Producer Diversification Value-Added Products Sector

Who is a Value-Added Products Producer?

For the purposes of TAEP, an eligible Value-Added business produces products for sale that use raw foods or fibers produced by their agricultural operation. Applicants must use agricultural products that have been grown on their farm as primary source of the value-added product.
Businesses within the sector that includes a variety of products such as: 

  • Cheese
  • Clothing
  • Crafts
  • Farm fresh meats
  • Ice cream
  • Jams
  • Jellies
  • Relishes
  • Salsa
  • Other

Consumer & Industry Services Requirements

  • Applicants producing processed foods, meats, dairy, and related products must be licensed and inspected by the State of Tennessee as a food manufacturing facility if applicable.
  • Contact the Tennessee Department of Agriculture – Consumer and Industry Services at 615-837-5177 for more information on state regulations.

Value-Added Products Producer Cost Share Opportunities

Standard Producer – 35% Cost Share - $10,000 Maximum

All approved applicants with Value–Added Products projects are eligible for 35% cost share. There are no special requirements for 35% cost share.

Master Producer – 50% Cost Share - $15,000 Maximum

To be eligible for 50% cost share, applicants must complete special requirements prior to the program reimbursement deadline of September 1, 2018. The name registered for the special requirement must be the same name as the individual applying for cost share funding.

 Special Requirements for 50% Cost Share

  • Value-Added Educational Courses – applicant must attend (2) eligible events
  • Applicant must have participated in special requirements from 2014-2018.
  • Visit  www.tn.gov/taep for:
    • Producer Diversification Special Requirements List - to view list of eligible courses and events by sector.
    • Producer Diversification Special Requirements Calendar - to view upcoming special requirements courses and events.

What Value-Added Products Projects Qualify for TAEP? 

The proposed activity/project must encompass quality expansion or improvement of the applicant’s farm and business. The eligible categories are: farm infrastructure, specialty equipment and marketing. Examples of eligible and ineligible items are provided on page 17.

Competitive Projects – Value-Added Products:

  • Priority is given to projects that are focused on improving or increasing production.
  • Producers that are producing 100% of the raw food or fiber product(s) to be used in their value-added enterprise are given priority over off-farm sourcing of raw product.
  • Marketing projects are allowed but are not considered as competitive as those involving production.

Eligible Value-Added Products Items:

  • Not all eligible items are listed; please contact the Producer Diversification Coordinator for project eligibility or clarification prior to applying for TAEP cost share.
  • All eligible items requested may not be approved due to the competitive evaluation of the program.

Cold storage*
E- Commerce development
Freezers*
•    Walk-in
•    Chest
Hand washing areas* – for food safety
Loading dock*
Packaging equipment
Pasteurizers
Processing areas*
Processing equipment
Range/stove
Refrigerators
Retail shelter*
Website development – see ineligible

* Include dimensions and designs with project proposal.


Ineligible Value-Added Products Items – Most commonly requested

Advertising
Alcohol production equipment
Brochures
Building – storage
Chemicals
Computers
Containers – bottles, pots, packaging
Driveways, trails, paths, roads, etc.
Electrical consumption
Fees – membership
Fencing
Fertilizer
Fuel
Give a way items
Golf cart
Ingredients
Items for resale
Labels
Labor – applicant
Landscaping
Land – clearing of
Livestock
Maintenance of existing structures, equipment, items etc.
Merchandise
Motorized vehicles – ATV, forklift, tractor
Office equipment
Permits
Product development
Property – purchase or debt payment
Renovations – of existing structures
Rent
Software
Store – general
Trailers – livestock
Used equipment
Water source creation – ponds/wells
Website – annual, domain, or hosting fees

For additional information call 1-800-342-8206 or email producer.diversification@TN.gov
Application B Eligibility
Requirements
Application
B Program Requirements
Application B
Materials