December 20, 2000

USDA has invited state departments of agriculture and other appropriate state agencies to submit proposals for matching funds under the Federal-State Marketing Improvement Program (FSMIP). For fiscal year 2001, USDA has allocated $1.35 million in federal funds for the administration of FSMIP grants. This represents a $150,000 increase over FY 2000 funding levels. USDA's Agricultural Marketing Service administers the program.

Announcing the availability of funds to the administrative heads of state departments of agriculture, Kathleen A. Merrigan, AMS administrator, advised state agencies that "AMS is particularly interested in proposals that address the issues of small farms, direct marketing, and sustainable agriculture." She also encouraged state applicants to forge partnerships with community-based organizations working in these areas.

FSMIP funds may be requested for a wide range of marketing research or marketing service projects aimed at exploring new market opportunities for agricultural products or improving the efficiency and performance of food marketing systems. Federal funds awarded to any project must be fully matched by non-federal funds or in-kind resources.

The funds will be allocated on the basis of two rounds of competition. Proposals received by Feb. 9 will be considered during the first round, and those received by May 11 will be considered during the second round.

States interested in applying for the funds may submit proposals to FSMIP Staff, USDA Agricultural Marketing Service, Mail Stop 0264, 1400 Independence Ave. SW, Washington, DC 20250-0264, or call (202) 720-2704. Program guidelines, application forms, and other related information are posted on the Internet at http://www.usda.gov/tmd/fsmip.htm. The notice inviting applications for FSMIP funds for FY 2001 will appear in the Dec. 19 Federal Register.