CHICAGO, Ill. — Creating jobs and promoting economic growth are the reasons behind 298 Value-Added Producer (VAP) Grants totaling more than $40.2 million announced by the USDA last Friday.

Agriculture Deputy Secretary Kathleen Merrigan announced the grants going to 44 states and Puerto Rico after keynoting at the Local/Regional Food System Conference at the Federal Reserve Bank of Chicago.

“In his State of Union address, President Obama was clear that we need to do more to create jobs and promote economic growth. These projects will provide financial returns and help create jobs for agricultural producers, businesses and families across the country,” Merrigan said.

“This funding will promote small business expansion and entrepreneurship opportunities by providing local businesses with access capital, technical assistance and new markets for products and services. We are excited about these projects and how they relate to what the President describes as building an economy to last, to build an America that makes this the place to be in the world.”

“Value-Added Producer Grants increase farmers’ income, establish jobs in rural communities and expand food choices for American consumers,” said Helen Dombalis, policy associate with the National Sustainable Agriculture Coalition. “This program is exactly what our country needs as we seek ways to stimulate our economy.”

VAP grants may be used to fund business and marketing plans and feasibility studies, or as working capital to operate a value-added business or alliance. Merrigan said grants must be matched by the recipients, and follow-up reports are required.

As for monitoring how the funds are spent, she said, “USDA is a field-based agency. These grants are in our rural development mission area and the people making the decisions are in our field staff offices.

“There is nowhere to hide,” she added, with a laugh.

Among the examples Merrigan provided was Living Water Farms in Strawn, Ill., a three-year-old family farm located two hours south of Chicago. Three generations of the Kilgus family are part of a group called Stewards of the Land, organized to market produce from small farms. The hydroponic complex was developed to supply fresh produce year-round.

The farm’s market includes Illinois supermarkets, restaurants in Chicago and St. Louis and a college food service program. The $300,000 grant will help it evaluate its brand and expand distribution to other restaurants, specialty retail and institutional outlets.

Farm co-owner Denise Kilgus said the grant will provide various benefits: “It will help us develop our brand better to have more flexibility in our marketing.” The farm has five full-time and nine part-time employees. She said they anticipate being able to add more employees to “free up our time to analyze.

“It will be a huge help for us. We’re doing our best to be good stewards, not just for today but for the longevity of the business,” she said.

Another example of money applied to local marketing is the $300,000 grant awarded to Egg Tech Ltd. in Wood, Ohio. The operation produces Truly Pure Eggs that have been pasteurized in the shell, eliminating the possibility of salmonella.

With grants awarded across the country, Merrigan said she likes to be out in the field as much as possible. “We like to visit projects the USDA has funded to find out do they really create jobs. That allows me to come back with a good storybook,” she explained.

For more information about the USDA, the VAP program and a complete list of the recipients, visit www.usda.gov