Help for Ag Producers
By Dr. Carrie Castille, Louisiana Director, USDA Rural Development
Agricultural producers and agribusinesses, regardless of size or type, foster growth and prosperity by producing food and creating jobs in rural communities. Often a lack of resources can hinder growth of their operations that is vital to the sustainability of agricultural production.
USDA Rural Development provides opportunities to connect growers to much needed resources that will help strengthen Louisiana and enhance the viability of local foods.
Through the USDA Business Programs, financial assistance is available to assist farmers, agricultural producers, and agribusinesses with access to much-needed capital, add value to products, improve energy efficiency and housing for farm laborers. Help is also available to eligible farmers, nurserymen, aquaculture operators, and others engaged in agricultural production.
The Business and Industry Guaranteed Loan Program (B&I) supports local and regional food enterprises and increase opportunities for new and existing businesses in rural areas to borrow money from private lenders. Through the B&I program, USDA will issue a guarantee to the private lender, giving the borrower more favorable interest rates. The borrower must be a cooperative, nonprofit organization, federally recognized Indian Tribe, public entity, corporation, or an individual.
The Value-Added Producer Grant (VAPG) Program helps agricultural producers increase their on-farm income by adding value to their products and find new markets for their value-added commodities. VAPG Grant funds can be used for planning activities, working capital for marketing value-added agricultural products, and for farm-based renewable energy. Eligible applicants include independent producers, farmer cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures.
The Rural Business Development Grant (RBDG) Program is designed to support targeted technical assistance, training, and other activities leading to the development or expansion of small and emerging private businesses in rural areas which will employ 50 or fewer new employees and has less than $1 million in gross revenue.
The Rural Energy for America Program (REAP) helps with renewable energy systems improvements through loans and grants to fund energy audits and renewable energy systems such as biomass, geothermal, hydropower and solar. Funds can be used to make energy efficiency improvements to heating, ventilation and cooling systems, insulation, and lighting and refrigeration. For example, 5678 Farms, a poultry egg production facility, received an REAP investment for $43,785 to purchase and install an 81.07 kW ground mount solar system that will reduce energy cost. Lowering energy costs helps businesses improve their bottom line.
The Rural Cooperative Development Grant (RCDG) helps to develop or expand local and regional food businesses to promote rural business ventures. RCDG grant funds can be used for organizations or participants to provide technical assistance, conduct feasibility studies, develop business plans, provide training, and facilitate strategic planning.
The Farm Labor Housing Program provides financing options to develop affordable housing for year-round and migrant or seasonal domestic farm labors. Eligible applicants include farmers, associations of farmers, family farm corporations, nonprofits, State and local governments, and federally recognized Indian Tribe. Borrowers can use funds for construction, improvement, repair, and purchase of housing, as well as related activities. Any area where a need for farm labor housing exists is eligible.
Elizabeth Doster was recently appointed as the USDA Rural Development Business & Industry Programs Director. You can reach her at elizabeth.doster@usda.gov or calling (318) 473-7960 to learn more about available resources. My staff and I will continue our efforts to work to ensure that people who live and work in rural areas have access to the same resources and services as people in urban and metropolitan areas. Please contact me at carrie.castille@la.usda.gov or (318) 473-7921, to let us know how we can help. When rural America thrives, all of America thrives.