The Value-Added Ag Subfund was created in 1999 under then-Gov. Bill Janklow. Its purpose is to make grants or loans for agricultural development, feasibility studies, or marketing. The funds were initially part of a $3 million subfund from the Revolving Economic Development and Initiative Fund (REDI Fund) within the Governor’s Office of Economic Development (GOED) and are replenished when motor fuel tax refunds are claimed. When the fuel is used for off-road agricultural purposes, 3 cents per gallon of the refund is diverted into the VASF. As of July 1, 2013, the VASF was transferred to the SD Department of Agriculture.
Agriculture has long been the backbone of South Dakota’s economy, and adding value to the products already being produced within our borders is a win-win for everyone. South Dakota knows this, and is striving to bring the best-of-the-best -- from scientists, to producers, to manufacturers, to regulators -- to develop global solutions together. The purpose of the VASF is to assist in funding project specific studies for a new business or expansion of an existing business; or any development activities that will encourage or enhance agricultural development. By partnering with GOED, local communities, commodity organizations and others, the SDDA will work with you to take your project from conception to completion. Our goal is threefold: To find niche markets that will add value to South Dakota ag commodities; To help fund marketing and feasibility studies; and To help assemble the right people, capital, and labor to ensure a successful project.
SDDA staff should be contacted early on in the application process to work through the application, eligibility verification, and to discuss project details. Applications can be submitted at any time. The Value Added Finance Authority will review applications at their monthly VAFA meetings; which are usually the last Thursday of each month.
For information on Financial and Loan Programs contact:
Terri LaBrie, Executive Director, Value Added Finance Authority