U.S. Department of Agriculture: Value-Added Producer Grants

The Value Added Producer Grant program (VAPG) seeks to agricultural producers in starting or expanding value-added activities related to the processing and/or marketing of Value-Added agricultural products. Grants will be awarded for either planning or working capital projects directly related to the processing and/or marketing of value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the end goals of the program. All proposals must demonstrate economic viability and sustainability in order to compete for funding.

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 and ranchers, veteran farmers and ranchers, socially-disadvantaged farmers and ranchers, operators of small and medium-sized farms and ranches structured as family farms or ranches, farmer or rancher cooperatives, and projects proposing to develop a Mid-Tier Value Chain. For more details regarding a Mid-Tier Value Chain see: https://www.gpo.gov/fdsys/pkg/CFR-2017-title7-vol15/xml/CFR-2017-title7-vol15-sec4284-923.xml

Amount: Approximately $18,000,000 is available. Maximum grant amount: $75,000 for planning grants; $250,000 for working capital grants. The project period is up to 36 months. Cost sharing requirement: cash or eligible in-kind matching funds equal to at least the amount of grant funds requested.

Link: https://www.grants.gov/web/grants/view-opportunity.html?oppId=296903

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