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Agriculture Innovation Center Program

 
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    CFDA#

    10.377     		 

    Funder Type

    Federal Government

    IT Classification

    B - Readily funds technology as part of an award

    Authority

    Rural Development (RD)

    Summary

    The purpose of this program is to establish and operate Agriculture Innovation Centers (Centers) that provide technical and business development assistance to Agricultural Producers seeking to engage in developing and marketing of Value-Added Agricultural Products.


    The USDA Rural Business-Cooperative Service encourages applicants to consider projects that will advance the following key priorities:

    1. Assisting rural communities in their efforts to recover economically through more and better market opportunities and through improved infrastructure,
    2. Ensuring all rural residents have equitable access to Rural Development programs and benefits from Rural Development funded projects, and
    3. Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities.

    Grant award funds may be used only to provide the following producer services directly to Agricultural Producers for the purpose of developing and marketing a Value-Added Agricultural Product. The categories listed below are allowable uses of funds:

    • Business Development Services. Business Development Services include feasibility studies, business plans, and other types of technical assistance and applied research that support business development.
    • Market Development Services. Market development services include marketing plans, branding, and customer identification.
    • Financial Advisory Services. Financial advisory services include assistance with preparing financial statements, assessing financing options, and other types of financial guidance related to the development, expansion, or operation of a business.
    • Process Development Services. Process development services include the following:
      • Engineering services, including scale-up of production systems (not to include cost of renovating or constructing a facility or system).
      • Scale production assessments, defined as studies that analyze facilities, including processing facilities, for potential value-added activities to determine the size that optimizes construction and other cost efficiencies.
      • Systems development.
      • Other technical assistance and applied research related to development, implementation, improvement and operations of processes and systems to produce and market a Value-Added Agricultural Product.
    • Organizational Assistance. Organizational assistance includes legal and technical advisory services related to the development, expansion, or operation of a business.
    • Value Chain Coordination. Value chain coordination includes assistance with connecting an Agricultural Producer to a distribution system, processing facility, or commercial kitchen.
    • Product Development. Product development (excluding research and development) includes the stages involved in bringing a product from idea or concept through commercial-scale production, including concept testing; feasibility and cost analysis; product taste-testing; demographic and other types of consumer analysis; production analysis; and evaluation of packaging and labeling options.
    • Grants of $5,000 or less to Agricultural Producers for the above services, where the aggregate amount of all such matching grants made by the Center does not exceed $50,000.
    • Center Start-up and Operation. Center start-up and operation costs include expenses associated with establishing and operating a Center, such as legal services, accounting services, clerical assistance, technical services, hiring employees, monitoring contracts, and Board of Director travel.
     

    History of Funding

    FY 2020 total program funding: $3,500,000

    FY 2021 total program funding: $7,392,479

    Additional Information

    No funds made available under this solicitation may be used to engage in the following activities:

    • Plan, repair, rehabilitate, acquire, or construct a building or facility, including a processing facility;
    • Purchase, rent, or install fixed equipment, including processing equipment;
    • Purchase vehicles, including boats;
    • Pay for the preparation of the grant application;
    • Pay expenses not directly related to the funded project;
    • Fund political or lobbying activities;
    • Fund any activities considered unallowable by the applicable grant cost principles, including 2 CFR part 200, subpart E and the Federal Acquisition Regulation;
    • Fund architectural work for a specific physical facility;
    • Fund any direct expenses for the production of any commodity or product to which value will be added, including seed, rootstock, labor for harvesting the crop, and delivery of the commodity to a processing facility;
    • Fund manufacturing or processing expenses, including testing expenses;
    • Purchase land;
    • Fund internships;
    • Fund fellowships, scholarships, tuition remission, or any other type of compensation for students at any level of education;
    • Duplicate current activities or activities paid for by another Federal grant program;
    • Pay costs of the project incurred prior to the date of award approval;
    • Pay for assistance to any private business enterprise that does not have at least 51 percent ownership by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence;
    • Pay any judgment or debt owed to the United States;
    • Pay for research and development; or
    • Pay for any goods or services from a person who has a Conflict of Interest with the recipient.

    In addition, an application will not be considered for funding if it does any of the following:

    • Requests less than the minimum or more than the maximum grant amount;
    • Focuses assistance on only one agriculture producer or business;
    • Proposes ineligible costs that equal more than 10 percent of total grant funds requested;
    • Earns revenue from processing or selling a product as part of the project. Centers may charge fees for services provided, but they cannot earn revenue on actually processing a product or from sales associated with a product they helped develop; or
    • Provides services to entities other than Agricultural Producers on behalf of and at the request of Agricultural Producers.

    Contacts

    Gail Thuner

    Gail Thuner
    Cooperative Programs
    1400 Independence Avenue, SW
    Washington, DC 20250-1550
    (202) 690-4730
    (202) 690-4737

    Agriculture Innovation Center Program Staff

    Agriculture Innovation Center Program Staff

    ,
    202–720–1400
     

  • Eligibility Details

    Eligible applicants are Nonprofit Organizations, Commercial Organizations, Local Governments, State Governments, Indian Tribes, and Institutions of Higher Education. Consortiums are also eligible to apply, but they must select a single organization to represent the consortium as the applicant. Only the applicant organization must meet the eligibility requirements. Collaboration and partnerships are encouraged, but one organization must be responsible for administering the award, if approved.

    Deadline Details

    Applications were to be submitted by March 6, 2023. A similar deadline is anticipated annually.

    Award Details

    Approximately $8,005,621 is available in total program funding. Awards will range from $600,000 to $1,000,000. The project period is 3 years. Matching funds are required for at least one-third of the total project budget.

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