Section 001-36-7 - SOLICITATION OF FARMS FOR PARTICIPATION IN THE MAINE FARMS FOR THE FUTURE INVESTMENT SUPPORT PROGRAM TO IMPLEMENT A BUSINESS PLAN1.Eligibility RequirementsA farm that has completed a Business Plan as defined above is eligible to apply for investment support funding to implement the Business Plan. The applicant may apply to be considered for either or both of two types of investment support grants. They may apply to receive the Department's recommendation to apply for a reduced-interest (2%) loan from the Agricultural Marketing Loan Fund under Title 7. Chapter 101, Subchapter 1-D, and/or they may apply for an investment support cash grant in exchange for a Farmland Protection Agreement. If an applicant has previously permanently protected the farm with a conservation easement, then he or she is not eligible to apply for the investment support cash grant, but may apply to be recommended to apply for a reduced-interest (2%) loan. B. An applicant requesting an investment support cash grant in exchange for a Farmland Protection Agreement must own at least 5 acres of land in agricultural use at the time of application.2.Criteria for SelectionTo be selected for the investment support program, an applicant must participate in a competitive application review process by submitting an application form and a written Business Plan to the Department. The application and Business Plan must demonstrate the following:
A.The Business Plan satisfies the definition in Section 1 and requirements in Section 6 above. 5 points.B.Management Capacity: The Business Plan provides evidence of applicant's knowledge, experience and management capacity to successfully plan and implement the proposed changes to the Farm Business. 20 points.C.Financial Capacity: The proposed changes to the Farm Business will improve the cash flow thereby improving the management of debt load needed to pay any new debt associated with the proposed change(s) to the Farm Business. 10 points.D.Farm Vitality and Development of New Capital: The Business Plan demonstrates, through better strategies, marketing, production efficiencies and upgrading of facilities and equipment, an increase in profitability and overall net worth that will improve the overall sustainability of the Farm Business. 30 points.E.Collateral or Asset Base: The Business Plan demonstrates that the farm operations will improve the productivity of the land (soil quality, fertility, water holding capacity), and the physical condition of the buildings and equipment, and sufficiently maintain any newly acquired assets to increase the overall sustainability of the Farm Business. 20 points.F.Other Conditions(1) The Business Plan identifies how the current or proposed farm operations will accomplish broader conservation objectives such as protecting water quality, improving wildlife habitat, or maintaining open space and local scenic and cultural amenities as long as such practices enhance or maintain the profitability of the farm. 5 points(2) The percentage of the farmland owned by the applicant that is to be protected under the Farmland Protection Agreement. 5 points(3) The degree to which the change in the business is new and different to the business. 5 points3.Uses and Limitations of FundingA. The Department may provide investment support by granting a selected applicant a portion of the funds needed to implement the Business Plan. The cash grant is for an amount not to exceed the lesser of $25,000 or 25% of the total investments identified by the Business Plan. Prior to the disbursement of cash grant funds the Department may require the grantee to provide documented evidence of a proportionate amount of match equaling 75% of the total investments identified by the Business Plan. The match must be directly related to the implementation of the Business Plan and must have a real market value. Match may include, but is not limited to, in-kind labor and farm resources such as timber, sand, gravel or other natural resource materials used to implement the Business Plan; personal cash resources; loans, including a reduced-interest (2%) loan from the Agricultural Marketing Loan Fund; other grants; and other resources relevant to the Business Plan.B. The Department may provide a selected applicant with a recommendation to apply for a reduced-interest (2%) loan from the Agricultural Marketing Loan Fund established under Title10, Section 1023-J and administered under 7 M.R.S.A. Section43. If the total cost to implement the Business Plan is less than $100,000 then the reduced-interest loan may be up to 90% of that cost. If the total cost to implement the Business Plan is more than $100,000 then the reduced-interest loan may be up to 75% of that cost. In either case, the total amount of the reduced-interest loan may not exceed $250,000. The reduced- interest loan may be used as match for the cash grant described above. C. The Review Panel will recommend to the Department those applicants that it has selected for investment support through a cash grant and/or a recommendation to apply for a reduced-interest loan under Title 7. Section 435, Subsection 3-A. D. Any funds provided by the Department pursuant to investment support to implement a Business Plan must be used to implement the Business Plan in its original form or in a subsequent amended version that has been approved by the Program Administrator and the Department prior to disbursement of funds.E. Whenever practicable, the Review Panel, will award grants to applicants that represent a diversity of agricultural enterprise types and broad geographic distribution across the State.F. If there is sufficient capital generated by the Farm Business or the applicant's off-farm enterprises, services or employment to fund the implementation of the Business Plan, then the Review Panel may designate that particular Farm Business as a lower priority for investment support grant funds.4.Solicitation ProceduresA. The Department may solicit proposals at any time during the fiscal year, but shall solicit proposals at least once per year.B. The Review Panel shall evaluate applications within five weeks after the deadline for applications has passed.C. The Review Panel shall send a written notification of a grant to a selected farm within one (1) week of its decision. Such notice shall include a draft of the Farmland Protection Agreement which must be finalized and signed by the selected farm before any grant funds are disbursed by the Department.D. The Review Panel shall send a written notification of its recommendation for a reduced-interest (2%) loan to the Department and the selected farm.E. If an applicant is not selected by the Review Panel, the Review Panel shall send the applicant and the Department a written notice of its decision. Such notice shall include documentation of the Review Panel's final score for the applicant and a written statement of the Panel's decision. Upon receipt of such notice, an unsuccessful applicant may appeal to the Department in writing within 30 days of receipt of the Review Panel's notice. The Department will address all letters of appeal within 30 days of receipt.5.Farmland Protection AgreementA farm selected to receive a cash grant for investment support must enter into a 7-year Farmland Protection Agreement as defined in Section 1.
6.Termination of AgreementA farm may terminate its Farmland Protection Agreement at any time, provided that it reimburses the Department for any investment support funds disbursed to the farm by the Department.
01-001 C.M.R. ch. 36, § 7