The Value Added Producer Grant Program

The Value Added Producer Grant Program (VAPG) is a competitive, matching grant program for farmers and ranchers designed to spur the development of new uses for agricultural products.

Farmers, ranchers, and rural communities across the country benefit from cooperative-based efforts that boost farm income and bring much needed capital to regional and local business enterprises. The Value Added program leverages federal dollars to support initiatives that improve farm income, enhance rural economic development, and create new employment opportunities in rural communities.

In the 2007 farm bill debate, Congress will soon make critical budget decisions for the future of Rural America. We support $60 million annually for the Value-Added Producer Grant (VAPG) program over the life of the new farm bill. The program was allocated $40 million per year in mandatory funding for fiscal years 2002-2007. Since then appropriation cuts and a demotion of the program from mandatory to discretionary status have severely limited its potential.

Why the Value-Added Producer Grant Program?

The Value Added Producer Grant Program brings critical federal dollars to producer enterprises that add value to raw commodities such as milk to yogurt or cheese. Equally important, these dollars support producers who are willing to explore new marketing opportunities that appeal to the demands of consumers such as “grass-fed” beef, organic dairy products, and wineries that strengthen local communities through place-based enterprises.

Restore Full Funding to the Value Added Producer Grant Program

The 2002 farm bill authorized the VAPG to receive $40 million in mandatory spending annually for the life of the farm bill.

We support full funding of the program and are advocating for federal regulations that prioritize enterprises that strengthen small and mid-sized farms and strengthen rural economies by keeping the profits local and focused on protecting natural resources.

Several years in a row, roughly 25 percent of grant award money went to sustainable production practices such as, organic, local, or regional enterprises. These projects were identified as protecting the environment, small and mid-sized farms, and healthy rural economies. Existing regulations do not include criteria or guidelines for reaching these objectives. We would like to see regulatory changes to the program that encourage, promote and prioritize them.

In the 2007 farm bill, we call for mandatory funding of $60 million for the Value Added Producer Grant program.

We have developed a Fact Sheet with detailed information on the VAPG Program.

Contact: Traci Bruckner tracib@cfra.org