$18.4M fund provides new resources for farmers

Governor Beverly Perdue probably said it best when announcing the creation of the Family Farm Innovation Fund on Aug. 2: "This ain't your granddaddy's farm anymore."

Governor Beverly Perdue consults with USDA State Director Randy Gore (left) and U.S. Rep. Bob Etheridge during the announcement of the Family Farm Innovation Fund on Aug. 2. (Photo courtesy Karen Tam/NC Rural Center)

While agriculture – a $7.4 billion annual industry for the state – remains the bread and butter of North Carolina's economy, it is an evolving business. Through the new Innovation Fund, North Carolina farmers will have access to $18.4 million in available grants funding and training opportunities to help lower energy costs or implement renewable energy projects, develop and implement value-added production, and develop new sources of income.

"This fund presents endless possibilities for agriculture as [farmers] continue to reboot themselves for the 21st century," Perdue said. "Whether it's the emerging local foods movement or the biofuels … that we hear so much about, or whether it's competition in the global marketplace, North Carolina's agriculture community can do all that, and they already are doing that."

Over the next year, the programs are expected to provide grants for up to 1,500 farm projects and energy efficiency training for an additional 2,400 farmers. The programs are operated by the U.S. Department of Agriculture Office of Rural Development, the N.C. Farm Bureau, the Rural Advancement Fund International-USA and N.C. MarketReady, a project of the N.C. Cooperative Extension Service.

Funding is provided by state and federal appropriations and the N.C. Tobacco Trust Fund Commission. The Rural Center is coordinating the partnership of the programs and administering the state appropriation through the Agricultural Advancement Consortium.

"The best way to preserve farmland is to keep farmers farming," said Speaker of the House Joe Hackney. "The green economy and the ag economy – both big deals in North Carolina – grow closer and closer together in terms of energy efficiency, development of new crops, and collaboration with our universities, and are value-added for our existing crops."

The Innovation Fund consists of five separate projects from which farmers can apply for grants.

The Farm Energy Efficiency Project provides low-cost energy audits and grants (up to $20,000 per farm) to help farmers boost energy efficiency. The energy audits and grants may be used to fulfill requirements of USDA's Rural Energy for America Program.

The Tobacco Communities Reinvestment Fund provides seed money to help farmers increase profits through innovation by offering cost-share grants (up to $10,000 for individuals and up to $30,000 for collaborative projects) to help farmers develop new sources of income.

Two programs offer help for farmers looking to expand and find new markets for their crops. The N.C. Value-Added Cost Share Program provides assistance with grantwriting, feasibility assessment, matching funds and equipment to help farmers implement value-added production. The assistance may be used in applying for the USDA Value-Added Producer Grants, which help farmers produce and market value-added agricultural products.

Finally, the Rural Energy for America Program (REAP) offers grants and guaranteed loans to help farmers, ranchers and rural small businesses with energy efficiency improvements and renewable energy projects.

U.S. Rep. Bob Etheridge, a part-time tobacco farmer and former Harnett County commissioner, touted the fund as a new partnership between federal, state and local governments and farmers.

"Yes, it will make them more efficient. Yes, it will save them money ... but it will also help them have resources to create more jobs and opportunities," he said.

Descriptions of each of the five programs and eligibility requirements are on the Rural Center's Web site at www.ncruralcenter.org/images/PDFs/AAC/ageventbookletedit.pdf.