Southern Region Risk Management Education Center
Extension Risk Management Education Grants Program
2009 Request for Applications (RFA)
Proposal Closing Date: February 26th, 2009
OVERVIEW
Legislative Background
Section 133 of the Agricultural Risk Protection Act (ARPA) of 2000,
Pub. L.106 224 requires USDA/CSREES to establish a program under
which competitive grants are made to qualified public and private
entities for the purpose of educating agricultural producers about
the full range of risk management activities including futures,
options, agricultural trade options, crop insurance, cash forward
contracting, debt reduction, production diversification, farm resources
risk reduction, and other risk management strategies. Under this
mandate the USDA’s Cooperative State Research, Education,
and Extension Service (CSREES) established four Regional Centers
to address the educational needs within their regions. These four
Regional Centers have together carried out a competitive Risk Management
Education grants program on a national basis since 2001.
The 2008 Farm Bill, in Section 12026, amends this program by placing
a special emphasis on risk management strategies, education, and
outreach specifically targeted at:
A. beginning farmers or ranchers;
B. legal immigrant farmers or ranchers that are attempting to
become established producers in the United States;
C. socially disadvantaged farmers or ranchers;
D. farmers or ranchers that
a. are preparing to retire; and
b. are using transition strategies to help new farmers or ranchers
get started; and
E. new or established farmers or ranchers that are converting
production and marketing systems to pursue new markets.
Section 133 of ARPA established the continuing intent of the program,
which is to educate agricultural producers about the full range
of risk management activities. All organizations serving agricultural
producers, especially those serving the special emphasis audiences,
are strongly encouraged to apply. Applications must clearly identify
how agricultural producers will improve their risk management as
a result of participating in the proposed project.
Program Purpose
The Southern Region Risk Management Education Center (SRRMEC), in
conjunction with The Northeast Center for Risk Management Education,
the North Central Risk Management Education Center and the Western
Center for Risk Management Education Center, announces a funding
opportunity for projects that help farm and ranch families succeed
through targeted risk management strategies. The return sought on
the investment of the grant awards is the improved ability of farm
and ranch families to manage the risks associated with farming and
ranching businesses. In addition to crop insurance, effective risk
management involves selecting tools and approaches that reduce the
adverse financial effects of the uncertainties of weather, yields,
prices, government policies, global markets and other factors that
can cause wide swings in farm income or threaten economic viability.
Alternative production and management strategies may create a different
set of business risks, and/or may sometimes increase those risks.
Effective risk management education should help producers make a
comparative risk assessment of alternative production or management
practices.
The SRRMEC will announce 18-month awards by April 23, 2009 for
risk management education projects to begin on July 1, 2009 and
to be completed on or before December 31, 2010. If your project
is funded, we will offer whatever help we can give you to make the
project a success. Our goal is to partner with you to create improved
risk management education results for agricultural producers and
their families.
Size of Awards
Grant awards will normally not exceed $50,000 for single region
projects. Generally the range of awards for single region projects
range from $5,000 to $50,000, however there is no absolute upper
or lower limit on the funds provided to a project. The awards will
reflect a mix of project sizes to meet our investment goal of a
balanced portfolio.
Eligibility
Organizations eligible and encouraged to apply for grants are private
and public groups, organizations and institutions including land
grant colleges and universities, Cooperative Extension, other colleges
and universities, and other qualified public and private entities
in the region with a demonstrated capacity to develop and deliver
educational programs for agricultural producers and their families.
These entities include farm organizations, commodity groups, lenders,
consultants, marketers, risk management service providers such as
crop insurance agents, and other non-governmental and community-based
organizations. Collaboration between the public and private sectors
is strongly encouraged.
This program encourages applications that help producers belonging
to the Special Emphasis groups identified in Section 12026 of the
2008 Farm Bill learn about risk management strategies and tools
that can be applied to their farm businesses. Organizations that
provide risk management education and assistance to these producers
are eligible and encouraged to submit applications.
The SRRMEC serves Alabama, Arkansas, Florida, Georgia, Kentucky,
Louisiana, Mississippi, North Carolina, Oklahoma, Puerto Rico, South
Carolina, Tennessee, Texas, Virginia, and the US Virgin Islands
STAKEHOLDER INPUT
The Southern Region Risk Management Education Center welcomes comments,
suggestions and/or recommendations regarding this RFA from any interested
party. These comments will be considered in the development of the
next RFA for the Extension Risk Management Education Grants Program.
Written stakeholder comments should be submitted by mail to: Dr.
Ken Stokes, Southern Region Risk Management Education Center, Texas
AgriLife Extension Service, 1229 North U.S. Highway 281, Stephenville,
Texas 76401, or via e-mail to: Ken Stokes, kstokes@ag.tamu.edu.
INVESTMENT CRITERIA
Please read the following information carefully. This RFA gives
clear instructions on results based grant awards. Closely following
the principles and directions of results based grant making will
improve your chances for success. Proposals that fail to follow
these principles and directions will be excluded from consideration.
Projects Must Be Results Based
Awards will be made to projects that clearly identify risk management
results for the participants and that have a well thought out approach
for achieving those results. Risk Management Results (explained
in the following section) are the results you believe the participants
in your project will achieve. It is important to understand this
concept because our application selection process focuses on the
probability that the participants in your project will learn, achieve
and apply the proposed risk management results you identify. The
context and principles of our results based process are described
in detail in this RFA. Applicants who take the time to understand
results based grant making will have a far greater chance of success
in receiving funds from the SRRMEC.
Risk Management Results
The Proposed Risk Management Results for your participants are the
key focus of project selection. They are the specific, measurable
and verifiable results that participants will learn, achieve and
apply immediately after or within 6 months to a year following completion
of your project. At the end of your program delivery, the Proposed
Results should translate into actual risk management tools and strategies
that producers use to improve and manage their overall financial
risk. Examples of risk management results are: (1) A producer completed
a business plan as a result of participating in a your project;
(2) A producer identified a new market as a result of participating
in your project; and (3) An extended family developed a succession
plan as a result of participating in your project. The online application
requires that you identify how many of your project participants
will achieve each Proposed Result. Do not confuse the actions your
project team takes or materials they develop with actions that producers
will take to improve their ability to manage risk.
Risk Management Education Defined
To put the investment criteria in context, you should understand
our definition of Risk Management Education. Risk is an important
aspect of the farming business. Risk management involves choosing
among alternatives that reduce the adverse financial effects of
the uncertainties of weather, yields, prices, government policies,
global markets, and other factors that can cause wide swings in
farm income. Risk Management Education, within the context of the
enabling legislation for the Extension Risk Management Education
Program, is defined as training that improves the ability of agricultural
producers and their families to effectively manage risks. Five general
risk categories associated with farm and ranch businesses are described
below.
Production Risk – Production risk derives from the
uncertain natural growth processes of crops and livestock. Weather,
disease, pests, and other factors affect both the quantity and quality
of commodities produced.
Price or Market Risk – Price or market risk refers
to uncertainty about the prices producers will receive for commodities
or the prices they must pay for inputs. The nature of price risk
varies significantly from commodity to commodity.
Financial Risk – Financial risk results when the farm
business borrows money and creates an obligation to repay debt.
Rising interest rates, the prospect of loans being called by lenders,
and restricted credit availability are also aspects of financial
risk.
Institutional/Legal Risk – Institutional or legal
risk results from uncertainties surrounding government actions.
Tax laws, regulations for chemical use, rules for animal waste disposal,
and the level of price or income support payments are examples of
government decisions that can have a major impact on the farm business.
Human/Personal Risk – Human or personal risk refers
to factors such as succession, disability, estate problems, wellness,
or human relationships that impact the viability of the farm (i.e.,
divorce, sibling rivalry, and intergenerational issues). Labor relations
or labor supply are another area of human risk that can impact the
financial well being of the farm or ranch business.
Risk Management Areas and Topics
For each Risk Management Result you propose for the producers participating
in your project (Proposed Results), you will be asked to select
a corresponding Risk Area (from the five categories listed above)
and a specific Risk Management Topic within that area. The online
application will ask you to identify a Risk Area and a Risk Management
Topic from the following list for each Proposed Result:
• Production
o Economic risks of new technologies
o Insurance products
o Product and enterprise diversification
o Transition to new production systems
o Water use decisions
• Price
o Analysis of market fundamentals
o Cash and futures pricing tools
o Marketing plans and strategies
o Branded, certified or identity preserved marketing
o Direct marketing
o Contract Production
• Financial
o Agri-tourism and alternative energy investments
o Asset management including leasing and renting
o Business and strategic planning
o Cost of production and benchmarking
o Economics of input decisions
o Financial records and analysis
o Returns to alternative energy investments
o Value-added enterprises
• Legal
o Contracts and leases
o Environmental regulations
o Food safety liability
o Labor regulations
o Personal and business liability
• Human
o Employee management and communication
o Health, stress, and well being
o Interpersonal, family and business relationships
o Labor supply, recruitment, and retention
o Transition and estate planning
Portfolio Approach
In selecting projects for funding, the SRRMEC seeks to invest in
a balanced portfolio of Risk Management Education projects that
represent:
• Diversity in terms of different types of producers to
be served
• Diversity in terms of risk management tools and strategies
to be taught
• Diversity in terms of the organizations that receive support
• An array of public private partnerships that will strengthen
project results and continuity
• An approach that recognizes the importance of the family
to farm/ranch businesses
• A geographical balance of funded projects in the region
PROJECT DIRECTOR DESIGNATION
The designated Project Director must be actively involved at all
stages of the proposal process, from the Pre-Proposal through to
the Full Proposal (if invited to submit a Full Proposal Application),
and is responsible for completing the project. This includes project
management, subcontracting, funds oversight, meeting project time
schedules, reporting progress and submitting the final report. The
Review Panel’s assessment of whether or not producers can
achieve the proposed risk management results will be based upon
the capacity of the Project Director and team to deliver results-based
risk management training.
Change in Project Director Designation
The Project Director will be responsible for the entire project.
Change in project director designation requires approval from the
Center Director, Ken Stokes, Southern Region Risk Management Education
Center. The existing Project Director must send a letter to the
Center Director requesting the change. In addition, the newly designated
Project Director must also provide a letter which states his/her
qualifications and experiences for assuming the responsibilities
associated with the project. Failure to notify the Center of a change
in project director designation could result in a pre- or full proposal
being withdrawn from consideration, or the withholding of funds
if an award has been made.
PUBLIC-PRIVATE PARTNERSHIPS AND COLLABORATION
Applicants must indicate the collaborators they will use to strengthen
their project. A project will not be considered for funding unless
it identifies meaningful collaborators. Collaborators are outside
people and organizations from both the public and private sectors
that will provide technical expertise and/or access to producers.
Collaborators need only to be identified in the Pre Proposal. Letters
of commitment from Team Members and Collaborators or their organizations
are required as part of the Full Proposal Application.
EVALUATION CRITERIA
The following evaluation criteria will guide our selection of projects.
Because we believe the risk management results producers achieve
are the return on investment of our funds, the highest priority
will be placed on the Proposed Results for participants. An application
that does not identify the risk management results that participants
will achieve has a limited chance of success. Strong emphasis will
also be placed on Results Verification, Producer Demand, and Collaborators.
Although we are interested in the criteria that deal with innovative
approaches and wide application, our primary focus will be on whether
or not a project can deliver the proposed risk management results.
Successful applications will address the following criteria by
showing the direct connection between what you propose to do and
how these activities will lead to risk management results for participants.
The evaluation criteria are listed in the order of their importance,
with the first one being the most important.
Proposed Results (40 percent weight). Proposed
risk management results are what you anticipate participants will
learn, achieve, and apply through their participation in your project.
At the end of your program delivery, the proposed risk management
results should put producers in a better position to manage their
overall financial risk, and are the single most important factor
the panel considers when deciding whether your project is funded.
Results Verification (20 percent weight). Results
Verification identifies the method and/or tool that you will use
to verify (measure) how many participants are able to accomplish
the proposed risk management results listed in your application.
Careful consideration should be given to the type of verification
tool(s) that can most effectively measure the risk management accomplishments
of the producers.
Producer Demand (20 percent weight). Producer Demand
describes why your target audience will choose to participate in
your project. You must be able to provide evidence that there is
clearly a need, expressed by producers, for the project being proposed.
Although market research data is not required, evidence of producer
demand through a market analysis of your anticipated audience can
help to strengthen your application.
Collaborators (10 percent weight). Collaborators
are outside people or organizations that can provide either technical
expertise or access to producers. This may include partners, either
individuals or groups, in the public and/or private sectors, working
through the joint efforts of existing networks, or the formation
of new educational networks. (This criterion will require reviewers
to come to the conclusion that the proposal adequately indicates
that the collaborators are really part of the project, and that
their participation strengthens the project.)
Innovative Approaches (5 percent weight). This
may include approaches and methods that further contribute to the
existing knowledge base, materials and/or tools available. Innovation
may also deal with approaches that address the lack of time producers
have, the marketing and delivery of the proposed project to potential
participants, and other creative techniques that may further motivate
producers and their families to participate in the project.
Wide Application (5 percent weight). Demonstration
or description of how the proposed project or its inherent techniques
and strategies developed and delivered might have wide application.
Descriptions of program techniques might include adapting materials
to specialized audiences, marketing and promotion techniques, eliciting
high interest in basic risk management principles with new methodologies,
or other ideas that might make the project have wide application
if others were to pick up on the idea or processes involved. Will
aspects of the project contribute to the work of others who may
wish to borrow or adopt the processes and procedures being proposed?
HOW TO APPLY
Online Application Website
The Pre-Proposal application (and later Full Proposal application,
if requested) must be submitted online through the SRRMEC website
( http://srrme.tamu.edu).
If you are unable to complete the application online, please call
the SRRMEC at 254-968-4144 or e-mail us at kstokes@ag.tamu.edu.
Grant Application Process
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