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USDA rural development grants to fund value-added agricultural projects

Kansas

USDA Rural Development State Director Chuck Banks recently announced nearly $900,000 in grant funds that will bring new economic opportunities and job creation to rural Kansas. The funds are part of the Agency's Value-Added Agricultural Product Market Developments grants announced by Secretary of Agriculture Ann Veneman recently.

"The grants will foster the development of value-added projects to help create the opportunity for economic development and job creation in rural areas," said Veneman. "The Bush Administration is committed to providing the necessary tools to help rural businesses create jobs and improve the quality of life for their communities."

In announcing the Kansas projects, State Director Chuck Banks stated "These grants will provide important investments in the areas of value-added development where Kansas agriculture continues to be a leader in forging new solutions."

Banks reported the following Kansas recipients, grant amounts, and purpose:

--Farmer Direct Foods, Inc., Atchison, $349,033

Working capital to create two new branded value-added products from hard white Wheat bran.

--National Corn Growers Association, Manhattan, $175,000

For a feasibility study, business and marketing plans related to the development of livestock protein blocks using ethanol co-product (DDGS) as the major ingredient.

--Heartland Mill, Inc., Marienthal, $150,000

Working capital for their certified organic Wheat processing and milling operation

--Rainbow Organic Farms Co., Bronson, $144,500

Working capital to bring four new value-added "Good Natured Family Farms" branded products to the retail shelf and to increase the sales of their existing products.

--Beef Marketing Group Cooperative, Larned, $37,500

To conduct a feasibility study and develop business and marketing plans regarding HACCP certified feedlots.

--Ethanol Grain Processors, Inc., Washington, $17,500

To update a feasibility study and develop a business plan for a proposed 30 million gallon ethanol plant.

Authorized as part of the 2002 farm bill, the Value-Added Agricultural Product Market Development Grants program provides an opportunity to refine agricultural commodities and products to increase their value in the marketplace. Funding of individual recipients will be contingent upon meeting the conditions of the grant agreement.

For additional information regarding USDA Rural Development programs, individuals may call the Agency's state headquarters at 785-271-2702 or log onto the state's Rural Development website, at www.rurdev.usda.gov/ks.

USDA Rural Development's mission is to deliver programs that support increasing economic opportunities and enhancing the quality of life for rural Americans. As a venture capital entity, USDA Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure in rural America.

Date: 1/8/04


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