Tennessee Department of Agriculture

Tennessee Agricultural Enhancement Program

F. Producer Diversification Program

This cost share opportunity assists producers in expanding and improving their operations through production of diversified agricultural products.

Eligible Industry	Application Proposal	35% Standard Producer	50% Priority Area*
Agritourism	Required	$10,000 Max	$15,000 Max
Aquaculture		$10,000 Max	Not Available
Bees		$10,000 Max	$15,000 Max
Fruits & Vegetables		$10,000 Max	Not Available
Horticulture		$10,000 Max	Not Available
Organics		$10,000 Max	$15,000 Max
Value-Added Products		$10,000 Max	Not Available
Viticulture		$10,000 Max	$15,000 Max
Goat & Sheep Producers – see Sections A, B, D

Application Period: June 2 - August 1, 2008

Reimbursement Deadline: May 1, 2009

* PRIORITY AREAS- Special Requirements for 50% Cost Share

Agritourism

Must have attended one of the following TDA/UT sponsored events. Agritourism Conference (2005, 2007, 2008) or Agritourism Workshop (2006, 2007, 2008)

Applies only to pavilions, retail shelters, handicap accessible areas, lighting, parking areas, restroom facilities, safe way areas, hand washing stations, signs, maps, brochures, and Web site development

Bees

Completion of the UT Extension Master Bee Course prior to program reimbursement deadline. Submit copy of course certificate with application or reimbursement materials. Bee Program Criteria and Example Application.

Organics

Must be USDA certified or working towards certification to qualify. Include copy of certification or letter from the certifying organization verifying that you are working towards certification.

Viticulture

Applies only to the purchase of the varieties of grapes listed below & trellis materials needed for planting the specific varieties.

• Cabernet Sauvignon
• Chardonel
• Chardonnay
• Concord

• Seyval
• Sunbelt
• Traminette

Who is Eligible to Apply?

Producers who plan to expand or improve their operations through the production of diversified agricultural products are eligible to apply for cost share assistance. For the purposes of this cost share program, diversified agricultural products are defined to include the following industry sectors: agritourism, aquaculture, bees, fruits and vegetables, horticulture, organics, value-added products, and viticulture. Producers can only receive one Producer Diversification cost share reimbursement per household per business per fiscal year.

Application Review Criteria

Applications will be evaluated on a competitive basis by industry sector. TDA staff will conduct application reviews. Only applications that are complete and include sufficient information will be considered for evaluation. The application must merit financial support and demonstrate that the proposed activity has clearly stated objectives, a sound work plan, and the applicant has necessary expertise to successfully complete the project. As part of the evaluation process, a meeting with the applicant and/or a visit to the applicant’s enterprise may be required.

Cost Share Activity

Proposed activities for cost share must demonstrate significant potential for increasing farm income through the improvement or expansion of farm or agribusiness operations involving the production of diversified agricultural products. In addition, proposed activities must:

Be market driven and have a viable marketing plan
Meet all state and local food safety and regulatory requirements
Establish something new, not substitute for on-going projects
Produce long-term benefits

Eligible Categories

FARM INFRASTRUCTURE

Installations that facilitate the production of diversified agricultural products. Activities must have a life span of at least three years. Labor is only reimbursable if quoted and performed by a contractor. Labor is not eligible for reimbursement if performed by the applicant or their employees.

Eligible Examples	Ineligible Examples
Greenhouses Retail shelters Pavilions Public use considerations – hand washing stations, lighting, parking areas, restroom facilities, safe way areas	Clearing of land & general landscaping Fencing General maintenance/renovations Barns, storage facilities, show facilities Permits Water source creation (ponds or wells)

MARKETING

Promotional efforts that benefit the expansion or improvement of diversified agricultural operations. Emphasis is placed on activities that are innovative to the operation and/or have long-term benefits. It is recommended that marketing activities involve professional agencies/services. Trade shows are not eligible for funding unless they are part of a TDA program.

Eligible Examples	Ineligible Examples
Advertising (print, radio, television) Brochures Direct promotions E-commerce & website development Maps Signs	Annual meetings/trade shows Community festivals Give-a-way promotional items General office equipment & supplies Web site hosting fees

SPECIALTY EQUIPMENT

Specialized tools or equipment that aid in the production of diversified agricultural products. Items must have a life span of at least three years. Used equipment is not eligible.

Eligible Examples	Ineligible Examples
Automated harvesters Chilling units/coolers Custom crushers Greenhouse heaters Spray & irrigation equipment	General motorized equipment – ATVs, forklifts, golf carts, mowers, tractors, trucks General inputs – fertilizer, fuel, operational supplies, pesticides, seed stock Used equipment

Examples of Cost Share Activity by Industry Sector

Agritourism: pavilions, retail shelters, and public use considerations such as hand washing stations, handicap accessible, lighting, parking areas,restroom facilities, and safe way areas.
Ineligible – general landscaping for aesthetic purposes and motorized rides

Aquaculture: aerators, harvesting equipment, ponds (producing).
Ineligible – food and fish stock

Bees: The proposed activity must encompass quality expansion or improvement of pollination or honey production. The only eligible items are: apiary expansion, honey processing equipment, and trailers for pollination service. Apiaries must be registered with the State of Tennessee. Minimum requirements to participate: 3 years beekeeping experience and 5 existing colonies. Bee Program Criteria and Example Application.

Fruits & Vegetables: apple/peach liners for orchards, blackberry/blueberry vine stock, coolers, irrigation, plasticulture materials, sprayers.
Ineligible – inputs (fertilizer, pesticides, seed stock)

Horticulture: automated equipment, coolers, greenhouse construction and materials, greenhouse heaters, irrigation, potting wagons.
Ineligible – inputs (drip tape, fertilizer, liners/plugs, seed stock), pots and containers

Organics: greenhouses, hoop houses, hydroponics, irrigation, marketing,costs associated with organic certification.
Ineligible - inputs (fertilizer, seed stock, pest management)

Value-Added Products (must utilize Tennessee grown agricultural products as primary source): advertising, e-commerce and Web site development, loading dock, production equipment.
Ineligible - product development, rent, supplies such as containers, ingredients,and labels

Viticulture: chilling units, custom crushers, irrigation, mechanical harvesters, trellis materials, vine stock.
Ineligible - inputs (fertilizer, pesticides) and winemaking equipment

Application Materials Eligibility Requirements Application Approval & Payment Process