Agriculture Innovation Center Demonstration Program

Award funds may be used only to provide the following services directly to agricultural producers for the purpose of producing and marketing a value-added agricultural product:
Financial advisory services related to the development, expansion, or operation of a business owned by an agricultural producer(s) that will produce a value-added agricultural product, as long as the assistance is not to support forming a joint marketing effort by a group of producers, such as a farmers market, roadside stand, community-supported agriculture, and online sales

Process development services, including:
Engineering services, including scale-up of production systems (not to include cost of renovating or constructing a facility or system)
Scale production assessments, defined as studies that analyze facilities, including processing facilities, for potential value-added activities to determine the size that optimizes construction and other cost efficiencies
Systems development
Other technical assistance and applied research related to development, implementation, improvement and operations of processes and systems to produce and market a value-added agricultural product

Organizational assistance, including legal and technical advisory services related to the development, expansion, or operation of a business owned by an agricultural producer(s) that will produce a value-added agricultural product, as long as this assistance is not provided to support forming a joint marketing effort of food and food products by a group of producers, such as a farmers market, roadside stand, community-supported agriculture, and online sales

Outreach assistance, limited to assistance with connecting an agricultural producer to a distribution system, processing facility, or commercial kitchen

Technical assistance for product development (excluding R&D), where product development has the following definition: stages involved in bringing a product from idea or concept through commercial-scale production, including concept testing, feasibility and cost analysis, product taste-testing, demographic and other types of consumer analysis, production analysis, and evaluation of packaging and labeling options

Costs associated with establishing and operating a Center, such as legal services, accounting services, clerical assistance, technical services, hiring employees, monitoring contracts, and Board of Director travel

Grants of $5,000 or less to agricultural producers for the above services, where the aggregate amount of all such matching grants made by the Center does not exceed $50,000.

No award or matching funds shall be used to: 1) Plan, repair, rehabilitate, acquire, or construct a building or facility, including a processing facility; 2) Purchase, rent, or install fixed equipment, including processing equipment; 3) Purchase vehicles, including boats; 4) Pay for the preparation of the grant application; 5) Pay expenses not directly related to the funded project; 6) Fund political or lobbying activities; 7) Fund any activities considered unallowable by the applicable cost principles, including 2 CFR Part 200, subpart E and the Federal Acquisition Regulation; 8) Fund any direct expenses for the production of commodities or livestock. All funds are discretionary.