Tobacco Communities Reinvestment Fund

 

Demonstration Grant Program - Eligibility and Guidelines

RAFI will be offering $225,000 in grant awards for the 2012 grant cycle. Please read the guidelines carefully as the eligibility requirements have changed.

ELIGIBILITY

 

PRODUCERS / INDIVIDUAL APPLICANTS:

Must earn at least 50% of household income from your farm operation.

Priority is given to farmers who earned a significant portion of their income from tobacco at the time of the Master Settlement Agreement (1997-1998).

Priority is given to projects that demonstrate a way to replace lost tobacco income and to those proposals that explore innovative strategies in production, processing or marketing.

Past grantees that have received a grant from RAFI or Tobacco Trust Fund Commission are not eligible.

 

COMMUNITY GROUPS:

  • Groups of farmers, farm coops, or farmer associations partnering with churches, local businesses, civic organizations, or combinations of these are eligible

  • Should include some NC farmers that meet eligibility requirements. (Listed above)

  • Priority is given to groups with members that received a significant portion of their income from tobacco at the time of the Master Settlement Agreement (1997-1998).

PROJECT ELIGIBILITY:

Generate new farm 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 new 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

Note – Projects should have some of these qualities but need not meet every criteria.

High priority will be given to projects that are innovative and demonstrate a new direction or opportunity for farmers in North Carolina. View descriptions of past projects.


BACKGROUND AND GUIDELINES:

The goal of the Tobacco Communities Reinvestment Fund is to keep farmers in farming and maintain the economic base of North Carolina’s rural communities. The Reinvestment Fund aims to assist farmers and rural communities to develop new sources of agricultural income through provision of cost-share grants. The Reinvestment Fund will make two types of demonstration awards: Grant Awards of up to $10,000 for individuals a for collaborative farmer projects.


Tight margins for most commodity crops and changing farm programs provide new challenges for North Carolina farmers. The purpose of the Reinvestment Fund is to help farmers to develop enterprises that allow them to earn more for their products through innovative production, processing, or marketing approaches.


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


Application
Tobacco Communities Reinvestment Fund Demonstration Grants are awarded on a competitive basis. You must submit an application in order to be considered for a grant. Application materials are available online or at the RAFI office. Online application form maybe completed on your computer or you may download the application to a printer and answer the questions by hand.

PRODUCER APPLICATION

COMMUNITY APPLICATION

Deadline Dates
December 15, 2011: Application must be in the RAFI Office by 5 P.M. on December 15, 2011.

Award Decisions
The Reinvestment Fund Review Board evaluates proposals and makes recommendations of projects to be funded. Half of the Review Board members are farmers with backgrounds in tobacco and/or income diversification. Farmers who serve on the board are not eligible for grants. Other board members are university researchers, marketing specialists, lending experts, and church and community leaders.

Payments and Reports
A first payment of 75% of the grant award will be made after the contracts are signed. A second payment of 20% will be made in July, assuming adequate progress is made toward project goals. The final payment of 5% of the award amount will be made after all project activities have been completed.

Cost-Share Must Be Listed
“Cost-share” is the farmer or community contribution to the project. Cost-share can be either direct in terms of actual cash expenditures or in-kind in terms of labor, equipment, etc. Cost-share must be shown in the proposal budget.
Personal funds to buy items that will be used in the new enterprise count as cost-share. Also, you may be able to count certain in-kind contributions, such as the value of the time and labor that you and your cooperators put into the project and fair market value for equipment used in the project. No set cost-share amount is required

Outreach and Education
Farmers and communities who receive grants are required to do outreach to educate others about their projects. This can be done by hosting farm tours or field days, having articles written about the project, or making presentations at a farm or community meeting. RAFI staff can assist grantees in coming up with an outreach idea.

Cooperators
Cooperators are not required but increase the likelihood of success of your project. Cooperators may include other farmers, marketing, and production specialists, extension agents, crop consultants, non-profit organizations, business and other agricultural advisors. The best cooperators bring needed expertise to the project and have a clear role in helping the project succeed.

Use of Funds
Grant funds can be used to offset costs for: increased labor ( for extra labor you cannot do yourself); specialized equipment; retrofitting and adaptation of existing equipment; supply needs; sampling, analysis, scouting; outreach expenses; to investigate the feasibility of a new project; new marketing, handling or processing operations.
Grant funds CANNOT be used for: purchase of land, livestock; new, general-use farm equipment.

QUESTIONS?

If you would like to discuss your project idea or the application process with a RAFI staff member, call 919-542-1396 ext. 208

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