Opportunity Information: Apply for 72011118RFA00001
The Armenia Rural Economic Development - New Economic Opportunities (RED-NEO) opportunity is a USAID/Armenia cooperative agreement designed as an activity lasting up to 60 months. Its central purpose is to strengthen inclusive and sustainable economic security and economic growth in selected rural areas of Armenia. The program is built around three practical priorities: connecting producers to reliable buyers through stronger market linkages, supporting local economic development by creating and reinforcing business networks, and accelerating the development and growth of small and medium-sized enterprises (SMEs), farms, firms, and cooperatives. Alongside those headline goals, RED-NEO is meant to raise the day-to-day performance of rural businesses and cooperatives by improving production outcomes, increasing turnover, and helping them build the skills and systems needed to meet quality standards. The broader intent is to help Armenia maintain a competitive agricultural sector that can keep expanding in a durable way rather than relying on short-term gains.
Technically, RED-NEO concentrates on the horticulture value chain, with specific emphasis on orchards and dried fruit, viticulture, greenhouses, and berries. It also includes related rural growth areas that support farm profitability and rural employment, such as hospitality with a focus on Food and Beverage and Farmer-to-Table services, the use of weather stations and early warning tools to improve irrigation decisions and manage pests and plant diseases, and light agricultural machinery repair. These areas are framed as priority interventions because they can improve productivity, reduce losses, raise product quality, and create stronger connections between what rural producers supply and what markets actually demand, including higher-value buyers.
A key design feature is the target group: the activity plans to work with established rural businesses that are small to medium in size and have clear growth potential, especially those that cannot yet meet market demand or need support to scale. It explicitly does not focus on subsistence-level farms, and it is not intended to benefit oligarchic structures. Instead, the effort is aimed at helping viable businesses, cooperatives, and rural SMEs become more competitive by strengthening business and technical skills, improving income generation, and creating lasting commercial relationships with buyers. In practice, that means helping rural enterprises professionalize operations, adopt better production and post-harvest practices where relevant, and develop the consistency and standards compliance required for stable market access.
RED-NEO also reflects USAID/Armenia's assessment of recent agricultural growth trends. While the sector has shown strong growth, the opportunity description warns that the pace is not sustainable if it continues to be driven mainly by incremental productivity improvements among semi-subsistence farms. The program is positioned as a response to that challenge by promoting a shift toward more modern, commercial agriculture and wider adoption of improved technologies and practices. It is also structured to scale up businesses, including former USAID beneficiaries, when they remain constrained by unmet demand or still have room to expand.
From a funding and administrative perspective, the award is a discretionary opportunity issued by USAID/Armenia (USAID-Yerevan) under Funding Opportunity Number 72011118RFA00001, using a Cooperative Agreement instrument, and categorized under Business and Commerce (CFDA 98.001). The award ceiling listed is USD 4,000,000, with an expectation of one award. The original posting date was July 24, 2018, with an original closing date of October 1, 2018 at 5:00 PM Yerevan time. The eligibility category is listed as "Others" with further clarification referenced in the opportunity's additional eligibility text. Finally, USAID notes that a mix of technical assistance and small grants, paired with access to low-interest special credit lines, has worked well in Armenia in past agriculture programming and is expected to make RED-NEO interventions more attractive while improving long-term sustainability and local ownership.Apply for 72011118RFA00001
- The Agency for International Development, Armenia USAID-Yerevan in the business and commerce sector is offering a public funding opportunity titled "Armenia Rural Economic Development – New Economic Opportunities (RED-NEO)" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 98.001.
- This funding opportunity was created on Jul 24, 2018.
- Applicants must submit their applications by Oct 01, 2018 1700PM Yerevan Time. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $4,000,000.00 in funding.
- The number of recipients for this funding is limited to 1 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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FAQs: Armenia Rural Economic Development - New Economic Opportunities (RED-NEO)
What is the RED-NEO opportunity?
RED-NEO (Armenia Rural Economic Development - New Economic Opportunities) is a USAID/Armenia cooperative agreement activity intended to strengthen inclusive and sustainable economic security and economic growth in selected rural areas of Armenia.
Which USAID office is issuing this opportunity?
The opportunity is issued by USAID/Armenia (USAID-Yerevan).
What type of funding instrument is being used?
The instrument is a Cooperative Agreement.
How long is the activity expected to last?
The activity is designed to last up to 60 months.
What are the main priorities of the program?
The activity is built around three priorities: (1) connecting producers to reliable buyers through stronger market linkages, (2) supporting local economic development by creating and reinforcing business networks, and (3) accelerating the development and growth of SMEs, farms, firms, and cooperatives.
What kinds of results is RED-NEO aiming for at the business level?
RED-NEO is intended to improve day-to-day performance of rural businesses and cooperatives by improving production outcomes, increasing turnover, and helping them build the skills and systems needed to meet quality standards. The program also emphasizes building lasting commercial relationships with buyers.
Which value chain does RED-NEO focus on?
RED-NEO concentrates on the horticulture value chain.
What horticulture areas are specifically emphasized?
The opportunity highlights orchards and dried fruit, viticulture, greenhouses, and berries as specific emphasis areas.
Are any non-farm or supporting rural growth areas included?
Yes. The opportunity includes related areas that support farm profitability and rural employment, such as hospitality (with a focus on Food and Beverage and Farmer-to-Table services), the use of weather stations and early warning tools to improve irrigation decisions and manage pests and plant diseases, and light agricultural machinery repair.
Why are these intervention areas considered priorities?
They are framed as priority interventions because they can improve productivity, reduce losses, raise product quality, and create stronger connections between what rural producers supply and what markets demand, including higher-value buyers.
Who is the primary target group for RED-NEO?
The activity plans to work with established rural businesses that are small to medium in size and have clear growth potential, especially those that cannot yet meet market demand or need support to scale.
Does the program focus on subsistence farms?
No. The opportunity explicitly states it does not focus on subsistence-level farms.
Is the activity intended to benefit oligarchic structures?
No. The description states it is not intended to benefit oligarchic structures.
What kind of support does RED-NEO plan to provide to businesses and cooperatives?
Based on the description, the effort focuses on strengthening business and technical skills, improving income generation, professionalizing operations, adopting better production and post-harvest practices where relevant, and supporting the consistency and standards compliance needed for stable market access.
How does RED-NEO relate to recent agricultural growth trends in Armenia?
USAID/Armenia notes that while the sector has shown strong growth, that pace is described as not sustainable if driven mainly by incremental productivity improvements among semi-subsistence farms. RED-NEO is positioned to help shift toward more modern, commercial agriculture and broader adoption of improved technologies and practices.
Will RED-NEO build on previous USAID agriculture programming?
Yes. The description notes the activity is structured to scale up businesses, including former USAID beneficiaries, when they remain constrained by unmet demand or still have room to expand.
What is the Funding Opportunity Number (FON) for this announcement?
The Funding Opportunity Number is 72011118RFA00001.
What is the CFDA number and program category listed?
The opportunity is categorized under Business and Commerce and lists CFDA 98.001.
What is the maximum funding amount available under this opportunity?
The award ceiling listed is USD 4,000,000.
How many awards does USAID expect to make?
The opportunity indicates an expectation of one award.
Is this a discretionary funding opportunity?
Yes. It is described as a discretionary opportunity.
When was the opportunity originally posted?
The original posting date is July 24, 2018.
What was the original application deadline?
The original closing date was October 1, 2018 at 5:00 PM Yerevan time.
Who is eligible to apply?
The eligibility category is listed as "Others," with additional clarification referenced in the opportunity's additional eligibility text.
What kinds of financing or incentive mechanisms are mentioned as part of the approach?
USAID notes that a mix of technical assistance and small grants, paired with access to low-interest special credit lines, has worked well in Armenia in past agriculture programming and is expected to make interventions more attractive while improving long-term sustainability and local ownership.
What is the broader, long-term intent of RED-NEO for Armenia's agricultural sector?
The broader intent is to help Armenia maintain a competitive agricultural sector that can keep expanding in a durable way rather than relying on short-term gains.
What does "inclusive and sustainable economic growth" mean in the context provided?
In this opportunity description, it is tied to strengthening rural businesses and cooperatives, improving productivity and quality, expanding market access and buyer relationships, and supporting scalable, commercially oriented rural enterprises in selected rural areas of Armenia.
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