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10.156 FEDERAL-STATE MARKETING IMPROVEMENT PROGRAM

FEDERAL AGENCY

AGRICULTURAL MARKETING SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION

Agricultural Marketing Act of 1946, Section 204b, 7 U.S.C. 1623(b).

OBJECTIVES

To assist in exploring new market opportunities for food and agricultural products and to encourage research and innovation aimed at improving the efficiency and performance of the marketing system.

TYPES OF ASSISTANCE

Project Grants.

USES AND USE RESTRICTIONS

Projects may deal in such areas as providing marketing services to improve the marketability of agricultural products, expand export markets, improve economic and physical marketing efficiency, assemble and disseminate marketing information, and improve competitive trading.

ELIGIBILITY REQUIREMENTS

Applicant Eligibility

State Department of Agriculture, or other appropriate State agencies.

Beneficiary Eligibility

Producers, processors, marketing agencies, and general public.

Credentials/Documentation

A grant agreement is entered into between the administering Federal agency and the State agency that submits the application. Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments.

APPLICATION AND AWARD PROCESS

Preapplication Coordination

This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure

The State agency submits an application and fund request setting forth specific work to be undertaken and amount of funds required. This request is submitted to the Staff Officer of the Federal-State Marketing Improvement Program. The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used for this program.

Award Procedure

The requests are reviewed and approved or disapproved by the Agricultural Marketing Service in competition with other applications received. Grantees are notified of the amount awarded by allotment letter. Grant payments are made on a reimbursable basis.

Deadlines

Mid-February.

Range of Approval/Disapproval Time

4-5 months from the application deadline.

Appeals

No formal appeal procedure.

Renewals

Awards are generally for one year. Additional time to complete the project may be requested.

ASSISTANCE CONSIDERATIONS

Formula and Matching Requirements

States must at least match the request for grant funds. The match consists of cash or a combination of cash and in kind resources.

Length and Time Phasing of Assistance

Payments are made to the States on an as needed, reimbursable basis over the grant period. Advance payments may be requested.

POST ASSISTANCE REQUIREMENTS

Reports

Six month progress reports are required. A final financial status report and final project report are to be submitted to the Staff Officer no later than 90 days after the grant period ends. Field reviews are made by Federal-State Marketing Improvement Program personnel.

Audits

In accordance with the provisions of 7 CFR Part 3052; Audits of States, Local Governments, and Nonprofit Organizations; which implement OMB Circular No. A-133 (Revised, June 27, 2003), Audits of States, Local Governments, and Nonprofit Organizations; nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 7 CFR 3052.

Records

States must keep all records relating to the grant for 3 years.

FINANCIAL INFORMATION

Account Identification

12-2501-0-1-352.

Obligations

(Grants) FY 04 $3,318,000; FY 05 est $3,816,000; and FY 06 est $1,347,000.

Range and Average of Financial Assistance

$12,000 to $74,000. Average: $49,556.

PROGRAM ACCOMPLISHMENTS

In fiscal year 2004, 86 projects were submitted and 27 projects were funded. In fiscal year 2005, 76 projects were submitted and it is estimated that 28 projects will be funded.

REGULATIONS, GUIDELINES, AND LITERATURE

A request for proposals is announced each fall via agency press release, Federal Register notice, a letter to state departments of agriculture, and the program web site. Additional information about the Federal-State Marketing Improvement Program as well as links to final project reports are available at the program web site.

INFORMATION CONTACTS

Regional or Local Office

None.

Headquarters Office

Staff Officer, Federal-State Marketing Improvement Program, Agricultural Marketing Service, U.S. Department of Agriculture, Room 4009-S, 1400 Independence Avenue SW, Washington, DC 20250. Telephone: (202) 720-2704 Contact: Janise Zygmont.

Web Site Address

http://www.ams.usda.gov/tmd/fsmip.htm

RELATED PROGRAMS

None.

EXAMPLES OF FUNDED PROJECTS

A wide spectrum of marketing projects relating to food and agricultural products: new markets, direct marketing, evaluation of consumer preferences, export opportunities, economic and market analysis, transportation, distribution, labeling, and producer education to improve business and marketing skills.

CRITERIA FOR SELECTING PROPOSALS

Project selection is based on several factors: relative need or importance of the problem to be addressed; benefits likely to be derived in relation to the funds requested; level of state and other non-Federal support; potential impact on other states or issues of national importance; measures to be used in evaluating the impact of the project; and unique innovative features of the project.