Federal State Marketing Improvement Program (FSMIP)

Official Website: http://www.ams.usda.gov/tmd/fsmip.htm

Purpose: FSMIP funds can be requested for a wide range of marketing research and marketing service activities

Eligible applicants: State departments of agriculture, State bureaus and departments of markets, State agricultural experiment stations, and other appropriate State agencies. State agencies should assume the lead role in FSMIP projects, and use cooperative or contractual linkages with other agencies, universities, institutions, and producer, industry or community-based organizations, as appropriate.

Eligible funding : Salaries, travel, rents, supplies related to the project.

Ineligible uses of funding: Will not pay for infrastructure (buildings), and advertising and promotion.

Funding level: The average grant is $50,000. Projects are generally for one year, but can be for up to two years

Match requirement: FSMIP funds must be matched, at minimum, on a one-to-one basis, from non-Federal sources. The match may consist of cash and/or properly valued, in-kind resources. State appropriations, as well as funds or other resources contributed by farm organizations, trade associations, or other project participants, can be used to satisfy the matching fund requirement.

Timing of grants: The deadline for submitting FY 2006 applications is February 10, 2006. Hard copy applications will meet the deadline if postmarked on or before February 10, 2006.

Pros: Funds marketing studies that can be of use to farmers interested in niche markets and new products.

Cons: Must have state agency support for the project. However, the state agency does not have to be the Department of Agriculture.

Selection criteria:

The relative need for the proposed activity or the relative importance of the problem to be addressed.
The benefits likely to be derived from the project in relation to the amount of FSMIP funds requested.
The level and nature of State and other non-Federal support (including, but not limited to, the required matching funds or in-kind resources) pledged to the project or activity.
The potential impact of an individual project on other States or on issues of national importance.
Unique and innovative features of the project, particularly if the project is similar to others funded in the past or if the project scope is below the State level.
Evidence provided in a clearly written narrative that the proposal brings together the appropriate resources in terms of people, budget, time, and other resources to meet the project objectives.
The adequacy and appropriateness of measures to be used to evaluate the project outcome.

Examples of funded projects:

Arkansas - $60,000 to the Arkansas State Plant Board, in cooperation with Winrock International, to conduct consumer research that will assist newly-formed vegetable cooperatives in southeast Arkansas identify and pursue opportunities to sell produce in commercial and local markets.
Georgia - $63,800 to the University of Georgia, on behalf of the Georgia Agricultural Experiment Station, and in cooperation with Colorado State University, to conduct consumer research to assess new market opportunities for producers of grass-finished beef.
Kansas - $28,800 to the Kansas Department of Commerce to analyze market and agritourism opportunities for Kansas wine, and develop a strategic marketing plan for the emerging Kansas wine sector.
Kentucky - $21,000 to the Kentucky Department of Agriculture, in cooperation with industry partners and the Extension Services of Kentucky State University and the University of Kentucky, to assess the impact of selected goat production methods on marketability and profitability.