PRODUCER AND COMMUNITY COST-SHARE GRANT PROGRAM

The Tobacco Communities Reinvestment Fund Producer and Community Demonstration Grant Program assists farmers and community groups across North Carolina create new agricultural enterprises that demonstrate ways to replace lost tobacco income. The program provides cost-share support of up to $10,000 to individual farmers and $30,000 to community groups.

To qualify, individuals must be actively farming and have earned income from tobacco at the time of the Master Settlement Agreement (crop years 1997-98). Community groups can be associations of farmers, farmer cooperatives, church groups, local businesses, civic organizations or combinations of these. All projects must directly benefit and involve farmers seeking to replace lost tobacco income.

Eligible projects are those that:

• have a likelihood of replacing lost tobacco income
• establish new markets for local products and services
• develop new uses for greenhouses
• add value to existing farm products by processing, packaging or marketing in a special way
• make new use of tobacco facilities and equipment
• maintain or create quality employment, including self-employment or opportunities for home-based businesses
• make optimal use of on-farm and natural resources.

High priority is given to projects that are innovative and demonstrate a new direction or opportunity for farmers in North Carolina.

The cost-share grants are awarded to farmers in target counties throughout North Carolina. The target counties vary from year-to-year. Targeted counties are rural counties that have historically depended on tobacco income and are reliant on agriculture for economic viability.

In addition to cost-share support, participants receive access to a board of agricultural experts who provide a wide range of technical assistance on production, processing, and marketing. The participants also receive assistance integrating new farm enterprises with the existing farm operation. RAFI’s program is designed to enable participants to redirect scarce farm resources into viable small businesses.

In exchange, participants are asked to conduct outreach about their projects to other farmers and members of the community. We hope that participants can become a valuable information resource to facilitate the development of new enterprises by other farmers in their communities and across the state.

Since 1997, the cost-share program has provided more than $680,000 for development 68 new agricultural initiatives, which are demonstrating creative ways to replace lost tobacco income in North Carolina.

The Reinvestment Fund is supported
through a grant from the
North Carolina Tobacco Trust Fund Commission.