application for Federal Assistance” http://apply07.grants.gov/apply/forms/sample/SF424_2_1-V2.1.pdf

Form SF-424-A Instructions http://www.grants.gov/web/grants/form-instructions/sf-424a-instructions.html

Form SF-424A, “Budget Information-Non-Construction Programs” http://apply07.grants.gov/apply/forms/sample/SF424A-V1.0.pdf

Form SF-424B, “Assurances - Non-Construction Programs” http://apply07.grants.gov/apply/forms/sample/SF424B-V1.1.pdf

Form AD-3030, “Representations Regarding Felony Conviction and Tax Delinquency Status for Corporate Applicants” http://www.ocio.usda.gov/document/ad3030

OPTIONAL FORM

Form AD-2106, “Form to Assist in Assessment of USDA Compliance with Civil Rights Laws” http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/AD2106.PDF

IMPORTANT APPLICATION RESOURCES

VAPG Program Regulation 7 CFR 4284 subpart J or PDF Version

VAPG Notice of Solicitation of Applications

DUNS #

Obtain a free DUNS number by calling 1-800-234-3867 or go to: http://fedgov.dnb.com/webform

SAM Registration Cage Code or evidence of having begun registration process Register at no charge at https://www.sam.gov/portal/public/SAM/

Alcohol and Tobacco Tax and Trade Bureau (TTB) Please visit TTB’s Web site at https://www.ttb.gov/index.shtml August 2017 USDA is an equal opportunity provider, employer, and lender.

APPLICATION TEMPLATE

SECTION 1: SUMMARY INFORMATION

Legal Name of Applicant Entity: _________________________________________________________

DUNS # ________________________ Employer identification Number (EIN) _______________

SAM/CCR Registration Cage Code: __________ Expiration Date: ____________ If have not yet received your code and expiration date, you must provide evidence from SAM of having begun the registration process (please include documentation in Appendix B.

Applicant Type – Please Check One:

Raw Agricultural Commodity: _____________________________________________________

Value-Added Product: ___________________________________________________________

Purpose ☐Planning Grant

Requested Grant Amount ($75,000 or less): $_______________________

Proposed Grant Period Start Date: _______________ Proposed Grant Period End Date: _______________ Proposed dates should correspond with grant period date included in SF424 and Section 5.4(2)(a) of the template.

Check if you are eligible for Reserved Funds in one of the following categories, per 7 CFR 4284.923.

(Information from Appendices E.1, E.3, or E.4 will be used to rank applications awarded from Reserved Funds).

☐ Beginning Farmer or Rancher ☐ Socially-Disadvantaged Farmer or Rancher ☐ Mid-Tier Value Chain Project

Check one if you are competing for Priority Points (See 4284.902 and Appendix E for Definitions) in one of the priority categories below:

☐ Beginning Farmer or Rancher ☐ Veteran Farmer or Rancher ☐ Socially Disadvantaged Farmer or Rancher ☐ Operator of a Small- or Medium-Sized Family Farm ☐ Farmer or Rancher Cooperative ☐ Mid-Tier Value Chain Project

☐Priority Points for Group Applicants: Check the box if you are an Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority Controlled Producer-Based Business AND you are applying for Priority Points as an applicant that “best contributes” to creating or increasing marketing opportunities for one or more of the priority categories above.

Brief Summary of Proposed Project (limit 100 words) [Example: VAPG planning funds will be used to pay a consultant to determine the feasibility of producing artisan cheeses from organic milk.]

[Insert brief summary of proposed project]

Name & Affiliation of Grant Writer Who Prepared This Application

Name ________________________________________________________

Affiliation _____________________________________________________

Note: Grant and Matching Funds may not be used to support costs for services or goods going to, or coming from, a person or entity with a real or apparent Conflict of Interest in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially.

SECTION 2: EXECUTIVE SUMMARY OF PROJECT

[Insert a more detailed description of your project containing the following information: 1) legal name of applicant entity, 2) application type (planning or working capital), 3) applicant type, 4) amount of grant request, 5) a summary of your project, 6) project goals and 7) how you intend to use the grant funds. Limit one page.]

SECTION 3: GENERAL ELIGIBILITY REQUIREMENTS

Use 7 CFR 4284.920 and 921, the definitions at 902 and the NOFA to address this section. All Applicants must certify the following by reading and checking the following statements and including any requested documentation within the body of the application or in the appropriate Appendix, as directed:

3.1 Citizenship

☐I am an Individual Applicant who is a citizen or national of the United States, the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa; or I reside in the United States after legal admittance for permanent residence.

OR

☐I am an Applicant Entity that more than 50 percent owned by individuals who are either citizens or nationals of the United States, the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa; or are legally admitted permanent residents residing in the United States.

3.2 Legal Responsibility and Authority

☐I have or can obtain the legal authority to carry out the purpose of the grant, and am in good standing in the State where my business is incorporated and/or in the State that is the primary location of my business operations for the VAPG project (Tribes and tribal entities should refer to Appendix A for guidance on eligibility).

☐In Appendix B, please attach a copy of, or excerpt from your organizational documents showing legal authority to carry out the purpose of the grant on behalf of your organization, along with a Certificate of Good Standing or letter from a State agency or equivalent authority. Sole proprietor/Independent producers (including representatives of steering committees) may include a copy of their IRS tax forms showing farm income/loss (Tribes and tribal entities should refer to Appendix A for guidance on eligibility).

3.3 Multiple Grant Eligibility (check all that apply) Refer to 4284.920 Applicants (including separate, but related entities with greater than 75 percent common ownership or from a parent, subsidiary or affiliated organization) may not submit more than one application in response to this solicitation. Applicants for Planning grants may not submit applications for the same project that has previously received Planning funds. 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.

☐ I am requesting only Planning grant funds, and have not previously received Planning funds for this same project proposal; and the products and/or markets proposed do not represent extensions of previously funded projects.

☐I am submitting only one application in response to this solicitation, including separate, but related, applicant entities with greater than 75 percent common ownership or from a parent, subsidiary or affiliated organization.

3.4 Currently Active VAPG Grant (check only one box) Refer to 4284.920

☐I DO NOT have a currently active VAPG grant with unused funds.

☐I DO have a currently active VAPG grant with unused funds.

☐Scheduled completion date of currently active VAPG grant: ______________

3.5 No Current Outstanding Federal Judgments against Your Property or Delinquencies on Federal Taxes Refer to 4284.921

I, [INSERT NAME OF APPLICANT], _______________________________________________________, certify that the United States has not obtained an unsatisfied judgment against my property and will not use grant funds to pay any judgments obtained by the United States.

I, [INSERT NAME OF APPLICANT], _______________________________________________________, also certify that I am not delinquent on payment of Federal Income Taxes or any Federal Debt.

3.6 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.

☐ I DO currently have an alcohol license/permit that meets TTB requirements.

☐ I DO NOT have an alcohol license/permit that meets TTB requirements.

☐ I DO NOT have an alcohol license/permit that meets TTB requirements, however I have begun the application process. I submitted my alcohol permit/ license application to TTB on [Please write or type date] or Click here to enter a date.

SECTION 4: APPLICANT ELIGIBILITY

Use 7 CFR 4284.920 and 921, the definitions at 902 and the NOFA to address this section. All applicants must provide the requested information in within the body of the application or in the appropriate Appendix, as directed. Tribes and tribal entities should also refer to Appendix A for guidance on eligibility requirements.

4.1 All Applicants must acknowledge and agree to the following by checking each.

☐I/We produce the subject agricultural commodities through participation in the day-to-day labor, management, and field operations; or have the legal right to harvest an agricultural commodity that is the subject of the VAPG project (see the definition of Agricultural Producer at 4284.902).

☐I/We currently produce and own the majority (more than 50 percent) of the subject raw agricultural commodity to which value will be added in this project.

☐I/We do not produce the subject agricultural commodity under contract for another entity, nor contract out the production of the subject agricultural commodity to another entity.

☐I/We will maintain ownership of the subject agricultural commodity from its raw state through the production, marketing and sale of the value-added product during the grant funding period (except for qualifying Mid-Tier Value Chain (MTVC) projects).

4.2 Applicant Type

Please address eligibility requirements for only one applicant type (a), (b), (c) or (d) below

(a) ☐Independent Producer

See definitions for Independent Producer and Agricultural Producer at 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information.

☐I am an Independent Agricultural Producer and am the sole owner of my business;

OR

☐100 percent of the owners or members of the applicant organization are individual Agricultural Producers, or entities that are solely owned and controlled by Agricultural Producers, who produce an Agricultural Commodity through participation in the day-to-day labor, management, and field operations; or are owners or members who have the legal right to access and harvest the agricultural commodity to which value will be added (Additional verification may be required upon award).

1. List names of all owners or members of the “Independent Producer” applicant organization and their individual percentage of ownership/membership.

(Note: Tribes and tribal entities should include tribal enrollment data (number of enrolled members) along with a brief narrative description of the tribal entity or tribal members that will be directly involved in the production of the primary agricultural commodity.)

[Insert list]

1. Is the Applicant a steering committee (as found in the definition of Independent Producer at 7 CFR 4284.902)? ☐Yes ☐ No

If yes, do you certify that 100 percent of committee members meet the requirements for an Independent Producer in the 7 CFR 4284.902 definitions at application; and if selected to receive grant funds, the steering committee will form a legal entity that will meet the requirements for one of the four eligible applicant types; and will provide the organizational documents of this new entity to the Agency before the Agency executes the grant agreement. ☐Yes ☐No

1. Is the Applicant a harvester (as found in the definition of Independent Producer at 7 CFR 4284.902)?

☐Yes ☐ No (Examples 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 who has the legal right to access and harvest fish from the ocean or river that are then processed. This category is not applicable for cultivated farm commodities).

If yes, do you certify that you have the legal right to access and harvest more than 50 percent of the agricultural commodity that will be used for the value-added product, and are currently engaged in harvesting the subject agricultural commodity?

☐Yes ☐No

Summarize the harvesting rights and operation:

[Insert summary]

(A copy of, or reference to, written contracts, rights-of-way, Memorandums of Understanding, license, or other documentation establishing “legal rights” to access and harvest the subject agricultural commodity must be provided upon award)

NOTE: Agricultural harvesters are NOT individuals or entities who glean, gather, or collect only residual commodities (such as ‘slash in a forest or blemished fruit in an orchard) that result from an initial harvesting or production of a primary agricultural commodity. To be eligible, the agricultural harvester must harvest the primary agricultural commodity. This category is not applicable for cultivated farm commodities.

Skip to Section 5

(b) ☐Agricultural Producer Group

See definitions at 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information.

☐We are a formal, non-profit, membership organization that represents Independent Producers; and operates with a mission that includes working on behalf of Independent Producers.

☐The majority (more than 50 percent) of the membership and board of directors is made up of Independent Producers who are individual Agricultural Producers, or entities that are solely owned and controlled by Agricultural Producers, and are directly engaged in the production of the agricultural commodity to which value will be added for this project.

1. What is your total number of members? ________________

1. What is your total number of members who are eligible Independent Producers?

*Of this number, what is the total number who will participate in the project? _____________

1. What is the total number of individuals on the governing board? ________________

1. What is the total number of individuals on the governing board who are eligible Independent Producers? _______________

1. In Appendix B, please attach your articles of incorporation or other evidence of your non-profit status.

1. Describe your organization’s mission:

[Insert mission statement]

1. Identify by name or class (general description of agricultural product or type of producer) the members who will participate in the project.

[Insert list or identify class]

Skip to Section 4.3

(c) ☐Farmer or Rancher Cooperative

See definitions in 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information.

NOTE: Cooperatives owned and controlled by agricultural harvesters (i.e. fishermen, loggers, etc.) are eligible to apply only as an Independent Producer applicant and not as a Farmer or Rancher Cooperative. It is the Agency’s position that harvesters do not meet the definition of a farmer or rancher. Harvester applicants must complete the information for Independent Producer in section 4.1(a) above.

1. ☐ Applicant certifies that it is a business owned and controlled by eligible Independent Producers that is either:

☐ LEGALLY INCORPORATED as a Farmer or Rancher COOPERATIVE Indicate the State of Incorporation: _____________

-OR-

☐IDENTIFIED by the State in which it operates as a Farmer or Rancher owned and cooperatively operated business in the State of: ________________

1. What is the percentage of total ownership shares owned by Independent Producers? _____________

1. How many Independent Producer owner/members will participate in the value-added project? _____________

1. ☐The owner/members, or class, identified below are those Independent Producers on whose behalf the project work will be done and each owner/member, or class of producer, is an eligible Independent Producer, in accordance with the definition at 7 CFR 4284.902.

List participating owner/member Independent Producers by name or class (general description of agricultural product or type of producer). Additional verification of the status and participation of these parties may be requested.

[Insert list or identify class]

Skip to Section 4.3

(d) ☐ Majority Controlled Producer-Based Business

See definitions in 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information. Note: Farmer or Rancher Cooperatives should not apply in this category.

1. ☐We are a legal entity in which more than 50 percent of the financial ownership and voting control is held by individual Independent Producers, or held by an entity(ies) solely owned and controlled by agricultural producers, and we are directly engaged in the production of the agricultural commodity to which value will be added for project.

1. ☐The owners identified below comprise 100 percent of the ownership of the organization, including both Independent Producer owners and owners that are not Independent Producers. If any owners are entities themselves, the ownership of those entities is also identified, by name or class (general description of agricultural product or type of producer), and confirmed as eligible. Additional verification of the status and participation of these parties may be requested.

1. Provide a list -by name or class- of all owners, their percentage of financial ownership of the organization, their percentage of voting control of the organization, and whether or not they are an eligible Independent Producer.

[Insert list]

0. Emerging Market

If you are an Agricultural Producer Group, a Farmer or Rancher Cooperative, or a Majority-Controlled Producer-Based Business, you must show that you are entering an emerging market as a result of the proposed project. To qualify, you cannot have supplied the proposed product, geographic or demographic market for more than two years at time of application submission.

Check all that apply and describe your emerging market:

☐The project will provide a new value-added product ☐The project will serve a new geographic market ☐The project will serve a new demographic market

Describe the new product and/or geographic/demographic market):

[Insert description]

How many months or years have your member-producers been engaged in the specific value-added activity that is the subject of this application?

Months _________ Years __________

SECTION 5: PROJECT ELIGIBILITY

You must detail how the project meets product, and purpose, and reserved funds and priority points (if applicable) eligibility requirements in 7 CFR 4284.922 and in the current NOFA. All applicants must provide the requested information in within the body of the application or in the appropriate Appendix, as directed.

You must address all sections below.

5.1 Raw Agricultural Commodity and Outcome Value-Added Product

Name the raw agricultural commodity that will be used as the input for the project:

☐ I certify that the majority of the raw agricultural product proposed as the input for the project was produced in the United States including the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa).

Name the value-added product that will be the outcome from using one of the five value-added methodologies: ________________________________________________________________________

5.2 Value-Added Agricultural Product Methodology (7 CFR 4284.922(a))

Based on the definitions in 7 CFR 4284.902 please address at least one value-added methodology below that best fits your proposed value-added product(s).

1. ☐Change in Physical State Examples include, but are not limited to, strawberries into jam, milk into cheese, wheat into flour, wool into clothing or rugs, corn into E-85 ethanol that is generated off-farm, livestock into packaged meat.

Explain the method or process used to add value to your agricultural product, and how the change in physical state or form of the product enhances its value.

[Insert explanation]

1. ☐Produced in a Manner that Enhances the Value of the Agricultural Commodity Examples include, but are not limited to, organic carrots, eggs produced from free-range chickens.

Explain the method or process used to add value to your agricultural product, and how a non-standard agricultural production method adds value to the agricultural commodity per unit of production over a standard production method, and provide evidence via a quantifiable comparison with products produced in the standard manner.

[Insert explanation]

1. ☐Physical Segregation An example is genetically modified corn that is separated from non-genetically modified corn on the farm during production and harvesting, with continued separation from similar commodities or products during the processing and marketing of the value-added product.

Explain the method or process used to add value to your agricultural product, and demonstrate how the physical segregation of the commodity is accomplished and how it enhances the value of the commodity.

[Insert explanation]

1. ☐Farm- or Ranch-based Renewable Energy Examples include, but are not limited to, dairy manure into methane and electricity generated on the farm, or corn into biodiesel generated on the farm. Generation of energy from wind, solar, geothermal or hydro sources are not eligible. Fuel or energy that is not generated on a farm or ranch owned or leased by the Independent Producer applicant is not eligible under this methodology, but may be considered under ‘change in physical state’.

Describe the renewable energy technology that will be used on-farm, and explain the process to generate on-farm renewable energy from the agricultural commodity produced by the Independent Producer applicant. Demonstrate that the generated renewable energy will result in expansion of customer base and increased returns to the producer*

[Insert explanation]

*For Farm- or Ranch-based Renewable Energy, documentation for expansion of customer base must include sales of on-farm generated renewable energy to off-farm customers; and/or the use of the generated renewable energy to produce another value-added product, the sales of which will expand customer base. An example is the use of the generated energy to power a greenhouse or a dairy operation from which value-added products will be produced. As applicable, emerging market requirements must be met.

Documentation for calculating increased revenue returned to the producer-owner(s) must include revenue from sales of generated energy to off-farm customers; savings that result from use of generated energy on the farm for farming operations; sale of value-added products produced using the generated energy; and/or sale of by-products of the generated energy such as compost and bedding, etc.

1. ☐Locally-produced Agricultural Food Product Examples include, but are not limited to, specific local grapes with characteristics attributable to the growing area will be sold to a processor that will produce a locally-marketed wine; or local corn advertised and sold at a premium as a fresher locally-produced alternative to non-local produce.

Explain how value is added to your agricultural product, and demonstrate/ quantify how local sales and marketing results in added value to the product.

[Insert explanation]

ALL APPLICANTS CONTINUE AT SECTION 5.3

5.3 Expansion of Customer Base and Increased Revenue Derived from the Value-Added Process.

You must cite one or more relevant sources to support the response statements and data below. For example, planning grant response data may be based on an identified industry-norm or formula, applicant’s calculated historical success in producing and marketing the value-added product itself, or be academic in nature. Attach third-party supporting documentation to Appendix C.

1. Discuss the estimated expansion of customer base resulting from the value-added product, including a baseline of current customers for the commodity or value-added product, and an estimated target number of customers that will result from the project:

[Insert discussion]

1. Discuss the estimated amount of the increased revenue resulting value-added product that will be available to the applicant’s producers of the agricultural commodity, including a baseline of current revenues from the sale of the agricultural commodity or value-added product, and an estimated target number of increased revenues that will result from the project:

[Insert discussion]

5.4 Purpose Eligibility and Use of Funds (see 7 CFR 4284.922 (b) and 7 CFR 4284.925 and .926)

Check all boxes that apply and include the documentation indicated.

Grant request is for a Planning Grant of $ ____________________

1. Use of Funds Applicant understands and agrees that:

☐Planning funds will only be used to pay a qualified consultant to conduct and develop a feasibility study, business plan, and/or marketing plan directly related to the processing and/or marketing of a value-added agricultural product, including any associated legal costs. See 7 CFR 4284.925 for examples of eligible planning activities. It is generally expected that planning grants will not exceed a one year timeframe.

☐The proposed project does NOT include costs for ineligible activities, as illustrated at 7 CFR 4284.926, including but not limited to, costs for land, buildings or equipment; vehicles; preparation of the grant application; research and development; architectural or engineering design work; expenses for the production any agricultural commodity or product (including, but not limited to production planning, purchase of seed or rootstock or other production inputs, labor for cultivation or harvesting crops, and delivery of raw commodity to a processing facility); owner or family member wages; goods or services from a person or entity that has a personal, professional, financial or other interest in the outcome of the project; costs incurred outside the grant period; or to purchase the raw agricultural commodity to which value will be added from the applicant entity; applicant-owned or related entity, or members of the applicant entity.

☐The project does NOT include costs associated with a conflict of interest for owners, employees, officers, agents, or their immediate family members having a personal, professional, financial or other interest in the outcome of the project, including organizational conflicts, or conflicts that restrict open and free competition for unrestrained trade; except as provided for in 7 CFR 4284.925 (a) and (b) relating to applicant or family member in-kind contribution of matching funds for eligible activities, and limited to 25 percent of total project costs.

Applications that propose ineligible expenses in excess of 10 percent of Total Project Costs will be deemed ineligible to compete for funds. Applications containing ineligible expenses totaling less than 10 percent of Total Project Costs must remove those expenses from the project budget or replace with eligible expenses, if selected for an award. See 4284.922(b)(4).

1. Work Plan and Budget You must provide a detailed work plan and budget below that shows how the project’s goals will be accomplished in accordance with the requirements in 7 CFR 4284.922 (b) (5), including a narrative description of the eligible activities and the tasks associated with those activities, a budget breakdown of the estimated costs allocated to those activities and tasks; identification of the key personnel responsible for overseeing and/or conducting each of the activities and tasks; timeframes for completion of the activities and tasks; identification of the sources and uses of grant and matching funds for all activities and tasks; and a grant period that meets start and end date requirements. Note: Grant and Matching Funds may not be used to support costs for services or goods going to, or coming from, a person or entity with a real or apparent Conflict of Interest in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially. Please note that information provided in section 5.4(2) b, c, and d will be scored as part of Section 6.2 Proposal Evaluation Criterion 6.2(4).

1. Grant Period Eligibility

Your proposed grant period should begin no earlier than the anticipated Award Announcement date identified in the NOFA 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, defined as the date the grant agreement is executed by the Agency, and your grant period end date will be adjusted accordingly.

[Insert proposed grant period start and end dates]

1. Insert Work Plan narrative here (upload additional pages as needed):

[Insert work plan narrative]

1. Project Budget Summary

Summarize the total project budget by task. Insert additional rows as needed.

TOTAL PROJECT

1. Task Budget Format

You must provide a budget table for each task that will be completed for each main activity listed above and include a detailed explanation/clarification for each task budget, including a basis for the valuation of each budget item.

Edit budget categories and add additional task tables as needed.

Task #1 Example Budget Categories

VAPG

Grant Funds Cash Matching Funds In-Kind Contributions Total

Personnel

Fringe Benefits

Travel

Office Equipment

Supplies

Contractual

Other

Other

[Insert task budget breakdown and explanation here]

SECTION 6: EVALUATION CRITERIA

6.1 Performance Evaluation Criteria (7 CFR 4284.931 (b) (2) (i))

1) Applicants must provide specific information about plans to track and evaluate progress toward these outcomes as a way for the Agency to ascertain whether or not the primary program goals and project goals proposed in the work plan are likely to be accomplished during the project period.

a. Number of jobs expected to be created _______ or saved ________

2) Applicants are invited to suggest additional benchmarks for evaluation that are specific to proposed project activities or outcomes and the corresponding timeframes for accomplishing them; these should be informed by the program objectives, stated above, related to new markets, expansion of customer base, and revenues returning to producer Applicants; as well as to the practical and/or logistical activities and tasks to be accomplished during the project period. The required data, including accomplishments as outlined in § 4284.960 and Applicant-suggested performance criteria, will be incorporated into the Applicant's semi-annual and final reporting requirements if selected for award, and will be specified in the grant agreement associated with each award.

Examples of Performance Evaluation Criteria for Planning Grants:

· Did the independent feasibility study evaluate the economic, market, technical, financial, and management feasibility characteristics of the value-added project?

· Is the analysis based upon verifiable data and does it contain sufficient information to determine if projected levels of income or production levels are achievable?

· Did the analysis identify the estimated project development and operating costs and the assumptions on which these estimates were made?

· Does the business plan layout the optimum structural and operational aspects of the venture and include a defined set of goals and objectives?

· Has a projected return on investment been estimated?

Provide at least one performance evaluation criterion for your grant project be evaluated by, if awarded funds.

[Insert Planning Grant Performance Evaluation Criteria]

6.2 Proposal Evaluation Criteria (see 7 CFR 4284.942(b) and NOFA section E. 1. to respond to each criterion)

The Agency will select and rank applications for funding based on the score an application has received in response to each proposal evaluation criteria. All applicants must provide the requested information in within the body of the application or in the appropriate Appendix, as directed. For each criterion, you must demonstrate how the project has merit and provide rationale for the likelihood of success. Responses that do not address all aspects of the criterion in a meaningful way, or that do not convey relevant project information will receive lower scores. VAPG is a competitive program, so your responses will be evaluated on the quality of each response. Simply providing an answer will not guarantee higher scores. The maximum number of points that will be awarded to an application is 100. The minimum score necessary to receive funding is 50 points. Note: Grant and Matching Funds may not be used to support costs for services or goods going to, or coming from, a person or entity with a real or apparent Conflict of Interest in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially. You must review the Notice of Funding Availability (NOFA) at section E.1 for a detailed description of the graduated scoring thresholds for each criterion.

1. Nature of the Proposed Venture (graduated score 0 - 30 points)

For the following sections you should reference published, third-party data or other information that specifically supports your project, including, business financial statements, previous business experience producing or marketing the value-added product or similar product, experience in similar markets, or other successful ventures. Planning applications should address the sections below by describing the expected outcomes of the project and the rationale supporting those expectations.

1. Describe the technological feasibility of the project (i.e. is the product currently being manufactured somewhere, what is the size constraint, is product in test phase versus full capacity, is recipe formulated, existing versus new technology, etc.): 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. 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.

[Insert description]

1. Describe the expected operational efficiency of the project (i.e. sufficient raw commodity, use own facility or toll processing, share a processing space, energy efficiency aspects, waste management, sufficient labor or expertise, logistics for storage or distribution of value-added product, etc.):

[Insert description]

1. Describe the expected profitability of the Planning project, (third-party data references, trends, industry-norm or formula, applicant’s historical success in producing/marketing similar products).

[Insert description]

1. Describe the expected economic sustainability of the project in terms of project viability post-grant period, whether the project can be expected to reach or exceed the break-even point post award, the potential for market expansion, and known risk factors, etc.

[Insert description]

1. Qualifications of Project Personnel (graduated score 0 – 20 points)

Identify each of the individuals who will be responsible for completing the proposed tasks in the work plan, including a summary of their qualifications and expertise. Describe their roles, responsibilities and commitment to the project. Repeat all categories for each of the Project Personnel. Attach additional pages as necessary.

1. Name of Staff/Consultant (if known) responsible for each task in the work plan and budget

1. Qualifications or Experience (If staff or consultants have not been selected at the time of application, provide specific descriptions of the qualifications required for the positions to be filled).

1. Project role and responsibilities

1. Describe availability/commitment to the project

1. You 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).

1. Commitments and Support (graduated score 0-10 points)

Letters of support or commitment from producers, end-users, and third-parties must be summarized as part of your responses below AND the letters must be included in Appendix C. Summaries should include date of the letter and name and position of the author. Applications that demonstrate strong, direct financial commitment in the form of cash matching contributions, participation by multiple producers, and strong technical and logistical support to successfully complete the project will receive more points than those that demonstrate less support.

1. Producer commitments to the project will be evaluated based on the number of independent producers currently involved in the project (producing and providing the raw commodity to the project); the nature, level and quality of their contributions, including matching contributions to project, and other forms of commitment such as project-related past efforts):

[Insert explanation]

End-User commitments will be evaluated on potential or identified markets and the potential amount of output to be purchased, as shown by letters of support or interest from potential buyers referenced within the application:

[Insert explanation]

Third-Party commitments to the project will be evaluated on the critical and tangible nature of the 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 (evidence of prior area-wide planning; consistency with strategic state or regional economic plans; pro bono or reduced fee arrangements for technical assistance, storage arrangements or distribution partnerships, critical processing arrangements or marketing partnerships necessary for the project to proceed):

[Insert explanation]

Note: Letters of commitment by producers, end-users, and third-parties must be summarized as part of your response to this criterion, and the letters must be included in Appendix C.

1. Work Plan and Budget (graduated score 0 – 20 points):

In accordance with 7 CFR 4284.922 (b)(5), you have submitted a comprehensive work plan and budget, found in Section 5 of this template. Points may not be awarded unless sufficient detail is provided to determine that both grant and matching funds are being used for qualified purposes and are from eligible sources without a conflict of interest.

1. Priority Points (lump sum score 0 or 5 points, and graduated score 0 – 5 points)

Eligible applicants may request Priority Points if they meet the requirements for only one of the following categories and provide the documentation specified in 7 CFR 4284.924, as applicable.

To request Priority Points, applicants must provide all documentation and responses for one of the Priority categories in Appendix E.

I request priority points in one of the following priority categories (check only one box):

☐Socially Disadvantaged Farmer or Rancher ☐Mid-Tier Value Chain Project ☐Operator of a Small or Medium-sized Farm or Ranch that is Structured as a Family Farm or Ranch ☐Farmer or Rancher Cooperative

1. Priority Points for Group Applicants (graduated score 0 - 5 points, for a) and b)) To request Priority Points in this category, applicants must provide documentation and responses Group Applicant Priority category in Appendix E.

☐I am an Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority Controlled Producer-Based Business AND I am applying for additional Priority Points as an applicant that “best contributes to creating or increasing marketing opportunities for Beginning Farmers or Ranchers, Socially Disadvantaged Farmers or Ranchers, or Operators of Small- or Medium-Sized Farms or Ranches Structured as Family Farms..

Note: It is the Agency’s position that harvester operations do not meet the definition requirements for a Farm or Ranch. Thus, harvester applicants may only request Priority Points if they are proposing a Mid-Tier Value Chain.

1. Administrator Priority Categories (graduated score 0 - 10 points)

The Administrator of USDA Rural Development Business and Cooperative Programs has discretion to award up to 10 points to an application to improve the geographic diversity and/or, foster persistent poverty counties and/or help reduce unemployment through job creation of awardees in a fiscal year. The applicant need not provide additional documentation.

SECTION 7: MATCHING FUNDS

7.1 Certification of Matching Funds

☐ I certify that (1) the cost-share matching funds for the project will be spent in advance of grant funding, such that for every dollar of grant funds disbursed, not less than an equal amount of matching funds will have been expended prior to submitting the request for reimbursement; and (2) if matching funds are proposed in an amount exceeding the grant amount, those matching funds will be spent in advance of grant funding at a proportional rate equal to the match-to-grant ratio identified in the proposed budget; and (3) will not substitute any cash match identified and credited for to in-kind once the award is made; and (4) Applicant matching contributions in the form of raw commodity, time contributed to the project, or other goods or services, have been characterized as in-kind contributions.

Print Name of Applicant’s Authorized Representative: _______________________________________________

Signature of Applicant’s Authorized Representative:

_______________________________________________ Date: ______________

7.2 Verification of Matching Funds

In Appendix D, you must provide all of the information requested, including authentic documentation from the contributing source to demonstrate and confirm (1) the eligibility of the source and use of all matching funds, including cash and in-kind contributions; and (2) the availability of both cash and in-kind contributions during the proposed grant period so that all matching funds meet the definition requirements for Matching Funds and Conflict of Interest in 7 CFR 4284.902. Also see 7 CFR 4284.925 and 7 CFR 4284.926 for eligible and ineligible uses of grant and matching funds.

Matching funds must be:

· spent on eligible Planning grant activities

· from eligible sources without a real or apparent conflict of interest

· at least equal to the grant amount, with combined grant and matching funds equal to 100 percent of the total project costs

· provided in the form of confirmed applicant cash, loan, or line of credit; or be provided in the form of a confirmed applicant or family member in-kind contribution that meets the requirements and limitations specified in 7 CFR 4284.925 (a) and (b); or be provided in the form of confirmed third-party cash or eligible third-party in-kind contribution, including non-federal grant sources. Verification of cash matching contributions from non-federal grant sources, including grants made available under Public Law 93-638, the Indian Self-Determination and Education Assistance Act of 1975 to tribal entities, must include documentation from the awarding source or administrator of funds indicating that funds are currently available to the applicant.

· The value of eligible services provided by the applicant or family members as in-kind must not exceed 25 percent of total project costs.