N.C. Value-Added Cost Share
N.C. Value-Added Cost Share Equipment Program – Frequently Asked Questions
Q. Who is eligible for NCVACS-Equipment funding?
A. NCVACS-Equipment is a program funded by the N.C. Tobacco Trust Fund Commission and the N.C. Rural Economic Development Center for value-added producers and processors. Eligible businesses must be registered or licensed in North Carolina and the majority of raw, agricultural goods must be produced in North Carolina.
Q. If I am not eligible for the VAPG, can I still apply for NCVACS funding?
A. Not if you are a value-added producer. In order to receive funding from NCVACS as a producer, you must be eligible for the VAPG and be a permanent resident of North Carolina. Priority will be given to applicants who have either received or applied for a VAPG since 2008. To determine whether you and your enterprise are eligible for the VAPG, take the quiz at http://www.rurdev.usda.gov/rbs/coops/vapgea.htm. If you still have questions about your eligibility for the VAPG, contact Neal Sherrod, USDA business program specialist, at 919-873-2043 or neal.sherrod@nc.usda.gov.
If you are a value-added agricultural processor, you may be eligible for NCVACS-Equipment even though you are not eligible for the VAPG. Your business must be based in North Carolina and the majority of the agricultural commodities that you process into value-added products must be raised or grown in North Carolina.
Q. What type of equipment is eligible for NCVACS-Equipment funding?
A. NCVACS-Equipment cost share funds may be applied toward the purchase of new or used equipment for which a clear need is demonstrated as part of an eligible value-added enterprise, including processing and/or packaging equipment. General farm equipment, such as a tractor, is not eligible for NCVACS-Equipment funding.
Q. How much NCVACS-Equipment funding is available for eligible equipment?
A. NCVACS-Equipment may award up to 50% cost share on equipment under $50 ,000; up to 40% cost share on equipment from $50 ,001 – $100 ,000; up to 30% cost share on equipment from $100 ,001 – $150 ,000; and up to 25% cost share on equipment from $150 ,001 – $200 ,000 with a maximum award of $50,000.
Q. Do I have to get an estimate for new equipment?
A. Yes. In order to receive NCVACS-Equipment funding for new equipment, applicants must provide at least two (2) estimates or quotes, including specification sheets and photos and/or diagrams of the equipment.
Q. How do I determine the value of used equipment?
A. In order to receive NCVACS-Equipment funding for used equipment, applicants must provide an independent, third-party appraisal that includes photos and/or diagrams. The appraiser must be approved by N.C. MarketReady by completing Section V of the 2010 NCVACS-Equipment Application, “Appraiser Certification.” Proof of clear ownership, such as a receipt, will also be required to process NCVACS-Equipment funding.
Q. Do I have to keep the equipment for a certain period after I purchase it with NCVACS-Equipment funding?
A. Yes. Ownership of equipment purchased with the assistance of an NCVACS-Equipment award must be maintained for a minimum of two years from the date of purchase. Records of the project must be maintained for a five-year period, beginning at the NCVACS-Equipment award date.
Q. What matching funds are required for NCVACS-Equipment?
A. Recipient matching funds equal to or greater than the cost share amount must be spent in advance of cost share funding. Once a recipient verifies that matching funds have been expended, the cost share funding may be issued to the seller. Recipients must verify their expenditures by completing the Matching Funds Report and submitting copies of receipts, canceled checks or paid invoices.
Q. When are applications due in 2010?
A. Cost Share Applications for NCVACS-Equipment are due by December 31 , 2010.
Q. Can I submit my application electronically?
A. No. You may fill out the application electronically prior to printing and submitting the NCVACS-Equipment application. Original signatures are required for Sections III, IV and V of the NCVACS-Equipment application. The application packet, including all supporting documents and required duplicates should be mailed to NCSU Value-Added Cost Share Program, 1065 Whitmire Road, Brevard, NC 28712. Reporting documents for cost share award recipients can be submitted electronically or by mail.
For more information on the N.C. Value-Added Cost Share Program, visit http://www.ncmarketready.org or contact Brittany Whitmire at 919-830-9557 or brittany_whitmire@ncsu.edu.
