Farmers and agricultural producers interested in value-added farm enterprises have an opportunity to submit proposals for up to $500,000 from a new USDA Rural Development grant program.

You can use the grants to conduct feasibility analyses, develop business plans, develop marketing plans or conduct other types of studies to help establish a viable value-added business venture.

Grant funds may pay salaries, utilities and other operating costs; finance inventories; purchase office equipment, computers and supplies; and finance activities to establish alliances or business ventures that allow producers to compete better in domestic or international markets for value-added products.

You may not use grant funds for planning, repairing, rehabilitating, acquiring, constructing a building or facility (including a processing facility). You also may not use them to purchase, rent or install fixed equipment.

This grant program has a requirement that applicants provide matching funds at least equal to the grant.

Grants will be awarded in two rounds of competitions. The deadline for the first round of applications is April 23. The deadline for the second round of applications is June 27.

You can find grant proposal details and program contacts, including evaluation criteria and proposal preparation procedures, at the USDA Value-Added Development Grants Website, <http://www.rurdev.usda.gov/rbs/coops/indepen.htm>.

For details on value-added agriculture in Tennessee, contact Rob Holland at the Center for Profitable Agriculture (CPA) at (931) 486-2777 or e-mail CPA at cpa@utk.edu. Visit the Web site of CPA at http://cpa.utk.edu/