U.S. Department of Agriculture: Value-Added Producer Grants
The Value Added Producer Grant program (VAPG) exists to help agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based value-added products, and to expand markets and increase financial returns to agricultural producers. The end goals of the program are generating new products, creating and expanding marketing opportunities, and increasing producer income.
Two types of grants are available:
- Planning Grant: A planning grant is used to fund development of a defined program of economic planning activities to determine the viability of a potential value-added venture, and specifically for the purpose of paying for a qualified consultant to conduct and develop a feasibility study, business plan, and/or marketing plan associated with the processing and/or marketing of a value-added agricultural product.
- Working Capital Grant: This type of grant provides funds to operate a value-added project, specifically to pay the eligible project expenses related to the processing and/or marketing of the value-added product that are eligible uses of grant funds.
Eligibility: Independent producers; agricultural producer groups; farmer or rancher cooperative (COOP); and majority-controlled producer businesses. Priority is given to beginning farmers or ranchers; mid-tier value chain proposals; small or medium family farms; farmer or rancher cooperatives; and Veteran farmers or ranchers.
Amount: Approximately $44,000,000 is available. Maximum grant amount: $75,000 for planning grants; $250,000 for working capital grants. Cost sharing requirement: Cash or eligible in-kind matching funds equal to at least the amount of grant funds requested.
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