Agenda - 08-19-2008- 4ii - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 19, 2008 Action Agendaf v Item No. -/ ~ SUBJECT: Ratification of Grants Submittals to Golden LEAF Foundation and North Carolina Tobacco Trust Fund for the Piedmont Value-Added Shared-Use Food & Agricultural Processin Center DEPARTMENT: EDC & Cooperative Extension PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Brad Broadwell, 245-2325 Noah Ranells, 245-2330 Fletcher Barber, Jr., 245-2050 PURPOSE: To ratify August 1, 2008 submissions of grant proposals to the Golden LEAF Foundation and the North Carolina Tobacco Trust Fund for implementation of the November 2007 feasibility report for the Piedmont Value-Added Shared-Use Food & Agricultural Processing Center. BACKGROUND: A major limitation to meeting the increasing consumer demand for retail and wholesale marketing of locally grown farm products is the lack of a processing facility. This project implements the recommendations of a 2007 feasibility study to develop an FDA- approved regional value-added shared-use food and agricultural processing center to serve the Piedmont region of North Carolina by January 2010. The center will accommodate a range of processing needs and allow for future expansion. Business development support and education, especially training for new food-based businesses, developing business plans, and meeting food safety requirements will allow the center to engage rural farm communities with the opportunities offered by the center. Revenue projection from user fees that provide incentives for sourcing locally grown farm products is $150,000 by year 3 of operation, with gross income for clients using the facility ranging from $800,000 to $1,200,000 per year. This facility will serve farmers on 16,214 farms in 22 counties within a 75-mile radius of Hillsborough, North Carolina, representing almost 30% of farms statewide. This region includes 2,721 tobacco farms and represents 40% of NC tobacco production. Farmers and their rural communities as well as tobacco processing and marketing communities can benefit from participating in training and education programs, adding value to and marketing local farm products. Within the 22-county area, this center can enhance the capacity to process local farm products for the 3.3 million individuals who are potential customers for the products created at the center.