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MARBIDCO Grant Programs

Maryland Value Added Producer Grant - Capital Assets Option (MVAPG-CAO)

THIS GRANT IS CURRENTLY NOT AVAILABLE, IT IS CLOSED FOR FY2022 AND WILL NOT RETURN IN FY2023.

Helping farmers expand or diversify with value-added products 

MARBIDCO offers grants periodically of between $2,500 and $10,000 distributed on a competitive basis for value added processing capital asset projects. Eligible applicants must be a crop or livestock producer or processor, agricultural cooperative, seafood processor, or primary or secondary timber products processor, and have been in business for a minimum of two years. In addition, applicants must be making a product that is “value added.”

Download Application
Word | PDF

 

 


Cider fermentation tank

Overview

Maryland Value Added Producer Grant – Capital Assets Option (MVAPG–CAO) program is designed to encourage farms and other rural businesses wanting to expand or diversify their operations through value added processing to purchase equipment or construct facilities.

Applicants must be making a product that is “value added.” A product that is value added has an incremental value realized by the producer or processor as a result of:

  1. Change in physical state;
  2. Differentiated production or marketing;
  3. Product segregation; and / or
  4. Economic benefit realized from the production of farm- or ranch-based, rural community-based biomass energy.

MVAPG funds and matching funds must be used for capital assets that have a useful life of seven years or more. Grants are made on a 1:1 match, meaning the applicant must supply matching funds that are equal to or greater than the amount requested from MARBIDCO.

Maximum Grant Amount: Awards are made of up to $10,000 per applicant ($2,500 minimum request).

The maximum cumulative amount of grant funding a single applicant may receive from this program is $30,000, and from all MARBIDCO grant incentive programs, the cap is $50,000. Additionally, a previous MARBIDCO grant incentive fund account must be closed out (i.e., there are no funds remaining) before an applicant can be considered for a new grant incentive award.

Success Story:
MARBIDCO MVAPG-CAO

Faulkner Branch Cidery & Distilling

Recently, Blades Orchard in Caroline County, Maryland expanded its orchard and CSA business to include a distilling company, Faulkner Branch Cidery & Distilling Company, LLC.

The Blade family applied for and received funding from MARBIDCO’s Maryland Value Added Producer Grant – Capital Assets Option Program to purchase a still and construct a building that would enable them to obtain a distilling license.

MARBIDCO MVAPG–CAO Investments
Since the MVAPG-CAO grant was established in 2011, MARBIDCO has awarded just over $1.1 million to fund 102 projects in nearly every county in Maryland and in Baltimore City.

MARBIDCO funded 279 value-added projects for a total investment of $7,052,134.00..

Application Submission Process

Basic application requirements 

  • Completed application form (please no binders)
  • Evidence of matching funds
  • Tax returns (including all Schedules for most recent past year)
  • Detailed business plan 
  • Agree to site inspection prior to final approval
  • If awarded must also agree to site inspections during construction phase of project

Download Application
WordPDF

“The funds from this value-added grant are helping us achieve our goal of expanding our farm business.”

- Lynda Blades of Blades Orchard
at Friendship Farms in Caroline County

Eligibility
Eligible applicants must be a crop or livestock producer or processor, agricultural cooperative, seafood processor, or primary or secondary timber products processor, and have been in business for a minimum of two years.

In addition, applicants must be making a product that is “value added.” A product that is value added has in incremental value realized by the producer as a result of:

  1. Change in physical state;
  2. Differentiated production or marketing;
  3. Product segregation; or
  4. Economic benefit realized from the production of farm- or ranch-based renewable energy.

Eligible Expenses
Eligible expenses are capital assets which will help farmers, forest product operations and seafood processors to expand or diversify their business operations. Examples include, but are not limited to, the following:

  • Production buildings and major fixtures
  • Livestock or seafood processing facilities
  • Fruit, vegetable or timber processing facilities
  • Creamery production equipment
  • Manure digesters
  • Optimization systems for maximizing fiber yield recovery
  • Dry kilns, shavings mills, sawdust dryers and in-woods chippers

Ineligible expenses are those not specifically stated under eligible expenses, such as, but not limited to, the following:

  • Any expense incurred prior to Thursday, September 23, 2021.
  • Tractors, combines, sprayers or similar common farm implements and attachments thereto
  • Any self-propelled vehicles (except certain vehicles used in timber processing)
  • Property acquisition costs
  • Mortgage refinancing
  • Cost of borrowing (e.g., points and other fees)
  • Site plan and construction permits
  • Wages paid to applicant or employees, or applicant or employee training costs
  • Solar or wind energy projects
  • Furnishings, fixtures or equipment considered personal (non-business) property
  • Machine storage, ancillary workshops, housing, classrooms, etc.
  • Any portion of expense for which the applicant pays a contractor in merchandise or service in lieu of cash
  • Attorney’s fees and consultants’ fees
  • Fees and/or costs not consistent with eligible costs

Frequently Asked Questions

Who can apply?
Farmers, forest products operations, and seafood processors who plan to expand or diversify their operations with “value-added” products. Agricultural cooperatives may also apply. Government or educational organizations may not apply, although they may provide assistance to successful applicants in implementing the project.

What is the minimum or maximum amount of grant funds that I can get?
The minimum grant amount has previously been set at $2,500 and the maximum will be around $10,000. The funds must be matched on at least a one-for-one basis with funds provided by the grantee.

Does the size of my operation make a difference?
Any size operation can apply, as long as you have been in business for at least two years and meet the other requirements.

Do I have to do business in Maryland?
Yes, the project must be located in Maryland.

What must be included in my business plan?
The business plan should be detailed and demonstrate: (a) how the production facility or business operation will remain ongoing for at least seven years; (b) how the project will increase sales, retain or add jobs, etc; (c) the market(s) to be served and project cost estimates, and (d) how you will comply with all governmental requirements. For more on developing a business plan contact your local extension agent or SBDC office, or see http://www.marbidco.org/business/BusinessPlanningGuide.pdf.

Does it have to be a single piece of equipment?
No. Multiple pieces of equipment are eligible.

Can I use grant funds to hire someone to operate the equipment?
No. Grant funds can be used only to purchase the equipment or build the facility.

How closely related to my current operation does the new project have to be?
The intent is to encourage business expansion or diversification. The important thing is that you show in your business plan that you have the knowledge and resources to make the project successful.

What if I received a Maryland Value-Added Producer Grant (Capital Assets option) from MARBIDCO previously?

  • Your open grant fund account must be closed out (i.e., no funds remaining);
  • You may not receive more than $30,000 in aggregate funding.