USDA AWARDS EIGHT GRANTS FOR AGRICULTURAL MARKETING, RESEARCH

                                    Andy Solomon (202) 720-4623
                                          andy.solomon@usda.gov
                                       Billy Cox (202) 720-8998
                                           Billy_A_Cox@usda.gov


USDA AWARDS EIGHT GRANTS FOR AGRICULTURAL MARKETING, RESEARCH

     WASHINGTON, June 16, 1998--Agriculture Secretary Dan Glickman today
announced $500,000 in grants to seven states to develop a wide range of
projects for improving the marketing and distribution of agricultural
products. 

       "These grants will encourage the development of innovative approaches
to the marketing of agricultural products," said Glickman.  "They will nurture
innovative partnerships to help boost diverse agricultural sales -- from
creating two new farmers markets in Rhode Island to establishing a North
Dakota-based website for marketing farm products.

     "Today, smart marketing strategies are playing a bigger role in ensuring
the success of small and family farms," he said.  "These grants for marketing
research and assistance will help smaller agricultural producers compete
effectively in domestic and international marketplaces."

     The USDA grants include -- 

     Montana--A $90,000 grant to the Montana Department of Agriculture will
     be used to investigate the market potential for flour and products made
     from Indian ricegrass, providing the Great Plains region with a new,
     high value grain crop.

     New Jersey--A $85,300 grant to Rutgers University will fund research to
     help expand market opportunities for small, organic farms in the
     Northeast.

     North Dakota--A $60,000 grant to the North Dakota Department of
     Agriculture will be used to boost the growing and marketing of new crops
     for domestic and international markets.  An additional $25,000 grant
     will assist in the creation of an Internet "marketing mall," a website
     that will help agricultural businesses market products via the Internet.

     Rhode Island--A $60,000 grant to the Rhode Island Division of
     Agriculture will help establish two new farmers markets, one at an
     inner-city location and one at a state park. Guidelines for other states
     or organizations wishing to start farmers markets in state parks will
     also be developed.  

     Tennessee--A $54,685 grant awarded to the University of Tennessee, in
     cooperation with the Tennessee Department of Agriculture, will be used
     to survey the state agricultural sector on the effectiveness of state
     and federal marketing assistance programs, such as the Federal-State
     Market News Service.

     Texas--A $68,161 grant to the Texas Department of Agriculture, in
     cooperation with Texas A&M University, will fund an assessment of
     current marketing bottlenecks and opportunities for cooperation among
     small Texas meat processing plants in order to expand the processed meat
     market.  

     Wisconsin--A $70,300 grant to the Wisconsin Department of Agriculture,
     in cooperation with the University of Wisconsin, will be used to
     identify marketing opportunities for alternative red meats, including
     farm-raised deer, elk, bison, and ratite (emu and ostrich) in the
     natural, health, and gourmet food marketplace.  
     
     Today's grants will be matched by the states receiving them.  They are
the first of more than $1.2 million in grants to be awarded this fiscal year
through USDA's Federal-State Marketing Improvement Program.  A second round of
grants will be released in August.  

     Applications for second round consideration must be received by June 19. 
Information on applying for FSMIP grants can be obtained on the Internet at
"http://www.ams.usda.gov/tmd/fsmip97.htm", or by contacting Larry V. Summers
in writing at T&M, AMS, USDA, PO Box 96456, Rm. 4006-S, Washington, DC 20090-6456, or calling (202) 720-2704.  

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