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Value added agriculture, agritourism provide big boost to Iowa's rural economyIowa From the state's ethanol industry that will soon produce nearly 3.3 billion gallons of ethanol out of 1.2 billion bushels of corn, to a wine industry which has grown from a mere 13 wineries just a few short years ago to more than 70 today, value-added agriculture and agritourism offer tremendous opportunities for rural Iowans. Iowa has seen significant growth in specialty, or niche, food production enterprises. As an example, more than 300 Iowa producers are now registered on www.marketmakeriowa.com, an interactive mapping system that provides an important link between producers and consumers. Through USDA Rural Development's Value Added Producer Grant program the agency can help producers who are exploring ways to market commodities produced on their farm. Grants can be used for planning that establishes a viable value-added marketing opportunity, or for working capital to operate a value-added business. These grants provide producers with the investment funds needed to expand their role in developing and marketing value-added products in domestic and international markets. Earlier this month nine value-added agriculture businesses in Iowa received a total of $1.4 million in Value Added Producer Grants. A few of the recipients include Delaware County Meats, Inc., of Dyersville to assist with marketing meat products, Batey Ltd., of Mount Pleasant to assist with marketing wood pellets and Sirroco, LLC of Pomeroy to assess the feasibility of generating electricity from wind. Since 2001, 120 businesses in Iowa have been awarded more than $20 million in grant funds through this program. Iowa businesses have received close to 15 percent of the national funding available. Along with value added agriculture, producers are also turning to agritourism activities to increase their on-farm revenue. Examples of agritourism activities include farm tours for families and school children, day camps, hands-on chores, self-harvesting of produce, hay or sleigh rides and overnight stays in a bed and breakfast. In 1998, Loren and Dianna Engelbrecht converted the turn-of-the-century Victorian farmhouse on their 50-acre farmstead near Fredericksburg into Farm House Bed and Breakfast Inn. Last year 1,000 overnight guests visited the bed and breakfast and stayed in one of five guest rooms, a couple of which are suites with a private deck and whirlpool. In 2005, they started selling Iowa wines at their gift shop to test what types their guests preferred. Then in 2007 they added their own Farm House Wines which are produced from nearly 10 acres of grapes grown on their farm. The Engelbrechts received two Value Added Producer Grants from USDA Rural Development; one helping with a feasibility study and business plans for the winery and the other providing working capital for the business. For more information about guaranteed loans, direct loans and grants from USDA Rural Development, please call 515-284-4663, visit www.rurdev.usda.gov/ia, stop by a Rural Development office, or e-mail Mark Reisinger at mark.reisinger@ia.usda.gov. 9/29/08 Date: 9/23/08
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