Stephen Versen, AFID Fund Coordinator804.786.6911, Fax: 804.371.2945

E-mail: Stephen.Versen@vdacs.virginia.govwww.vdacs.virginia.gov/agribusiness/afid.shtml

VIRGINIA DEPARTMENTOF AGRICULTURE ANDCONSUMER SERVICES

What our Partnersare Saying

“At Relay Foods, our goal is to strengthen the localfood economy in every community we serve, and wehave been able to grow and thrive in Virginia basedon our strong partnerships with producers across thestate. We look forward to using this AFID grant tocontinue exploring innovative ways to connect ourcustomers with the fresh and local foods produced by

Virginia growers and artisans.”~ Zach Buckner, Co-founder and CEO of

Charlottesville-based Relay Foods

“James City County Board of Supervisors recognizesthe importance of our agricultural heritage. This

AFID Planning Grant award promotes the economicviability of our working lands, details our inventoryof rural assets, and identifies key development oppor-tunities. The James City Supervisors are encouragedthat growth in agricultural businesses will expandour tax base while highlighting and celebrating ourcounty’s unique and diverse rural economy.”~ Mary Jones, Chairman, James City County

On his company’s receipt of an AFID grant forspecialized equipment that will allow them to servicesoybean markets requiring bagged and palletizedproduct: “Exports are what drives our business,so we are glad to have this assistance from theCommonwealth of Virginia that enables us to

continue to develop these markets. Whether throughtrade missions promoting Virginia agricultural

products, or through their support of the infrastruc-ture needed to access these markets, as we arereceiving today, we are appreciative of the

Commonwealth’s focus on agriculture exports.”~ Tom Taliaferro, Operations Manager of Isle of

Wight-based Montague Farms

Economic Impact ofAgriculture in Virginia

Agriculture is Virginia’s largest industry by far, withnothing else coming a close second. The industryhas an economic impact of$52 billion annually andprovides nearly 311,000jobs in the Commonwealth.The industries of agricultureand forestry together havea total economic impact of$70 billion and provide morethan 400,000 jobs in theCommonwealth. Every jobin agriculture and forestrysupports 1.6 jobs elsewhere in Virginia’s economy.

According to a 2013 economic impact study,production agriculture employs nearly 55,000 farmers

and workers in Virginiaand generates approximately$3.3 billion in total output.In addition, value-addedindustries, those that dependon farm commodities,employ more than 67,000workers. When the employ-ment and value-added impactof agriculture and forestryare considered together,

they make up 8.1 percent of the state’s total grossdomestic product.

In addition to its tangible benefits such as farm cashreceipts and jobs, agriculture and forestry providemany intangiblebenefits. Theseinclude recreation,tourism, wildlifehabitat, biodiversity,flood mitigation,improved waterquality and soilstabilization.

Source: The Economic Impact of Agriculture and Forestry on the Commonwealthof Virginia, Weldon Cooper Center for Public Service, University of Virginia,2013

Virginia Department of Agriculture and Consumer Services

A new tool to supportagriculture and forestry basedeconomic developmentacross the Commowealth

GOVERNOR’SAGRICULTURE &

FORESTRYINDUSTRIES

DEVELOPMENTFUND

an overview

AFID Facility GrantsIn 2012, the General Assembly created the AFID,the Governor’s Agriculture and Forestry IndustriesDevelopment Fund, as a discretionary performance-based incentive for the Commonwealth to use inpartnership with local governments to attract new andexpanding agriculture and forestry businesses to thestate. As two of Virginia’s top industries, agriculture andforestry warrant an economic development programtailored to their unique characteristics. Through smartand targeted investments, the Commonwealth has atool to help create new and growing markets forVirginia farmers and forestland owners.

Eligibilitym No minimum threshold for jobs created or investmentm Must be a facility that adds value to agricultural

or forest productsm At least 30% of those agricultural or forest

products must be Virginia-grownm Requires dollar-for-dollar cash or in-kind local

match, and can partner with other eligible stateeconomic development funds

Grant Amount and Conditionsm Maximum grant: $250,000 or 25% of qualified

capital investment (the lesser)m Requires a performance agreement with claw

back provisionsm Grant amount determined by Governor based

on a return-on-investment analysis and impact onagricultural and forest producers

m Interested businesses should contact their localeconomic development office, the VirginiaDepartment of Agriculture and Consumer Servicesor the Secretariat of Agriculture and Forestry

Success StoriesShenandoah Processing, LLC used AFID funds tohelp bring an abandoned poultry processing facility indowntown Harrisonburgback to life as Virginia’sfirst organic- andhumane-certifiedcustom poultry process-ing facility adding over100 jobs and $2 millionof new investment to thecity. The company willprocess up to 50,000 birds a day, almost all sourcedfrom Virginia farms.

Homestead Creamery, the Franklin County-basedproducer of high-quality milk, ice cream and other

dairy products, received thefirst AFID award in 2012.The funds are leveraging over$1 million in new capitalinvestment, helping thecompany hire 20 newemployees and add cheese,yogurt and sour cream totheir product line. Thisexpansion will directly lead

to the purchase of an additional 500,000 gallons ofVirginia-produced milk and cream.

Franklin Lumber, a company started by formeremployees of the shuttered International Paper Franklinsawmill, used AFID funds through a partnership withIsle of Wight County toreopen the facility bringingalmost $15 million in newinvestment and more than70 good-paying jobs backto the site. Each yearthe company will purchasealmost 200,000 tons ofVirginia-sourced logs,creating a major newmarket for forestlandowners in the region.

AFID Planning GrantsThe AFID planning grant program is designed toencourage localities to think strategically about howthey can better support and integrate agriculture- andforestry-based industries into their overall economicdevelopment and job-creation efforts.

Key Provisionsm Grants up to $20,000 per locality or $35,000

for multi-jurisdictional applicationsm Dollar-for-dollar local match required, in-kind

match, such as staff time, can be up to half oflocal match

m Requires active participation of local agricultureor forestry board, committee or working group

m Applications accepted on a rolling basis

Allowable use of grant funds:m Develop a strategic plan for agriculture- and/or

forestry-based economic developmentm Develop local policies and ordinances that better

support agriculture- and/or forestry-based business, agritourism and other rural enterprises

m Create new plans, policies or programs for the preservation of working lands

m Fund feasibility studies, business plans and other predevelopment work for projects that will have a significant and lasting positive impact on the local agriculture and/or forestry sector

m Develop or implement local initiatives supporting agriculture- and/or forestry-based businesses

m Identify other projects that advance the interestsof agriculture and/or forestry in the locality