1. Virginia Manuel State Director USDA Rural Development

2.  Our Mission: is to “Increase economic opportunity and improve the quality of life for all rural Americans.” We have three major program areas: Housing, Business, and Community Programs.  We achieve our mission by helping rural individuals, communities and businesses obtain the financial and technical assistance needed to address their diverse and unique needs. Rural Development

3. Rural Development invested a total of $433.8 million in Maine in FY 2014: Through the Housing Programs Rural Development invested a total of $336.7 million and assisted 2,085 Maine families attain homeownership and 5,545 families or individuals were assisted with quality rental housing. Through our Business & Cooperative Programs, Rural Development invested $20.5 million in guaranteed loans and grants and assisted 148 businesses, creating/saving a projected 604 jobs. 8 agricultural producers, rural small businesses, and renewable energy development assistance recipients received Rural Energy for America Program (REAP) Grants or Loans. Through our Community Programs, Rural Development invested $48.1 million and assisted 35 essential community facilities including libraries, hospitals, water and wastewater facilities. Of these, 17 rural water or water and waste systems were assisted providing reliable systems to 15,684 residential and commercial users. Rural Development

4. Through its Programs, USDA Rural Development has invested a total of $9,176,912 in Maine’s Food Systems projects since Fiscal Year 2006. Rural Development

5.  Value-Added Producer Grant Program  Rural Business Development Grant Program  Rural Cooperative Development Grant Program  Rural Energy for America Program  Business & Industry Guaranteed Program  Intermediary Relending and Rural Microentrepreneur Assistance Programs

6. Value-Added Producer Grant Program Maximum award: $200,000 for working capital; $75,000 for planning. Dollar for dollar matching resources are required. Description: Value-Added Producer Grants support planning activities, such as developing a business plan, as well as working capital. Specific funds are available for projects that focus on local and regional supply networks or support beginning farmers and ranchers, socially disadvantaged farmers and ranchers, and small or medium-sized farms or ranches. Who can apply: Independent producers, farmer or rancher cooperatives, agricultural producer groups, and producer-owned business ventures, including non-profit organizations Possibilities: Grants may fund projects that: Create a business plan to market value-added products; Evaluate the feasibility of direct marketing freshly bottled milk; Evaluate the financial benefits of processing and marketing meat versus selling live animals; Expand marketing capacity for locally- and regionally-grown products; Expand processing capacity. Funding: $26 million nationwide was available in FY 2014. Applications scored in Maine. No state allocation given, but we received, and obligated $471,571. Rural Development

7. Rural Business Development Grants (Previously RBEG and RBOG) Maximum award: There is no maximum award, but smaller projects receive priority points Description: The RBDG program funds projects that facilitate the development of small and emerging rural businesses, distance learning networks, and employment-related adult education programs. Who can apply: Local and state governments and authorities, Indian tribes and non-profit organizations are eligible to reply. For the purposes of this program a "rural community" is an area where the population does not exceed 50,000, or is next to a city or town with more than 50,000 people. Possibilities: RBEGs may fund acquisition or development of land; construction, conversion, or renovation of buildings; purchase of machinery and equipment, including refrigerators and processing equipment; capitalization of revolving loan funds; provision of training and technical assistance (unless related to agricultural production); project planning. Funding: $27 million was available nationwide in FY 2014. Applications are scored by Maine RD. Maine’s state allocation was $254,00, but we actually obligated $473,900. Rural Development

8. Rural Cooperative Development Grant Program (RCDG) Maximum Award: Estimated Program Funding: $5.8 million. Maximum Grant Amount: $200,000 Cost Sharing Requirement: 25 percent of the total project cost. (5 percent for 1994 Institutions) Description: The primary objective of the RCDG program is to improve the economic condition of rural areas by assisting individuals or entities in the startup, expansion or operational improvement of rural cooperatives and other business entities. Grants are awarded competitively on an annual basis to Rural Cooperative Development Centers who in turn provide technical assistance to individuals and entities. Who can apply: Nonprofit corporations and institutions of higher education can apply for this program. Public bodies and individuals are not eligible to apply for the RCDG program. Possibilities: Grant funds may be used to pay for 75 percent (95 percent when the applicant is a 1994 Institution) of the cost of establishing and operating centers for rural cooperative development. Funding: $5.8 million is available Nationwide. Applications are scored in the National Office. Funding, historically, has gone to sustain 2-3 dozen cooperatives. Rural Development

9. Rural Energy for America Program (REAP) Maximum Award: The maximum grant amount is $500,000. The maximum guaranteed loan amount is $25 million. Description: This program assists agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements. Who can apply: Agricultural producers, rural small businesses located in all areas except cities of more than 50,000 and their contiguous and adjacent urbanized areas. Possibilities: Grants may fund projects to purchase renewable energy systems and make energy efficiency improvements. Funding: $58 million was available for Loan Guarantees, $12.5 million for grants Nationwide in 2014. Maine RD’s state allocation was $190,000 was allocated in grants in 2014. The next funding cycles (two) are in FY 2015. Rural Development

10. Business & Industry Guaranteed Loan Program Maximum Award: The total amount of Agency loans to one borrower must not exceed $10 million. The Administrator may, at the Administrator discretion, grant an exception to the $10 million limit for loans up to $25 million under certain circumstances. Description: The purpose of the B&I Guaranteed Loan Program is to bolster the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits. Who can apply: A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. Possibilities: Most legal business purposes except production agriculture. Acquisition, start-up, refinancing, and expansion of businesses that create rural employment are eligible uses. Funding: Maine RD’s state allocation was $10,570,000 in loan guarantees, but we obligated $18,248,851. Rural Development

11.  Challenge: USDA Rural Development Programs restrict eligibility to projects located in rural areas defined as any area other than a city or town that has a population of greater than 50,000 including the urbanized area contiguous and adjacent to such a city or town according to the latest decennial census.  Maine Rural Development recently requested approval from our National Office for “string” exceptions to areas surrounding Portland. If current non-rural areas are connected to Portland an any point by two census tracts or less wide, a “string” exception can be considered for areas beyond that point. Rural Development

12.  Opportunity: On April 30, 2014 USDA Rural Development published a notice in the Federal Register clarifying how the Business & Industry Guaranteed Loan Program can be used to support local and regional food- related projects. https://www.federalregister.gov/articles/2014/04/30/2014- 09870/locally-or-regionally-produced-agricultural-food-products https://www.federalregister.gov/articles/2014/04/30/2014- 09870/locally-or-regionally-produced-agricultural-food-products  Each year, at least five percent of B&I funds are set aside for local food- related projects, with funding priority given to those that provide a benefit to underserved communities, which is defined as urban, rural, or Indian Tribal community with limited access to affordable, healthy foods and a high rate of hunger or food insecurity or a high poverty rate.  Applicants that serve schools, food banks, or other institutions may be eligible. Eligible projects can be located in an urban or rural area. Rural Development

13.  Challenge: Farmers and Cooperatives are often located in rural areas that are underserved by broadband, putting them at a disadvantage to compete locally and regionally.  Opportunity: As outlined in “Broadband: The Road to Maine’s Future” The Governor’s Task Force makes recommendations to expand broadband opportunities in Maine. (continued) Rural Development

14.  Opportunity: Recommendations included:  Help Maine businesses move to the internet: ◦ Allows rapid communication with customers; ◦ Stimulates new ideas/helps to reach new markets; ◦ Creates jobs and attracts talented young workers. Rural Development

15.  USDA Rural Development offers programs to support broadband expansion. Through the agency’s broadband programs we expect to have $70 million available through the Broadband Loan Program nationwide in FY 2015 to support expanding broadband into rural areas. Rural Development

16. Funds are being used to increase production and expand sales of their packaged organic poultry from roughly 11,500 to 20,000 birds per year. Tide Mill Organic Farm is a family-owned and operated farm in Washington County. Aaron Bell and Carly DelSignore are the husband/wife team that own and operate the arm of the farm that grows and markets certified organic foods. Value-Added Producer Grant Program: Supporting Tide Mill Organics USDA Rural Development provided Tide Mill Organics, of Edmunds Township, with a Value- Added Producer Grant in the amount of $49,770. Paige and Henry of Tide Mill Organics Farm hold baby chicks. Rural Development

17. Funds were used to construct a new 4,000 square foot facility, which allows Northern Girl to process locally-grown vegetables from 12 farms year round. Northern Girl will process locally-grown vegetables including potatoes, carrots, beets, turnips, rutabaga, and parsnips at its new facility in Van Buren. Rural Business Enterprise Grant: Supporting Local Farmers and Value Added Processing through Northern Girl USDA Rural Development provided the Town of Van Buren with a Rural Business Enterprise Grant in the amount of $350,000. Rural Development

18. Funds were used to purchase a new Greenhouse which will operate solely on solar and geothermal renewable energy systems, making it Maine’s first Net- Zero and Year-Round greenhouse. Cozy Acres is family- owned and operated by Jeffrey and Marianne Marstaller, who have been growing flowers and vegetables for 25 years. Jeffrey Marstaller gives a tour of the greenhouse he and his wife Marianne, have owned and operated for 25 years. Left: Cozy Acres Greenhouse Owner Jeffrey Marstaller gives a tour inside one of his greenhouses. Far right are Congresswoman Chellie Pingree; USDA Rural Development Deputy Under Secretary Doug O’Brien; and USDA Rural Development State Director Virginia Manuel. Rural Energy for America Program (REAP): Cozy Acres Greenhouse USDA Rural Development provided Cozy Acres Greenhouse, of North Yarmouth, with a Rural Energy for America Program Grant in the amount of $48,750. Purple Pak Choi (left to right front); Baby Choi, Russian Kale Lavenders (left to right middle); Thyme, Rosemary, Black Seeded Simpson Lettuce (rear) Rural Development

19. Funds will be used for refinancing. Bruns Bros supports 500 food and beverage facilities in Maine, New England, and Pennsylvania including Oakhurst, Hood, and Poland Springs with its services ranging from system design, installation, to custom fabrication. The business, which has grown from two employees to 50, is owned and operated by the Bruns family and was established in 1985. Bruns Bros is a family-owned and operated business in Gray. Above: An Oakhurst employee fills gallons of milk. Oakhurst is one Maine company served by Bruns Bros. Oakhurst works with 70 independent Maine farms to produce high-quality milk that is free of artificial growth hormone. Business & Industry Guaranteed Program: Bruns Bros USDA Rural Development is providing Bruns Bros, in Gray, with tw0 Business & Industry Guaranteed Loans totaling $2.7 million. Rural Development

20.  USDA Farm Service Agency  USDA Natural Resources Conservation Service  USDA Agricultural Marketing Service  USDA Food and Nutrition Service  USDA National Institution for Food and Agriculture  USDA Risk Management Agency  USDA Forest Service  More information on these resources can be found at: http://www.usda.gov/wps/portal/usda/usdahome?navid=KYF_ GRANTS http://www.usda.gov/wps/portal/usda/usdahome?navid=KYF_ GRANTS Rural Development

21. Agriculture Secretary Tom Vilsack announced the Know Your Farmer, Know Your Food Initiative on September 15, 2009. Through this important initiative, the USDA is focusing on its current programs and that they are used effectively and new policies in support of local and regional food systems. The USDA has established a website and an interactive map to share the numerous local and regional food projects around the country. The website is: http://www.usda.gov/wps/portal/usda/usdahome?navid=KYF_ COMPASS http://www.usda.gov/wps/portal/usda/usdahome?navid=KYF_ COMPASS Rural Development

22. USDA Rural Development Maine Office Locations: Contact Emily Cannon, Public Information Coordinator at emily.cannon@me.usda.gov to obtain a copy of this presentation.emily.cannon@me.usda.gov “USDA is an equal opportunity provider, employer and lender.” To file a complaint of discrimination write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382 Visit our Website : http://www.rurdev.usda.gov/ME_Home.html http://www.rurdev.usda.gov/ME_Home.html Rural Development