11/14/05 The value of value added grants

Owners of agribusinesses large and small will quickly point out that to try to innovate, expand, and promote their operations a little capital goes a long ways. Many of these operations will also admit that they are lacking in such capital. That is where U.S.D.A.'s Value Added Producer Grant program comes in. BAILEY: It's a way for some progressive growers to try some new ideas without totally risking just their own capital. Some capital from the government can help encourage some outreach to find some new ideas, and I think that's a very important piece. That's Ken Bailey. He's the owner of Orchard View Farms near The Dalles Oregon. And he is one of the 171 national recipients of U.S.D.A. Value Added Producer Grants. In this specific case, Bailey will use his $25,000 dollar grant to determine if a state of the art cherry sorter can increase the value of his Rainier cherries by improving the sizing of fruit and division of the stems on multiple cherries. And he adds that the grant will give his experiment that needed boost especially on the research side as it allows him to obtain the services of an Oregon State University researcher to help quantify data. BAILEY: This particular project we would probably do some of this on our own without a grant. And the grant is paying for probably forty to fifty per cent. And we would do the same thing maybe over time, but it would take a lot longer, and would not be probably as scientifically based information as what we are going to do with the ability of the grant. Now Bailey is not the only recipient of a value added producer grant in the Northwest. In total, nineteen operations from Washington, Oregon, and Idaho & and eleven alone from Oregon & received grants. The commodity for those operations ranged in diversity from livestock to shellfish, tree fruit to potatoes. And some recipients from Oregon and Washington were among the thirty two awarded grants to help determine the feasibility of renewable energy resources such as wind power, ethanol, and biodiesel. Now Bailey will admit not all of these projects are going to prove successful in the long run. But the value added producer grants gives producers the opportunity to try and be innovative, and learn from their experiences. BAILEY: Similar types of grants have been very valuable to some and I think that there's been some is what you learn is that not there is going to be any increase in value. Then again, that's important to learn as well. If its not going to be valuable, or if it's going to detract value. Where it's not going to increase or how much it's going to increase. Learning where you are on that scale is important.