The 2024 VAPG Notice of Funding was just announced! Jim Gage recommends you get organized and make a plan. James Gage Principal -- James D. Gage Consulting, Inc Announced on January 17, the 2024 USDA Value Added producer Grant offers a unique opportunity for agricultural entrepreneurs to compete for planning and working grant funds. Fortunately, this year USDA is providing a 90-day writing period to grant submission. There are multiple ways to complete this task. JDG Consulting and the Food Finance Institute suggest that you think about the 90-day period as three separate one-month periods:  (a) research, planning, and eligibility;  (b) writing and document organization; and (c) editing, reviewing, and submitting the final document. Month 1 – Research, planning, and eligibility:Organize/download all government forms, apply for the UEI and SAM. Look at all eligibility elements of the proposal – are there any points that may make you ineligible? If you have any questions, email/call your state USDA desk officer. Do you need a business plan or feasibility study as part of the VAPG submission? If so, outline the document, determine what information you need, and seek assistance for technical issues. Remember a Feasibility Study needs to be a third-party analysis written by a qualified consultant. Gather research/trends related to your project.  Are there national, state, or regional data germane to your writing?  Do you have your company data that is applicable, or special sources of information that can be used (documented in a letter of support)? Take a first shot at outlining some of the main sections of the proposal.  Create a list of recommendation letters.  Draft first ideas on a workplan and budget.  List your team members and bullet point their qualifications.  Determine your value-added methodology status and how you will expand the market.  Bullet point ideas about the nature of your proposed venture (four questions).  What stands out as strong elements of the proposal?  What is currently lacking? Month 2 – Write a first draft of the proposalThe VAPG proposal is a mix of major writing tasks and minor writing tasks.  By the end of the month, you should have all tasks on paper in draft form. Identify the minor writing tasks – these are in the eligibility section, and the written statements that you will need for match verification, priority points, etc.  Is it clear what is needed for these sections – if not, check with the state USDA desk officer. Draft the following sections needed for scoring the proposal:  Nature of the Proposed Venture (30 pts);  Qualifications (20 pts);  Commitment and Support (10 pts); and Workplan and Budget (20 pts).  Consider the Administrative Points question (10 pts) and whether you can provide some justification for that question.  Whether you are drafting the document for the first time, revising an old document, or working with a consulting team, make sure that your Business Plan and/or Feasibility Study documents are on track to be finished by the application deadline.  Additionally, determine what information is these documents should be summarized and presented in the body of the VAPG application. Month 3 – Edit, review and submit:Take 1-2 days off before you start the editing and review process. Request your USDA desk officer to provide a final review of eligibility of the proposal – this should include the eligibility of workplan requests as part of the budget. Review the scoring pieces of the budget, and seek out someone with grant reviewing expertise to provide an approximate score that you might expect. As part of the review and editing, consider whether you have answered all the USDA specific questions, whether additional rationale is needed, and/or whether additional data is needed to support the writing (example:  quotes from letters of support)Make sure that all letters of support are in hand by 2-3 weeks before the deadline so that quotes can be ...

https://vimeo.com/894990556?share=copy On December 14, 2023, FFI launched its 2024 Value Added Producer Grant (VAPG) programming with a free webinar, "Preparing for the 2024 VAPG." During this 90-minute session, renowned VAPG writer and consultant James Gage, FFI Farm Outreach Specialist Andy Larson, and USDA VAPG national co-coordinator Mike Daniels discussed key considerations for the 2024 VAPG. Attendees also heard from Michael Gutschenritter of Three Brothers Farm and Sarah Werner of Werner Creek Farm as they shared their experiences applying for and receiving a VAPG. Both Michael and Sarah utilized FFI's VAPG programming to help them prepare a winning VAPG application. Farm entrepreneurs that are serious about applying for the 2024 VAPG are encouraged to register for FFI's 2024 VAPG Boot Camp taking place on January 8-11, 2024. << Click here to learn more and register for the VAPG Boot Camp >>

Don’t wait for the next RFA to drop! Writing a Value Added Producer Grant takes substantial time, strategy, organization, and mobilization.

This webinar discusses funding opportunities from the USDA, in particular the Farmers Market (FMPP), Local Food (LFPP) Promotion Program, and Regional Food Systems Partnerships Program (RFSP) Grants. These programs help with the development and expansion of local and regional food systems. The request for proposals are out with applications due on May 2nd.

As we close out 2022, let’s look back at the biggest events, actions, policies, and trends to impact food and agriculture.

Working one-on-one with an expert coach, the founders of Forage Kombucha, Rally Energy, and Driftless Provisions each dug deep into sales, operations, accounting, finance, food safety, marketing, branding, and more. They also learned from their fellow cohort members and gained valuable opportunities through FFI’s extensive network of investors, consultants, and service-provider partners.

The FFI Fellows Program provides a unique, impactful opportunity where each entrepreneur is paired with an industry-expert coach, and together, they work through sales, operations, accounting, finance, food safety, marketing, branding, and other key areas of business.

Plenty of food and farm businesses are awesome in theory, but then they just don’t pan out in the real world. So how can you avoid this fate? By actually testing and validating your assumptions early in the process.

Idella Yamben, Ph.D., shares how the Wisconsin Center for Technology Commercialization helps early-stage businesses test assumptions and secure grants to foster commercialization.

When farmers seek financing, the vast majority go through banks, credit unions, and other traditional lenders. Many also take advantage of government grants and loan programs. Rarely do they take on equity investment—but that doesn’t mean it can’t be a viable option. Trading a slice of ownership for working capital may enable a farmer to install infrastructure, purchase equipment, increase acreage, or invest in other key areas that propel business growth.   Cliff McConville, founder of All Grass Farms northwest of Chicago, has had great success with equity financing. Around 2014, he and partner Anna had wanted to lease more land and renovate an old dairy barn, but they lacked the cash. And since they’d been in business for only 2.5 years and generated just $200,000 annually, they knew they’d have a tough time getting a bank on board. Instead, Cliff hit up four longtime friends who had investible assets. Collectively, the friends assumed 30% of the business, giving Cliff and Anna the capital to install a milking parlor, septic system, and other upgrades. As All Grass Farms increases profitability, they will start distributing dividends annually. In the latest Edible-Alpha® podcast, Cliff shares his best advice for farmers considering equity financing. Get your feet wet first. Cliff recommends the equity route, but not when farmers are just starting. “Bootstrap your business until you really know that you are passionate about farming and know what to do to be successful,” he says. “We raised capital in our third year, after I had a better idea of our needs, how the business was evolving, and whether this was something I wanted to do this for the rest of my life and that we could make money.” Shore up your business plan. Before courting any type of financing, farmers should draw up or polish up their business plan. Cliff kept his a simple 10-pager that spelled out pro forma financials and projected revenues. Hit up friends and family. It could be tough to convince angel investors whom you don’t know personally to buy into a farm, whereas loved ones may be an easier sell. Plus, family and friends are often more laid back, patient, and understanding. Consider loyal customers. A committed customer or two might be eager to support your business, so don’t overlook them as potential investors.   Be clear about expectations. No matter whom you pitch investment to, “make sure they understand the nature of this slow-money business,” Cliff says. “I spelled out that we’re not projecting to make a bunch of money in the next five years—this will be a long, slow enterprise. I positioned it as a feel-good investment, not a huge financial windfall. It’s about supporting a business they buy from and believe in.” Raise more than you think you’ll need. Cliff figured it would cost $120,000 to get the barn up to snuff and farm store open. His prediction fell way short, and the investor money ran out fast. “The moral of the story is everything will take twice as long and cost twice as much as you think,” Cliff says. “So make your best estimate and then double it.” All Grass Farms provides grass-fed beef, raw A2 milk, and a range of pastured proteins, along with operating a farm store, so it’s a good thing owner Cliff McConville has a lock on financial management. Adept at enterprise-level analysis, Cliff carefully tracks costs, revenues, and profits to inform business decisions and strategize growth. Learn how he has expanded this diversified ag operation through unique financing and smart decision-making. Listen to the Latest Episode And now, our roundup of the best food and beverage finance news, events and resources from around the web… Business Model Insights Is the era of online shopping as the ‘great equalizer’ for small and large brands ending? (FoodNavigator-USA)Early in the pandemic, emerging food brands enjoyed a lower barrier to market entry courtesy of the surge in online grocery shopping.