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Value-Added Producer Grants (VAPG)
The primary objective of the VAPG program is to help agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the end goals of this program. You may receive priority if you are a beginning farmer or rancher, a socially-disadvantaged farmer or rancher, a small or medium-sized farm or ranch structured as a family farm, a farmer or rancher cooperative, or are proposing a mid-tier value chain, as defined in the Program Regulation. Grants are awarded on a competitive basis.
Program Status:OPEN: Application deadline is October 15.
Estimated Program Funding: $14 million
Maximum Grant Amount: $100,000 for planning grants; $300,000 for working capital grants
Cost Sharing Requirement: Cash or eligible in-kind matching funds equal to at least the amount of
grant funds requested
Grant Program Information
| Am I eligible to apply? | | How do I apply? |
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You must meet the requirements of one of the following applicant types: Independent Producer, Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority-Controlled Producer-Based Business Venture. Your proposed value-added product must also fall within one of the five product categories, and you must also comply with all the other eligibility requirements detailed in the Program Regulation and NOFA.
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Each fiscal year, applications are solicited through a Notice of Funding Availability (NOFA) published in the Federal Register. You will need to follow the information in the NOFA and the Program Regulation.
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| What can I do with the grant? | | If I get the grant, what’s next? |
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You may use grant funds for eligible economic planning activities, or for eligible working capital expenses. Economic planning activities include conducting feasibility studies and developing business plans for processing and marketing of the proposed value-added product. Eligible working capital expenses include processing costs, marketing and advertising expenses, and some inventory and salary expenses directly related to your value-added project, as detailed in the Program Regulation. You cannot use grant funds to purchase property or construct facilities, or to purchase equipment. The Program Regulation provides more information on eligible uses of the grant.
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You will need to complete required paperwork and comply with the terms and conditions of the award. Contact your nearest Rural Development office for details.
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| What resources are available? | | What if I have a question? |
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List of 2011 Grant Recipients
FY2012 VAPG Application Template
| | Contact your USDA Rural Development State Office for help. Contact information for each State is located here. |
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For more information on Cooperatives including other funding opportunities, please visit our main page.
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