US Department of Agriculture (USDA) Grants and Incentives for the Agricultural Advancement of Your Business

  • By Ignacio Cetrangolo, MSc, PMP
    • Dec 28, 2023
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History, Objectives, and Mission

Established in 1862 by President Lincoln, the United States Department of Agriculture (USDA) has a significant history in American agriculture. It serves as a core supporter of this essential industry, driven by a mission to promote innovation, sustainability, and progress. This commitment involves research, education, regulation, and funding. The USDA contributes to the country’s economic and environmental well-being by providing diverse federal funding opportunities, including grants and incentives. For businesses seeking these resources, the USDA offers extensive possibilities. This article will explore how your company can utilize USDA grants and incentives to fuel growth ambitions across industries like Farming, Agriculture, Biotechnology, and more.

It’s worth highlighting that the USDA operates within a vast landscape, encompassing several sub-agencies, each with its own specialization in various aspects of agriculture and related domains. Some noteworthy sub-agencies include:

  • National Institute of Food and Agriculture (NIFA)
  • Food and Nutrition Service (FNS)
  • Agricultural Research Service (ARS)
  • Natural Resources Conservation Service (NRCS)
  • Animal and Plant Health Inspection Service (APHIS)

Where to Start: Exploring USDA’s Program Directory

The USDA’s program directory encompasses a diverse spectrum of opportunities and industries, tailored to different stages of business growth. By visiting the Grants and Loans section, you’ll find a comprehensive directory of programs, each with detailed descriptions, eligibility criteria, and application guidelines.

At Leyton, we provide our clients with unmatched expertise by identifying the programs that most align with your business as well as guiding you through the application process.

Prerequisites and Eligibility for USDA Grant Acquisition

To apply for USDA grants, certain registrations are necessary to ensure compliance and transparency, including but not limited to:

  • Dun & Bradstreet Universal Numbering System (DUNS Number): this unique identifier for businesses and organizations that is often required for federal grant applications.
  • System for Award Management (SAM Registration): this registration is necessary for organizations to do business with the federal government, including applying for grants. It’s a central database that stores information about entities that receive federal funds.

These registrations are crucial to maintaining accountability and oversight throughout the grant application and award process.

Available Grants and Success Stories

The USDA offers a diverse range of grants, each tailored to support specific aspects of agricultural development. Some examples include:

  • Rural Business Development Grants: Fostering rural entrepreneurship and economic growth.
  • Value-Added Producer Grants (VAPG): Enhancing value chains and product diversification.
  • Rural Energy for America Program (REAP): Improving energy efficiency within the agricultural sector.
  • Conservation Innovation Grants: Promoting conservation-focused research and initiatives.

Businesses like Sunsweet Growers, Inc. based in California secured a VAPG in 2014 for $250,000 to support the expansion of their operations for high-end prune products. It enabled them to introduce innovative processing techniques, leading to a significant increase in product quality and market demand1. Three years earlier, they successfully received a $300,000 VAPG to build awareness among commercial and industrial customers for its diced dried prune products.2

Bowman & Landes Turkey Farm from Ohio, embraced sustainability and energy efficiency. With their commitment to environmental stewardship, they leveraged a $59,900 REAP award in 2020 to install a new 220 kW solar array, adding to their existing solar installations. This solar initiative provided 50% of their yearly operating needs, resulting in annual savings of $25,000 and the ability to sell excess energy to the grid. This project exemplifies how REAP grants can drive both environmental benefits and business success.3

Embracing Growth with USDA

In summary, if your business is geared for growth in the agricultural and related sectors, exploring USDA grants and incentives is a strategic step forward. By understanding the offerings, qualifications, and success stories, you can unlock the potential of USDA resources to fuel your expansion ambitions. By partnering with Leyton, our expert team is here to streamline the application process and maximize the benefits of these opportunities.

Citations

  1. USDA Grants and Loans. Retrieved from: https://www.usda.gov/topics/farming/grants-and-loans
  2. Jubilee Orchards Value-Added Producer Grant Case Study. Retrieved from: https://www.agmrc.org/media/cms/VAPG_Jubilee_Orchards_FAEF5D9BFAC99.pdf
  3. Sunsweet Growers Inc. Case Study. Retrieved from: https://www.agmrc.org/business-development/valueadded-agriculture/case-studies-of-value-added-producer-grant-recipients/sunsweet-growers-inc

Author

Ignacio Cetrangolo, MSc, PMP

Engineering and Software Consulting Team Lead

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