Nine Iowa-based businesses are receiving a total of $1,215,070 as part of the announcement. "This funding will enable farmers and ranchers to develop new products, improve the bottom line for their operations and help create a robust local and regional food system," Dore said. "Value-Added Producer Grants provide capital to enable ag producers to grow their business through diversification. USDA's support is especially important for beginning farmers and smaller farm operations."

ADDING VALUE: Value-added producer grants from USDA provide capital to enable farmers and ag businesses to grow their local businesses through diversification. Support provided by this USDA program is especially important for beginning farmers and smaller farm operations.

USDA Deputy Under Secretary of Agriculture for Rural Development, Vernita Dore, last week highlighted the importance of rural entrepreneurs to the U.S. economy and announced that USDA is investing nearly $34 million to help 258 businesses nationwide. The funding comes from USDA Rural Development's Value-Added Producer Grant program (VAPG).

Funding helps farmers develop new products, diversify locally
Nine Iowa-based businesses are receiving a total of $1,215,070 as part of the announcement. "This funding will enable farmers and ranchers to develop new products, improve the bottom line for their operations and help create a robust local and regional food system," Dore said. "Value-Added Producer Grants provide capital to enable ag producers to grow their business through diversification. USDA's support is especially important for beginning farmers and smaller farm operations."

Value-Added Producer Grants can be used to develop new agricultural products or additional markets for existing ones. Military veterans, socially-disadvantaged and beginning farmers and ranchers, operators of small- and medium-sized family farms and farmer cooperatives are given priority when applying for these grants.

Those receiving latest round of VAPG funding in Iowa include:
• Doe's and Diva's Dairy, Inc. at Honey Creek, Iowa:  $43,520 in grant funds will be used as working capital to expand sales of goat cheeses and lotions

• Wilrona, LLC, doing business as Fireside Winery at Marengo, Iowa: $43,650 in grant funds will help develop new markets and increase sales

• Hansen's Farm Fresh Dairy, Inc. at Hudson, Iowa: $49,900 in grant funds will help the business improve their product packaging and expand their market area for dairy products

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• Kathy's Pumpkin Patch & Harvest, LLC, doing business as Harvestville Farms at Donnellson, Iowa: $120,000 in grant funds will help expand and improve the operating efficiency of this diversified produce business

• Lime Springs Beef, LLC at Lime Springs, Iowa: $250,000 in grant funds will be used  to support a new beef processing facility in northern Iowa

• Penoach Winery and Nursery LLC at Adel, Iowa: $48,000 in grant funds will be used to assist the winery to expand markets and increase sales

• Sawmill Hollow, Inc. at Missouri Valley, Iowa: $250,000 in grant funds to help market an organic aronia berry product line in 15 key markets

• Fox Ridge Farm, Inc. doing business as Wilson's Orchard at Solon, Iowa: $160,000 in grant funds will be used to help develop new markets and grow sales

• WW Homestead Dairy, LLC at Waukon, Iowa: $250,000 in grant funds will be used as working capital to help increase production, packaging and marketing of ice cream and other dairy products

About 18% of grants in program are awarded to beginning farmers
Funding of each award announced is contingent upon the recipient meeting the terms of the grant agreement. Since 2009, USDA has awarded 1,115 Value-Added Producer Grants nationwide totaling $154 million. Approximately 18% of the grants and 14% of total funding has been awarded to beginning farmers and ranchers. During 2015, more than one-third of VAPG awards went to farmers and ranchers developing products for the local foods sector.

VAPGs are a key element of USDA's Know Your Farmer, Know Your Food Initiative, which coordinates the department's work on local and regional food systems. These are major contributors to rural economic development. Congress increased funding for the value-added program when it passed the 2014 Farm Bill. That measure builds on historic economic gains in rural America over the past seven years, while achieving meaningful reform and billions of dollars in savings for taxpayers.

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USDA Rural Development programs are helping rural Iowa
USDA Rural Development's funding continues to have a dramatic impact on rural communities across Iowa. Since 2009, USDA Rural Development has invested more than $3 billion on essential public facilities, small and emerging businesses, water and sewer systems, and housing opportunities for Iowa families.

This past year USDA Rural Development's investment in Iowa helped create or retain more than 1,000 jobs, aided 2,400 families in buying their own homes and assisted more than 50 communities as they made improvements to their facilities, services and infrastructure. For more information about finance programs available through USDA Rural Development, call 515-284-4663 or visit rd.usda.gov/ia.

USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.