Nat'l Sheep Center Signs Grant
Agreement; Funding Next Step

DENVER — The National Sheep Industry Improvement Center and the National Livestock Producers Association signed a long-awaited grant agreement last week in a joint meeting of their respective groups. The agreement was signed by NSIIC chairman Pierce Miller and NLPA chairman Sam Philips.

Miller said the Sheep Center's corrective language included in the ag appropriations bill signed into law last month and the signing of this grant agreement have been the Center's top priorities for some time now. Those priorities have been accomplished and the next phase can now be initiated.

The National Sheep Industry Improvement Center was established as part of the 1996 Farm Bill to aid the nation's ailing sheep and goat industries. The Sheep Center was designed as an innovative new revolving fund to provide capital to the sheep and goat industries for marketing and infrastructure developments. Since February 1997, the board of directors, the governing body appointed by the Secretary of Agriculture, has pursued a number of actions to get this unique new program working.

Finding a qualified financial intermediary has been a lengthy process which began in February 1999. To qualify, the intermediary had to meet the following criteria:

• an interest in the NSIIC goals, mandates and the relative small size of the grant;

• expertise with livestock production, processing or marketing-related lending;

• nationwide capability in urban and rural areas; and

• the ability to process and service loans from all segments of the sheep and goat industries, from production through the packer/processor/retail level.

NLPA was the only organization that met the requisite qualifications.

"The National Livestock Producers Association has a history of providing credit and capital assistance to the livestock industry, and this newly-formed intermediary structure is yet another way to help the industry," said NLPA's Philips.

The NLPA is headquartered in Colorado Springs, Colo. Founded in 1921, it has nationwide lending capabilities through its subsidiary organizations and can process and service loans from all segments of the sheep and goat industries, either directly or through contract services.

The grant agreement specifies the parameters for the use of the funds and specifies the reporting and accounting requirements to the NSIIC Board. The grant agreement further requires formation of an oversight "Sheep and Goat Committee" within the intermediary that will administer the grant. It details how the oversight committee will be formed and requires that sheep and goat expertise be represented on the committee. NLPA has agreed to all of these terms.

Applications for entities interested in applying for loans will be available Jan. 1 and can be requested from either the NLPA at (800) 237-7193 or the NSIIC at (303) 236-2858. Information is also available on the NLPA homepage at www.nlpa.org.