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§ Grant
Grant for U.S. agricultural producers to fund value-added activities, new products, marketing, and income growth.
VAPG provides up to $75K for planning and $250K for working capital to agricultural producers adding value to raw commodities through processing, marketing, or distribution, with 100% matching required.
Agricultural producers owning 50%+ of the raw commodity, including farmers, ranchers, and cooperatives. Beginning farmers, socially disadvantaged, and veteran producers receive priority.
Up to $75,000 (planning) and $250,000 (working capital), each requiring 100% producer match. Funds cover feasibility studies, business plans, and operational expenses for value-added products.
Apply to USDA Rural Development responding to the annual NOFO with a business plan, feasibility study, marketing plan, budget, and matching documentation. Priority scoring for beginning and veteran farmers.
Artisanal cheese, farm-to-table meat processing, fruit preserving, herb value-addition, on-farm breweries and wineries, and producer cooperative branded product lines across the U.S.
The USDA Value-Added Producer Grants program is a financial resource administered by the United States Department of Agriculture and USDA Rural Development to help agricultural producers process and market new products. The initiative awards planning grants up to $75,000 for feasibility studies and working capital grants up to $250,000 for processing, packaging, and advertising expenses. Applicants must own over half of the raw commodity being processed and provide a 100 percent matching funds commitment through cash or in-kind contributions. The competitive national program allocates approximately $25 million in funding for fiscal year 2026, with the next application window closing on April 15, 2026. Ten percent of this capital is reserved for beginning, veteran, and socially disadvantaged farmers. This broader resource targets independent farmers, agricultural cooperatives, and producer ventures seeking higher revenue from new value-added goods.
USDA Value-Added Producer Grants (VAPG) provide up to $75,000 for planning and up to $250,000 for working capital to agricultural producers who add value to their raw agricultural products. The program helps farmers, ranchers, and other producers diversify their operations by processing, marketing, or distributing products derived from their agricultural commodities. A 100% match from the producer is required, doubling the total project investment.
Agricultural producers who own at least 50% of the raw commodity being used in the value-added venture are eligible. This includes individual farmers, ranchers, cooperatives, and groups of producers. Eligible value-added activities include processing products (such as turning wheat into flour or milk into cheese), marketing farm-identity preserved products, and developing on-farm renewable energy. Beginning farmers, socially disadvantaged producers, and veteran producers receive priority consideration.
Planning grants of up to $75,000 fund feasibility studies, business plans, and marketing strategies for new value-added ventures. Working capital grants of up to $250,000 fund operational expenses for producing and marketing value-added products. All grants require a 100% match from the producer, which can include cash and in-kind contributions. The matching requirement ensures significant producer commitment and doubles the effective investment in each project.
Applications are submitted to USDA Rural Development in response to the annual VAPG Notice of Funding Opportunity (NOFO). Applications require a business plan, feasibility study (or plans to complete one with planning grant funds), marketing plan, budget, and documentation of the matching contribution. Priority scoring is given to beginning farmers, socially disadvantaged producers, veterans, operators of small and medium-sized farms, and projects located in rural areas. Applications are competitive and scored against published criteria.
VAPG has funded diverse value-added agricultural ventures across the United States, including artisanal cheese producers, farm-to-table meat processors, fruit and vegetable preservers, herb and spice value-addition operations, on-farm brewery and winery projects, and producer cooperatives developing branded product lines. The program has helped thousands of agricultural producers capture more value from their commodities and build more resilient farm businesses.