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USDA grants support home-grown fuels.

USDA Rural Development is helping to stimulate the rural economy by providing matching grants under its Value Added Producer Grant program (VAPG). Alternative energy projects--including farmer-owned ethanol and biodiesel plants--have been major beneficiaries, as the table on the following pages shows.

The VAPG Program was authorized by the Agriculture Risk Protection Act of 2000 and was amended by the 2002 Farm Bill. Grants may be used for planning activities and working capital for marketing value-added agricultural products and for farm-based renewable energy.

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

The maximum amount that can be awarded is $500,000, and all VAPG funds must be matched by an equal amount of funds from the applicant or a third party.

Applications for the 2004 program closed on July 30, 2004. But interested groups are encouraged to keep track of details for the next round of funding by periodically checking the VAPG

Web site at: About $13.2 million will be awarded in 2004.

For more information about the program, please contact your USDA Rural Development state office (contact information is included on the VAPG Web site, or by calling (202) 720-4323, then entering "1" at the voice prompt).

You may also contact the USDA Rural Development national office in Washington, D.C., through e-mail:, or by phoning Marc Warman at (202) 690-1431, or Gail Thuner at (202) 690-2426.
VAPG grants awarded for alternative energy projects,

Recipient State Grant Project Project Description
 Amount Type

Minnesota MN $500000 biodiesel Conduct feasibility
Soybean studies evaluating
Processors soy diesel processing
 plant and oil
 refinery, as well as
 grain processing.

South Dakota SD $500,000 biodiesel Study vertical
Soybean integration of soybean
Processors meal, soybean hulls and
 crude soybean oil.
 Applicant intends to
 focus on soydiesel,
 refined vegetable oil,
 polyurethane products

Pacific Rim WA $500,000 ethanol For construction of a
Ethanol LLC 40-million-gallon-per-
 year fuel and
 ethanol and wheat
 gluten processing
 facility in central

Central IL $60,000 ethanol Conduct a feasibility
Illinois Ag study for a grain
Coalition ethanol facility.

Midwest Grain IA $500,000 ethanol Working capital for
Processors operation of an
Cooperative ethanol plant in
 Kossuth County, Iowa.
 The plant will use 16
 million bushels of
 corn annually to
 produce 45 million
 gallons of denatured
 fuel-grade ethanol.

Siouxland IA $500,000 ethanol Working capital for
Energy & ethanol plant expected
Livestock to produce 14 million
Cooperative gallons of ethanol
 annually, as well as
 wet distillers grain,
 a high-energy animal

Pine Lake IA $500,000 ethanol Working capital for
Corn startup costs of
Processors ethanol plant. The
 plant is expected to
 produce 15 million
 gallons of ethanol
 annually, as well as
 distillers grain for
 animal feed and

Quad County IA $500,000 ethanol Working capital for
Corn the startup of an
Processors ethanol plant in
Cooperative west-central Iowa.

Hopkinsville KY $500,000 ethanol Applicant will grind
Elevator Co., 7.3 million bushels of
Inc. corn and produce 20
 million gallons of
 fuel-grade ethanol and
 58,400 tons of
 distillers dry grains

Dakota Corn SD $401,704 ethanol Working capital for
Processors ethanol plant expected
Cooperative to purchase over 14
 million bushels of
 corn and to produce
 40 million gallons of
 ethanol annually.

Iowa Soybean IA $77,000 biodiesel For feasibility study
Promotion for using soybean oil
Board as a base fuel to
 produce renewable

Garden State NJ $219,000 biodiesel For feasibility study
Ethanol and developing a
 business plan for a
 greenhouse and
 aquaculture facility.

Power Plus IA $500,000 biodiesel To assist in the
Technologies startup of a biodiesel

Mid-America MO $450,000 biodiesel To establish a
Biofuels, LLC producer-owned
 biodiesal plant in

Karlon Farms, ID $65,000 biomass To complete
LLC feasibility study for
 using grain and grass
 straw for supplemental
 biomass fuel to
 generate electricity.

Merrill's Egg ID $39,835 biomass To study feasibility
Farm of converting poultry
 waste into energy and
 creating carbon

Cinergy IN $50,000 biomass For feasibility study
Services, and business plan for
Inc. biomass co-firing
 plant in Indiana.

Cook Swine MS $65,429 biomass To assess availability
Farm and feasibility of
 various bioenergy
 technologies for swine

K & G Farms MS $48,032 biomass To help Mississippi
 poultry producers find
 uses for litter
 generated on farms.

Partners In WI $69,700 biomass For a feasibility
Forestry study to help identify
 raw-product supplies
 and niche markets for
 manufacturing, and to
 determine feasibility
 of biomass energy from
 wood residue to power
 small electric
 generating plants.

Charles AZ $150,000 ethanol For a feasibility
Feenstra study for an ethanol
Dairy, LLC and distillers grain
 plant in Arizona that
 would benefit 144
 livestock producers.

Olathe Patato CO $41,300 ethanol To evaluate viability
Growers of an ethanol plant
Cooperative and commercial feedlot
Assoc. operation in Western

Golden Grain IA $74,000 ethanol To study feasibility
Energy LLC of entering the
 emerging ethanol

Iowa IA $48,500 ethanol To support
Renewable association's
Fuels marketing of ethanol
Association and co-products.
 Charter membership
 will consist of eleven
 farmer-owned ethanol
 plants either in
 production or under

Treasure ID $450,000 ethanol For help developing a
Valley 15-million-gallon-per-
Renewable year, producer-owned
Resources ethanol plant.

Greencastle/ IN $54,500 ethanol To develop a business
Putnam County plan for establishing
Development an ethanol plant.
Center, Inc.

Western MO $140,000 ethanol Trust will use grant
Missouri to develop a marketing
Ethanol Trust strategy and business
 plan for a 30-million-
 gallon ethanol plant.

Dakota NO $167,500 ethanol To complete business
Renewable development of a
Fuels, LLC 30-million-gallon,
 dry-mill ethanol

Imperial NE $40,000 ethanol Forfeasibility study
Young Farmers for a biomass ethanol
and Ranchers and electric facility
 that uses waste crops,
 such as corn stover
 and wheat straw.

Oklahoma OK $231,000 ethanol To determine
Farmers Union feasibility and
Sustainable financial
Energy L.L.C. sustainability of a
 New-Generation co-op
 that will help grain
 producers use hulled
 barley for the
 production of
 bioenergy products.

South Dakota SO $450,000 ethanol To study feasibility
Farmers Union of producing ethanol
 from corn and
 processed biowaste
 from the dairy

Central Texas TX $65,850 ethanol Feasibility study for
Ag an ethanol facility.

Farmers TX $249,658 ethanol To help grain elevator
Cooperative co-op construct
Elevator ethanol plant.
of Levelland

Green VA $211,650 ethanol Feasibility study of
Virginia ethanol production in
Ethanol a grain mill, or a
Project cellulose hydrolysis
 facility, in Virginia.

Virginia Farm VA $44,750 ethanol To help establish an
Bureau ethanol plant.

Western WI $65,000 ethanol For legal assistance
Wisconsin related to the
Renewable development of an
Energy Co-op ethanol plant with a
 capacity of up to 40
 million gallons

Little Souix IA $450,000 ethanol A majority
Corn producer-owned
Processors business in Marcus,
 Iowa, will use grant
 as working capital for
 startup of a
 year ethanol plant.

Big River IA $500,000 ethanol For working capital
Resources for startup of a
Cooperative 40-million-gallon-per-
(BRRC) year ethanol plant.

LincolnLand IL $500,000 ethanol To help operate a
Agri-Energy producer-owned,
 year ethanol plant.

East Kansas KS $450,000 ethanol To help build and
Agri-Energy, operate a 20-million-
LLC gallon-per-year
 ethanol plant.

Western KS $290,615 ethanol To build and operate a
Plains 30-million-gallon-per-
Energy, LLC year ethanol plant
 near Oakley, Kan.

Last Mile WA $150,000 wind energy To assess the
Electric feasibility of
Cooperative installing small-scale
 wind turbines on farms
 in the Pacific

Harvest Land MN $148,000 wind energy To assist in the
Cooperative development of
 on-farm, wind-power

West Bend IA $30,500 biodiesel For development of a
Elevator 5-million-gallon-per-
 year biodiesel
 production plant.

Union County KY $25,225 biodiesel For a feasibility
Biodiesel study and business
Company plan for conversion of
 raw soybeans into
 soydiesel and soybean
 meal for animal feed.

Hallock MN $50,000 biodiesel For feasibility study
Cooperative and business plan for
Elevator a biodiesel plant in
Company northwest Minnesota.

Flick Seed MO $50,000 biodiesel For processing waste
Company biomass material into
 alternative fuel.

Columbia WA $50,000 biodiesel For feasibility study
County Farm and business plan for
Bureau, Inc. growing and processing
 oilseeds for

Blue Sun CO $450,000 biodiesel To help applicant
Producers, increase membership
Inc. base and to produce
 oilseeds for premium

Farmers Union MN $500,000 biodiesel For operation of a
Marketing & proposed, 2.8-million-
Processing gallon-per-year,
Assoc. continuous-flow
 biodiesel plant that
 will use animal fats
 and vegetable oils
 from livestock
 rendering operation.

United WI $450,000 biodiesel For feasibility study
Wisconsin and business plan to
Grain assess the economic
Producers, potential of growing
LLC and processing
 oilseeds for

Creative IA $50,000 ethanol For expansion of
Horizons existing ethanol
Producers facility and
 development of a
 biodiesel plant.

Putnam IN $25,250 ethanol To plan a bio-refinery
Bio-Products, to produce ethanol and
LLC other co-products.

Ethanol Grain KS $17,500 ethanol To update a
Processors, feasibility study and
Inc. develop a business
 plan for a proposed
 year ethanol plant in
 Washington County.

Agriculture KY $79,900 ethanol For feasibility study
Marketing and business plan for
Institute, converting an existing
Inc. chemical plant into an
 ethanol facility.

Barton County MO $47,500 ethanol For establishing an
Ethanol ethanol plant that
Production will use feedstock
Steering produced in the area.

[C.sub.0]2 NE $128,000 ethanol To develop business
Ventures, LLC applications for use
 of [C.sub.0]2
 generated from
 bioenergy processing

NEDAK Ethanol NE $38,500 ethanol Feasibility study and
 business plan for
 ethanol plant.

East Central MO $500,000 ethanol Working capital for a
Ag Products, 20-million-gallon
Inc. ethanol plant.

Husker Ag, NE $226,850 ethanol For costs associated
LLC with 20-million-
 ethanol plant.

KAAPA NE $240,000 ethanol For working capital
Ethanol, LLC and to pay for
 production inputs for
 a 40-million-gallon,
 dry-mill ethanol plant
 in Minden, Neb.

Agricultural VT $101,920 other To study potential for
Producers' energy sale of
Green renewable-energy
Attributes "green tags" and
Maximization greenhouse gas
Steering emissions reduction
Committee credits, independent
 of the sale of energy/
 electricity produced
 by a renewable energy

Floyd County IA $7,312 wind energy To study potential of
Wind generating electricity
 with wind-power in
 Floyd County, Iowa.

Farm Energy, IA $7,500 wind energy For feasibility study
LLC and business plan for
 a small-scale,
 producer-owned wind
 farm in northwest
COPYRIGHT 2004 U.S. Department of Agriculture, Rural Business - Cooperative Service
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Special Section: Co-ops and Biofuels
Publication:Rural Cooperatives
Date:Jul 1, 2004
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