Value-Added Producer Grants


To help agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based, value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the goals of this program.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Rural Business-Cooperative Service, Department of Agriculture
Type(s) of Assistance Offered
B - Project Grants
Program Accomplishments
Not applicable.
7 USC 1632a
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Applicants are not eligible if they have been debarred or suspended or otherwise excluded from participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension." Applicants are not eligible if they have an outstanding judgement obtained by the U.S. in a Federal Court (other than U.S. Tax Court), are delinquent on the payment of Federal income taxes, or are delinquent on a Federal debt. Any corporation that has been convicted of a felony criminal violation under any Federal law within the past 24 months or that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, is not eligible for funding.
Beneficiary Eligibility
Agricultural producers
Applicants must demonstrate legal capacity and provide evidence of good standing in their State of operations. Applicants for Working Capital funds must provide an independent feasibility study and business plan completed specifically for the proposed value-added project, except as otherwise noted in 7 CFR 4284.922(b)(6)(i and ii). Applicants have the option to demonstrate eligibility for Reserved Funds and/or Priority Points, as applicable. Applicants must provide a detailed budget supporting the work plan that identifies all sources and uses of funds during the project period. Applicants must provide authentic documentation from the source of matching funds at time of application to confirm the eligibility and availability of both cash and in-kind contributions. Applicants must certify that matching funds will be spent in advance of grant funds.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Applicants must follow the procedures described in an annual Federal Register notice.
Award Procedure
Applications are evaluated for eligibility for the program. Eligible applications are reviewed by independent reviewers and ranked according to published evaluation criteria. Applications are funded in rank order until available funds have been expended.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 100 to 150 days after the application submission deadline.
Applicants may appeal adverse decisions in accordance with 7 CFR Part 11. The Agency provides instructions on how to appeal with each adverse decision.
Not applicable.
How are proposals selected?
Applications are evaluated based on 6 criteria: (1) Nature of the Proposed Venture, (2) Qualifications of Key Personnel, (3) Commitments and Support, (4) Work Plan/Budget, (5) Priority Points, (6) Administrator's Discretionary Points. Applicants should review 7 CFR ? 4284.942 and the annual Federal Register notice for details on how these criteria will be scored.
How may assistance be used?
The VAPG program offers two types of grants to support activities directly related to the processing and/or marketing of value-added agricultural products. Planning grants provide funding for activities necessary to determine the economic viability of a potential value-added venture, including development of feasibility studies and business plans. Working capital grants provide funds for the day-to-day operating expenses of the venture associated with processing and/or marketing a value-added product. An application may be for either Planning or Working Capital activities, but not for both.
What are the requirements after being awarded this opportunity?
Not applicable.
No additional audit procedures are required for this program.
Recipients must comply with 2 CFR ?? 200.333-.337.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching is mandatory. 50%. Matching funds are subject to the same restrictions as grant funds.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Awards are typically made during September each year. The Period of Performance is 1-3 years. Funds are disbursed as often as monthly, as requested by the recipient using Form SF-270.
Who do I contact about this opportunity?
Regional or Local Office
Contact information for USDA Rural Development State Offices is available at:
Headquarters Office
USDA, Rural Business-Cooperative Services
1400 Independence Avenue, SW
Mail Stop 3201, Room 5803-South

Washington, DC 20250 US
Phone: 715-345-7637

USDA, Rural Business-Cooperative Services
1400 Independence Avenue, SW
Mail Stop 3201, Room 5803-South

Washington, DC 20410 USA
Phone: 202-281-5259
Website Address
Financial Information
Account Identification
(Project Grants) FY 22$37,613,655.00; FY 23 est $35,951,973.00; FY 24 est $40,000,000.00; FY 21$72,459,988.00; FY 20$67,843,488.00; FY 19$13,000,000.00; FY 18$11,250,000.00; FY 17$11,000,000.00; FY 16 est $11,000,000.00; - VAPG funds has increased and has integrated with LAMP
Range and Average of Financial Assistance
Average = $120,000 Range = $5,000 (minimum) to $250,000 (maximum)
Regulations, Guidelines and Literature
7 CFR 4284, Subpart J


Federal Grants Resources