Notice of Funding Opportunity for the Value-Added Producer Grants for Fiscal Year 2024, 2919-2927 [2024-00713]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service

[Federal Register Volume 89, Number 11 (Wednesday, January 17, 2024)]
[Notices]
[Pages 2919-2927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00713]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket No. RBS-23-BUSINESS-0026]


Notice of Funding Opportunity for the Value-Added Producer Grants 
for Fiscal Year 2024

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of funding opportunity.

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SUMMARY: The Rural Business-Cooperative Service (RBCS or the Agency), a 
Rural Development (RD) agency of the United States Department of 
Agriculture (USDA), announces acceptance of applications under the 
Value-Added Producer Grant (VAPG) program for Fiscal Year (FY)2024, 
subject to the availability of funding. This Notice is being issued 
prior to the FY 2024 appropriations act to allow Applicants sufficient 
time to leverage financing, prepare and submit their applications, and 
give the Agency time to process applications within FY 2024. Based on 
FY 2023 appropriated funding, the Agency estimates that approximately 
$30 million will be made available for FY 2024. Successful applications 
will be selected by the Agency for funding and subsequently awarded to 
the extent that funding may ultimately be made available through 
appropriations. Applicants are responsible for any expenses incurred in 
developing their applications.

DATES: Electronic applications e-filed through https://www.grants.gov 
must be filed by 11:59 p.m. Eastern Time (ET) on April 11, 2024.
    Complete paper applications must be submitted by close of business 
on April 16, 2024 in the USDA RD State Office of the State where the 
project is located. Paper applications must be postmarked and mailed, 
shipped or sent overnight, hand carried or emailed by this date. Late 
applications are not eligible for grant funding under this Notice.

ADDRESSES: This funding announcement will also be announced on 
www.grants.gov. Electronic applications are to be submitted through 
www.grants.gov.
    To submit a paper application, send it to the USDA RD State Office 
located in

[[Page 2920]]

the state where the project is located. Applicants can find USDA RD 
State Office contact information at https://www.rd.usda.gov/contact-us/state-offices.
    To submit an application through email, contact the respective USDA 
RD State Office to obtain the Agency email address where the 
application will be submitted.
    Application materials are also available at https://www.rd.usda.gov/programs-services/value-added-producer-grants.

FOR FURTHER INFORMATION CONTACT: Greg York at 202-281-5259, 
[email protected] or Mike Daniels at 715-345-7637, 
[email protected], Program Management Division, RBCS, USDA, 1400 
Independence Avenue SW, Mail Stop 3226, Room 5801-S, Washington, DC 
20250-3226.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Awarding Agency Name: Rural Business-Cooperative Service.
    Funding Opportunity Title: Value-Added Producer Grant.
    Announcement Type: Notice of Funding Opportunity (NOFO).
    Funding Opportunity Number: RDBCP-VAPG-2024.
    Assistance Listing: 10.352.
    Dates: Electronic applications filed through https://www.grants.gov 
must be submitted by 11:59 p.m. ET on April 11, 2024.
    A complete paper application must be submitted by close of business 
on April 16, 2024 to the USDA RD State Office of the State where the 
project is located, or it will not be considered for funding. Paper 
applications must be postmarked and mailed, shipped or sent overnight, 
hand carried or emailed by this date.
    Late applications are not eligible for grant funding under this 
Notice.
    Rural Development Key Priorities: The Agency encourages Applicants 
to consider projects that will advance the following key priorities 
(more details available at https://www.rd.usda.gov/priority-points):
     Creating More and Better Markets: Assist rural communities 
to recover economically through more and better market opportunities 
and through improved infrastructure;
     Advancing Racial Justice, Place-Based Equity, and 
Opportunity: Ensure all rural residents have equitable access to RD 
programs and benefits from RD funded projects; and
     Addressing Climate Change and Environmental Justice: 
Reduce climate pollution and increase resilience to the impacts of 
climate change through economic support to rural communities.

A. Program Description

    1. Purpose of the Program. 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 to compete for funding.
    2. Statutory and Regulatory Authority: 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. 1627c) and 
implemented by 7 CFR part 4284, subpart J.
    3. Definitions. The definitions applicable to this Notice are 
published at 7 CFR 4284.902. In addition, the following definitions 
apply to this Notice:
    (a) Majority-Controlled Producer-Based Business Venture, 
incorporated from Section 10102 of the Agriculture Improvement Act of 
2018, means a venture greater than 50 percent of the ownership and 
control of which is held by--
    (1) One (1) or more producers; or
    (2) One (1) or more entities, 100 percent of the ownership and 
control of which is held by one (1) or more producers. The term 
`entity' means--
    (i) a partnership;
    (ii) a limited liability corporation;
    (iii) a limited liability partnership; or
    (iv) a corporation.
    (b) 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 the time of application) through sales to 
demonstrably new markets or to new customers in existing markets.
    4. Application of Awards. The Agency will review, evaluate and 
score applications received in response to this Notice based on the 
provisions found in 7 CFR 4284.940, 7 CFR 4284.942 and as indicated in 
this Notice. Awards under the VAPG program will be made on a 
competitive basis using specific selection criteria contained in 7 CFR 
4284.942. The Agency advises all interested parties that the Applicant 
bears the full burden for preparing and submitting an application in 
response to this Notice.

B. Federal Award Information

    Type of Awards: Grant.
    Fiscal Year Funds: FY 2024.
    Available Funds: The Agency currently estimates that approximately 
$30 million will be available for FY 2024. RBCS may, at its discretion, 
increase the total amount of funding available in this funding round 
from any authorized source provided the awards meet the requirements of 
the statute which made the funding available to the Agency.
    Ten percent of available funds for applications will be reserved 
for Applicants qualifying as Beginning, Veteran, and Socially-
Disadvantaged Farmers or Ranchers. An additional 10 percent of 
available funds will be reserved for applications from farmers or 
ranchers proposing development of Mid-Tier Value Chains. Beginning, 
Veteran, and Socially-Disadvantaged Farmers or Ranchers and Applicants 
proposing Mid-Tier Value Chains not awarded for reserved funds will 
compete with other eligible VAPG applications. In addition, any funds 
that become available for persistent poverty counties through enactment 
of FY 2024 appropriations will be allocated for assistance in 
persistent poverty counties. Funds not obligated from these reserves by 
September 30, 2024, will be used for the VAPG general competition and 
made available in a subsequent application cycle.
    Award Amounts: Maximum Planning $75,000; Maximum Working Capital 
$250,000.
    Anticipated Award Date: September 30, 2024.
    Performance Period: Up to 36 months depending on the complexity of 
the project.
    Renewal or Supplemental Awards: None.
    Type of Assistance Instrument: Financial Assistance Agreement.

C. Eligibility Information

    1. Eligible Applicants. Eligible Applicants must meet the 
eligibility requirements of 7 CFR part 4284 Subpart J and this Notice. 
Applications that fail to meet any of these requirements by the 
application deadline will be deemed ineligible and will not be 
evaluated further.
    The application narrative must demonstrate that the Applicant is 
eligible for the program in accordance

[[Page 2921]]

with the requirements of 7 CFR 4284.920 and 4284.921. Application 
narratives should also take note of the definition requirements at 7 
CFR 4284.902, such as demonstrating that the Applicant satisfies the 
definition for an ``Agricultural Producer''; how the Applicant 
qualifies for one of the following Applicant types: Independent 
Producer, Agricultural Producer Group, Farmer or Rancher Cooperative, 
or Majority-Controlled Producer-Based Business Venture; and that the 
Applicant meets the Emerging Market, Citizenship, Legal Authority and 
Responsibility, Multiple Grants and Active Grants requirements of the 
section. Required documentation to support eligibility is specified at 
7 CFR 4284.931 and in this Notice.
    The Agency encourages applications from Federally-recognized Tribes 
and Tribal entities. Federally-recognized Tribes and Tribal entities 
must demonstrate that they meet the definition requirements for one of 
the four eligible Applicant types. RD State Offices and posted 
application toolkits will provide additional information on Tribal 
eligibility. Tribal Applicants are encouraged to contact Agency staff 
early in the process to discuss Applicant and project eligibility. In 
addition to contacting program staff, Tribal Applicants can contact 
USDA Rural Development's Tribal Relations Team with Tribal specific 
questions and concerns at [email protected].
    Factors rendering an Applicant ineligible are provided at 7 CFR 
4284.921. The Agency will check the Do Not Pay (DNP) system to 
determine if the Applicant or its principals has been debarred or 
suspended. Per the Consolidated Appropriations Act, 2023 (Pub. L. 117-
328), Division E, Title VII, Sections 744, and 745, 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 
this or any other act, 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.
    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. As provided in 7 CFR 4284.925 and 
4284.926, 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 a 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, subject to the requirements and 
limitations specified in 7 CFR 4284.925(a)-(b). Donations of goods and 
services from third parties must be characterized as in-kind 
contributions. Tribal Applicants may utilize grants made available 
under Section 103(c) of the Indian Self-Determination and Education 
Assistance Act (Pub. L. 93-638), as amended, as their matching 
contribution, and should check with appropriate Tribal authorities 
regarding the availability of such funding. As indicated in 7 CFR 
4284.931(b)(4)(iv), a non-Tribal Applicant cannot provide matching 
funds paid by the Federal Government under another Federal award.
    Matching funds must be available at the 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 below in section E.1.(c).
    3. Other.
    (a) Project eligibility. Applicants must demonstrate within the 
application narrative that the project meets all of the project 
eligibility requirements of 7 CFR 4284.922.
    (1) Product eligibility. Applicants for both planning and working 
capital grants must meet all requirements at 7 CFR 4284.922(a), 
including that the 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. Applicants must also 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. In addition, Applicants 
must demonstrate 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. The Agency recognizes that VAPG market expansion 
projects may involve 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 expended on sales of existing products to existing 
customers.
    Finally, in accordance with Section 210A(d)(3) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1621 et seq.), working capital 
applications must include a statement describing the direct or indirect 
producer benefits intended to result from the proposed project within a 
reasonable time period after the receipt of a grant.
    (2) Purpose eligibility. Applicants must meet applicable planning 
and working capital requirements at 7 CFR 4284.922 as well as maximum 
grant amounts, verification of matching funds, eligible and ineligible 
uses of grant and matching funds, and a substantive, detailed 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, 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.
    (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 products

[[Page 2922]]

that are eligible uses of grant funds. Working capital funds may not be 
used for planning purposes.
    (3) Reserved funds eligibility. To qualify for reserved funds as a 
Beginning, Veteran, or Socially-Disadvantaged Farmer or Rancher or for 
proposed development of a Mid-Tier Value Chain, the requirements found 
at 7 CFR 4284.923 must be met. Documentation must also be provided 
indicating that the Applicant meets all the requirements for the 
applicable definition specified in 7 CFR 4284.902 and provide all the 
required documentation specified in 7 CFR 4284.931. If the 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.
    (b) 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).
    (c) 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 limit. An Applicant, per 7 CFR 4284.920(e), 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. 
Applicant entities regardless of ownership percentage that are 
comprised of the same individuals of a previously awarded VAPG project 
(recipient) can only submit proposals documenting how the new project 
is substantially different in terms of products and/or markets from the 
previously funded project.
    (e) Alcohol Projects. 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 
published at 27 CFR Chapter 1, including but not limited to permitting, 
filing of taxes and operational reports. Please visit TTB's website at 
https://www.ttb.gov/ for more information. Applicants that are not in 
compliance with TTB's requirements may be deemed ineligible by the 
Agency. If, at any time after a VAPG award has been received, an 
Applicant is found to be non-compliant with TTB's operational reporting 
or tax requirements, the Agency may determine that the Applicant is not 
in compliance with the grant terms and conditions.
    (f) Hemp Projects. In determining eligibility of the Applicant 
project or use of funds, any project applying for funding under the 
VAPG program and proposing to produce, procure, supply or market any 
component of the hemp plant or hemp related by-products, must have a 
valid license from an approved State, Tribal or Federal plan pursuant 
to the Agricultural Marketing Act and amended in section 10113 of the 
Agriculture Improvement Act of 2018 (the ``2018 Farm Bill), be in 
compliance with regulations published by the Agricultural Marketing 
Service at 7 CFR part 990, and meet any applicable U.S. Food and Drug 
Administration and U.S. Drug Enforcement Administration regulatory 
requirements. Verification of valid hemp licenses will occur prior to 
award.

D. Application and Submission Information

    1. Address to Request Application Toolkit. 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 RD 
State Office by visiting https://www.rd.usda.gov/contact-us/state-offices. The toolkit contains an application checklist, templates, 
required grant forms, and suggestions. Based upon successful grant 
awards of previous Applicants, the Agency highly recommends the use of 
the templates in the application toolkit. However, it is not mandatory 
to use the application toolkit, but this Notice and applicable 
regulations must be relied on when preparing the application as the 
Agency will follow those procedures and requirements to evaluate and 
award grants.
    2. Content and Form of Application Submission. Applications must 
contain all the required forms and proposal elements described in 7 CFR 
4284.931, unless otherwise clarified in this Notice. Basic application 
contents are outlined below:
    (a) Standard Form (SF)-424, ``Application for Federal Assistance,'' 
is required, 7 CFR 4248.931(a)(1). The form requires Applicants to 
include their Unique Entity Identifier (UEI) and expiration date (or 
evidence that the System for Award Management (SAM) registration 
process has begun). If the SAM registration confirmation and expiration 
date has not been received, the applicant must provide evidence from 
SAM of having begun the registration process to be considered in the 
funding competition.
    (b) SF-424A, ``Budget Information--Non-Construction Programs'' is 
required, 7 CFR 4284.931(a)(2).
    (c) Permit. Applicants must provide a valid permit or evidence of 
having begun the permitting process if proposing a working capital 
grant to produce and market value-added products in the industries of 
wine, beer, distilled spirits or other alcoholic merchandise; or 
tobacco or tobacco products, as specified in 27 CFR Chapter 1.
    (d) Producer license. Applicants must provide a valid producer 
license issued by a State, Tribe, or USDA, as applicable, in accordance 
with 7 CFR part 990 if proposing to market value-added hemp products.
    (e) 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, summary of the project, whether it is a simplified 
application, and whether reserved funds are being requested.
    (f) Eligibility discussion, 7 CFR 4284.931(b)(1).
    (g) Work plan and budget, 7 CFR 4284.922(b)(5).

[[Page 2923]]

    (h) Performance evaluation criteria, 7 CFR 4284.931(b)(2)(i).
    (i) Proposal evaluation criteria, 7 CFR 4284.931(b)(2)(ii).
    (j) Certification and verification of matching funds, 7 CFR 
4284.931(b)(3)-(4).
    (k) Optionally, reserved Funds and Priority Point documentation, 7 
CFR 4284.923 and 7 CFR 4284.924.
    (l) Feasibility studies, business plans, and/or marketing plans, as 
applicable, 7 CFR 4284.922(b)(6)(i).
    (m) Appendices containing required supporting documentation.
    (n) Applicants requesting less than $50,000 may submit a simplified 
application, and the contents of which are specified in this Notice. 
Applicants requesting Working Capital Grants of less than $50,000 are 
not required to provide Feasibility Studies or Business Plans.
    3. System for Award Management and Unique Entity Identifier.
    (a) At the time of application, each Applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR part 25. To register in SAM, 
entities will be required to obtain a Unique Entity Identifier (UEI). 
Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    (b) Each Applicant must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    (c) Applicants must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    (d) Applicants must provide a valid UEI in the application, unless 
determined exempt under 2 CFR 25.110.
    (e) The Agency will not make an award until Applicants have 
complied with all SAM requirements including providing the UEI. If an 
Applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that an 
Applicant is not qualified to receive a federal award and use that 
determination as a basis for making a Federal award to another 
Applicant.
    4. Submission Dates and Times. Electronic applications filed 
through https://www.grants.gov must be filed by 11:59 p.m. ET on April 
11, 2024. Grants.gov will not accept applications submitted after the 
deadline.
    Paper applications must be postmarked and mailed, shipped, sent 
overnight, hand carried, or emailed by close of business on April 16, 
2024 to the USDA RD State Office where the project is located. USDA RD 
State Office contact information is located at https://www.rd.usda.gov/contact-us/state-offices. The Agency will determine if the application 
is late based on the date shown on the postmark or shipping invoice.
    If the due date falls on a Saturday, Sunday, or Federal holiday, 
the application is due the next business day. The Agency will not 
solicit or consider new scoring or eligibility information that is 
submitted after the application deadline. The Agency also reserves the 
right to ask Applicants for clarifying information and additional 
verification of assertions in the application. Late applications will 
automatically be considered ineligible and will not be evaluated 
further.
    5. Intergovernmental Review. Executive Order (E.O.) 12372, 
``Intergovernmental Review of Federal Programs,'' does not apply to 
this program.
    6. Funding Restrictions. Funding limitations found in the program 
regulation at 7 CFR 4284.927 will apply, including:
    (a) Use of Funds. Grant and matching funds may only be used for 
eligible purposes. Eligible and ineligible uses are provided in 7 CFR 
4284.925 and 4284.926, respectively. Grant funds may not be used to pay 
any costs of the project incurred prior to the date of grant approval.
    (b) Period of Performance (grant period). The project timeframe or 
grant period can be a maximum of 36 months in length from the date of 
award, depending on the complexity of the project as stated in 7 CFR 
4284.922(b)(5)(iv) and 4284.927(c). The 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 
an Applicant receives an award, the grant period will be revised to 
begin on the actual date of award--the date the Financial Assistance 
Agreement (grant agreement) is executed by the Agency--and the grant 
period end date will be adjusted accordingly. The project activities 
should begin within 90 days of the date of award in accordance with 7 
CFR 4284.927(c). The length of the grant period should be based on the 
project's complexity, as indicated in the application work plan. For 
example, it is expected that most planning grants can be completed 
within 12 months.
    (c) Program Income. If Program Income is earned during the grant 
period as a result of the project activities, it is subject to the 
requirements in 2 CFR 200.307 and must be managed and reported 
accordingly.
    (d) Majority Controlled Producer-Based Business. The aggregate 
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 in 
accordance with 7 CFR 4284.927(d).
    (e) 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. Post-harvest food safety training, certifications, and 
supplies that are eligible under the current program regulation may 
continue to be included in the work plan and budget.
    (f) 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 Network. See related definitions 
in 7 CFR 4284.902. In addition, any funds that become available for 
persistent poverty counties through enactment of FY 2024 appropriations 
will be allocated for assistance in persistent poverty counties.
    (g) Disposition of Reserved Funds Not Obligated. For this Notice, 
any reserved funds that have not been obligated by September 30, 2024, 
will be available to the Secretary to make VAPG grants in the next FY 
in accordance with section 210A(i)(3)(D)(ii) of the Agricultural 
Marketing Act of 1946, as amended.
    7. Other Submission Requirements.
    (a) Electronic submission. To apply electronically, Applicants must 
follow the instructions for this funding announcement at https://www.grants.gov. Use the search features along with a keyword, program 
name, or the Assistance Listing Number to find the Grant Opportunity 
for this Notice. After applying through Grants.gov, Applicants will 
receive an automatic acknowledgement from Grants.gov which will contain 
a tracking number.
    (b) Paper submission. Paper or email submittals should be sent to 
the USDA RD State Office located in the state where the project is 
located. USDA RD State Offices contact information is at

[[Page 2924]]

https://www.rd.usda.gov/contact-us/state-offices. Fax submittals will 
not be accepted. USDA RD State Offices should be contacted if there are 
any questions about eligibility or submission requirements. Applicants 
should contact USDA RD State Offices well in advance of the application 
deadline to discuss the project and to ask any questions about the 
application process.

E. Application Review Information

    1. Criteria. 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. 
Applications will be scored in accordance with the procedures and 
criteria specified in 7 CFR 4284.942, and with tiered scoring 
thresholds as specified below. For each criterion, Applicants must show 
how the project has merit and why it is likely to be successful. The 
justification for each criterion must be included in the body of the 
application, including summarizations of any feasibility studies, and 
business and marketing plans. Scoring information must be readily 
identifiable in the application or it will not be considered as stated 
in 7 CFR 4284.942(a). If Applicants do not address all parts of the 
criterion, or do not sufficiently communicate relevant project 
information, the application will score lower. The VAPG is a 
competitive program and, therefore, scoring will be based on the 
quality of the Applicant's responses. Simply addressing the criteria 
will not guarantee higher scores. The total maximum number of points 
that can be awarded for an application is 100. For this Notice, the 
total minimum score requirement for consideration for funding is 50 
points.
    The Agency application toolkit provides additional instructions 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, Applicants must discuss 
the technological feasibility of the project, as well as operational 
efficiency, profitability, and overall economic sustainability 
resulting from the project. Applicants must also demonstrate the 
potential for expansion of 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. See the 
application template for more information. All Applicants must 
reference and summarize third-party data and other information that 
specifically supports value-added projects; discuss the value-added 
process being proposed; identify the potential markets and distribution 
channels; address the value to be added to the raw commodity through 
the value-added process; provide the cost and availability of inputs, 
indicate the Applicant's experience in marketing the proposed or 
similar product; provide business financial statements; and, supply any 
other relevant information that supports the viability of the project. 
Working capital Applicants should demonstrate that these outcomes will 
result from the project and include supportable projections of increase 
in customer base, for revenue returned to producers, and of 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 the application does not address 
the criterion.
    (2) 1 to 5 points will be awarded if the application does not 
address each of the following: technological feasibility, operational 
efficiency, profitability, and overall economic sustainability.
    (3) 6 to 13 points will be awarded if the application addresses 
technological feasibility, operational efficiency, profitability, and 
overall economic sustainability, but does not reference third-party 
information that supports the success of the project.
    (4) 14 to 22 points will be awarded if the application addresses 
technological feasibility, operational efficiency, profitability, and 
overall economic sustainability, which is supported by third-party 
information demonstrating a reasonable likelihood of success.
    (5) 23 to 30 points will be awarded if all criterion components are 
well addressed, supported by third-party information demonstrating a 
high likelihood of success.
    (b) Qualifications of project personnel (graduated score 0 to 20 
points). Applications must identify all key 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, and/or to develop a 
business operations plan for the value-added venture. Applications 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). Applicants 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, specific descriptions of the qualifications required for 
the positions to be filled must be provided. 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 to 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 to 9 points will be awarded if all project personnel are 
identified but do not demonstrate qualifications or experience relevant 
to the project.
    (4) 10 to 14 points will be awarded if all key personnel 
demonstrate strong credentials and/or experience, and availability 
indicating a reasonable likelihood of success.
    (5) 15 to 20 points will be awarded if all key personnel 
demonstrate strong, relevant credentials or experience, and 
availability indicating a high likelihood of project success.
    (c) Commitments and support (cumulative score 0 to 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) Independent Producer Commitments to the project will be 
evaluated based on the number of named and documented independent 
producers currently involved in the project. Points will be awarded as 
follows:
    (i) Sole Proprietor Applicant (one owner/producer Applicant): 1 
point.
    (ii) Multiple Independent Producer Applicant (Note that in cases 
where

[[Page 2925]]

family members, such as husband and wife, are eligible Independent 
Producers, each family member will count as one Independent Producer.): 
2 points.
    (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 that for planning grants, this criterion can 
be addressed by evidence of interest or support from identified or 
potential customers. Points will be awarded as follows:
    (i) No, or insufficiently documented, commitment from end-users: 0 
points.
    (ii) Well-documented commitment from one end-user: 1 point.
    (iii) Well-documented commitment from more than one end-user: 2 
points.
    (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. Points will 
be awarded as follows:
    (i) No, or insufficiently documented, commitment from third 
parties: 0 points.
    (ii) Well-documented commitment from one third party: 1 point.
     (iii) Well-documented commitment from more than one third party: 2 
points.
    Letters of Commitment by end-users, and third parties should be 
summarized as part of the 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.
    (4) Level of Commitment will have points awarded as follows:
    (i) No cash match: 0 points.
    (ii) Cash match equals less than 50 percent of the matching 
contribution: 1 point.
    (iii) Cash match equals 50 percent or more, but less than 100 
percent, of the matching contribution: 2 points.
    (iv) Cash match equals 100 percent of the matching contribution: 4 
points.
    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.
    (d) Work plan and budget (graduated score 0 to 20 points). A 
comprehensive work plan and budget must be submitted in accordance with 
7 CFR 4284.922(b)(5). The 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. Applicants 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. Points 
will be awarded as follows:
    (1) 0 points will be awarded if the application does not address 
the criterion.
    (2) 1 to 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 to 14 points will be awarded if the application provides 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 to 20 points will be awarded if the application provides 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, 
cumulative score 0 to 5 points). Priority points may be awarded in both 
the general funds and reserved funds competitions.
    (1) 5 priority points will be awarded if the Applicant meets the 
requirements for one of the following categories and provides 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 the Applicant is an 
Agricultural Producer Group, Farmer or Rancher Cooperative, or 
Majority-Controlled Producer-Based Business Venture (referred to below 
as ``Applicant group'') to the extent the 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. Applicants will not be awarded more than five (5) points even 
if they qualify for more than one of the priority categories.
    (i) Two (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) One (1) additional 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) Two (2) additional 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) Administrator priority categories (cumulative score 0 to 10 
points). The Administrator of the Agency may choose to award priority 
points to improve the geographic diversity of awardees and to 
applications for

[[Page 2926]]

projects that will advance RD Key Priorities (https://www.rd.usda.gov/priority-points) as defined and measured on the RD Key Priorities 
website. Points will not automatically be applied if the VAPG project 
is located in a RD Key Priority area or if written narrative is 
provided to address climate change and environmental justice as further 
discussed below.
    (1) Applications may also be awarded points for the following three 
priorities:
    (i) Creating More and Better Markets: Assisting rural communities 
recover economically through more and better market opportunities and 
through improved infrastructure. Applicants can receive priority points 
if the project is located in or serving a rural community whose 
economic well-being ranks in the most distressed tier (distress score 
of 80 or higher) of the Distressed Communities Index using the 
Distressed Communities Look-Up Map available at https://www.rd.usda.gov/priority-points.
    (ii) Advancing Racial Justice, Place-Based Equity, and Opportunity: 
Ensuring all rural residents have equitable access to RD programs and 
benefits from RD funded projects. Using the Social Vulnerability Index 
(SVI) Look-Up Map (available at https://www.rd.usda.gov/priority-points), an applicant can receive priority points if the project is:
     Located in or serving a community with a score of 0.75 or 
above on the SVI;
     A Federally recognized Tribe, including Tribal 
instrumentalities and entities that are wholly owned by Tribes; or
     A project where at least 50 percent of the project 
beneficiaries are members of Federally Recognized Tribes and non-Tribal 
applicants include a Tribal Resolution of Consent from the Tribe or 
Tribes that the applicant is proposing to serve.
    (iii) Addressing Climate Change and Environmental Justice: Reducing 
climate pollution and increasing resilience to the impacts of climate 
change through economic support to rural communities. Using the 
Disadvantaged Community and Energy Community Look-up Map (available at 
https://www.rd.usda.gov/priority-points), applicants can receive 
priority in three ways:
     If the project is located in or serves a Disadvantaged 
Community as defined by the Climate and Economic Justice Screening Tool 
(CEJST), from the White House Council on Environmental Quality (CEQ), 
or
     If the project is located in or serves an Energy Community 
as defined by the Inflation Reduction Act.
     Applicants demonstrate through written narrative how 
proposed climate-impact projects improve the livelihoods of community 
residents and meet pollution mitigation or clean energy goals.
    (2) The Agency will confirm if the project is located in an area 
qualifying for these priorities.
    (3) Review and Selection Process. Applications will be reviewed and 
processed as described at 7 CFR 4284.940. The Agency will review 
applications to determine if they are complete and eligible. If at any 
time, the Agency determines that the application is ineligible, the 
Applicant will be notified in writing as to the reasons it was 
determined ineligible and will be informed of review and appeal rights. 
Funding of successfully scored applications, after an appeal, will be 
limited to available funds.
    The Agency will select applications for award under this Notice in 
accordance with the provisions specified in 7 CFR 4284.950(a).
    If an application is eligible and complete, it will be 
qualitatively scored by three reviewers based on criteria specified in 
section E.1. of this Notice. One of these reviewers will be an 
experienced RD employee from the applicable servicing State Office and 
two reviewers will be non-Federal, independent reviewers. 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; or 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). To become a non-Federal independent 
reviewer, please contact Grant Solutions at [email protected]. 
Each reviewer will score evaluation criteria (a) through (d) and the 
totals for each reviewer will be added together and averaged. Reviewers 
are not eligible to apply for the program as it would result in a 
conflict of interest. The RD State Office reviewer will also assign 
priority points based on criterion (e) in section E.1. of this Notice. 
These points will be added to the average score. The sum of these 
scores will be ranked highest to lowest to comprise an initial ranking.
    The Administrator of the Agency may choose to award up to 10 
Administrator priority points based on criteria (f) in section E.1. of 
this Notice. These points will be added to the cumulative score from 
the initial ranking and re-ranked from highest to lowest for a final 
ranking. The total maximum number of points that can be awarded for an 
application is 100.
    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. The Agency 
reserves the right to offer the Applicant less than the grant funding 
requested.
    If the application is ranked, but not funded, it will not be 
carried forward into the next application funding cycle.

F. Federal Award Administration Information

    1. Federal Award Notices. If you are selected for funding, you will 
receive a signed Notice of Federal award 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 and informed of any review and appeal rights. Funding of 
successfully scored applications, after an appeal, will be limited to 
available funding.
    2. Administrative and National Policy Requirements. Additional 
requirements that apply to Applicants selected for a program award 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, 200, 400, 415, 417, 418, 421; 2 CFR parts25 and 170; and 48 CFR 
31.2, and successor regulations to these parts.
    The following additional requirements apply to Applicants selected 
for a program award:
    (a) Agency approved Financial Assistance 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 RD-400-4, ``Assurance Agreement.''
    (f) SF LLL, ``Disclosure of Lobbying Activities,'' if applicable.
    (g) Form SF 270, ``Request for Advance or Reimbursement.''

[[Page 2927]]

    3. Reporting. You will be required to provide the following, as 
indicated in the Financial Assistance Agreement, and specified at 7 CFR 
4284.960:
    (a) An 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 Financial Assistance Agreement.
    (b) A final project and financial status report within 120 days 
after the expiration or termination of the grant.
    (c) Outcome project performance reports and final deliverables.

G. Federal Awarding Agency Contacts

    If you have questions about this Notice, please contact the USDA RD 
State Office as identified in the ADDRESSES section of this Notice. You 
may also contact National Office staff at [email protected] or call 
the main line at (202) 720-1400.

H. Other Information

    1. Applicants must comply with other Federal laws per 7 CFR 
4284.905(a).
    2. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35), the information 
collection requirements associated with the programs, as covered in 
this Notice, have been approved by the Office of Management and Budget 
(OMB) under OMB Control Number 0570-0064.
    3. National Environmental Policy Act. All recipients under this 
Notice are subject to the requirements of 7 CFR part 1970. However, 
awards for planning and working capital grants under this Notice are 
classified as a Categorical Exclusion in accordance with 7 CFR 
1970.53(a)(3) and (b)(2), and usually do not require any additional 
documentation. 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.
    4. Federal Funding Accountability and Transparency Act. All 
Applicants, in accordance with 2 CFR part 25, must be registered in SAM 
and have a UEI as stated in Section D.3. of this Notice. All recipients 
of Federal financial assistance are required to report information 
about first-tier subawards and executive total compensation in 
accordance with 2 CFR part 170.
    5. Civil Rights Act. 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--Nondiscrimination in Federally-Assisted 
Programs of the Department of Agriculture--Effectuation of Title VI of 
the Civil Rights Act of 1964) and Section 504 of the Rehabilitation Act 
of 1973, Title VIII of the Civil Rights Act of 1968, Title IX, 
Executive Order 13166 (Limited English Proficiency), Executive Order 
11246, and the Equal Credit Opportunity Act of 1974.
    6. Nondiscrimination Statement. In accordance with Federal civil 
rights laws and USDA civil rights regulations and policies, the USDA, 
its Mission Areas, agencies, staff offices, 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.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint from any USDA office, by calling 
(866) 632-9992, or by writing a letter addressed to USDA. The letter 
must contain the complainant's name, address, telephone number, and a 
written description of the alleged discriminatory action in sufficient 
detail to inform the Assistant Secretary for Civil Rights (ASCR) about 
the nature and date of an alleged civil rights violation. The completed 
AD-3027 form or letter must be submitted 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; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Karama Neal,
Administrator, Rural Business--Cooperative Service, USDA Rural 
Development.
[FR Doc. 2024-00713 Filed 1-16-24; 8:45 am]
BILLING CODE 3410-XY-P