AGRICULTURE AND FORESTRY DEVELOPMENT SERVICES (AFDS)
(Information about AFID Planning Grants can be found here)
During the 2012 General Assembly session, Governor McDonnell introduced legislation to establish a new economic development tool specifically for agriculture and forestry value-added or processing projects. Created as the Governor’s Agriculture and Forestry Industries Development Fund (AFID), the legislation passed and was funded with broad bipartisan support from the Virginia General Assembly. Click here to view the new statute. AFID grants are now available for political subdivisions of the Commonwealth interested in growing their agriculture and forestry industries by strategically targeting for assistance those businesses that add value to Virginia grown agriculture and forestal products.
AFID grants are made at the discretion of the Governor with the expectation that grants awarded to a political subdivision will result in a new or expanded processing/value-added facility for Virginia grown agricultural or forestal products. The amount of an AFID grant and the terms under which it is given, are determined by the Secretary of Agriculture and Forestry and approved by the Governor. An AFID grant is awarded to a political subdivision for the benefit of the company, with the expectation that the grant will be critical to the success of the project.
Grants are made upon an application by both the locality and the business beneficiary for a project under the following conditions:
- The business beneficiary is a facility that produces "Value-added agricultural or forestal products,"
- A minimum of 30% of the agricultural or forestry products to which the facility is adding value are produced within the Commonwealth of Virginia on an annual basis in normal production years
- The grant request does not exceed $250,000 or 25% of qualified capital expenditures (whichever is less)
- The applicant provides a dollar-for-dollar matching financial commitment (cash or qualified in-kind)
- A performance agreement is executed between the applicant and the company to ensure fulfillment of promised job creation, capital investment and purchase of Virginia grown agricultural or forestry products
- Public announcement of the project is coordinated with the Governor’s Office
Businesses interested in AFID should first contact their local economic development professional, or other appropriate representative of the political subdivision, to discuss the qualifying project. If the political subdivision is interested in applying for the grant and providing the required local match, they should contact the Virginia Department of Agriculture and Consumer Services to discuss the application process.
Factors used by the Secretary of Agriculture and Forestry in determining grant awards and conditions include: anticipated levels of job creation, capital investment, amount of Virginia-grown agricultural and forestal products used by the project, as well as projected impact on agricultural and forestal producers, a return on investment analysis, and an analysis of the impact on competing businesses located in the area.
August 23, 2012
Governor McDonnell Announces Agriculture and Forestry Industries Development Fund Now Open to Applicants
– $2 Million Economic Incentive Fund to Spur More Processing/Value-Added Projects –
AFID Program Contact
Virginia Department of Agriculture and Consumer Services
102 Governor Street
Richmond, VA 23219