DOAG: State Grants vs. State Budget

State Grants vs. State Budget

 
By Ron Olsen, Marketing Representative
 
As all are probably very aware by now, our state budget has been in flux for a year and our department programs are being steadily cut.  At this date it appears both our state and our department budgets are finally set, although changes are always possible.  This means changes in the way our department programs will be managed over the next few years.  These changes include our competitive agricultural matching grant programs.
 
Farm Reinvestment Grant - The Farm Reinvestment Grant applications that were received by the due date of April 30, 2009 have been sitting in a file since that time.  These grants may only be used for capital improvements by producers and the maximum award is $40,000.  The $500,000 allotment that must be approved by the bonding commission prior to our department receiving the funds has not been approved.  This is due to the fact that the Bonding Commission had not met all summer. The state budget crisis has made it uncertain as to whether or not the Bond Commission begins meeting again, programs such as the Farm Reinvestment Grant will placed on the agenda for a vote.  We are hopeful, and it looks like there’s a good possibility that we will have the money, but it is uncertain.  This means that those who applied for the grant should not count on funding for this year.  Those who need to start their projects should proceed, knowing that if they do begin the project they might not be funded by any department grant program.  It’s unfortunate that those farmers who were looking for this influx of cash in order to complete a farm project may be unable to fund the capital enhancement without the grant.   Hoping that the funding for this grant may be bonded, we will hold the existing applications for those farmers who may be willing to wait.
 
Agriculture Viability Grant Program - The Farm Viability Grant which allocates $500,000 each year to municipalities and agricultural non-profits will be funded this coming year (to the best of our knowledge).  November 13, 2009 is the application deadline for this grant this year.
 
The Farm Transition Grant - The Farm Transition Grant allocates $500,000 each year to farm producers and agricultural cooperatives will also be funded this coming year.  November 13, 2009 is also the application deadline and we will be accepting applications up to that date. 
 
Joint Venture Program - The Joint Venture program which distributes matching grants of up to $5,000 to associations and $2,000 to producers will be funded this coming year.  The application period is from January 1, 2010 until January 31, 2010 and we will be accepting applications during that time.
 
It is fortunate that our funding seems to be available this year however, everyone should be aware that things could change at any time.  We encourage your to get your applications in and we’ll go from there.  Those who have applied for the Farm Reinvestment Grant may apply again for the Farm Transition Grant.  If your business plan is good enough, you may be awarded this grant and then go ahead with your project. The most important component to all our grant applications is the business plan that accompanies the application, since we grade the applicants on the strength of this plan. 
 
Questions regarding any of the above grants can be directed to the Marketing Bureau at 860-713-2503.