Explanation of Statutory Authority
Section 93.07 (1), Stats., directs DATCP to make such regulations as are necessary for the discharge of all the powers and duties of the department. While granting the authority to make grants to dairy processors, the budget language does not specify the bases for grant determinations. The agency considers it necessary to adopt rules to establish the bases for grant determinations in order to effectuate the purposes of s. 20.114 (4) (dm) and 93.40 (1) (g), Stats. This proposed rule implements the “dairy processor” grant program. Related Rules or Statutes
There are no directly related rules or statutes, other than those cited above. DATCP rules for the “dairy processor” grant program will be incorporated in subchapter of ch. ATCP 161, Wis. Adm. Code (agricultural development and market promotion). Plain Language Analysis
The “dairy processor” grant program is designed to promote the growth of the dairy industry by providing grants to dairy processors. The biennial budget act appropriated $200,000 in grant funding for each year of the FY 2013-15 fiscal biennium. This proposed rule spells out grant procedures and criteria. Under this proposed rule, the “dairy processor” grant program will support projects proposed by dairy processors intended to expand and diversify the dairy industry.
Grant Purposes
Under this proposed rule, DATCP may award grants for projects that create, expand, diversify or promote any of the following:
New capital investment in the dairy industry.
New technologies or practices related to dairy production.
Improvement of the competitive position of the Wisconsin dairy industry.
Efficient use of farmland and other agricultural resources for dairy production.
Employment in the dairy industry.Grant Limits
Under this proposed rule, DATCP may award no more than $50,000 of grant funding to any person or entity in any state fiscal biennium. Once DATCP makes a grant award, DATCP may make the actual grant payments over an original contract term of up to 3 years.
Matching Contribution
DATCP may give preference to applicants providing matching funds which may be in the form of capital, land, labor, equipment or cash related to the grant project.
Use of Grant Funds
Under this proposed rule, grant funds may be used to reimburse any of the following expenses if those expenses are a reasonable and necessary part of the grant project:
Operating expenses, including expenses for salaries and wages, contract and consulting services, travel, supplies and public information.
The purchase of equipment whose full value is ordinarily depreciable within one year.Grant funds may not reimburse any of the following expenses:
Repayment of loans or mortgages.
Rent or contract payments for time periods extending beyond the term of the grant contract.
Equipment purchases, except for certain equipment purchases and depreciation expenses specifically authorized by this rule.
Administrative or overhead costs that are not direct costs of the grant project.Grant Proposals
Under this proposed rule, DATCP must issue at least one request for grant proposals in each state fiscal biennium (DATCP may issue more frequent requests, if it chooses to do so). The request for proposals must describe the required form and content of grant and loan proposals, and must specify a deadline for submitting grant proposals. Applicants must submit grant proposals to DATCP, in the manner prescribed by DATCP’s request for proposals.
Grant Awards
Under this proposed rule, DATCP must evaluate grant proposals and issue its grant awards within 90 days after receipt of a complete proposal. DATCP must clearly identify each award recipient, the amount of the award, and the purposes for which the award is given. DATCP must consider all of the following criteria when evaluating grant proposals and making grant awards:
The extent to which a proposed project will benefit the dairy industry.
Whether the proposal complies with DATCP’s request for proposals.
Whether the proposed project meets the standards prescribed in this proposed rule.
The viability of the proposed project.
The management and technical qualifications of the grant applicant.
The qualifications of the persons who will carry out the project.
The financial capacity of the grant applicant to complete the project as proposed.
The adequacy of the project plan and budget.
Whether the grant proposal adequately identifies the nature of project expenses to be reimbursed under the proposed grant.Grant Contracts
Under this proposed rule, DATCP must enter into a contract with a grant recipient before distributing any funds to that recipient. The contract must spell out grant terms and conditions, including performance requirements, reporting requirements and payment terms.
Grant Payments
Under this proposed rule, DATCP may distribute grant funds in one or more payments, based on documented progress toward completion of the grant project. DATCP may require a grant recipient to file progress reports and require grant recipients to submit expense documentation as necessary to support grant payments.
Federal and Surrounding State Programs
Federal Programs
There are currently no similar federal programs.
Surrounding State Programs
The Minnesota Dairy Development and Profitability Enhancement program awards $200,000 annually in grants of up to $5,000 per dairy producer to cover half the cost of a comprehensive business plan to evaluate farm start-up, modernization and expansion.
In 2009-2010, 50 Minnesota producers were selected to share $1 million in grants aimed at boosting the state’s livestock sector with projects that include renovation of milking facilities, barn upgrades, technology modernization, improved waste management systems and business transitions.
