Nebraska

The Nebraska Ethanol Board is notifying interested parties in the state of a new federal grant program designed to develop markets for agricultural products. Ethanol production is a qualified endeavor under the program administered by the Rural Business Cooperative Service branch of the United States Department of Agriculture.

Secretary of Agriculture, Mike Johanns announced $14.3 million is available for grants to support the development of value-added agriculture business ventures and to develop alternative sources of renewable energy. The program hopes to increase economic opportunities for farmers, ranchers, and entrepreneurs and to create jobs to boost local economies.

Grants are available to independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures. Funds may be used for two activities: (1) planning activities to establish a viable value-added marketing opportunity for an agricultural product; (e.g. conduct a feasibility study, develop a business plan, develop a marketing plan) or (2) acquire working capital to operate a value-added business that will allow producers to better compete in domestic and international markets.

Applications must be received no later than May 6. Awards will be made on a competitive basis and priority consideration will be given to those grant applications that have at least 51 percent of project costs dedicated to activities for a bio-energy project. Detailed information about application and program requirements are included in the March 7, Federal Register.

For additional information, contact the Ethanol Board office in Lincoln or the USDA website at http://www.rurdev.usda.gov.

Date: 3/23/05