Value-Added

2024-2025 TAEP Application B – Producer Diversification

50% Cost Share – Maximum Reimbursement - $12,000

The amount of payment is based upon 50% of expenses incurred for eligible program items up to the program maximum.

Approved applicant will receive a revised budget with reimbursement documentation. The revised budget indicates approved items per committee review and cost share allocation amount.
All committee decisions are final.

Applicant Responsibility

It is the applicant’s responsibility to review all TAEP program requirements prior to applying for cost share. Applicant must qualify for program selected at time of application to be considered for approval.

Applicant Eligibility
Educational Requirements
Reimbursement Requirements
Verification Requirements
Applying for TAEP

Who is a Value-Added 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. Applicant must use agricultural products that have been grown on their farm as primary source of the value-added product. Businesses within the value-added sector include a variety of products such as cheese, clothing, crafts, farm-fresh meats, ice cream, jams, jellies, relishes, salsa, wine, and more.
•    Dairy producer
•    Farm-fresh meats producer
•    Fiber producer
•    Fruit producer
•    Vegetable producer

Value-Added Applicant Requirements

Consumer & Industry Services Requirements:
•    Applicant must meet all state and local regulatory requirements at time of application.
•    Applicant 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.
•    Farm based retail sale of meat requires a Retail Meat Sales Permit and an inspection by the Tennessee Department of Agriculture prior to reimbursement.
•    Contact the TDA Consumer and Industry Services Division at 615-837-5150 for more information on state regulations.

Special Requirements – Value-Added

•    Option #1: Value-Added educational courses (2) – applicant must attend two eligible events
•    Option #2: UT Master Farm Manager, UT Master Farm Family Health & Wellness, or TSU New Farmer Academy

What Value-Added 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.

Competitive Projects – Value-Added:
•    Priority is given to long-term projects that focus 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 that are long-term in nature are allowed but are not considered as competitive as those involving production.
•    Only complete applications that include sufficient information will be considered for evaluation.

Reimbursement Request Deadline – August 1, 2025

Allowable purchase dates for Producer Diversification are from October 1, 2024 – August 1, 2025.
All items, regardless of backorder status, must be purchased (paid in full or financed) by the program reimbursement deadline. Backordered items may be ineligible for cost share if not delivered to the farm by the program deadline.
Receipts must be in the name of the applicant approved for cost share funding.
Quotes and purchase orders do not represent a purchase and are not considered receipts.
Proof of payment may be requested to verify purchase.
See “Reimbursement Requirements” link at the top of the page for more information.