THE GALT HERALD: MATSUI HOLDS INFO SESSION ON USDA AG GRANTS, LOANS
Local agricultural businesses can access federal grants and loans to expand their product lines or improve energy efficiency. That was the message at an informational meeting hosted in Galt by U.S. Rep. Doris Matsui, D-Sacramento.
Matsui said at the March 20 meeting that she is reaching out in southern Sacramento County after winning election in the redrawn Congressional District 7, which includes Galt and the rest of the south county, along with West Sacramento and part of the city of Sacramento. Before redistricting, she represented Sacramento and communities to the north, like Natomas and Antelope.
Thinking about how to connect the areas in her district, Matsui told the Herald that she sees Galt as a “hub” of the rural communities in the south county.
“You have Galt here, kind of in the area which is more rural, but it’s a city, and it wants to grow in the right way,” Matsui said. “And so I think for that reason it could be a hub to help all the areas outside of it grow in the right way, too.”
Accompanying Matsui were representatives of U.S. Department of Agriculture (USDA) Rural Development, who spoke about value-added producer grants and the Rural Energy for America Program.
Value-added producer grants
Value-added producer grants (VAPGs) provide capital to help agricultural producers create and market new value-added products from their agricultural output.
VAPGs come in two types: planning and working capital. Planning grants fund an assessment of the feasibility of a product concept, and they can be up to $75,000. Working capital grants finance production, processing costs and promotion for example, and they can be up to $250,000.
Rural Development’s Dan Johnson cited an olive grower to the north of Yuba City that received $250,000 to develop a line of salad dressings.
Eligible applicant categories are independent producers, ag producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures. Priority can be given to new farmers who have been in business for fewer than 10 years, socially disadvantaged farmers, midtier value chains, and farmer or rancher cooperatives.
There is a 1-to-1-match requirement, along with rules for how much of the raw commodity used a producer must own and what portion of the proposed expenses needs to be eligible for funding.
Online applications are due by May 11, and paper applications by May 16.
For details on the VAPG requirements, visit the USDA website at bit.ly/401PtY5 (case sensitive). Alternatively, contact Sandra Pedrotti (sandra.pedrotti@usda.gov), or Jose Arroyo (jose.arroyo@usda.gov), who can provide help in Spanish.
Rural Energy for America Program
The Rural Energy for America Program (REAP) offers grants and loan guarantees for ag producers and rural small businesses that want to install renewable-energy systems or make energy-efficiency improvements.
Eligible projects include solar power; anaerobic digesters; and improvements to lighting, refrigeration or insulation.
Rural Development is focusing on grants, Johnson said, after getting an infusion of funding from the recently passed Inflation Reduction Act. A grant can cover up to 40% of a project’s cost (an increase from 25%), and it can range as high as $1 million for renewable-energy projects or $500,000 for energy-efficiency projects. USDA can guarantee up to 75% of a loan of up to $25 million. Plans that combine grants and loan guarantees can cover up to 75% of the project cost.
The submission deadline is currently March 31. Johnson said USDA may start accepting applications on a quarterly basis.
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