Agriculture Value Added Loans
Agriculture Value Added Loans are designed to assist agriculture producers in Kansas with any value-added venture not qualifying for either the Agritourism Attraction Development Loan Program or the Diversified Farm and Specialty Production Loan Program. “Value-added agriculture”, simply defined, is a process of increasing the economic value and consumer appeal of an agricultural commodity. Three types of loans, detailed below, are available through this program.
- Marketing Development Funds may be used for market research, feasibility studies or to facilitate entry into a market.
- Bridge Loans are used for a short duration of time until permanent financing is in place. The loans allow the investor to pursue timely real estate acquisitions or business opportunities, as well as to provide opportunity to pursue start-up funds.
- Commercialization Funds are provided for projects that involve actual processing, equipment, physical structures and gap financing.
Requirements:
- Project must add value to an existing operation or create a new value-added product
- Substantial financial match
- Complete application, including business and marketing plans
- A high probability of return on investment
Eligible expenses include, but are not limited to:
- Building construction, purchase or improvements
- Equipment
- Marketing expenses (including, but not limited to, promotion, market research, marketing plan development and product/brand development)
- Professional service costs (including, but not limited to, architectural, engineering or other consulting fees)
- Other supplies and materials
Areas that the loan will NOT cover:
- Production costs (seed, labor, chemicals, livestock, retail inventory or other inputs)
- Land acquisition
- Paying off existing debt
Matching:
- Substantial match required
Click here for a printable application.
For details, please contact:
Mari Tucker
Marketing Specialist
Kansas Department of Commerce
1000 SW Jackson, Suite 100
Topeka, KS 66612-1354
Phone: (785) 296-6080
Fax: (785) 296-3776
E-mail: mtucker@kansascommerce.com