Value-Added Producer Grant (VAPG) Program

For the most up-to-date VAPG application status and information, please visit the USDA Rural Development website or the Grant Application Portal.

Overview

The Value-Added Producer Grant (VAPG) program helps U.S. agricultural producers enter into value-added activities that:

Generate new products from raw agricultural commodities
Create and expand marketing opportunities
Increase producer income through enhanced product value and market reach

These grants support either:

Planning activities (e.g., feasibility studies, business and marketing plans)
Working capital needs (e.g., processing, packaging, advertising, inventory, and salaries)

Who Gets Priority?

Applicants may receive priority consideration if they meet any of the following criteria:

Beginning farmer or rancher
Veteran farmer or rancher
Socially disadvantaged farmer or rancher
Small or medium-sized farm or ranch structured as a family farm
Farmer or rancher cooperative
Proposing a Mid-Tier Value Chain project

Additionally, 10% of total funds are reserved for:

Beginning, veteran, and socially disadvantaged farmers/ranchers
Mid-tier value chain proposals
Food safety projects where the majority of funds improve market access

Funding Overview

Total Available Funding: Approximately $25 million
Maximum Grant Amounts:
- Planning Grants: Up to $50,000
- Working Capital Grants: Up to $200,000
Matching Requirement: 1:1 match (100% of the grant amount), which may include cash or eligible in-kind contributions

Matching Funds

The program requires a one-to-one match. A cash match is defined as actual funds dedicated to the project. An in-kind match includes time, equipment, space, staff salaries, etc. Examples of a cash match might be third-party contributions from groups, farm organizations or individuals donating cash toward a project; the salary of a person or persons working on a project (cash transaction); travel expenses to attend meetings or participate in training sessions; state appropriations or non-federal funds that have not been spent; bank financing; revolving loan funds; or county financing.

Examples of in-kind contributions include space; equipment; supplies, copies, telephone and other expenses that are dedicated to the project; volunteer time/unpaid services provided to a recipient by an individual or employee working on a project ( non-cash transaction); value of hours of non-federally funded personnel assisting with project, for example, State Dept. of Agriculture, local economic development agencies, volunteer board members, etc.; donation of office space or meeting rooms; or donation of inventory including equipment or buildings.

Who May Apply?

Eligible applicants include:

Agricultural producers (including harvesters and steering committees)
Agricultural producer groups
Farmer- or rancher-cooperatives
Majority-controlled producer-based business ventures

Applicants must demonstrate that they:

Own and produce more than 50% of the raw commodity
Will retain greater revenue from the value-added product than from the raw commodity alone

How to Check Eligibility

A VAPG Self-Assessment Survey is available to help determine your eligibility. While not required, it is strongly encouraged before beginning the application process.

Take the VAPG Self-Assessment Survey

Preparing an Application

The most recent information on funding availability and applications is available through your state USDA Rural Development office. Check with them or your state’s Department of Agriculture about recent news or upcoming workshops about the program. They can provide information, applications and guidance on when and how to apply for a grant.

Program Background

VAPG is part of the Local Agriculture Market Program (LAMP), an umbrella initiative created under the 2018 Farm Bill. LAMP consolidates several USDA programs to support local and regional food systems.

For more funding opportunities, visit the Local Agriculture Market Program Webpage.