Together, America Prospers

Value Added Producer Grant

What does this 

program do? 

The Value Added Producer 

Grant program helps agricultural 

producers enter into valueadded 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 goals of this program. 

Who may apply 

for this program? 

Independent producers, 

agricultural producer groups, 

farmer- or rancher-cooperatives, 

and majority-controlled producerbased business ventures are 

eligible to apply for this program.

How may funds be used? 

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

How do I get started? 

You need to read the Federal Register 

notice for the details on what is 

needed for an application. Make sure 

you start putting together the required 

information at least a month before the 

application deadline because you may 

need to provide letters of commitment 

or support from other organizations, 

a work plan and budget, and other 

information that will take you some 

time to look up or write. You may also 

need to fill out required forms. You can 

get copies of those forms from your 

nearest Rural Development Office. 

Who can answer questions? 

If you have questions, you can contact 

your nearest RD Office. 

Will I need to send any reports 

if I receive a grant? 

If you receive a grant, you will 

need to send regular financial and 

performance reports. Your grant 

agreement will tell you how often you 

need to send the reports, what forms 

you need to use, and what information 

you need to put in the reports. 

Where can I get more information? 

In addition to many Federal 

regulations, the VAPG program has a 

regulation that is just for this program. 

It contains details about the program’s 

purpose, what you can and can’t 

do with grant money, application 

requirements, and information about 

how applications will be selected for 

funding. Remember that you need to 

read the Federal Register notice to get 

all the details about how to apply, but 

the program regulation also has useful 

information that you will need before 

applying for a grant.

What governs this program? 

The VAPG program is authorized 

under section 231 of the Agriculture 

Risk Protection Act of 2000 (Pub. L. 

106-224), as amended by section 

6203 of the Agricultural Act of 2014 

(Pub. L. 113-79) (see 7 U.S.C. 1632a). 

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated January 2020