USDA grants and loans support R.I. food businesses

  ·  The Westerly Sun, The Westerly Sun   ·   Link to Article

WARWICK - Farmers, fisherman, dairy producers, oyster growers, and representatives from the food industry met with officials from the U.S. Department of Agriculture last week for a forum about federal funding opportunities available to support area food businesses.

The workshop, organized by Sen. Jack Reed, D-R.I., focused on efforts to help boost marketing and sales, support direct farm-to-fork programs, and improve food system distribution and sustainability. "This is about helping local food producers grow their marketplace, increase sales, and ultimately create more jobs here in Rhode Island," Reed said. He is chariman of the Senate Appropriations Committee's Interior and Environment Subcommittee.

Funding opportunities include: ·

The Farmers Market and Local Foods Promotion Program: Administered by USDA's Agriculture Marketing Service, the newly expanded program makes $30 million available annually to farmers markets, other direct producer- to-consumer venues, and businesses in the local food supply chain. Half of the funding is available for marketing and promotional support for local food businesses, including food hubs, delivery and aggregation businesses, and processing and storage facilities. The other half is for marketing support for farmers markets and other direct-to-consumer outlets.

Business and Industry Guaranteed Loan Program: $48 million in low-interest loans is available for local food projects through Rural Development's business and industry loan guarantees. Nonprofits, cooperative organizations, and businesses may apply for these loans for projects that benefit the local community.

Value-added Producer Grants: This funding is available to help agricultural pro- ducers create new products, expand marketing opportunities, support further processing of existing products or goods, or to develop specialty and niche products. The grants may be used for working capital and planning activities. Funding priority is given to socially disadvantaged and beginning farmers or ranchers and to small-to medium-size family farms or cooperatives. Rhody Fresh has used this funding to bolster its marketing and help promote new products, such as locally made cheeses.

Community Facilities Loans and Grants: These loan funds may be used to construct, enlarge, or improve community facilities in rural areas and small towns. Lisa Raiola, the founder of Hope & Main, recently used a $2.99 million USDA Community Facilities loan to transform a 100-year-old shuttered school building on Main Street in Warren into the state's first full-service food business incubator.

Renewable Energy Funding: The USDA Rural Energy for America Program provides assistance to agricultural producers and rural small businesses, offering loan guarantees and grants. The program helps eligible applicants install renewable energy systems and make ef-ficiency improvements.

Rural Community Development Initiative: This program is designed to help generate economic activity in rural areas by helping local and regional organizations assist small and emerging businesses. The money can be used to improve housing and community facilities, and for community and economic development projectss. · Specialty Crop Block Grants: This year, USDA is making over $255, 000 in a Specialty Crop Block Grant available to the Rhode Island Department of Environmental Management and to food and other specialty crop growers. Past recipients of these federal grants include: Farm Fresh Rhode Island; the Northeast Organic Farming Association of Rhode Island; Beanhouses Inc.; and the URI Cooperative Extension.

The USDA's Know Your Farmer, Know Your Food Compass map outlines several local and regional food projects supported by USDA and 11 other federal agencies. With increasing consumer demand for local foods, Rhode Island's food hubs help aggregate products from local farms so that large-volume buyers, such as restaurants and grocery stores, can buy local foods directly from family farms. "This is about helping local food producers grow their marketplace, increase sales, and ultimately create more jobs here in Rhode Island." U.S. Sen. Jack Reed, D-R.I.

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