Value-added producer grant applications close April 15

The U.S. Department of Agriculture’s Value-Added Producer Grant (VAPG) program deadline is fast approaching. This competitive grant program is designed to help farmers and ranchers generate new products, create or expand marketing opportunities and increase overall producer income. This funding can provide support to turn raw commodities into high-value products like jams, jellies or textiles.

The grant offers up to $200,000 in working capital or up to $50,000 for planning activities. Planning funds can be used for vital business development, such as conducting feasibility studies and creating business plans, while working capital can cover processing costs, marketing, advertising and eligible salary expenses. Applicants must be prepared to meet a 1:1 matching fund requirement, which may be fulfilled through cash or in-kind contributions.

Producers must also pay close attention to eligibility nuances regarding equipment before the deadline passes. While any equipment requiring permanent facility alterations like plumbing or electrical “hardwiring” is ineligible, smaller equipment under $10,000 that can be simply plugged in may be considered an eligible supply. Interested parties can contact their local USDA Rural Development state office or visit the official VAPG webpage to finalize their submissions.

The application is available at https://www.rd.usda.gov/programs-services/business-programs/value-added-producer-grants-27.