MARBIDCO Grant Programs
Maryland Value-Added Producer Matching Grant
(MVAPMG – USDA Option) - CURRENTLY CLOSED
Up to 15% match for USDA Value Added Producer Grant
Maryland Value-Added Producer Matching Grant (MVAPMG – USDA Option) is designed to encourage participation in USDA's highly competitive Value Added Producer Grant Program (which has both planning and working capital components). The USDA VAPG does not award funding for capital equipment purchases.
Overview
The USDA Value-Added Producer Grant Program, is offered annually and requires a non-federal financial matching commitment and each application for the MVAPMG must include a “verification of matching funds."
To incentivize Maryland farmers to apply and to increase their competitiveness in the application process, MARBIDCO offers a grant of up to 15% of the USDA matching requirement.
To be eligible to apply to MARBIDCO for funding, an applicant must also be eligible under the USDA VAPG Program, and funds will only be awarded to those who actually receive the USDA VAPG award. To apply to the USDA VAPG program, click here, and to read the definition of value added as defined by USDA, click here. Each applicant that has been approved to receive a MVAPMG will receive a letter for submission to USDA that contains how much matching funding will be available to the applicant.
Maximum Grant Amount: $11,250 for Planning Grants and $25,000 for Working Capital Grants.
MARBIDCO 2024 Deadline: Paper applications must be postmarked by March 27, 2024. Digital grant applications may be emailed to scriste@marbidco.org prior to the deadline. Deadline is 11:59 p.m., April 1, 2024.
USDA Applications Deadline: Postmarked by April 11, 2024. Applications also are permitted via Grants.gov and must be received by 11:59 p.m. Eastern time on April 16, 2024..
Success Story:
MVAPMG – USDA Option
Seaberry Farm, owned and operated by Drs. Richard and Wenfei Uva, is a 36- acre farm specializing in specialty fruits and vegetables, cut flowers, and woody cut branches for the floral trade. In addition, the Caroline County farm is the largest beach plum grower in the country.
To increase the needed financial return from the operation, the Uva’s needed to expand processing capacity and strengthen the marketing for the beach plums. Seaberry Farm funded this initiative through Value-Added Producer Grants from MARBIDCO and USDA Rural Development, as well as a MARBIDCO MRBIFF loan, and a loan from the Caroline Economic Development Corporation.
Past MARBIDCO MVAPMG – USDA Option Investments
In 2021, MARBIDCO awarded two MVAMPG - USDA Option Grants to separate projects in Frederick and Washington counties for a total investment of $50,000. These funds helped to leverage approximately $454,550 in USDA grant money.
Application Submission Process
Under the USDA VAPG all applications will be screened for eligibility. The federal grant application is offered annually.
Applicants seeking to receive MARBIDCO matching funds for the USDA VAPG must submit an application to MARBIDCO at least two weeks prior to the federal deadline.
Applicants must attach a completed copy of their federal application form to MARBIDCO as part of the submission including all required attachments. All MVAPMG applicants meeting the MARBIDCO requirements will receive a commitment letter of matching funds to be included with their federal applications. The MVAPMG commitment amount cannot exceed 15% of the required non-federal match, and it may be for a lesser amount depending on the quantity of MVAPMG applications that are received and the size of the pool of available MARBIDCO funds.
MVAPMG monetary awards will only be provided to those applicants that are actually successful in obtaining USDA VAPG awards.
NOTE: The maximum cumulative amount of grant funding a single applicant may receive from all MARBIDCO grant incentive programs is $50,000.
Eligibility:
Eligible applicants must be an independent producer, agricultural producer group, farmer or ranch cooperative, or majority-controlled producer-based business venture (all defined terms under federal regulations).
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:
- Change in physical state;
- Differentiated production or marketing;
- Product segregation; or
- Economic benefit realized from the production of farm- or ranch-based renewable energy.
The USDA VAPG offers two options:
Grant and matching funds can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product.
Examples of planning activities include conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product.
Examples of working capital expenses include:
- Processing costs
- Marketing and advertising expenses
- Some inventory and salary expenses
Note that capital assets such as equipment, fixed buildings and certain types of infrastructure are not eligible as part of the USDA Value Added Producer Grant. MARBIDCO offers another program for this purpose for eligible farmers that is unique to Maryland.
Frequently Asked Questions
Who can apply?
Eligible applicants must be an independent producer, agricultural producer group, farmer or ranch cooperative, or majority-controlled producer-based business venture (all defined terms under federal regulations) who apply for a USDA Value-Added Producer Grant (VAPG). 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; and 4) economic benefit realized from the production of farm-or ranch-based renewable energy.
Why is it called a “matching” grant?
Because MARBIDCO MVAPMG monetary awards will only be provided to those applicants that are actually successful in obtaining a USDA VAPG, and USDA requires that matching funds be available.
What is the amount of grant funds that I can get?
The grant amount has been set at up to 15% of the of the matching funds required under the USDA VAPG (with a maximum of $75,000 for planning grants and $250,000 for working capital grants).
When can I apply?
The USDA Value-Added Producer Grant Program is currently open for applications.
Do I have to do business in Maryland?
Yes, the project must be located in Maryland.
What must be included with my application?
- A completed MARBIDCO application.
- Copy of your complete USDA Value-Added Producer Grant application.
- Business plan for the project to receive financing (required for Working Capital applications).
- Feasibility study (required for some Working Capital applications).
When is the deadline to submit an application?
MARBIDCO 2023 Deadline: Paper applications must be postmarked by March 29, 2024. Digital grant applications may be emailed to scriste@marbidco.org prior to the deadline. Deadline is 11:59 p.m., April 1, 2024.
USDA Applications Deadline: Postmarked by April 11, 2024. Applications also are permitted via Grants.gov and must be received by 11:59 p.m. Eastern time on April 16, 2024..
How will I know if I’ve been selected for a matching grant and how can I prove the availability of fund on my USDA application?
Commitment letters will be provided to qualified applicants approximately seven days in advance of the federal deadline.
Where can I obtain more information about applying for a USDA VAPG? Please visit USDA’s Rural Development website for information about the USDA Value Added Producer Grant, here.
