While it is typically within the scope of the federal government to issue agricultural grants, there is currently a lot of uncertainty around the status and future of some programs. During this time we would like to shift our focus from federal toward state directed programs, incentives, and grants that might help those of you in the agricultural sector.
Many states offer agricultural grants and financial incentives to growers, farmers, and agricultural business owners. This blog will focus on the state of Virginia. It is our hope that you might find the following information helpful, not only if you currently live in Virginia, but also if you are interested in starting an agricultural-related business and do not yet have a specific location. If you are interested in starting an agricultural-related business or grow operation in a different state, we hope you might feel inspired to look up what your state has to offer.
The Virginia Economic Development Partnership (VEDP)
To begin with, the state of Virginia offers sales and tax credits to businesses investing in new CEA (Controlled Environment Agriculture) technology and in new CEA infrastructure, assisting both new and existing businesses.
Additionally, as a means to amplify their economic status, the Virginia Economic Development Partnership (VEDP) was created by the state government to assist local and regional partners to expand and diversify the economy. To that end, VEDP offers a wide range of incentives to help new and existing agricultural and ag-tech businesses. These include customized workforce training programs, infrastructure grants and an assortment of tax credits, and includes the Virginia Agriculture and Forestry Industries Development Fund (AFID).
Read more about VEDP here
The Virginia Agriculture and Forestry Industries Development Fund (AFID)– What is it?
AFID is a discretionary incentive issued to localities by the Governor of Virginia in order to grow the agricultural and forestry industries.
In order to be considered for a grant the project must result in the creation of new jobs and new capital investment in the state. Further, facilities that qualify must produce “value-added agricultural or forestal products.” This could include greenhouse grown lettuce for example (wink wink). The lettuce would be “value-added” if it was additionally washed and packaged within the state before shipping to a distribution center.
To date, AFID has helped 141 businesses in generating $1.6 billion in new investments and has created over 4,650 jobs.
Read more about AFID here
The Controlled Environment Agriculture Innovation Center- A Case Study
Virginia Tech and the Institute for Advanced Learning have partnered to create the CEA Innovation Center, conducting research and educational programs in the CEA sector.
The Innovation Center facilities include indoor growing chambers, greenhouses, and vertical grow systems, which grow such demonstration crops as: lettuce, herbs, strawberries, blackberries and hemp. The Institute’s scientists help train employees, farmers and companies on technologies and crop production within the CEA industry.
Having a partnership of this kind encourages advancement in crop research, technological development, and workforce education and training for students looking for career development.
As CEA businesses begin to grow within the state of Virginia there will be an adjacent growth of employees looking for careers in the industry. It is therefore important to note that while it is very exciting and important to have agricultural financial incentives exist in the state for which you would like to establish, it is also crucially important to have coinciding educational opportunities designed to help your future workforce.
Do you live in a state that offers assistance to agricultural-related businesses? If so, please reach out and let us know. We would love to feature it in a blog so other people can learn about their potential opportunities!
