fy2021_vapg_application_toolkitplanning.docx

Value-Added Producer Grant 2021 Planning Grant Toolkit

Table of Contents

VALUE-ADDED PRODUCER GRANT

Planning Grant Application

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 the Notice published December 21, 2020 in the Federal Register as well as the amended Notice Published on March 5, 2021.

DOCUMENT PURPOSE

The purpose of this Application Toolkit is to assist eligible applicants to navigate through the program requirements as detailed in the Notice 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.

REQUIRED STANDARD FORMS

Please visit Grants.gov for the family of Standard SF forms and instructions here.

List of required forms:

SF-424 Application for Federal Assistance SF-424A Budget Information for Non-Construction Programs

OPTIONAL FORM

Form AD-2106, “Form to Assist in Assessment of USDA Compliance with Civil Rights Laws”

IMPORTANT APPLICATION RESOURCES

VAPG Program Regulation 7 CFR 4284 subpart J or PDF Version VAPG Notice Published December 21, 2020; amended Notice on March 5, 2021 DUNS # Click the link to obtain a free DUNS number or call 1-800-234-3867 SAM Registration Cage Code or evidence of having begun registration process. Register at no charge Alcohol and Tobacco Tax and Trade Bureau (TTB) For projects related to alcoholic beverages Agricultural Marketing Service’s Hemp Production Program Regulation For projects related to hemp

PlANNING 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:

☐Independent Producer ☐Agricultural Producer Group ☐Farmer or Rancher Cooperative ☐Majority-Controlled Producer Based Business

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 ☐ NOT APPLICABLE – I am not requesting Reserved Funds

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 ☐ NOT APPLICABLE – I am not requesting Priority Points ☐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.

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, I have attached a copy of, or excerpt from my organizational documents showing legal authority to carry out the purpose of the grant on behalf of my business, along with a Certificate of Good Standing or letter from a State agency or equivalent authority. If I am the only owner of my business (or the representatives of steering committees) I have included a copy of my 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 ☐ 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 (click and choose or write in date): ____________________________

3.5 No Current Outstanding Federal Judgments 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 Compliance with Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations.

All projects related to the production and/or marketing of any alcoholic beverage must comply with 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 [write in date] or Click here to enter a date.

☐ NOT APPLICABLE as this is not an Alcohol related project.

3.7 Compliance with Agricultural Marketing Service’s (AMS) Hemp Production program regulations.

All hemp producers must comply with AMS regulations.

☐ I DO currently have a hemp producer license issued from an approved State, Tribal or Federal plan.

☐ I DO NOT have a hemp producer license issued from an approved State, Tribal or Federal plan.

☐ NOT APPLICABLE as this is not a hemp related project.

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 requested information 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 grow/raise the subject agricultural commodities through participation in the day-to-day labor, management, and field operations; or I have harvesting rights to a non-cultivated agricultural commodity (examples: timber, wild-caught fish) 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 only owner of my business;

Describe your involvement in day-to-day production of the raw commodity and how you meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of your day-to-day involvement in labor, management, and field operations]

OR

☐ There are multiple owners of my business and 100 percent of them are eligible 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).

List names of all owners or members of the “Independent Producer” applicant organization and their individual percentage of ownership/membership. For each owner/member describe their role in day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

(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 description of each owner/members day-to-day involvement in labor, management, and field operations]

b) For each member of the steering committee describe their role in day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

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).

a) 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

b) 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. c)

c) For each owner/member describe their role in day-to-day harvesting of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(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]

1. Describe the role of the Independent Producers (individually, if named above or generally, if not named) in the day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(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. 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.

1. 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]

1. Describe the role of the Independent Producers (individually, if named above or generally, if not named) in the day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(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 they are an eligible Independent Producer.

[Insert list]

1. Describe the role of the Independent Producers (individually, if named above or generally, if not named) in the day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

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 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, choose the value-added methodology below that BEST fits your proposed value-added product(s) and explain the method or process used for only one value-added methodology type (a), (b), (c), (d), or (e) below.

a) ☐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, 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]

b) ☐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]

c) ☐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]

d) ☐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.

e) ☐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]

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 your expectations for an expanded customer base as a result of your proposed value-added activity.

[Insert discussion]

1. Discuss your expectations for increased revenue resulting from the 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.

[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.

☐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 of more than 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 (see Grant Period eligibility, below). 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 project timeframe or grant period can be a maximum of 36 months in length from the date of award, depending on the complexity of your project. Your 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 you receive an award, your grant period will be revised to begin on the actual date of award—the date the grant agreement is executed by the Agency—and your grant period end date will be adjusted accordingly. Your project activities should begin within 90 days of that date of award. The length of your grant period should be based on your project’s complexity, as indicated in your application work plan.

[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 planning tasks to be completed. Insert additional rows as needed.

TOTAL PROJECT COST

1. Task Budget Format You must provide a budget table for each task (for example, each section of a feasibility study that will be done by different personnel) that will be completed for each main activity listed above. 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

Personnel (including contractual) contractual)

Fringe Benefits

Travel

Other (specify)

Other (specify)

[Insert task budget explanation and basis for valuation 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 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 and 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. The maximum number of points that will be awarded to an application is 100. The minimum score necessary to receive funding is 50 points. 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) Address the sections below by describing the goals of your proposed value-added venture. Utilize references to published data or other third-party information that supports your goals, as well as any, previous business experience producing or marketing the value-added product or similar product, experience with similar markets, or other successful ventures. Your responses should reflect your knowledge and/or level of preparation for the proposed planning process and, if successful, it’s implementation.

1. Technological Feasibility: Discuss the value-added process you are proposing or exploring; potential markets and distribution channels. Utilizing your experience with similar products and/or markets, published data, or other third-party information, describe your expectations of the technological feasibility of the project (i.e. is the product currently being manufacture, are there size constraints, is existing technology expected to be sufficient? Describe the expected or potential expansion in 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.

1. Operational Efficiency: Using your own experience as well as other relevant data or information, describe your expectations regarding operational efficiency of the project (i.e. sufficient raw commodity, use of 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.) and any anticipated challenges or risk.

1. Profitability: Describe your preliminary expectations of the profitability of the project you are exploring, (based on third-party data references, trends, industry-norm or formula, your historical success in producing/marketing similar products).

1. Economic Sustainability: Discuss your expectations of the viability of the venture, assuming positive planning results and implementation. Describe known risk factors and what might be required to sustain the venture over time.

Points will be awarded as follows:

(v) 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.

[Insert discussion]

1. Qualifications of Project Personnel (graduated score 0 – 20 points) You must identify everyone (owner-applicants, staff, contractors, consultants) responsible for managing and performing the proposed planning tasks in the work plan, including a summary of their qualifications and expertise. Describe their roles, responsibilities and commitment/availability to the project. 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. Attach additional pages as necessary. 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:

(i) 0 points will be awarded if you do not address the criterion.

(ii) 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.

(iii) 5-9 points will be awarded if all project personnel are identified but do not demonstrate qualifications or experience relevant to the project.

(iv) 10-14 will be awarded if most key personnel demonstrate strong credentials and/or experience, and availability indicating a reasonable likelihood of success.

(v) 15-20 points will be awarded if all personnel demonstrate strong, relevant credentials or experience, and availability indicating a high likelihood of project success.

[Insert responses]

1. Commitments and Support (graduated score 0-10 points) Producer, end-user, and third-party commitments as well as the nature and level of those commitments will be evaluated under this criterion. Applications with multiple participating producers will receive more points. Sole proprietors can receive a maximum of 9 points and multiple producer applications can receive a maximum of 10 points.

Points will be awarded as follows:

a) 0 points will be awarded if you do not address the criterion.

b) 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.

i) Sole Proprietor (one owner/producer) as documented in Section 4 Applicant Eligibility: 1 point

ii) Multiple Independent Producers (note: in cases where family members, such as husband and wife are eligible Independent Producers, each family member will count as one Independent Producer) as documented in Section 4 Applicant Eligibility: 2 points

c) End-user commitments for planning grant applications, will be evaluated based on potential or identified markets and the level of interest as indicated by letters of intent or interest from potential buyers referenced within the application. Applications that demonstrate higher levels of interest will receive more points.

d) 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 or other assistance necessary for the project to proceed; and the level and quality of these contributions. Applications that demonstrate strong technical, logistical, or other assistance to successfully complete the project will receive more points.

[Insert responses]

Letters of commitment by producers, end-users, and third-parties should be summarized as part of your response to this criterion, and the letters must be included in Appendix C. Please VAPG does not require Congressional letters of support, nor do they carry any extra weight during the evaluation process.

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.

Points will be awarded as follows:

(i) 0 points will be awarded if you do not address the criterion.

(ii) 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.

(iii) 8-14 points will be awarded if you provide 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.

(iv) 15-20 points will be awarded if you provide 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.

[Insert discussion]

1. Priority Points (lump sum score 0 or 5 points) Eligible applicants may request Priority Points if they meet the requirements for 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):

☐Beginning Farmer or Rancher ☐ Veteran Farmer or Rancher ☐ 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 ☐ Not Applicable

1. Priority Points for Group Applicants (graduated score 0 - 5 points) To request Priority Points in this category, applicants must provide documentation and responses to 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. Eligible applicants who have never previously received VAPG funds and who want to be considered for discretionary points must specifically request consideration for these points and certify that neither the applicant entity or any of its owner or members have ever received a VAPG grant, as follows:

☐I certify that neither I nor any other owners of this applicant entity have not received, individually or as owners of other entities, funding from previous Value-Added Producer Grants.

Print Name of Applicant or Applicant’s Authorized Representative:

Signature of Applicant or Applicant’s Authorized Representative:

_______________________________________________ Date: ______________

In addition, if you want to be considered for these discretionary points, you must discuss how your workplan and budget supports one or more of the five following key strategies:

Achieving e-Connectivity for Rural America;

Improving Quality of Life;

Supporting a Rural Workforce;

Harnessing Technological Innovation; and Economic Development

[Insert discussion]

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 or Applicant’s Authorized Representative: _______________________________________________ Signature of Applicant or Applicant’s Authorized Representative: _________________________________________________ Date (click and choose or write in 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…