Oklahoma Cooperative Marketing Loan

This loan is available to entities or individuals wishing to work together to develop or establish production, process or market agricultural products, or establish agritourism ventures. The purpose of this loan is to promote productivity, provide added value to agricultural products, stimulate agricultural diversification and encourage processing innovations.

The Oklahoma Agriculture Enhancement and Diversification Program provides funds in the form of 0% interest loans or grants for the purpose of expanding the state's value added processing sector and to encourage farm diversification. Funds, provided on a cost-share basis, must be used for marketing and utilization, cooperative marketing, farm diversification and basic and applied research. All funding proposals must clearly demonstrate the ability to directly benefit Oklahoma farmers and ranchers. Proposals are evaluated by a ten member Advisory Board with their recommendations for funding submitted to the Oklahoma State Board of Agriculture

• Principles should be individuals rather than a previously existing corporation. Those individuals must have some type of cooperative agreement between themselves that will ensure proper accountability for the proposed plan.

• The agreement may be formal or informal, but proof of an agreement must exist.

• Individuals are encouraged to seek marketing partners within Oklahoma.

• Applicants should provide an outlet for products that normally have not been marketed through an existing marketing cooperative.

• A sound marketing plan for the product should be included.

• Applicants are encouraged to work with a professional (legal, agricultural or economic development specialist) who will serve as an advisor. Consulting fees may be included in the application budget.

Funds must be used to produce alternative ag products or process and/or market Oklahoma ag products. Activities must create rural economic development, and indicate the probability of success. Preference is given to applicants whose:

• Industrial and non-food production processes use ag products

• Food, feed and fiber products and uses are innovative and add value to ag products

• Applications demonstrate a high probability of job creation and return-on-investment

• Proposals feature research that is innovative as well as commercially plausible

• Proposals demonstrate a high probability of rapid commercialization

• Projects demonstrate a commitment for funding from other private or public sources or from the applicant

• Proposals center efforts on rural locales

• Principals are individuals, a group of individuals, an individual on behalf of a group or corporations that meet the criteria set forth: to market a product or formulate or implement a marketing plan for products not marketed through existing cooperatives

• Proposals must have potential to create additional income for the farm unit

• Proposals must provide new, innovative plans for marketing the product