PROGRAMS & ACTIVITIES

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Improve Opportunities For Agribusiness

We have representatives from the agribusiness community on the JCEDC board of directors. This gives the agribusiness community an opportunity to have input on issues impacting their industry.

JCEDC is currently the administrator of the CDBG (Community Development Block Grant) loan for the MVP (Milk Volume Production) program.

The Milk Volume Production Program (MVP)
The Milk Volume Production (MVP) program is designed to assist dairy producers that are undertaking capital improvement projects that will result in a significant increase in Wisconsin's milk production. This program was created to aggressively support Wisconsin's $20 billion dairy industry.

The goal of the MVP program is to provide qualifying dairy producers with the type of financing necessary to fill the "equity gap" and to partner with local communities to increase dairy production in Wisconsin. Only those projects that have a comprehensive business plan and can demonstrate that they will have a long term sustainable impact upon Wisconsin's milk production will be successful.

Eligibility
To be eligible, the producers must be or will be located in Wisconsin and are planning capital investments that will result in significant long-term increases in Wisconsin's capacity to produce milk. The participation is limited to no more than $500 for each cow added to the operation. The maximum award available under the MVP program is $1 million. Eligible Project Costs are limited to the cost of acquiring cows.

Loan Term
7 years with a fixed interest rate of 2% for the life of the loan

Repayment
Repayment is for the first year followed by interest only payments in the second year. The loan is then be amortized during years three (3) through seven (7) with equal monthly payments of principal and interest. 

Additional Criteria
Collateral and specific underwriting criteria need to be met as specified in the program. Personal guarantees are also required.  Underwriting criteria include factors such as the applicant's financial management skills, cost of production, debt per cow, return on assets, and a variety of other criteria as outlined in the program. Environmental management skills are also considered in the application. Previous experience implementing a nutrient management plan or managing waste storage and handling facilities is beneficial.  

The MVP program is collaboration between the applicant, Commerce and the local municipality (typically the county). The program provides benefits to the municipality by enhancing local economic development capacity. The MVP program is unique in that loan repayments made by the applicant will go directly to the local municipality to help establish or expand a revolving loan fund (RLF). The municipality can then use the RLF to assist other local economic development projects. JCEDC will assist the dairy farmer in partnership with other county and state agencies including agents associated with the UW extension system.