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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 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

  • Only one Application B, per premises or property, per family owned land, per household, per business, per application period is allowed.
    • 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 – at 615-837-5193 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, 2015.

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, 2015.
  • 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 2012-2015.
  • 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 below.

Competitive Projects -- Fruits & Vegetable:

  • Priority is given to projects that are focused on improving or increasing production.
  • Producers that are producing 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


Ineligible Value-Added Products Items – Most commonly requested

Advertising
Brochures
Building – storage
Chemicals
Computers
Containers – bottles, pots
Driveways
Electrical service
Fees –
• Domain
• Hosting
• Membership
Fencing
Fertilizer
Forklift

Fuel
Give a way items
Golf cart
Ingredients
Labels
Labor – applicant or employees
of applicant
Landscaping
Land – clearing of
Livestock
Maintenance of existing structures
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 Application B Instructions