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Pallet C e nt ral • July -Aug u st 2 0 24 15 Since its start, W IG has awarded millions of dollars in grants. !ese grants have led to the discovery of new uses for wood and funded the development of advanced manufacturing techniques. By every metric, W IG has eectively boosted the wood products sector and enabled economically impactful innovations. Addressing Challenges In The Wooden Pallet Industry Many pallet manufacturers are small to medium-sized enterprises, which may make it dicult to invest in resources in advanced technologies and automation. !is can lead to slower production processes, higher labor costs, and diculty meeting modern standards. Staying competitive may require signicant technological investment, which is not feasible for all companies. Opportunies For The Wooden Pallet Industry W IG presents a signicant opportunity for the wooden pallet industry. In 2024, the USDA awarded tens of millions of dollars in grants in nearly two dozen states with an above-average success rate for grant applicants. Many grants were awarded for projects that many pallet manufacturers could also pursue, such as: • Build pellet manufacturing facilities • Fund biochar production facilities • Expand an existing sawmill • Expand an existing wood products manufacturing facility • Install new dry kilns • Build wood energy combined heat and power systems W IG grants can range from $28,000 to $1 million. !e farm bill currently being negotiated in the US House modies the program to lower the matching requirement for the grant and expand the type of eligible projects. NWPCA supports these changes and actively engages on the Hill to urge Congress to pass the farm bill this year. Applying For The Wood Innovaon Grant Applying for a Wood Innovation Grant involves a few key steps. Interested participants must submit a detailed proposal outlining their project, including its objectives, methodology, expected outcomes, and budget. !e USDA evaluates proposals based on criteria such as the potential for market expansion, environmental benets, and alignment with the program's goals. Collaborating with research institutions, universities, local governments, and peers can strengthen proposals by bringing additional expertise and resources. Gabriella Ybarra is Manager, Public Aairs at NWPCA. She also helps manage the NWPCA Polical Acon Commiee for the Associaon. She may be reached at gybarra@palletcentral.com or 703.519.6104. Regional Oces: Your Direct Link To Assistance !e USDA regional oces are an additional resource that can assist with Wood Innovation Grant applications, ease the process, and provide support. !ese oces oer valuable resources, including guidance on preparing proposals, information on eligibility criteria, and insights into current funding priorities. !ey can be contacted ahead of the grant application window opening and provide advice on whether a project is eligible. You can contact us—NWPCA Public Aairs team—for assistance in connecting with the correct regional oce. Conclusion !e USDA's Wood Innovation Grant Program oers a pathway to improve the wooden pallet industry's product design and manufacturing processes and contributes to broader economic goals for the community. With its vast innovation potential, the wooden pallet industry stands ready to benet from these grants, heralding a new era of growth and sustainability. Most available grants will be open in October 2024, and NWPCA is committed to providing additional resources to help you prepare. Please get in touch with Gabriella Y barra (gybarra@palletcentral.com) with questions.

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