Program Emphasis

AURI provides expertise and assistance to increase value, demand and market opportunities for agriculturally-based products.

The Project Development Services (PDS) program is intended to assist in the identification and development of new processes or technologies for agricultural processing and commodity utilization. To enhance value-added economic opportunities in Minnesota, the PDS program operates on a 1:1 cost-share basis to help develop commercial products and to develop innovative processes or production technologies. To access cost-share assistance, an applicant must be actively working with an AURI project development team. AURI personnel, labs and pilot plants are available to assist Minnesota-based clients by:

  • Providing entrepreneurial resources through a network of collaborative partners to assist value-added start-ups and expansions
  • Providing innovative resources, scientific technical assistance and a broad-based expert network that promote sound decisions
  • Delivering quality research and development services to clients
  • Providing high quality process and product development
  • Fostering project development through collaboration
  • Focusing on impact and implementation

AURI’s professional and technical staff offers scientific technical and project development assistance, including but not limited to:

  • Technical Feasibility: A project may focus on new or improved process technology or on development of new value-added food or non-food agricultural products. The project may include an evaluation of the product’s technical soundness and quality. The project may also include an evaluation of a new/improved process technology that improves the effectiveness of agricultural product utilization.
  • Economic or Market Feasibility: If an applicant is developing an agricultural-based product or technology with AURI assistance, a study may be cost-shared to examine the market potential and/commercialization. This study would identify specific obstacles to commercialization and address potential solutions.
  • AURI technologists/scientists are available to provide consulting and technical services with respect to product and process development; product evaluation and testing; and sourcing materials, equipment and services.
  • AURI pilot plants and labs are available, on a confidential basis, to assist in product and process development, scale-up, nutritional assessment and production for market assessment.

Types of Services Available Through the Project Development Services Program

  • Analytical testing of products or processes in development
  • Product formulation
  • Pilot production line development
  • Zero waste process analysis
  • Laboratory scale trials
  • Engineering review
  • Process analysis
  • Business evaluation
  • Secondary market research

AURI project development teams, laboratories and pilot facilities are an integral part of project development. Laboratory and pilot plant facilities include:

  • Biobased materials and microbiology laboratory
  • Product development kitchen
  • Meat products development laboratory (USDA inspected)
  • Analytical chemistry laboratory
  • Biofuels enhancement laboratory
  • Co-product and waste utilization laboratory
  • Pelletization pilot facility

Depending on demonstrated project needs, cost-share assistance may be available for services including, but not limited to:

  • Technology development outside AURI
  • Validating technology
  • Engineering review
  • Packaging feasibility and assembly design
  • Prototype development costs/test market product costs
  • Process feasibility
  • Economic and market feasibility
  • Business or market planning (with AURI partners)

Eligibility

The PDS program is available to applicants who can demonstrate the project will significantly impact the use of an agricultural commodity or commodities, alternative crop or crops, or livestock. Clients must also demonstrate the capacity and intent to implement findings upon project completion. Additionally, each client must actively work with an AURI project development team to design, monitor and implement the proposed project. The PDS program is designed to add value to an agricultural commodity or commodities and to foster long-term economic growth, but is not intended for crop or livestock production. The project and its proposed benefits must impact commodities produced and/or processed in Minnesota.

The purpose of all of AURI’s programs is to provide technology development through its many resources, especially its professional staff, laboratories and pilot plant facilities. The PDS program augments these AURI resources by providing cost-share for those services not available within AURI. The staff of AURI incorporates this focus when determining the amount of project cost-share to recommend.

Client Tiers and Maximum Funding

The maximum level of cost-share available to a client is based upon the type of business structure the client has chosen, the potential impact of the project, and a demonstrated ability to bring a project to commercialization. The tiers of maximum cost-share support available are categorized below:

Prerequisites

The project for which PDS assistance is sought must be located in Minnesota, demonstrate a positive benefit to Minnesota agriculture and must be deemed as having commercial viability by AURI staff. Recipients of cost-share assistance must actively work with AURI staff to develop a product or process prior to approval.

PDS Product Development Process

A client is allowed a maximum ten hours of in-house assistance prior to completion of a PDS application. However, an application may be completed at any time a need for cost-share assistance is identified.

A client is encouraged to discuss the project idea(s) with AURI staff which will assist in determining eligibility for an appropriate AURI program and in initiating the application process. Approval of a project involves the following steps:

  • Client initially meets with AURI staff to determine project scope. An Initial Assistance Agreement is signed acknowledging acceptance of service by AURI staff.
  • After initially meeting, client and staff work to complete an Applied Technology Services Application (required for technical service-only and cost-share projects). This application requests the establishment of an AURI project team.
  • Application is submitted to the Project Approval Committee to establish an AURI team. The AURI project team will assess the need for cost-share assistance. If applicable, a PDS cost-share application will be completed by the client and team member.

NOTE: To be considered for cost-share, applicants must be actively working with an AURI project team to assess project potential.

  • PDS applications (for cost-share) are first reviewed by the Project Approval Committee. Requests for AURI cost-share assistance over $25,000 must be considered by the AURI Board of Directors at a regularly scheduled Board of Directors meeting.
  • Upon favorable approval, the application is forwarded to the Finance Department to establish a cost-share and activity agreement. This agreement must be signed by the client within 60 days of AURI approval for project continuation. *Refer to Client Reference Packet for details of project agreements.
  • Client continues to advance the project with AURI client team. Upon project implementation, a final report is prepared. After completion of the project, the client will receive periodic requests to complete impact assessments.

Financial Responsibility of the Client

At a minimum, clients awarded cost-share assistance must match in accordance with its appropriate cost-share tier. AURI support must be matched 1:1 with cash in accordance with the applicable cost-share tier (see page 5 for tier determination and match requirements). Matching funds may not come from an AURI affiliated program or other state source. AURI cost-share must be used to obtain technical research and business assistance not available within AURI. AURI cost-share support may not be used for legal fees, salaries of existing employees or officers, travel, websites, vehicles, equipment, buildings, real estate, slotting fees, packaging design, printing or items relating directly to the client’s costs of full-scale production (Cost of Goods Sold). AURI staff approves requests for cost-share and the subsequent use of funds; however, projects requesting an aggregate of $25,000 or greater in support must be reviewed and acted upon by the AURI Board of Directors.

Agreement to support a project under the PDS program requires AURI and the client enter into a written agreement which establishes the terms and conditions of AURI support. AURI may request a security interest or other legal interest in intellectual property developed or enhanced with the assistance of AURI. In the event a client breaches the written agreement, AURI cost-share dollars disbursed are subject to immediate repayment in full, plus interest at the rate of interest prescribed by Minnesota Statutes with respect to judgments. Upon successful implementation of an agreement, the client will receive a Client Reference Packet providing the appropriate reimbursement and reporting requirement information.

During the course of the project, the client is required to submit to the AURI State Office the following:

  • Progress reports, submitted when requesting disbursement of funds, describing activity to date and documenting match.
  • A final narrative report, including any appendices or materials developed and supporting documentation, describing the work performed and the results obtained.
  • A final financial report of expenses incurred within the scope of the project.
  • Periodically, after completion of the project, AURI staff or affiliated parties may contact the client to request information in implementation, progress and impact of the project.

Confidentiality

AURI will treat all mutually agreed upon information provided by an applicant as confidential. Information provided to or gathered by AURI related to its programs shall be treated as private data. Such data includes:

  • Financial data, statistics and information furnished in connection with AURI cost-share assistance, including credit reports, financial statements of net worth, income tax returns (either personal or legal entity) and any other personal or legal entity financial records;
  • Security information, trade secret information, or labor relations information disclosed to members of the Board of Directors of employees of AURI.

Proprietary information provided to AURI should be limited, set apart from the text of the application, and clearly marked as CONFIDENTIAL. AURI will limit the dissemination of proprietary information to staff and project reviewers on a confidential basis; but in any event, AURI does not assume any liability for inadvertent disclosures.

AURI will not, consistent with relevant law, make public any information disclosing product, process, commodity, invention, technology, innovation, or service funded pursuant to the PDS program until a patent, copyright or trademark is applied for, or for two years after completion of the project, whichever occurs first. AURI does not assume liability for any inadvertent disclosure.

Evaluation of Projects

AURI assistance is intended to occur early in the development of a product or process for which feasibility needs to be determined. A request for AURI assistance is analyzed with respect to a project’s positive impact on Minnesota and its agriculture. A project is reviewed and evaluated based upon the following criteria:

  • Innovation/Uniqueness: How innovative or unique is the product or process?
  • Commodity Source: Are Minnesota agricultural commodities utilized?
  • Utilization: How much commodity or by-product will be utilized?
  • Producer/Rural Community Impact: How many Minnesota agricultural producers or rural communities benefit from the proposed project?
  • Value Added: How much value is added to the agricultural commodity through further processing?
  • Economic Impact: How does the economy of Minnesota benefit from this project?
  • Cost Savings: Does the new product/process result in cost savings?
  • Implementation: Does capacity exist to implement upon successful project determination?
  • Collaboration: Does this project effectively use collaboration resources across the State?

The answers to each of these questions will determine the extent to which AURI may assist a client. A project which demonstrates significant positive impact is likely to receive more assistance than one showing minimal impact. Some projects may be eligible for technical assistance only, while others may be eligible for cost-share and technical assistance.