USDA Value-Added Producer Grant
The USDA recently opened the Value-Added Producer Grant (VAPG) for applications on January 15 and will take applications through the grant VAPG portal until April 15, 2026. The 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 contribution/
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
More information on the Value-Added Producer grant, visit this website.