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USDA Value Added Producer Grants

  • Granting Agency: Rural Housing Service, USDA
  • Appropriation Amount: $19,750,000
  • Grant Amount: Planning Grants $75,000; Working Capital Grants: $250,000, 10-100% match
  • Announcement Date: March 14, 2022
  • Closing Date: April 25, 2022

Learn more here.

Purpose: The Value-Added Producer Grant (VAPG) program helps agricultural producers enter into value-added activities related to the processing and marketing of new products. The goals of this program are to generate new products, create and expand marketing opportunities and increase producer income.

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.

Grants are awarded through a national competition. Each fiscal year, applications are requested through a notice published in the Federal Register and through an announcement posted on Grants.gov.

Eligible Expenditures:

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, as defined in the program regulation, are eligible to apply for this program.