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The Trump budget threatens funds that turn farmers into foodmakers. Rural communities should care.

Value Added Poducer Grantss were authorized as part of the Agriculture Risk Protection Act of 2000, which amended the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss. It was later amended by the 2002 farm bill. Housed within USDA Rural Development’s Business and Cooperative Programs division, the new program became a key ingredient to the secret sauce of the farmer-owned enterprise development sector.VAPG funds and services were critical to supporting the growth and development of entire industries. The early days of the program, for instance, saw its largest investments flow to planning efforts for ethanol and biodiesel facilities. Multiple millions of federal dollars were granted to farmer-led groups to hire consultants for feasibility and business planning efforts. Numbers were crunched. Engineering studies were drafted. Navigation maps for obtaining other incentives and fuel price agreements were created.At the time, politicians from both parties promoted the renewable fuels sector almost unanimously. Republicans could justify program investments and subsidies through a national security lens: developing domestic energy production. Democrats could wave the patriotic flag while also supporting job growth in rural communities. And many farmers, now investor-owners of energy plants, often made more money as investors than they did raising the corn or soy that fed the plants.

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New Food Economy