Gov. Heineman Awards $600,000 in CDBG Funding for Ag Projects

(Lincoln, Neb.) Gov. Dave Heineman has awarded more than $600,000 in Community Development Block Grant (CDBG) funding for two agriculture-based business development projects. The two projects will create more than 50 jobs in Fairmont, Hallam and surrounding communities.

“I want to congratulate all those involved in helping make these business development projects a reality,” Gov. Heineman said. “The fact that these two ventures will add value to agricultural products already produced in our state is further evidence that our agribusiness industry plays a vital role in furthering our economic development goals, both at the state and local level.”

The Governor awarded $305,000 CDBG funding to Fillmore County to construct a road needed to connect Advanced BioEnergy, LLC, a 100 million-gallon ethanol plant under construction west of Fairmont, with Hwy 81. The new plant will create 37 full time jobs.

CDBG funding will be matched by Fillmore County for the remainder needed for the road construction project. Private investors in Advanced BioEnergy, LLC, along with CoBank and Farm Credit Services of America are providing more than $139 million for construction and working capital for new ethanol plant.

Lancaster County will receive $305,000 in CDBG funding to help three established dairy farmers pursue a new business development project by opening Legacy Dairy & Creamery, a milk processing operation based in Hallam.

The facility will be located in a renovated 5,000 sq. foot building and initially process raw, hormone-free milk, pasteurized white milk and other milk-based products. The owners are in the process of securing machinery used to make butter and cheeses.

Lancaster County will loan the company $300,000 for equipment purchases and working capital. Legacy Dairy & Creamery owners and Saline State Bank will invest an additional $788,500 in private funding, bringing the investment to more than $1 million. The project is expected to create 16 new full time jobs.

Each county can use the remaining $5,000 in funding to help cover administrative costs.

Administered by the Nebraska Department of Economic Development, CDBG grants assist with the development of businesses and communities throughout the state. Federal funds are made available to Nebraska from the U.S. Department of Housing and Urban Development’s CDBG program.

Aaron Sanderford, Gov’s Office, 402-471-1967
Ashley Cradduck, Gov’s Office, 402-471-1970
Dave Honz, DED, 402-471-3763
Stew Jobes, DED, 308-390-3964