Inviting Applications for Value-Added Producer Grants and Solicitation of Grant Reviewers, 40987-40995 [2017-18306]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service

[Federal Register Volume 82, Number 166 (Tuesday, August 29, 2017)]
[Notices]
[Pages 40987-40995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18306]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


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 $18 million is currently available. 
The Agency may also utilize any funding that become available after 
publishing this notice. Enactment of a continuing resolution or an 
appropriations act may affect the availability or level of funding for 
this program. The Agency will publish the program funding level on the 
Rural Development Web site (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 January 31, 2018 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 https://www.grants.gov only, and must be 
received before midnight January 24, 2018. 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 
https://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 https://www.grants.gov. Please review the Grants.gov Web site at https://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 https://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: 

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 January 31, 2018, or it will not be considered for 
funding. Electronic applications must be received by https://www.grants.gov no later than midnight Eastern Time January 24, 2018, or 
it will not be considered for funding.

[[Page 40988]]

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 
6203 of the Agricultural Act of 2014 (Pub. L. 113-79) (see 7 U.S.C. 
1632a). 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 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 in order 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 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: To be determined.
    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: May 31, 2018.
    Reservation of Funds: Ten percent of available funds for 
applications will be reserved for applications submitted by Beginning 
and Socially-Disadvantaged Farmers or Ranchers, and an additional ten 
percent of available funds for applications from farmers or ranchers 
proposing development of Mid-Tier Value Chains. Reserved funds not 
obligated prior to June 30, 2018, will be used for the VAPG general 
competition. If this is the case, Beginning 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 Title VII, Section 750 of Public Law 115-30, 10% of FY 
2017 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.

C. Eligibility Information

    Applicants must comply with the program regulation 7 CFR part 4284 
subpart J in order to meet all of 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 for one of the following applicant types: Independent 
Producer, Agricultural Producer Group, Farmer or Rancher Cooperative or 
Majority-Controlled Producer-Based Business and also meeting 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.'' 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.
    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 Web site at https://www.ttb.gov/index.shtml for more 
information. If you are not in compliance with TTB's requirements, 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 compete 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

[[Page 40989]]

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 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 other goods or services, 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). 
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.
    (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, a substantive 
work plan and budget.
    (i) 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, and specifically for the 
purpose of paying for 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.
    (ii) 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 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 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 
https://www.rd.usda.gov/programs-services/value-added-producer-grants. 
You may also contact your USDA Rural Development State Office by 
visiting https://www.rd.usda.gov/contact-us/state-offices. You may also 
obtain a copy by calling 202-690-1374. 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 submit an application electronically, you must follow the 
instructions for this funding announcement at https://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

[[Page 40990]]

program name, or the Catalog of Federal Domestic Assistance Number for 
this program.
    When you enter the Grants.gov Web site, you will find information 
about submitting an application 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 of your application documents electronically 
through Grants.gov.
    After electronically submitting an application 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: https://www.rd.usda.gov/contact-us/state-offices. An optional-use Agency 
application template is available online at https://www.rd.usda.gov/programs-services/value-added-producer-grants.
    Your application must contain all of 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 https://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.
     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.
     Certification and verification of matching funds.
     Reserved Funds and Priority Point documentation (as 
applicable).
     Appendices containing required supporting documentation.

3. Dun and Bradstreet Data Universal Numbering System (DUNS) and System 
for Awards Management (SAM)

    In order 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: January 31, 2018.
    Explanation of Deadlines: Paper applications must be postmarked and 
mailed, shipped, or sent overnight by January 31, 2018. 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 https://www.grants.gov 
no later than midnight Eastern Time, January 24, 2018 to be eligible 
for funding. Please review the Grants.gov Web site at https://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.

[[Page 40991]]

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 https://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. 
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 aggregate 
amount of awards 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, 
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% of FY 2017 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 June 
30, 2018, will be available to the Secretary to make VAPG grants in 
accordance with 7 CFR 4284.927.

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.'' We have 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 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. 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 
(please note that feasibility studies, business or marketing plants are 
not provided to reviewers). 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,

[[Page 40992]]

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:
    (i) 0 points will be awarded if you do not substantively address 
the criterion.
    (ii) 1-5 points will be awarded if you do not address each of the 
following: Technological feasibility, operational efficiency, 
profitability, and overall economic sustainability.
    (iii) 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.
    (iv) 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.
    (v) 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 
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 actually 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:
    (i) 0 points will be awarded if you do not substantively address 
the criterion.
    (ii) 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.
    (iii) 5-9 points will be awarded if all project personnel are 
identified but do not demonstrate qualifications or experience relevant 
to the project.
    (iv) 10-14 will be awarded if most key personnel demonstrate strong 
credentials and/or experience, and availability indicating a reasonable 
likelihood of success.
    (v) 15-20 points will be awarded if all personnel demonstrate 
strong, relevant credentials or experience, and availability indicating 
a high likelihood of project success.
(c) Commitments and Support (Graduated Score 0-10 Points)
    Producer commitments to the project will be evaluated based on the 
number of independent producers currently involved in the project; and 
the nature, level and quality of their contributions, including 
matching contributions. End-user commitments will be evaluated on the 
basis of potential or identified markets and the potential amount of 
output to be purchased, as indicated by letters of intent or contracts 
from potential buyers referenced within the application. Other 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. All cash or 
in-kind contributions from the applicant, other producers, end users, 
or other contributors should be discussed. End-user commitments may 
include contracts or letters of intent or interest in purchasing the 
value-added product. 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. Applications 
that demonstrate the project has strong direct financial support in the 
form of cash matching contributions and strong technical and logistical 
support to successfully complete the project will receive more points 
than those that demonstrate less potential for success in these areas. 
Please 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 substantively address 
the criterion.
    (ii) 1-3 points will be awarded if you are the only producer 
participating in the project, AND show real, direct support from at 
least one end-user or third-party contributor.
    (iii) 4-6 points will be awarded if you, as the applicant, are the 
only producer participating in the project, AND show strong financial 
commitment in the form of cash matching contributions to the project 
AND measurable commitment or interest in purchasing the value-added 
product from at least one end-user; AND commitment or tangible support 
from at least one other third-party contributor; OR you, as the 
applicant, demonstrate participation from multiple producers, AND 
measurable commitment or interest in purchasing the value-added product 
from at least one end-user; AND commitment or tangible support from at 
least one third party contributor.

[[Page 40993]]

    (iv) 7-10 points will be awarded if you, as the applicant, show 
strong financial commitment to the project in the form of cash matching 
contributions, AND participation from additional producers, AND 
measurable commitment or interest from multiple end-users, AND 
commitment or tangible support from multiple third-party contributors.
(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 of all estimated costs of project 
activities and allocate those costs among the listed tasks. 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:
    (i) 0 points will be awarded if you do not substantively address 
the criterion.
    (ii) 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.
    (iii) 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.
    (iv) 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.
    (i) 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.
    (ii) 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.
    (A) 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.
    (B) 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.
    (C) 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, 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) 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.

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

[[Page 40994]]

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 https://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 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 CPGrants@wdc.usda.gov by February 15, 2018.

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 Web site for application 
tools, including an application guide and templates. The Web site 
address is: https://www.rd.usda.gov/programs-services/value-added-producer-grants. You may

[[Page 40995]]

also contact National Office staff: Tracey Kennedy, VAPG Program Lead, 
tracey.kennedy@wdc.usda.gov, or Shantelle Gordon, 
shantelle.gordon@wdc.usda.gov, or call the main line at 202-690-1374.

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 https://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: program.intake@usda.gov.

    Dated: August 24, 2017.
Chad Parker,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2017-18306 Filed 8-28-17; 8:45 am]
 BILLING CODE 3410-XY-P