USDA Value Added Producer Grant

Applications are accepted through April 22, 2026

For more information: Value-Added Producer Grants | Rural Development

State Contact:

Main Phone: (541) 278-8049 ext. 129
Relay Service: Dial 711 for a free relay service operated by the FCC
Fax: (866) 824-6181

USDA Rural Development
Attn: Business & Cooperative Programs
1220 SW 3rd Avenue, Suite 1801
Portland, OR 97204

Mandie Cole, Business & Cooperative Programs Director

(541) 378-3538, mandie.cole@usda.gov

What Does the VAPG Program Do?

The Value-Added Producer Grant (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 contributions

Grants are awarded through a nationally competitive process based on criteria outlined in 7 CFR 4284, Subpart J.

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

How to Check Eligibility

A VAPG Self-Assessment Survey is available to help determine your eligibility. While not required, it is strongly encouraged before beginning the application process.

Take the VAPG Self-Assessment Survey

Program Background

VAPG is part of the Local Agriculture Market Program (LAMP), an umbrella initiative created under the 2018 Farm Bill. LAMP consolidates several USDA programs to support local and regional food systems.

For more funding opportunities, visit the Local Agriculture Market Program Webpage.

Where to Get More Information

To fully understand the VAPG program’s requirements, funding uses, and application process, applicants are strongly encouraged to review the following official resources:

Program Regulation

The VAPG program is governed by the Code of Federal Regulations (CFR) at:

7 CFR Part 4284, Subpart J – Value-Added Producer Grant

This regulation outlines:

  • The program’s purpose and definitions
  • Eligible applicants and activities
  • Application content and evaluation criteria
  • Grant administration and reporting requirements

Application Notice (NOFO)

Each funding cycle will be accompanied by a Notice of Funding Opportunity (NOFO), which provides:

  • Application deadlines and submission instructions
  • Review and scoring criteria
  • Funding priorities and reserved set-asides
  • Contact information for technical assistance

The agency will post a link to the Notice on the program website when it is available. 

Administrator Priorities for FY2026

The Administrator of the Agency may prioritize applications that demonstrate domestic manufacturing and industrial capacity, domestic energy production and energy security, development of new and expanded markets for American farmers and rural producers, and program integrity, including efforts to prevent and reduce fraud, waste, and abuse.

To ensure funds are broadly utilized in support of Rural Prosperity and to improve quality of life in rural America, the Administrator, at his discretion, will advance these priorities by awarding points for the following three categories:

  •  Eligible applicants who have never previously received a VAPG grant
  • Applicants requesting a grant amount of less than $125,000
  • Applicants that contribute to improving geographic diversity among award