The U.S. Department of Agriculture (USDA) recently announced a total of $19.75 million is available through the Value-Added Producer Grant (VAPG) program. A subprogram of the Local Agriculture Market Program, VAPG helps producers to maximize the value of their commodities. Independent producers, producer groups, farmer and rancher cooperatives, and majority-controlled producer-based business ventures are all eligible for the program. Grants are intended to support the development of new products, increase marketing opportunities, and expand profitability with value-added activities.
Two types of grants are available under the VAPG program. Planning grants have a maximum award amount of $75,000. Planning projects include feasibility studies and development of business strategies for processing and marketing proposed value-added products. Working capital grants have a maximum award value of $250,000. Examples of working capital expenses include processing costs, marketing and advertising expenses, and select inventory and salary expenses.
Of the total funding being made available in fiscal year 2022, $2.75 million is funding caried over from 2021 COVID-19 relief funds. Additionally, the program is being supported by $17 million in 2018 Farm Bill mandatory funding. Award recipients will be required to provide matching funds that total 100 percent of the grant amount. For funding provided through COVID-19 relief, the matching requirement is reduced to 10 percent of the grant amount.
USDA intends to host a webinar on March 18 to go over details of the program and how farmers and ranchers can apply. The National Sustainable Agriculture Coalition (NSAC) also has an updated tool to assist with the application process. Revisions have been made to NSAC’s publication Farmers’ Guide to Applying for the Value-Added Producer Grant Program. Eligible applicants will have through April 25 to submit an online application. Paper applications will need to be received by the State Office where a potential project is being proposed by May 2.