Skip to Content

G. Producer Diversification                   

 
Eligible Industry
Application Proposal
35% Standard Producer
50% Priority Area
Agritourism
Required for all programs
$10,000 Max
$15,000 Max
Honey Bees
$10,000 Max
$15,000 Max
Organics
$10,000 Max
$15,000 Max
Viticulture
$10,000 Max
$15,000 Max
Aquaculture
$10,000 Max
Not Available
Fruits and Vegetables
$10,000 Max
Not Available
Horticulture
$10,000 Max
Not Available
Value-Added Products
$10,000 Max
Not Available

PROGRAM GOALS: The goal of this program is to encourage agricultural producers to expand or improve their operations through the production of diversified agricultural products.

For purposes of this cost share program, diversified agricultural products are defined to include the following industry sectors: agritourism, aquaculture, honey bees, fruits and vegetables, horticulture, organics, value-added products and viticulture.  Use application B to apply. (pages 21 - 22 in printed application)

Application Period: CLOSED
Reimbursement Deadline: May 1, 2010
PRIORITY AREAS- Special Requirements for 50% Cost Share
Agritourism
Must have attended (1) of the following conferences AND (1) of the following workshops: sponsored by TDA/UT – prior to reimbursement deadline.
                          • Agritourism Conference (2007, 2008, 2009, 2010)
                          • Agritourism Workshop (2007, 2008, 2009)

Priority cost share only applies to the purchase of the following items:
• Brochures
• Hand washing stations
• Handicap accessible areas
• Lighting – public areas
• Maps
• Parking areas – gravel or pavement
• Pavilions – educational
• Public address (PA) systems
• Restroom facilities
• Retail shelters
• Safe way areas
• Signs
• Web site development

Additional Agritourism Program Information
Honey Bees
Completion of the UT Extension Master Bee Course prior to program reimbursement deadline. Submit copy of course certificate with application or reimbursement materials.
Additional Honey Bees Program Information
Organics
Must be USDA certified or working towards certification to qualify. Include copy of certification or letter from the certifying organization verifying that you are working towards certification. Must be certified at time of reimbursement.
Additional Organic Program Information
Viticulture
Applies only to the purchase of the specific varieties of grapes listed below and trellis materials needed for planting these specific varieties. These specific varieties are proven viable in areas of Tennessee and have demonstrated demand through out of state (k) (6) waiver requirements per the Tennessee Grape and Wine Law.

• Cabernet Sauvignon - grafted plants
• Chardonel
• Chardonnay - grafted plants
• Concord
• Seyval

• Sunbelt
• Traminette
• Trellis materials for planting these
   specific varieties.


Additional Viticulture Program Information

Producer Diversification Guidelines
Requirements
Producers can only receive one Producer Diversification cost share per premises or property per household per application period.

How to Apply
       • Complete Application B and prepare application proposal (see Section 5 of application).
          a) The application questionnaire and budget must be typed in requested format.
          b) Applications will be evaluated on a competitive basis by industry sector.
               TDA staff will conduct application reviews.
          c) Only applications that are complete and include sufficient information will be considered.
          d) The application must merit financial support, clearly state objectives, provide a sound work
               plan and  prove applicant expertise necessary to successfully complete project. An on-site
               visit or meeting may be required as part of the evaluation process.
      • Complete Substitute W-9 Form (page 23) and submit with application materials.

Cost Share Activity
Proposed activities for cost share must demonstrate significant potential for increasing farm income through the improvement or expansion of farm or agribusiness operations involving the production of diversified agricultural products. In addition, proposed activities must:
     • Be market driven and have a viable marketing plan.
     • Establish something new, not substitute for on-going projects.
     • Meet all state and local food safety and regulatory requirements.
     • Produce long-term benefits.

FARM INFRASTRUCTURE

Installations that facilitate the production of diversified agricultural products. Infrastructure must be built on applicant owned land located in Tennessee. Activities must have a life span of least three years. Labor is only reimbursable if quoted and performed by a contractor. Labor is not eligible for reimbursement if performed by the applicant or their employees.

Eligible Examples
Ineligible Examples

• Greenhouses
• Retail shelters
• Pavilions
• Public use considerations – hand
  washing stations, lighting,
  parking areas, restroom facilities,   safe way areas

• Clearing of land & general 
   landscaping
• Fencing
• General maintenance/renovations
• Barns, storage facilities, show
  facilities
• Permits
• Water source creation (ponds       
  or wells)

MARKETING

Promotional efforts that benefit the expansion or improvement of diversified agricultural operations. Emphasis is placed on activities that are innovative to the operation and/or have long-term benefits. It is recommended that marketing activities involve professional agencies/services. Trade shows are not eligible for funding unless they are part of a TDA program.

Eligible Examples
Ineligible Examples

• Advertising - print, radio, television
• Brochures
• Direct promotions
• E-commerce & Web site          
  development
• Maps
• Signs

• Annual meetings/trade shows
• Community festivals
• Give-a-way promotional items
• General office equipment & supplies
• Web site hosting fees

SPECIALTY EQUIPMENT

Specialized tools or equipment that aid in the production of diversified agricultural products. Items must have a life span of at least three years. Used equipment is not eligible.

Eligible Examples
Ineligible Examples

• Automated harvesters
• Chilling units/coolers
• Custom crushers
• Greenhouse heaters
• Spray & irrigation equipment

General motorized 
  equipment ATVs,  
  forklifts, golf carts, 
  mowers, tractors,  
  trucks
• General Inputs -
  fertilizer, fuel,
  operational supplies, 
  pesticides, seed 
  stock
• Used equipment

Examples of Eligible Cost Share Activity by Industry Sector

Agritourism:
• Brochures
• Hand washing stations
• Handicap accessible areas
• Lighting – public areas
• Maps
• Parking areas – gravel or  
   pavement
• Pavilions – educational
• Public address (PA) systems
• Restroom facilities
• Retail shelters
• Safe way areas
• Signs
• Web site development
Additional Agritourism Information

Honey Bees:
• The proposed activity must
   encompass quality expansion
   or improvement of pollination
   or honey production.
• Apiaries must be registered
  with  the State of Tennessee.
• Minimum requirements to
  participate 3 years beekeeping
  experience and minimum of 5
  existing colonies. 
Additional Honey Bee Information
  The only eligible items are:
     • Apiary expansion
     • Beehives
     • Honey processing equipment
     • Trailers for pollination service

Value-Added Products (must utilize Tennessee grown agricultural products as primary source)
• Cold storage
• E-commerce development
• Loading dock
• Retail shelters
• Packaging equipment
• Processing equipment
• Web site development
Additional Value-Added
  Products Information

Aquaculture
• Aerators
• Harvesting equipment
• Ponds (producing)
Additional Aquaculture Information

Fruits & Vegetables:
• Apple/peach liners for orchards
• Blackberry/blueberry/raspberry stock
• Freezer
• Greenhouse
• Irrigation
• Packing facility
• Plasticulture equipment
• Row covers
• Sprayers
• Walk-in cooler
Additional Fruits/Vegetables Info

Horticulture:
• Greenhouse
• Greenhouse fan and heater
• Irrigation system
• Packing building
• Packing line equipment
• Potting wagon
• Sprayer
Additional Horticulture Information

Organics:
• Flail mower
• Greenhouse
• Hoop house
• Irrigation
• Roller crimper
• Spader
Additional Organic Information

Viticulture:
• Chilling units
• Custom crushers
• Harvest bins
• Irrigation
• Mechanical harvesters
• Trellis materials
• Vine stock
Additional Viticulture Information

Examples of Ineligible Items

• Arena – livestock
• Barn – livestock
• Building – lodging, show facility,
  storage
• Chemicals/Pesticides
• Concession stands
• Containers – bottles, pots
• Drip tape
• Electrical service
• Fees – membership, hosting,
  domain
• Fencing
• Fertilizer
• Fish stock – aquaculture
• Fuel
• Give-a-way items
• General inputs
• Ingredients
• Labor – applicant or employees
  of applicant
• Landscaping
• Land – clearing of

• Livestock
• Maintenance/renovations of existing
   structures
• Meeting expenses
• Merchandise
• Motorized equipment/vehicles
• Motorized amusement rides
• Office equipment/supplies
• Permits
• Plants
• Product development
• Property – purchase or debt payment
• Rent
• Salaries, wages, fringe benefits
• Seeds – produce, nursery, flowers,
• Software
• Trade show expenses
• Trailers – livestock
• Used equipment
• Water source creation –ponds/wells
• Wine making equipment

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