A few years ago, a young couple working in the Wisconsin cheese industry applied for a grant through the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). The couple was facing difficulties getting their business up and running efficiently. They hoped the grant would help overcome challenges. They were disappointed when their application was denied.

 

Still, the couple persisted, worked hard, and now feel fortunate they did not receive the grant as their “business was not yet ready.” Today, their dairy business is recognized as a success nationwide. Since that first denied application, they’ve been awarded a number of grants that have assisted in growing their business.

 

(Thank you, Al and Sarah Bekkum of Nordic Creamery, for allowing your story to be told!)

 

Grant programs

Not since the Great Depression has so much funding been available to agricultural businesses through government agencies. Grants are available to farmers, processors, agriculture innovators, and throughout the supply chain, regardless of size.

 

Wisconsin serves as a prime example. In the early 2000s, Wisconsin had only one grant program in place for production/processing agriculture. Administered by WDATCP, the Agriculture Diversification and Development program (ADD) had a total of $300,000 to allocate. This year, Wisconsin will grant over $35 million to agricultural producers and processors.

 

Still, these funds just don’t automatically appear in checking accounts. Applicants must follow a strict application process which identifies purpose, need, and process. Timeliness is important as state budgets can impact grant programs. Applicants should make use of consultants and others with experience in the grant process when applying for funds.

 

Thanks to groups like the Wisconsin Cheesemakers Association and others, the dairy industry receives its share of funding. Nationally, the Dairy Business Innovation Initiatives have had a broad and important impact. In Wisconsin, state funded dairy programs have more than doubled in the last five years. Funds have been awarded to companies both large and small, from start-ups to well-established companies

 

Why Grants?

A potential grant applicant needs to have some understanding of why grant programs are in place, as well as what a specific program is targeting.

 

Grant programs are intended to stimulate the economy and grow the value of the individual business. Additionally, a grant program should grow the entire industry segment. Measurements include jobs created, products developed, markets accessed, efficiencies improved, growth in demand for the products produced. Specific grant programs might have a wider goal such as addressing environmental concerns or sustainability opportunities.

 

Applying for a grant—it’s not easy

A common misconception is that grants provide “free money”. Grants can be challenging to apply for and manage. Guidelines must be followed, reporting requirements met, and reports filed on a timely basis. Grant funds are usually not distributed unless all requirements have been met.

 

With these considerations, here are a few thoughts to help guide someone considering a grant application:

 

  1. Is the project worthy of grant funding? Will it create jobs? Will it build new markets? If a new product, is there market demand? Will it strengthen the long-term business strength and position of the applicant?
  2. Does the applicant have the capacity to properly apply? Grant writing requires certain skills and is time-consuming. Grants applicants compete against many other applicants.
  3. Does the potential applicant have the time to use the grant? A grant award adds another business line to the current business.
  4. Will all required reports be accurate and on time?
  5. Potential applicants should carefully research the intent and parameters of each grant before applying. Unfortunately, grant applications often involve a project that is not eligible.
  6. Are there any violations or legal challenges facing the applicant? Granting agencies conduct due diligence on applicants before an award is approved.

 

Suggestions

 

  1. Public resources are available to help a potential applicant get ready for a grant. Assistance is available to develop a required business and work plan.
  2. Many grant applicants utilize the services of a professional grant writer who understands the process and requirements.
  3. Be certain to plan ahead as it takes time to properly conceptualize a project, let alone put together a successful application.
  4. Have patience with grant programs and the administrative staff. Grants can be a challenge for agencies to manage due to staff shortages and complicated requirements. Be sure to communicate with administrators and follow deadlines.

 

End of story…

Back to Al and Sarah Bekkum of Nordic Creamery, who were denied in their first attempt to secure grant funding. That was not the end of their story. Over the years, they’ve been awarded several grants that have helped Nordic Creamery grow in ways they never imagined.

 

So, plan and prepare, follow the process, and dream of the possibilities!

 

Norm Monsen is Vice President of the Agriculture Division of Creative Business Services/CBS-Global.

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