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VALUE-ADDED Products SECTOR

Who is a Value-Added Products Producer?

For the purposes of TAEP, an eligible Value-Added business produces products for sale that use raw food or fiber that is produced by their
agricultural working farm/existing operation.

Applicants must use agricultural products that have been grown on their farm as primary source of the value-added product.

Businesses within the sector that includes a variety of products such as:

• Cheese
• Clothing
• Crafts
• Farm fresh meats
• Ice cream
• Jams
• Jellies
• Relishes
• Salsa
• Other

 

Value-Added Products Applicant Requirements

  • Applicants may only submit one Application B per Federal IRS Schedule F, per person, per application period.
  • Applicants must meet all state and local regulations to be eligible for reimbursement.

Consumer & Industry Services (Regulatory) Requirements:

  • Applicants producing processed foods, meats, dairy, and related products must be licensed and inspected by the State of Tennessee as a food manufacturing facility if applicable.
  • Contact the Tennessee Department of Agriculture – Consumer and Industry Services at 615-837-5177 for more information on state regulations.

 

Value-Added Products Producer Cost Share Opportunities

Standard Producer – 35% Cost Share - $10,000 Maximum
All approved applicants with Value–Added Products projects are eligible for 35% cost share.
There are no special requirements for 35% cost share.

Master Producer – 50% Cost Share - $15,000 Maximum
To be eligible for 50% cost share, all approved applicants with Value–Added Products projects must complete all special
requirements prior to the program reimbursement deadline of May 1, 2016.

Special Requirements for 50% Cost Share
Option One: Value–Added Producers Option Two: Good Agricultural Practices (GAP)
1. Sector eligible educational courses – must attend (2) 1. Value–Added Farm Fresh Meat eligible course – must attend (1)
2. Sector eligible educational course – must attend (1)­­­­

Additional Special Requirement Information
  • All sector special requirements must be completed by the applicant prior to the program reimbursement deadline May 1, 2016.
  • The registered name for the special requirement must be the same name as the individual applying for cost share funding.
  • Applicant must have participated in events from 2013-2016.
  • Visit the Producer Diversification Course Requirements Calendar to view upcoming courses that will apply towards the Value–Added special requirements.

What Value-Added Products Projects Qualify for TAEP?

The proposed activity/project must encompass quality expansion or improvement of the applicant’s farm and business. The eligible categories are:
Farm Infrastructure, Specialty Equipment and Marketing. Examples of eligible and ineligible items are provided on page 17.

Competitive Projects -- Fruits & Vegetable:

  • Priority is given to projects that are focused on improving or increasing production.
  • Producers that are producing 100% of the raw food or fiber product(s) to be used in their value-added enterprise are given priority over off-farm sourcing of raw product.
  • Marketing projects are allowed but are not considered as competitive as those involving production.

Eligible Value-Added Products Items:
  • Not all eligible items are listed, please contact the Producer Diversification Coordinator for project eligibility or clarification prior to applying for TAEP cost share.
  • All eligible items requested may not be approved due to the competitive evaluation of
    the program.

Cold storage*
E- Commerce development
Freezers*
• Walk-in
• Chest
Hand washing areas* – for food safety
Loading dock*
Packaging equipment

Pasteurizers
Processing areas*
Processing equipment
Range/stove
Refrigerators
Retail shelter*
Website development – see ineligible

* Include dimensions and designs


Ineligible Value-Added Products Items – Most commonly requested

Advertising
Alcohol production equipment
Brochures
Building – storage
Chemicals
Computers
Containers – bottles, pots, packaging
Driveways, trails, paths, roads, etc
Electrical consumption
Fees – domain, hosting,
membership
Fencing
Fertilizer
Forklift
Fuel
Give a way items

Golf cart
Ingredients
Items for resale
Labels
Labor – applicant or employees
of applicant
Landscaping
Land – clearing of
Livestock
Maintenance of existing structures,
equipment, items etc.
Merchandise
Motorized vehicles
Office equipment
Permits
Product development


Property – purchase or debt
payment
Renovations –of existing
structures
Rent
Software
Store – general
Tractor
Trailers – livestock
Used equipment
Water source creation –
ponds/wells
Website – annual or hosting fees
Wells – drilling of

For additional information call 1-800-342-8206 or email producer.diversification@TN.gov
Click here for more references
Eligibility Requirements Application Rules Application B Materials W9 Form Application B Instructions