Federal-State Marketing Improvement Program (FSMIP)

Matching grants for marketing agricultural products through state departments of agriculture

The Federal-State Marketing Improvement Program (FSMIP) provides matching funds, on a competitive basis, to state departments of agriculture and similar state agencies to study or develop innovative approaches for marketing agricultural products. Federal funds totaling $1.347 million have been provided for this program in the USDA budget in recent years.

FSMIP funds can be requested for a wide range of research and service work aimed at improving the marketing system or identifying new market opportunities for agricultural, horticultural and viticultural products; dairy products; livestock and poultry products; bees; forest products; fish and shellfish; and value-added processed products.

Although all proposals that meet the matching funds requirement and fall within FSMIP guidelines will be considered, states are especially encouraged to develop projects involving partnerships with producer groups, academia, community-based organizations, or other states to address practical marketing problems faced by small- and medium-scale producers.

Project Examples

A $35,000 grant to the Iowa Department of Agriculture and Land Stewardship, in partnership with Cooperative Development Services, to help producers of organic and natural foods better understand the distribution channels and markets for their products; to conduct market research and provide business development assistance for organic meat, dairy, grain, and feed producers and processors; and to develop strategies to increase opportunities for direct marketing of livestock products in Iowa and the Upper Midwest.
A $29,050 grant to the Louisiana Department of Agriculture and Forestry, in partnership with the Louisiana Agricultural Experiment Station, to conduct flavor and nutritional analyses and to develop a packaging system designed to enhance competitiveness of U.S. sweet potatoes in the export market by maintaining nutritional quality and maximizing shelf life.
A $51,100 grant to the Massachusetts Department of Food and Agriculture, in partnership with the University of Massachusetts, to foster direct marketing of locally-grown ethnic produce to Asian and Brazilian immigrant communities in eastern Massachusetts.
A $76,500 grant to the Tennessee Department of Agriculture, in partnership with the University of Tennessee, to develop a comprehensive guide and self-evaluation tool, based on the experience of more than 50 successful and diverse Tennessee agricultural entrepreneurs, to help start-up, valued-added agribusinesses assess and improve their marketing plans.
A $77,000 grant to the Wyoming Department of Agriculture, in partnership with Sheridan Community College and the Wyoming Business Council, to analyze the economic feasibility and practical capabilities of a mobile meat processing unit. For project descriptions from other states, please see the FSMIP website or call the national office.

Application and Financial Information
In recent years, available funds have been allocated to about 25 to 30 projects annually. Lists of the projects by state, and the amounts of federal funds provided for each project during the past 5 years, can be viewed on the Internet at www.ams.usda.gov/tmd/fsmip.htm.

Funds are allocated on the basis of one round of competition annually. The deadline for submitting applications is usually mid-February, awards generally are announced in July, and funds are available in September.

Eligibility, Uses, and Restrictions
Only state departments of agriculture and similar state agencies are eligible to apply for direct funding. However, others, including producer associations, economic development groups, academia, and nonprofit organizations, are encouraged to work with their state departments of agriculture to develop FSMIP proposals.

FSMIP will not approve use of grant funds for most advertising and promotion. FSMIP is not designed to support long-term, basic research or, with limited exceptions, to support capital improvements or equipment purchases. See the website for additional restrictions.

Contact
Organizations interested in developing a proposal should contact their state department of agriculture or the national program office for additional information and guidance.

Janise Zygmont, FSMIP Staff Officer
National Program Office
Agricultural Marketing Service, USDA
1400 Independence Avenue SW
Room 4009-S
Washington, DC 20250
Phone: (202) 720-2704; Fax: (202) 690-4948
E-mail: janise.zygmont@usda.gov

Internet
www.ams.usda.gov/tmd/fsmip.htm

Last Updated January 14, 2005