[Federal Register Volume 84, Number 238 (Wednesday, December 11, 2019)]
[Notices]
[Pages 67703-67711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26626]
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Notices
Federal Register
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This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
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Federal Register / Vol. 84, No. 238 / Wednesday, December 11, 2019 /
Notices
[[Page 67703]]
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
[Docket No. RBS-19-CO-OP-0018]
Inviting Applications for Value-Added Producer Grants and
Solicitation of Grant Reviewers
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: This Notice announces that the Rural Business-Cooperative
Service (Agency) is accepting applications for the Value-Added Producer
Grant (VAPG) program. Approximately $37 million is currently available.
The Agency may also utilize any funding that become available after
publishing this notice. The Agency will publish the program funding
level on the Rural Development website (https://www.rd.usda.gov/programs-services/value-added-producer-grants). Section VII also
announces solicitation of non-Federal independent grant reviewers to
evaluate and score applications submitted under this Notice.
DATES: You must submit your application by March 10, 2020 or it will
not be considered for funding. Paper applications must be postmarked
and mailed, shipped or sent overnight by this date. You may also hand
carry your application to one of our field offices, but it must be
received by close of business on the deadline date. Electronic
applications are permitted via http://www.grants.gov only and must be
received before Midnight Eastern time on March 5, 2020. Late
applications are not eligible for grant funding under this Notice.
ADDRESSES: You should contact your USDA Rural Development State Office
if you have questions about eligibility or submission requirements. You
are encouraged to contact your State Office well in advance of the
application deadline to discuss your project and to ask any questions
about the application process. Application materials are available at
http://www.rd.usda.gov/programs-services/value-added-producer-grants.
If you want to submit an electronic application, follow the
instructions for the VAPG funding announcement on http://www.grants.gov. Please review the Grants.gov website at http://grants.gov/applicants/organization-registration.html for instructions
on the process of registering your organization as soon as possible to
ensure you are able to meet the electronic application deadline. If you
want to submit a paper application, send it to the State Office located
in the State where your project will primarily take place. You can find
State Office Contact information at http://www.rd.usda.gov/contact-us/state-offices.
FOR FURTHER INFORMATION CONTACT: Grants Division, Cooperative Programs,
Rural Business-Cooperative Service, United States Department of
Agriculture, 1400 Independence Avenue SW, MS 3253, Room 4008-South,
Washington, DC 20250-3253, or call 202-690-1374.
SUPPLEMENTARY INFORMATION:
Preface
The Agency encourages applications that will support
recommendations made in the Rural Prosperity Task Force report to help
improve life in rural America. www.usda.gov/ruralprosperity. Applicants
are encouraged to consider projects that provide measurable results in
helping rural communities build robust and sustainable economies
through strategic investments in infrastructure, partnerships and
innovation.
Key strategies include:
Achieving e-Connectivity for rural America
Developing the Rural Economy
Harnessing Technological Innovation
Supporting a Rural Workforce
Improving Quality of Life
Please note the following:
Hemp projects: VAPG applications proposing projects related to Hemp
as defined in the Agriculture Improvement Act of 2018, Public Law 115-
334, will be considered for funding if the projects meets all program
eligibility requirements, including currently producing Hemp with a
valid producer license and verifiable compliance with regulations
published by the Agricultural Marketing Service at 7 CFR part 990 and
the Rural Business-Cooperative Service at 7 CFR 4284, subpart J.
Local Agriculture Marketing Program (LAMP) Food Safety
Implementation: Until Farm Bill implementation is finalized via the
Agency rulemaking process, there will not be food safety reserve
funding. Food safety training, certifications, and supplies that are
eligible under the current program regulation may continue to be
included in the work plan/budget.
Overview
Federal Agency Name: USDA Rural Business-Cooperative Service.
Funding Opportunity Title: Value-Added Producer Grant.
Announcement Type: Notice of Solicitation of Applications and
Solicitation of Grant Reviewers.
Catalog of Federal Domestic Assistance Number: 10.352.
Dates: Application Deadline. You must submit your complete paper
application by March 10, 2020, or it will not be considered for
funding. Electronic applications must be received by http://www.grants.gov no later than Midnight Eastern time on March 5, 2020, or
it will not be considered for funding.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act, the paperwork
burden associated with this Notice has been approved by the Office of
Management and Budget (OMB) under OMB Control Number 0570-0039.
A. Program Description
The VAPG program is authorized under section 231 of the Agriculture
Risk Protection Act of 2000 (Pub. L. 106-224), as amended by section
10102 of the Agriculture Improvement Act of 2018 (Pub. L. 115-334) (see
7 U.S.C. 1621 et. seq.). Applicants must adhere to the requirements
contained in the program regulation, 7 CFR 4284, subpart J, which is
incorporated by reference in this Notice.
The objective of this grant program is to assist viable Independent
Producers, Agricultural Producer Groups, Farmer and Rancher
Cooperatives, and Majority-Controlled Producer-Based Businesses in
starting or expanding
[[Page 67704]]
value-added activities related to the processing and/or marketing of
Value-Added Agricultural Products. Grants will be awarded competitively
for either planning or working capital projects directly related to the
processing and/or marketing of value-added products. Generating new
products, creating and expanding marketing opportunities, and
increasing producer income are the end goals of the program. All
proposals must demonstrate economic viability and sustainability to
compete for funding.
Funding priority will be made available to Beginning Farmers and
Ranchers, Veteran Farmers and Ranchers, Socially-Disadvantaged Farmers
and Ranchers, Operators of Small and Medium-Sized Farms and Ranches
structured as Family Farms or Ranches, Farmer or Rancher Cooperatives,
and projects proposing to develop a Mid-Tier Value Chain. See 7 CFR
4284.923 for Reserved Funds eligibility and 7 CFR 4284.924 for Priority
Scoring eligibility.
Definitions
The following term is incorporated from Section 10102 of the
Agriculture Improvement Act of 2018. Majority Controlled Producer-Based
Business venture means a venture greater than 50 percent of the
ownership and control of which is held by--
``(i) 1 or more producers; or
``(ii) 1 or more entities, 100 percent of the ownership and control
of which is held by 1 or more producers. The term `entity' means--
``(i) a partnership;
``(ii) a limited liability corporation;
``(iii) a limited liability partnership; and
``(iv) a corporation.
Also, Market Expansion Project means a project in which the
Independent Producer applicant seeks to expand the market for an
existing value-added product (produced and marketed by the applicant
for at least 2 years at time of application) through sales to
demonstrably new markets or to new customers in existing markets.
Additional terms you need to understand are defined in 7 CFR
4284.902.
B. Federal Award Information
Type of Instrument: Grant.
Approximate Number of Awards: To be determined.
Available Total Funding: $37 million.
Maximum Award Amount: Planning--$75,000; Working Capital--$250,000.
Project Period: Up to 36 months depending on the complexity of the
project.
Anticipated Award Date: July 31, 2020.
Reservation of Funds: Ten percent of available funds for
applications will be reserved for applicants qualifying as Beginning,
Veteran, and Socially-Disadvantaged Farmers or Ranchers. An additional
ten percent of available funds for applications from farmers or
ranchers proposing development of Mid-Tier Value Chains. Funds are not
obligated from these reserves prior to September 30, 2019, will be used
for the VAPG general competition. If this is the case, Beginning,
Veteran, and Socially-Disadvantaged Farmers or Ranchers and applicants
proposing Mid-Tier Value Chains will compete with other eligible VAPG
applications. In addition, in accordance with Division B, Title VII,
Section 752 of Public Law 116-6, 10 percent of FY 2019 funds will be
allocated for assistance in persistent poverty counties. Any funds that
become available after publication of this notice, that will be
allocated for assistance in persistent poverty counties, will be
identified by the Agency at a later date, after the applicable
appropriations language has been enacted.
C. Eligibility Information
Applicants must comply with the program regulation 7 CFR part 4284
subpart J to meet all the following eligibility requirements. Required
documentation is included in the application package. Applications
which fail to meet any of these requirements by the application
deadline will be deemed ineligible and will not be evaluated further.
1. Eligible Applicants
You must demonstrate within the application narrative that you meet
all the applicant eligibility requirements of 7 CFR 4284.920 and
4284.921. This includes meeting the definition requirements at 7 CFR
4284.902 by demonstrating how you meet the definition for Agricultural
Producer (i.e., how you participate in the ``day to day labor,
management, and field operations'' of your agricultural enterprise; how
you qualify for one of the following applicant types: Independent
Producer, Agricultural Producer Group, Farmer or Rancher Cooperative or
Majority-Controlled Producer-Based Business; and whether you meet the
Emerging Market, Citizenship, Legal Authority and Responsibility,
Multiple Grants and Active Grants requirements of the section. Required
documentation to support eligibility is contained at 7 CFR 4284.931 and
in the application package.
Federally-recognized Tribes and tribal entities must demonstrate
that they meet the definition requirements for one of the four eligible
applicant types. Rural Development State Offices and posted application
toolkits will provide additional information on Tribal eligibility.
Per 4284.921, an applicant is ineligible if they have been debarred
or suspended or otherwise excluded from or ineligible for participation
in Federal assistance programs under Executive Order 12549, ``Debarment
and Suspension.'' The Agency will check the System for Award Management
(SAM) to determine if the applicant has been debarred or suspended. In
addition, an applicant will be considered ineligible for a grant due to
an outstanding judgment obtained by the U.S. in a Federal Court (other
than U.S. Tax Court), is delinquent on the payment of Federal income
taxes, or is delinquent on Federal debt. The applicant must certify as
part of the application that they do not have an outstanding judgment
against them. The Agency will check the Credit Alert Interactive Voice
Response System (CAIVRS) to verify this.
Per the Consolidated Appropriations Act, 2018 (Pub. L. 115-141) or
successor appropriations act, any corporation (i) that has been
convicted of a felony criminal violation under any Federal law within
the past 24 months or (ii) that has any unpaid Federal tax liability
that has been assessed, for which all judicial and administrative
remedies have been exhausted or have lapsed, and that is not being paid
in a timely manner pursuant to an agreement with the authority
responsible for collecting the tax liability, is not eligible for
financial assistance provided with funds appropriated by, unless a
Federal agency has considered suspension or debarment of the
corporation and has made a determination that this further action is
not necessary to protect the interests of the Government.
Per 4284.905(a), Applicants must comply with other applicable
Federal laws. Applicants who are proposing working capital grants to
produce and market value-added products in the industries of wine,
beer, distilled spirits or other alcoholic merchandise must comply with
Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations, including
but not limited to permitting, filing of taxes and operational reports.
Please visit TTB's website at https://www.ttb.gov/index.shtml for more
information. If you are not in compliance with TTB's requirements,
[[Page 67705]]
the Agency may determine that you are not qualified to receive a
Federal award and use that determination as a basis for making an award
to another applicant. If, at any time after you have already received a
VAPG award, you are found to be in noncompliance with TTB's operational
reporting or tax requirements, the Agency may determine that you are
not in compliance with your grant terms and conditions.
An Applicant may submit only one application in response to a
solicitation and must explicitly direct that it competes in either the
general funds competition or in one of the named reserved funds
competitions. Multiple applications from separate entities with
identical or greater than 75 percent common ownership, or from a
parent, subsidiary or affiliated organization (with ``affiliation''
defined by Small Business Administration regulation 13 CFR 121.103, or
successor regulation) are not permitted. Further, Applicants who have
already received a Planning Grant for the proposed project cannot
receive another Planning Grant for the same project. Applicants who
have already received a Working Capital Grant for the proposed project
cannot receive any additional grants for that project (Proposals from
previous award recipients should be substantially different in terms of
products and/or markets and should not merely be extensions of
previously funded projects).
2. Cost-Sharing or Matching
There is a matching fund (cost-sharing) requirement of at least $1
for every $1 in grant funds provided by the Agency (matching funds plus
grant funds must equal proposed Total Project Cost). Matching funds may
be in the form of cash or eligible in-kind contributions. Matching
contributions and grant funds may be used only for eligible project
purposes, including any contributions exceeding the minimum amount
required. Applicant matching contributions in the form of raw
commodity, time contributed to the project, or goods or services for
which no out-of-pocket expenditure is made during the grant period,
must be characterized as in-kind contributions. Donations of goods and
service from third-parties must be characterized as in-kind
contributions. Tribal applicants may utilize grants made available
under Public Law 93-638, the Indian Self-Determination and Education
Assistance Act of 1975, as their matching contribution, and should
check with appropriate tribal authorities regarding the availability of
such funding.
Matching funds must be available at time of application and must be
certified and verified as described in 7 CFR 4284.931(b)(3) and (4). Do
not include projected income as a matching contribution because it
cannot be verified as available. Note that matching funds must also be
discussed as part of the scoring criterion Commitments and Support as
described in section. E.1.(c).
3. Project Eligibility
You must demonstrate within the application narrative that you meet
all the project eligibility requirements of 7 CFR 4284.922.
(a) Product eligibility. Applicants for both planning and working
capital grants must meet all requirements at 7 CFR 4284.922(a),
including that your value-added product must result from one of the
five methodologies identified in the definition of Value-Added
Agricultural Product at 7 CFR 4284.902. In addition, you must
demonstrate that, as a result of the project, the customer base for the
agricultural commodity or value-added product will be expanded, by
including a baseline of current customers for the commodity, and an
estimated target number of customers that will result from the project;
and that, a greater portion of the revenue derived from the marketing
or processing of the value-added product is available to the applicant
producer(s) of the agricultural commodity, by including a baseline of
current revenues from the sale of the agricultural commodity and an
estimate of increased revenues that will result from the project. Note
that working capital grants for market expansion projects per 7 CFR
4284.922(b) must demonstrate expanded customer base and increased
revenue resulting only from sales of existing products to new
customers. VAPG recognizes that market expansion projects may involve
in marketing and promotion activities such as trade shows, farmers
markets, and various media advertising which also result in increased
sales to existing customers. However, market expansion award recipients
must use grant and matching funds only on activities that demonstrably
focus on marketing products they have produced and sold for at least
two years, to new markets and/or to new customers in existing markets,
such that the producer's customer base (number of customers) is
expanded, per program requirements. Grant and matching funds cannot be
deliberately expended on sales of existing products to existing
customers.
In addition, per the Agriculture Improvement Act of 2018, working
capital applications must include a statement describing the direct or
indirect producer benefits intended to result from the proposed project
within a reasonable period of time after the receipt of a grant.
(b) Purpose eligibility. Applicants for both planning and working
capital grants must meet all requirements at 7 CFR 4284.922(b)
regarding maximum grant amounts, verification of matching funds,
eligible and ineligible uses of grant and matching funds, and a
substantive, detailed work plan and budget.
(1) Planning Grants. A planning grant is used to fund development
of a defined program of economic planning activities to determine the
viability of a potential value-added venture, specifically for paying a
qualified consultant to conduct and develop a feasibility study,
business plan, and/or marketing plan associated with the processing
and/or marketing of a value-added agricultural product. Planning grant
funds may not be used to fund working capital activities.
(2) Working Capital Grants. This type of grant provides funds to
operate a value-added project, specifically to pay the eligible project
expenses directly related to the processing and/or marketing of the
value-added product that are eligible uses of grant funds. Working
capital funds may not be used for planning purposes.
(c) Reserved Funds Eligibility. To qualify for Reserved Funds as a
Beginning, Veteran, or Socially-Disadvantaged Farmer or Rancher or if
you propose to develop a Mid-Tier Value Chain, you must meet the
requirements found at 7 CFR 4284.923. If your application is eligible,
but is not awarded under the Reserved Funds, it will automatically be
considered for general funds in that same fiscal year, as funding
levels permit.
(d) Priority Points. To qualify for Priority Points for projects
that contribute to increasing opportunities for Beginning Farmers or
Ranchers, Socially-Disadvantaged Farmers or Ranchers, or if you are an
Operator of a Small or Medium-sized Farm or Ranch structured as a
Family Farm, a Veteran Farmer or Rancher, propose a Mid-Tier Value
Chain project, or are a Farmer or Rancher Cooperative, you must meet
the applicable eligibility requirements at 7 CFR 4284.923 and 4284.924
and must address the relevant proposal evaluation criterion.
Priority points will also be awarded during the scoring process to
eligible Agricultural Producer Groups, Farmer
[[Page 67706]]
or Rancher Cooperatives, and Majority-Controlled Producer-Based
Business Ventures that best contribute to creating or increasing
marketing opportunities for Beginning Farmers or Ranchers, Socially-
Disadvantaged Farmers or Ranchers, and/or Veteran Farmers or Ranchers.
You must meet the eligibility requirements at 7 CFR 4284.923 and
4284.924 and must address the relevant proposal evaluation criterion.
4. Eligible Uses of Grant and Matching Funds
Eligible uses of grant and matching funds are discussed, along with
examples, in 7 CFR 4284.925. In general, grant and cost-share matching
funds have the same use restrictions and must be used to fund only the
costs for eligible purposes as defined at 7 CFR 4284.925(a) and (b).
5. Ineligible Uses of Grant and Matching Funds
Federal procurement standards prohibit transactions that involve a
real or apparent 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, and conflicts that
restrict open and free competition for unrestrained trade. A list (not
all-inclusive) of ineligible uses of grant and matching funds is found
in 7 CFR 4284.926.
D. Application and Submission Information
1. Address to Request Applications
The application toolkit, regulation, and official program
notification for this funding opportunity can be obtained online at
http://www.rd.usda.gov/programs-services/value-added-producer-grants.
You may also contact your USDA Rural Development State Office by
visiting http://www.rd.usda.gov/contact-us/state-offices. The toolkit
contains an application checklist, templates, required grant forms, and
instructions. Although the Agency highly recommends their use, use of
the templates in the toolkit is not mandatory.
2. Content and Form of Application Submission
You may submit your application in paper form or electronically
through Grants.gov. Your application must contain all required
information.
To apply electronically, you must follow the instructions for this
funding announcement at http://www.grants.gov. Please note that we
cannot accept emailed or faxed applications.
You can locate the Grants.gov downloadable application package for
this program by using a keyword, the program name, or the Catalog of
Federal Domestic Assistance Number for this program.
When you enter the Grants.gov website, you will find information
about applying electronically through the site, as well as the hours of
operation.
To use Grants.gov, you must already have a DUNS number and you must
also be registered and maintain registration in SAM. We strongly
recommend that you do not wait until the application deadline date to
begin the application process through Grants.gov.
You must submit all your application documents electronically
through Grants.gov.
After electronically applying through Grants.gov, you will receive
an automatic acknowledgement from Grants.gov that contains a Grants.gov
tracking number.
If you want to submit a paper application, send it to the State
Office located in the State where your project will primarily take
place. You can find State Office Contact information at: http://www.rd.usda.gov/contact-us/state-offices. An optional-use Agency
application template is available online at http://www.rd.usda.gov/programs-services/value-added-producer-grants.
Your application must contain all the required forms and proposal
elements described in 7 CFR 4284.931, unless otherwise clarified in
this Notice. You are encouraged, but not required to utilize the
Application Toolkits found at http://www.rd.usda.gov/programs-services/value-added-producer-grants, however, you must provide all of the
information requested by the template. You must become familiar with
the program regulation at 7 CFR part 4284, subpart J in order to submit
a successful application. Basic application contents are outlined
below:
Standard Form (SF)-424, ``Application for Federal
Assistance,'' to include your DUNS number and SAM (CAGE) code and
expiration date (or evidence that you have begun the SAM registration
process). Because there are no specific fields for a CAGE code and
expiration date, you may identify them anywhere you want to on the
form. If you do not include your DUNS number in your application, it
will not be considered for funding.
SF-424A, ``Budget Information-Non-Construction Programs.''
This form must be completed and submitted as part of the application
package.
SF-424B, ``Assurances--Non-Construction Programs.'' This
form must be completed, signed, and submitted as part of the
application package.
Form AD-3030, ``Representations Regarding Felony
Conviction and Tax Delinquent Status for Corporate Applicants,'' if you
are a corporation. A corporation is any entity that has filed articles
of incorporation in one of the 50 States, the District of Columbia, the
Federated States of Micronesia, the Republic of Palau, and the Republic
of the Marshall Islands, or the various territories of the United
States including American Samoa, Guam, Midway Islands, the Commonwealth
of the Northern Mariana Islands, Puerto Rico, or the U.S. Virgin
Islands. Corporations include both for profit and non-profit entities.
You must certify that there are no current outstanding
Federal judgments against your property and that you will not use grant
funds to pay for any judgment obtained by the United States. You must
also certify that you are not delinquent on the payment of Federal
income taxes, or any Federal debt. To satisfy the Certification
requirement, you should include this statement in your application:
``[INSERT NAME OF APPLICANT] certifies that the United States has not
obtained an unsatisfied judgment against its property, is not
delinquent on the payment of Federal income taxes, or any Federal debt,
and will not use grant funds to pay any judgments obtained by the
United States.'' A separate signature is not required.
You must provide a valid permit or evidence of having begun the
permitting process if you are proposing a working capital grant to
produce and market value-added products in the industries of wine,
beer, distilled spirits or other alcoholic merchandise.
You must provide a valid producer license issued by a State, Tribe,
or USDA, as applicable in accordance with 7 CFR part 990 if you are
proposing to market value-added hemp products.
Executive Summary and Abstract. A one-page Executive
Summary containing the following information: legal name of applicant
entity, application type (planning or working capital), applicant type,
amount of grant request, a summary of your project, and whether you are
submitting a simplified application, and whether you are requesting
Reserved Funds. Also include a separate abstract of up to 100 words
briefly describing your project.
Eligibility discussion.
Work plan and budget.
Performance evaluation criteria.
Proposal evaluation criteria.
[[Page 67707]]
Certification and verification of matching funds.
Reserved Funds and Priority Point documentation (as
applicable).
Feasibility studies, business plans, and/or marketing
plans, as applicable.
Appendices containing required supporting documentation.
3. Dun and Bradstreet Data Universal Numbering System (DUNS) and System
for Awards Management (SAM)
To be eligible (unless you are excepted under 2 CFR 25.110(b), (c)
or (d), you are required to:
(a) Provide a valid DUNS number in your application, which can be
obtained at no cost via a toll-free request line at (866) 705-5711;
(b) Register in SAM before submitting your application. You may
register in SAM at no cost at https://www.sam.gov/portal/public/SAM/.
You must provide your SAM Cage Code and expiration date or evidence
that you have begun the SAM registration process at time of
application; and
(c) Continue to maintain an active SAM registration with current
information at all times during which you have an active Federal award
or an application or plan under consideration by a Federal awarding
agency.
If you have not fully complied with all applicable DUNS and SAM
requirements, the Agency may determine that the applicant is not
qualified to receive a Federal award and the Agency may use that
determination as a basis for making an award to another applicant.
Please refer to Section F. 2 for additional submission requirements
that apply to grantees selected for this program.
4. Submission Dates and Times
Application Deadline Date: March 10, 2020.
Explanation of Deadlines: Paper applications must be postmarked and
mailed, shipped, or sent overnight by March 10, 2020. The Agency will
determine whether your application is late based on the date shown on
the postmark or shipping invoice. You may also hand carry your
application to one of our field offices, but it must be received by
close of business on the deadline date. If the due date falls on a
Saturday, Sunday, or Federal holiday, the application is due the next
business day. Late applications will automatically be considered
ineligible and will not be evaluated further.
Electronic applications must be received at http://www.grants.gov
no later than Midnight Eastern time, March 5, 2020 to be eligible for
funding. Please review the Grants.gov website at http://grants.gov/applicants/organization_registration.jsp for instructions on the
process of registering your organization as soon as possible to ensure
you are able to meet the electronic application deadline. Grants.gov
will not accept applications submitted after the deadline.
5. Intergovernmental Review
Executive Order (E.O.) 12372, Intergovernmental Review of Federal
Programs, applies to this program. This E.O. requires that Federal
agencies provide opportunities for consultation on proposed assistance
with State and local governments. Many States have established a Single
Point of Contact (SPOC) to facilitate this consultation. A list of
States that maintain a SPOC may be obtained at http://www.whitehouse.gov/omb/grants_spoc. If your State has a SPOC, you must
submit your application directly for review. Any comments obtained
through the SPOC must be provided to RD for consideration as part of
your application. If your State has not established a SPOC or you do
not want to submit your application to the SPOC, RD will submit your
application to the SPOC or other appropriate agency or agencies.
Applications from federally recognized Indian tribes are not subject to
Intergovernmental Review.
6. Funding Restrictions
Funding limitations and reservations found in the program
regulation at 7 CFR 4284.927 will apply, including:
(a) Use of Funds. Grant funds may be used to pay up to 50 percent
of the total eligible project costs, subject to the limitations
established for maximum total grant amount. Grant funds may not be used
to pay any costs of the project incurred prior to the date of grant
approval. Grant and matching funds may only be used for eligible
purposes. (See examples of eligible and ineligible uses in 7 CFR
4284.925 and 4284.926, respectively).
(b) Grant Period (project period). 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.
For example, it is expected that most planning grants can be completed
within 12 months.
(c) Program Income. If income (Program Income) is earned during the
grant period as a result of the project activities, it is subject to
the requirements in 2 CFR 200.80, and must be managed and reported
accordingly.
(d) Majority Controlled Producer-Based Business. The total amount
of funds awarded to Majority Controlled Producer-Based Businesses in
response to this announcement shall not exceed 10 percent of the total
funds obligated for the program during the fiscal year.
(e) Reserved Funds. Ten percent of all funds available will be
reserved to fund projects that benefit Beginning Farmers or Ranchers,
Veteran Farmers or Ranchers or Socially- Disadvantaged Farmers or
Ranchers. In addition, 10 percent of total funding available will be
used to fund projects that propose development of Mid-Tier Value Chains
as part of a Local or Regional Supply Chain Network. See related
definitions in 7 CFR 4284.902. In addition, in accordance with Title
VII, Section 750 of Public Law 115-30, 10 percent of FY 2019 funds will
be allocated for assistance in persistent poverty counties. Any funds
that become available after publishing this notice that will be
allocated for assistance in persistent poverty counties will be
identified by the Agency at a later date, after the applicable
appropriations language has been enacted.
(f) Disposition of Reserved Funds Not Obligated. For this
announcement, any reserved funds that have not been obligated by
September 30, 2019, will be available to the Secretary to make VAPG
grants in accordance with Section 210A(i)(3)(ii) of the Agriculture
Improvement Act of 2018.
7. Other Submission Requirements
(a) National Environmental Policy Act.
This Notice has been reviewed in accordance with 7 CFR part 1970,
``Environmental Policies and Procedures,'' and it has been determined
that an Environmental Impact Statement is not required because the
issuance of regulations and instructions, as well as amendments to
them, describing administrative and financial procedures for
processing, approving, and implementing the Agency's financial programs
is categorically excluded in the Agency's National Environmental Policy
Act (NEPA) regulation found at 7 CFR
[[Page 67708]]
1970.53(f). We have determined that this Notice does not constitute a
major Federal action significantly affecting the quality of the human
environment.
The Agency will review each grant application to determine its
compliance with 7 CFR part 1970 and whether proposed financial
assistance by the Agency would have a disproportionately high and
adverse human health or environmental effect on minority or low-income
populations. The applicant may be asked to provide additional
information or documentation to assist the Agency with this
determination.
(b) Civil Rights Compliance Requirements.
All grants made under this Notice are subject to Title VI of the
Civil Rights Act of 1964 as required by the USDA (7 CFR part 15,
subpart A) and Section 504 of the Rehabilitation Act of 1973.
E. Application Review Information
Applications will be reviewed and processed as described at 7 CFR
4284.940. The Agency will review your application to determine if it is
complete and eligible. If at any time, the Agency determines that your
application is ineligible, you will be notified in writing as to the
reasons it was determined ineligible and you will be informed of your
review and appeal rights. Funding of successfully appealed applications
will be limited to available funds.
The Agency will only score applications in which the applicant and
project are eligible, which are complete and sufficiently responsive to
program requirements, and in which the Agency agrees on the likelihood
of financial feasibility for working capital requests. We will score
your application according to the procedures and criteria specified in
7 CFR 4284.942, and with tiered scoring thresholds as specified below.
1. Scoring Criteria
For each criterion, you must show how the project has merit and why
it is likely to be successful. Your complete response to each criterion
must be included in the body of the application, including
summarizations of any feasibility studies, business and marketing
plans. If you do not address all parts of the criterion, or do not
sufficiently communicate relevant project information, you will receive
lower scores. VAPG is a competitive program, so you will receive scores
based on the quality of your responses. Simply addressing the criteria
will not guarantee higher scores. The maximum number of points that can
be awarded to your application is 100. For this announcement, the
minimum score requirement for funding is 50 points.
The Agency application toolkit provides additional instruction to
help you to respond to the criteria below.
(a) Nature of the Proposed Venture (graduated score 0-30 points).
For both planning and working capital grants, you must discuss the
technological feasibility of the project, as well as operational
efficiency, profitability, and overall economic sustainability
resulting from the project. You must also demonstrate the potential for
expanding the 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. Working capital applicants must also provide
the potential number of jobs that will result from the project, along
with a justifiable basis for these projections. Please see the
application template for more information. All applicants must
reference and summarize third-party data and other information that
specifically supports your value-added project; discuss the value-added
process you are proposing; potential markets and distribution channels;
the value to be added to the raw commodity through the value-added
process; cost and availability of inputs, your experience in marketing
the proposed or similar product; business financial statements; and any
other relevant information that supports the viability of your project.
Working capital applicants should demonstrate that these outcomes will
result from the project and include supportable projections of increase
in customer base, revenue returned to producers and jobs resulting from
the project in order to receive up to the maximum number of points.
Planning grant applicants should describe the expected results, and the
reasons supporting those expectations.
Points will be awarded as follows:
(1) 0 points will be awarded if you do not address the criterion.
(2) 1-5 points will be awarded if you do not address each of the
following: technological feasibility, operational efficiency,
profitability, and overall economic sustainability.
(3) 6-13 points will be awarded if you address technological
feasibility, operational efficiency, profitability, and overall
economic sustainability, but do not reference third-party information
that supports the success of your project.
(4) 14-22 points will be awarded if you address technological
feasibility, operational efficiency, profitability, and overall
economic, supported by third-party information demonstrating a
reasonable likelihood of success.
(5) 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.
(b) Qualifications of Project Personnel (graduated score 0-20
points).
You must identify all individuals who will be responsible for
managing and completing the proposed tasks in the work plan, including
the roles and activities that owners, staff, contractors, consultants
or new hires may perform; and show that these individuals have the
necessary qualifications and expertise, including those hired to do
market or feasibility analyses, or to develop a business operations
plan for the value-added venture. You must include the qualifications
of those individuals responsible for leading or managing the total
project (applicant owners or project managers), as well as those
individuals responsible for conducting the various individual tasks in
the work plan (such as consultants, contractors, staff or new hires).
You must discuss the commitment and the availability of any consultants
or other professionals to be hired for the project--especially those
who may be consulting on multiple VAPG projects). If staff or
consultants have not been selected at the time of application, you must
provide specific descriptions of the qualifications required for the
positions to be filled. 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:
(1) 0 points will be awarded if you do not address the criterion.
(2) 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.
(3) 5-9 points will be awarded if all project personnel are
identified but do not demonstrate qualifications or experience relevant
to the project.
(4) 10-14 will be awarded if most key personnel demonstrate strong
credentials and/or experience, and availability indicating a reasonable
likelihood of success.
(5) 15-20 points will be awarded if all personnel demonstrate
strong, relevant credentials or experience, and availability indicating
a high likelihood of project success.
[[Page 67709]]
(c) Commitments and Support (graduated score 0-10 points).
Producer, end-user, and third-party commitments will be evaluated
under this criterion. Sole proprietors can receive a maximum of 9
points. Multiple producer applications can receive a maximum of 10
points.
(1) 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.
(2) End-user commitments will be evaluated based on potential or
identified markets and the potential amount of output to be purchased,
as indicated by letters of intent or contracts (purchase orders) from
potential buyers referenced within the application. Applications that
demonstrate documented intent to purchase the value-added product will
receive more points. Note: For planning grants, this criterion can be
addressed by evidence of interest or support from identified or
potential customers.
(3) 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 assistance, storage, processing, marketing,
or distribution arrangements that are necessary for the project to
proceed; and the level and quality of these contributions. Applications
that demonstrate strong technical and logistical support to
successfully complete the project will receive more points.
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 B. Please note that VAPG does
not require Congressional letters of support, nor do they carry any
extra weight during the evaluation process. Also, note that because
applications with cash matching contributions are awarded more points
than those pledging only in-kind contributions, applicants will not be
able to substitute an in-kind match for cash after awards are made.
Points will be awarded as follows:
(i) 0 points will be awarded if you do not address the criterion
(ii) Independent Producer Commitment
(A) Sole Proprietor (one owner/producer): 1 point
(B) 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): 2 points
(iii) Level of Commitment
(A) All matching contributions are in-kind: 1 point
(B) Matching contribution consists of both cash and in-kind: 2
points
(C) All matching contributions are cash: 4 points
(iv) End-user commitment:
(A) No or insufficiently documented commitment from end-users: 0
points
(B) Well-documented commitment from one end-user: 1 point
(C) Well-documented commitment from more than one end-user: 2
points
(v) Third-party commitment:
(A) No or insufficiently documented commitment from third-parties:
0 points
(B) Well-documented commitment from one third-party: 1 point
(C) Well-documented commitment from more than one third-party: 2
points
(d) Work Plan and Budget (graduated score 0-20 points).
You must submit a comprehensive work plan and budget (for full
details, see 7 CFR 4284.922(b)(5)). Your work plan must provide
specific and detailed descriptions of the tasks and the key project
personnel that will accomplish the project's goals. The budget must
present a detailed breakdown and description of all estimated costs of
project activities (including source and basis for their valuation) and
allocate those costs among the listed tasks, as instructed in the
application package. You must show the source and use of both grant and
matching funds for all tasks. Matching funds must be spent at a rate
equal to, or in advance of, grant funds. An eligible start and end date
for the entire project, as well as for each individual project task
must be clearly shown. The project timeframe must not exceed 36 months
and should be scaled to the complexity of the project. Working capital
applications must include an estimate of program income expected to be
earned during the grant period (see 2 CFR 200.307).
Points will be awarded as follows:
(1) 0 points will be awarded if you do not address the criterion.
(2) 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.
(3) 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.
(4) 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.
(e) Priority Points up to 10 points (lump sum 0 or 5 points plus,
graduated score 0-5 points).
It is recommended that you use the Agency application package when
applying for priority points and refer to the requirements specified in
7 CFR 4284.924. Priority points may be awarded in both the general
funds and Reserved Funds competitions.
(1) 5 points will be awarded if you meet the requirements for one
of the following categories and provide the documentation described in
7 CFR 4284.923 and 4284.924 as applicable: Beginning Farmer or Rancher,
Socially-Disadvantaged Farmer or Rancher, Veteran Farmer or Rancher, or
Operator of a Small or Medium-sized Farm or Ranch that is structured as
a Family Farm, Farmer or Rancher Cooperative, or are proposing a Mid-
Tier Value Chain project.
(2) Up to 5 priority points will be awarded if you are an
Agricultural Producer Group, Farmer or Rancher Cooperative, or
Majority-Controlled Producer-Based Business Venture (referred to below
as ``applicant group'') whose project ``best contributes to creating or
increasing marketing opportunities'' for Operators of Small- and
Medium-sized Farms and Ranches that are structured as Family Farms,
Beginning Farmers and Ranchers, Socially-Disadvantaged Farmers and
Ranchers, and Veteran Farmers and Ranchers (referred to below as
``priority groups''). For each of the priority point levels below,
applications must demonstrate how the proposed project will contribute
to new or increased marketing opportunities for respective priority
groups. Guidance on relevant information required to adequately
demonstrate this requirement can be found in program application
package.
(i) 2 priority points will be awarded if the existing membership of
the applicant group is comprised of either more than 50 percent of any
one of the four priority groups or more than 50 percent of any
combination of the four priority groups.
(ii) 1 priority point will be awarded if the existing membership of
the applicant group is comprised of two or more of the priority groups.
One point is awarded regardless of whether a group's membership is
comprised of two, three, or all four of the priority groups.
(iii) 2 priority points will be awarded if the applicant's proposed
project will increase the number of priority groups that comprise
applicant membership by one or more priority groups. However,
[[Page 67710]]
if an applicant group's membership is already comprised of all four
priority groups, such an applicant would not be eligible for points
under this criterion because there is no opportunity to increase the
number of priority groups. Note also that this criterion does not
consider either the percentage of the existing membership that is
comprised of the four priority groups or the number of priority groups
currently comprising the applicant group's membership.
(f) Administrator Priority Categories (graduated score 0-10
points).
The Administrator of the Agency may choose to award up to 10 points
to an application to improve the geographic diversity of awardees and/
or foster persistent poverty counties and/or help reduce unemployment
through job creation in a fiscal year. To ensure that funds are more
broadly utilized in support of recommendations made in the Rural
Prosperity Task Force report to help improve life in rural America, the
Administrator may also choose to award points to eligible applicants
who have never previously been awarded a VAPG grant. 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.
To be considered for these 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.
2. Review and Selection Process
The Agency will select applications for award under this Notice in
accordance with the provisions specified in 7 CFR 4284.950(a).
If your application is eligible and complete, it will be
qualitatively scored by at least two reviewers based on criteria
specified in section E.1. of this Notice. One of these reviewers will
be an experienced RD employee from your servicing State Office and at
least one additional reviewer will be a non-Federal, independent
reviewer, who must meet the following qualifications. Independent
reviewers must have at least a bachelor's degree in one or more of the
following fields: Agri-business, agricultural economics, agriculture,
animal science, business, marketing, economics or finance; and a
minimum of 8 years of experience in an agriculture-related field (e.g.
farming, marketing, consulting, or research; or as university faculty,
trade association official or non-Federal government official in an
agriculturally-related field). Each reviewer will score evaluation
criteria (a) through (d) and the totals for each reviewer will be added
together and averaged. The RD State Office reviewer will also assign
priority points based on criterion (e) in section E.1. of this Notice.
These will be added to the average score. The sum of these scores will
be ranked highest to lowest and this will comprise the initial ranking.
The Administrator of the Agency may choose to award up to 10
Administrator priority points based on criterion (f) in section E.1. of
this Notice. These points will be added to the cumulative score for a
total possible score of 100.
A final ranking will be obtained based solely on the scores
received for criteria (a) through (e). A minimum score of 50 points is
required for funding. Applications for Reserved Funds will be funded in
rank order until funds are depleted. Unfunded reserve applications will
be returned to the general funds where applications will be funded in
rank order until the funds are expended. Funding for Majority
Controlled Producer-Based Business Ventures is limited to 10 percent of
total grant funds expected to be obligated as a result of this Notice.
These applications will be funded in rank order until the funding
limitation has been reached. Grants to these applicants from Reserved
Funds will count against this funding limitation. In the event of tied
scores, the Administrator shall have discretion in breaking ties.
If your application is ranked, but not funded, it will not be
carried forward into the next competition.
F. Federal Award Administration Information
1. Federal Award Notices
If you are selected for funding, you will receive a signed notice
of Federal award by postal mail, containing instructions on
requirements necessary to proceed with execution and performance of the
award.
If you are not selected for funding, you will be notified in
writing via postal mail and informed of any review and appeal rights.
Funding of successfully appealed applications will be limited to
available funding.
2. Administrative and National Policy Requirements
Additional requirements that apply to grantees selected for this
program can be found in 7 CFR part 4284, subpart J; the Grants and
Agreements regulations of the Department of Agriculture codified in 2
CFR parts 180, 400, 415, 417, 418, 421; 2 CFR parts 25 and 170; and 48
CFR 31.2, and successor regulations to these parts.
In addition, all recipients of Federal financial assistance are
required to report information about first-tier sub-awards and
executive compensation (see 2 CFR part 170). You will be required to
have the necessary processes and systems in place to comply with the
Federal Funding Accountability and Transparency Act of 2006 (Pub. L.
109-282) reporting requirements (see 2 CFR 170.200(b), unless you are
exempt under 2 CFR 170.110(b)). More information on these requirements
can be found at http://www.rd.usda.gov/programs-services/value-added-producer-grants.
The following additional requirements apply to grantees selected
for this program:
(a) Agency approved Grant Agreement.
(b) Letter of Conditions.
(c) Form RD 1940-1, ``Request for Obligation of Funds.''
(d) Form RD 1942-46, ``Letter of Intent to Meet Conditions.''
(e) Form AD-1047, ``Certification Regarding Debarment, Suspension,
and Other Responsibility Matters-Primary Covered Transactions.''
(f) Form AD-1048, ``Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion-Lower Tier Covered
Transactions.''
(g) Form AD-1049, ``Certification Regarding a Drug-Free Workplace
Requirement (Grants).''
(h) Form AD-3031, ``Assurance Regarding Felony Conviction or Tax
Delinquent Status for Corporate Applicants.'' Must be signed by
corporate applicants who receive an award under this Notice.
(i) Form RD 400-4, ``Assurance Agreement.''
(j) SF LLL, ``Disclosure of Lobbying Activities,'' if applicable.
(k) Use Form SF 270, ``Request for Advance or Reimbursement.''
3. Reporting
After grant approval and through grant completion, you will be
required to provide the following, as indicated in the Grant Agreement:
(a) A SF-425, ``Federal Financial Report,'' and a project
performance report will be required on a semiannual
[[Page 67711]]
basis (due 30 working days after end of the semiannual period). For the
purposes of this grant, semiannual periods end on March 31st and
September 30th. The project performance reports shall include the
elements prescribed in the grant agreement.
(b) A final project and financial status report within 90 days
after the expiration or termination of the grant.
(c) Provide outcome project performance reports and final
deliverables.
G. Solicitation of Non-Federal Independent Grant Reviewers
Rural Development is seeking non-Federal independent grant
reviewers under this Notice. Reviewers must be able to use their
professional knowledge and experience to evaluate and score VAPG
program applications against the evaluation criteria published in this
Notice, and effectively communicate their findings in writing.
1. Qualifications
All reviewers must meet the following qualifications.
(a) Have at least a bachelor's degree in one or more of the
following fields: agri-business, agricultural economics, business,
marketing, economics or finance, and
(b) A minimum of 8 years of experience in an agriculture-related
field (e.g. farming, marketing, consulting, or research; or as
university faculty, trade association official or non-Federal
government official in an agriculturally-related field).
2. Ethical Standards
Prospective reviewers must be able to exercise the highest level of
ethical standards in avoiding conflict of interests and maintaining
confidentiality.
(a) Conflict of Interest
Individuals selected as non-Federal independent grant reviewers
will be required to certify that they do not have a conflict of
interest or an appearance thereof with any VAPG application they are
assigned to review. This may include but is not limited to
certification that they did not apply for a VAPG grant and are not
affiliated with persons or organizations applying for VAPG funds.
(b) Confidentiality
Reviewers will also be required to sign a certification statement
regarding the safeguarding of information contained in assigned
applications.
Failure to identify a conflict-of-interest or the unauthorized
disclosure of information may subject reviewers to administrative
sanction, i.e., removal from the current review and/or disqualification
from involvement in future reviews of grant applications.
3. Training
All reviewers must review and understand program requirements and
must attend a mandatory training webinar.
4. System Requirements
(a) Reviewers must have reliable internet access using Internet
Explorer and be able to reliably both access applications and submit
scores electronically, and
(b) All reviewers must be able to complete requirements for,
obtain, and maintain USDA Level 2 e-Authorization credentialing.
To apply, please send a resume addressing relevant qualifications
and experience to [email protected] by February 10, 2020.
H. Agency Contacts
If you have questions about this Notice, please contact the State
Office as identified in the ADDRESSES section of this Notice. You are
also encouraged to visit the application website for application tools,
including an application guide and templates. The website address is:
http://www.rd.usda.gov/programs-services/value-added-producer-grants.
You may also contact National Office staff at [email protected] or
call the main line at 202-720-1400.
I. Nondiscrimination Statement
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital
status, family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the responsible
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
contact USDA through the Federal Relay Service at (800) 877-8339.
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or
write a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint
form, call (866) 632-9992. Submit your completed form or letter to USDA
by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410;
(2) Fax: (202) 690-7442; or
(3) Email: [email protected].
Bette B. Brand,
Administrator, Rural Business--Cooperative Service.
[FR Doc. 2019-26626 Filed 12-10-19; 8:45 am]
BILLING CODE 3410-XY-P