Government department provides US$19 million for converting crops to renewable energy

WASHINGTON, DC, US, May 2, 2007. The U.S. Department of Agriculture will provide US$19.5 million to help independent agricultural producers enter into value-added activities.

Potential uses include a wide range of products that allow the producer to enhance the revenue stream generated from crops and other production, including the conversion of farm crops to create renewable energy sources, processing of raw commodities to a finished product, and conversion to organic production.

“These grants are a vital tool to help support rural businesses, create new markets for agricultural products and help the United States become more energy independent,” says agriculture secretary Mike Johanns.

The ‘Value-Added Agricultural Product Market Development’ grants are available to help agriculture producers develop business plans to produce bio-based products from agricultural commodities. Awards may be made for planning activities or for working capital expenses, with a maximum grant for planning of $100,000 and $300,000 for a working capital grant.

Applicants must provide matching funds at least equal to the amount of the grant requested. The grants may be used for feasibility studies and marketing plans, or to provide working capital for operating a business venture or marketing farm-based renewable energy projects.

Since 2001, USDA has funded $139 million in value-added grants for 940 recipients across the U.S., including $25 million to develop and market renewable energy projects in 33 states. Renewable energy projects include biodiesel, ethanol or wind energy production, or the use of biomass to generate energy.

The deadline for applications is May 16.

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