NC MarketReady

Value-Added Cost Share

Farmers markets are increasing in number throughout North Carolina, currently surpassing 130 unique markets. Consumers enjoy the opportunity to buy fresh, locally grown products directly from the farmers. Farmers markets support the local economy and encourage healthier meals that feature fresh fruits and vegetables. In addition to produce, many markets offer a wide variety of agricultural products including meat, honey, cut flowers, soaps, nursery plants, eggs, artisan cheese, baked goods and more.

Introduction to the N.C. Value-Added Cost Share Program

N.C. MarketReady administers the North Carolina Value-Added Cost Share Program (NCVACS). Funded by the N.C. Tobacco Trust Fund Commission at $1.2 million for 2008-2011, the primary objective of NCVACS is to complement the USDA Value-Added Producer Grant (VAPG) by offsetting the expenses associated with the VAPG by approximately 50 percent, including professional grant writing, feasibility assessment and business plan development, and equipment purchases. 

Like the VAPG, NCVACS is designed for independent producers of agricultural commodities, agricultural producer groups, farmer and rancher cooperatives and majority-controlled producer-based business ventures.In the fall of 2009 and summer of 2010, NCVACS will award cost share funding for value-added enterprises through a competitive application process for the following award categories: 

• VAPG Grant Writing ($3,500) for professional grant writing assistance for Planning VAPG or Working Capital VAPG applications.
• Enterprise Feasibility Assessment ($20,000) to prepare the required supplemental documents for a Working Capital VAPG request. 
  
  

  NOTE:  USDA requires a third-party, independent feasibility assessment and business plan for all Working Capital VAPG requests.  Cost share applicants who do not have the required documents for Working Capital VAPG should consider this cost share option or choose to apply for the Planning VAPG.

• USDA Matching Funds Assistance (up to $10,000) to VAPG recipients to leverage the producer’s funding requirements.

In the spring of 2010 and 2011, NCVACS will award cost share funding for value-added enterprises through a competitive application process for the following award: 

• Equipment Cost Share to supplement equipment costs associated with successful VAPG awards. Funding from VAPG awards cannot be used for equipment, except for office supplies; NCVACS Equipment Cost Share is designed to bridge that gap.

Value-added refers to the incremental value realized by the producer from an agricultural commodity or product as the result of:

1. A change in the physical state
2. Differentiated production
3. Physical product segregation
4. Production of farm- or ranch-based renewable energy
5. Aggregation and marketing of locally produced agricultural food products

For more information on the VAPG, visit http://www.rurdev.usda.gov/nc/vapg.htm or contact Neal Sherrod at 919-873-2043 or neal.sherrod@nc.usda.gov. 

For more information on the N.C. Value-Added Cost Share Program, visit http://www.ncmarketready.org or contact Brittany Whitmire at 919-830-9557 or brittany_whitmire@ncsu.edu. 

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