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Value-Added Producer Grant Program Open Now

by Jane Sooby |

Have you considered adding a value-added component to your farm, such as starting an organic seed business or processing a crop you grow into a snack food?

USDA’s Rural Development Program offers support for farmers and ranchers to develop such enterprises. The Value-Added Producer Grant (VAPG) can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product. Examples of planning activities include conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product. Examples of working capital expenses include the following:

  • processing costs
  • marketing and advertising expenses
  • some inventory and salary expenses

Two types of applications may be submitted: planning grants (maximum $75,000) and working capital grants (maximum $250,000). Note that a 100 percent cost share is required for each application.

Independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures are eligible to apply for this program. You may receive priority if you are a

  • beginning farmer or rancher
  • socially disadvantaged farmer or rancher
  • small or medium-sized farm
  • ranch structured as a family farm
  • farmer or rancher cooperative, or if you are
  • proposing a mid-tier value chain.

Electronic applications are due May 11, 2023, and paper applications are due May 16, 2023.

For more details, refer to this Fact Sheet online.

Blog includes some text from USDA’s VAPG webpage.