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You are here: Home / Grant Size / $50,000 to $500,000 / USDA: Value-Added Producer Grant Program

USDA: Value-Added Producer Grant Program

Dated: March 21, 2023

The Rural Business-Cooperative Service (RBCS, Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), announces acceptance of applications under the Value-Added Producer Grant (VAPG) program for Fiscal Year (FY) 2023, subject to the availability of funding.

Donor Name: U.S. Department of Agriculture

State: All States

County: All Counties

Type of Grant: Grant

Deadline: 05/16/2023

Size of the Grant: $250,000

Grant Duration: 36 months

Details:

The Value-Added Producer Grant (VAPG) program helps agricultural producers enter value-added activities to generate new products, create and expand marketing opportunities, and increase producer income.

You may receive priority if you are:

  • Beginning farmer or rancher.
  • Socially-disadvantaged farmer or rancher.
  • Small or medium-sized farm.
  • Ranch structured as a family farm.
  • Farmer or rancher cooperative.
  • Proposing a mid-tier value chain.

Objective

The objective of this grant program is to assist viable Independent Producers, Agricultural Producer Groups, Farmer and Rancher Cooperatives, and Majority-Controlled Producer-Based Businesses in starting or expanding value-added activities related to the processing and/or marketing of Value-Added Agricultural Products. Grants will be awarded competitively for either planning or working capital projects directly related to the processing and/or marketing of value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the end goals of the program. All proposals must demonstrate economic viability and sustainability to compete for funding.

Funding Information

  • Program Funding: Approximately $31 million in total available funding.
  • Maximum Planning $75,000; Maximum Working Capital $250,000.
  • Anticipated Award Date: September 30, 2023.
  • Performance Period: Up to 36 months depending on the complexity of the project.

Use of Fund

Grant and matching funds 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:

  • Processing costs.
  • Marketing and advertising expenses.
  • Some inventory and salary expenses.

Eligible Applicants

Independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures are eligible to apply for this program.

For more information, visit Grants.gov.

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