11/05/02
By MARK POWELL
The USDA handed out grants last week to a long list of Mid-Atlantic region groups aiming to add value to agricultural products. Recipients include Maryland’s Heartland Fields (soyfood), Chesapeake Fields Institute (finding niches for row crops); two Virginia ethanol projects; a Delaware shrimp company and New Jersey’s Garden State Ethanol.
Of the USDA’s total of $37 million dished out to 43 states for valued-added agriculture, $7.2 million is destined for projects for bioenergy; mostly ethanol production.
Virginia Farm Bureau Federation is getting $44,750 for a feasibility study to create an ethanol plant. That facility would covert corn to ethanol, distiller’s grain and carbon dioxide.
Chris Cook, VFBF’s enterprise development coordinator, said: “We have 5,000 corn-growing Farm Bureau members that this ethanol plant could affect, not to mention any corn growers in Virginia who might want to invest in the project. The project will be open to anyone interested in investing, but, more specifically, to corn growers in Virginia.”
According to recent studies, if a typical 40-million-gallon-per-year ethanol plant were built, it would expand the economic base locally by $110.2 million.
It could also generate an additional $19.6 million of household income, support the creation of 694 full-time jobs and generate $1.2 million in tax revenue.
In Reedville, Va., another group calling itself the Green Virginia Ethanol Project, will receive $211,650 to conduct a feasibility study on fuel ethanol production in a grain mill.
In Pennsylvania, the American Corn Growers Association is receiving $150,000 to help farmers in the Mid-Atlantic region evaluate a future for ethanol.
And in New Jersey, the Garden State Ethanol project will get a check for $219,000.
In the process of establishing a location for a plant, Garden State Ethanol has a board that includes members from New Jersey, Pennsylvania, Delaware and Maryland and has recently been endorsed by New Jersey Gov. James McGreevey.
Farmers are awaiting an announcement of the siting for a plant that is expected to be built in Southern New Jersey, close to Delaware and Maryland.
While bioenergy projects were a major focus of the USDA grants, many other efforts were funded.
In Chestertown, Md., Chesapeake Fields will use their $249,830 to move closer to a goal of adding value to the traditional row crops grown in Kent County.
A total budget of more than $600,000 is projected for a nine-step process that goes from discovering markets to launching a business.
While some farmers are currently growing organic edible soybeans with Chesapeake Fields to sell to Japanese customers, it is expected that the Eastern Shore project will result in a business processing small grains and eventually building a bakery.
In Queen Anne’s County, Md. Heartland Fields-East LLC, will use its $500,000 to expand retail marketing efforts for a soyfood product line.
Led by former Asgrow Seed Co. executive and Maryland native Dr. John Schillinger, Heartland has investments from several Eastern Shore farmers. Currently, the business does not include processing of soybeans in Maryland.
But, it’s hoped that by 2004, Maryland soybeans will be part of the Heartland Fields products.
Schillinger said of the grant: “It’s money we need to continue our mission. It gives us the marketing dollars to take our brands into food service and into private labeling.”
In Howard County, a group of farmers based in Glenelg is receiving $10,100 to expand marketing efforts and pay for packaging and delivery of local produce.
In Virginia, in addition to the two ethanol projects funded by the USDA, Virginia Indentity Preserved Grains LLC in West Point is receiving $52,500 for working capital to hire a consultant for the marketing and sales of specialized wheat from quality-assured wheat cultivars to the baking industry.
Other grants in other Mid-Atlantic states include:
Delaware — Just Shrimp Inc., Lewes, $225,000 to purchase office equipment, supplies and other working capital needs for its shrimping business.
Ocean Spray Cranberries Inc., Wilmington, $200,000 to conduct a feasibility study to determine the best methods for selling the cooperative’s white cranberry juice in the United Kingdom.
New Jersey — M.R. Dickinson & Son, Bridgeton, $14,000 to conduct market studies for developing value-added products that include culinary herbs, corn, wheat or hay.
BJ Farms, Bridgeton, $25,100 to start a year-round, value-added tomato processing operation.
Sussex County Milk Producers, Lafayette, $107,000 to conduct a feasibility study and develop a business plan for value-added dairy products to benefit dairymen in Sussex and Warren counties.
Jersey Fruit Cooperative Association, Glassboro, $25,100 to identify future markets for New Jersey peaches.
Pennsylvania — Pennsylvania Beef Council, Middletown, $105,000 to expand education and participation and promote value-added beef products.
Pennsylvania Cooperative Potato, Harrisburg, $450,000 for working capital for dehydrated potato processing facility.
Eastern States Bison Cooperative, Lake Ariel, $109,141 in working capital to pay for processing, packaging, marketing and sales of value-added bison meat.
In other areas of the nation, some of the other funded projects included $137,500 to Affordable Building Systems LLC of Whitewright, Texas, to study the use of wheat straw for a building material. In Waupun, Wis., the Alto Dairy Cooperative is receiving $150,000 to separate protein from milk to produce pharmaceuticals.
And, in Sugar Grove, N.C., Blue Ridge Shrooms in Bloom is receiving $58,368 to develop a business plan for “marketing opportunities for innovative organic edible and medicinal mushroom production,” according to the USDA.