AGENCY: Rural Development
Value-Added Producer Grants
Type:Competitive Grants
Max Award: $300,00 for working capital; $100,000 for planning
Big Idea: VAPGs help farmers and ranchers receive a higher portion of the retail dollar. Grants support planning activities, such as developing a business plan, or as working capital (e.g. labor, inventory, advertising). There is 10% set-aside for projects that focus on local and regional supply networks. 10% of funds are also available for beginning farmers and ranchers, socially disadvantaged farmers and ranchers, and small or medium-sized farms or ranches.
Who can apply:
- Not for profit etc.: under certain circumstances, must be farmer controlled, check with your State RD office before applying. You can find your local office at : http://www.rurdev.usda.gov/recd_map.html.
- Bus. & Individuals: Independent producers, farmer or rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures
Can you see an opportunity where you live?:
- Real Examples: In 2008, The Chef's Garden, a 225-acre vegetable and herb farm and retail outlet located in Huron, OH, received a $97,500 Value Added Producer Grant to explore the feasibilty of processing and marketing products from locally-grown produce, including their own farm and others nearby. This planning grant is looking at the economic and market possibilities of selling locally-produced and processes products as well as the technical and financial feasibility of such a project. Ultimately, if the results are favorable, the Chef's Garden will use the VAPG money to create a business plan.
Get more information: To apply for any USDA Rural Development Programs, contact your state or local office: http://www.rurdev.usda.gov/recd_map.html. For more program information: http://www.rurdev.usda.gov/rbs/coops/vadg.htm


