USDA Rural Development's Value-Added Producer Grant (VAPG) Program was first authorized by the Agricultural Risk Protection Act of 2000 and amended by the 2002 Farm Bill.

Grants are made to enable producers to develop businesses that produce and market value-added agricultural products. It is the goal of the VAPG to help accelerate the pace of the transformation of the nation's agricultural economy into one focused on producer-owned value-added business.

Eligible applicants are independent producers, farmer or rancher cooperatives, agricultural producer groups and majority-controlled producer-based business ventures.

Grants may be used for planning activities and for working capital for marketing value-added agricultural products and for farm-based renewable energy.

Planning activities include conducting feasibility studies and developing business plans for processing and marketing value-added agricultural products. Planning grants are limited to $100,000. Working capital expenses for processing marketing value-added agricultural products include inventory, salaries and office supplies. Working capital grants are limited to $300,000.

Applications are being accepted now through March 31. For more information, call Rural Development at 724-482-4800, Ext. 1.

Conservation Compliance

All participants in USDA programs are required to have a conservation system in place on all the highly erodible land (HEL) that they operate.

Several areas where problems can arise with complying with a conservation system are renting new cropland, purchasing new land, breaking out additional cropland, planting different crops such as soybeans, and changing or removing existing conservation practices.

It is very important that you contact the FSA office before doing any of the above. In addition, it is very important that you contact our office before modifying — tiling, draining, dredging, filling or leveling — any wetland or drainage ditch. Failure to obtain advance approval for any of these situations can result in loss of all Federal payments and eligibility.

Luke Fritz is executive director of the Butler County Farm Service Agency.