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.

credit: SokoText Official Website

Examples of Funded Projects

Fiscal Year 2016: No Current Data Available Fiscal Year 2017: No Current Data Available Fiscal Year 2018: No Current Data Available

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.

Contact information for USDA Rural Development State Offices is available at:

Relevant Nonprofit Program Categories

Selected Recipients for this Program

RecipientAmount Start DateEnd Date
Puerto Rico Coffee Company, Inc. $ 250,000   2020-09-012022-09-01
Uncle Jerry's Farms, Inc. $ 49,996   2020-08-212022-08-21
Harlan Mountain Farms, Llc $ 8,264   2018-08-272022-05-03
Kitamura Farms, Inc. $ 0   2020-09-022022-04-26
Red Apple Farm, Llc, The $ 250,000   2022-04-212022-04-21
Moo 2 You Llc $ 250,000   2022-03-312022-03-31
Blenheim Organic Gardens $ 6,015   2018-07-192022-03-11
Pearmund Cellars $ 201,492   2018-08-092022-03-11
Twin Brook Creamery, Llc $ 6,025   2019-02-142022-03-08
Rousseau, Lise $ 8,984   2018-06-282022-02-01

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

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.

Funds may not be used for agricultural production, construction, the purchase of real property, or the purchase/lease of fixed equipment and vehicles.

All available funds are discretionary funds and must be awarded through a national competition.

Eligibility Requirements

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. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

An environmental impact statement is required for this program.

An environmental impact assessment is required for this program.

This program is excluded from coverage under E.O.


Application Procedures

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 Procedures

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 office, as appropriate, for application deadlines.


7 USC 1632a.

Range of Approval/Disapproval 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.



Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program. Matching Requirements: Percent: 50%. Matching funds are subject to the same restrictions as grant funds. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Awards are typically made during September each year. The Period of Performance is 1-3 years. See the following for information on how assistance is awarded/released: Funds are disbursed as often as monthly, as requested by the recipient using Form SF-270.

Post Assistance Requirements


Program reports are not applicable.

Cash reports are not applicable.

Progress reports must be submitted semi-annually.

Expenditure reports must be submitted semi-annually using Form SF-425.

Performance monitoring is not applicable.


In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. No additional audit procedures are required for this program.


Recipients must comply with 2 CFR §§ 200.333-.337.

Financial Information

Account Identification



(Salaries) FY 16 Not Available; FY 17 est $11,000,000; and FY 18 est $0

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

Information Contacts

Regional or Local Office

See Regional Agency Offices. Contact information for USDA Rural Development State Offices is available at:

Headquarters Office

USDA, Rural Business-Cooperative Service 1400 Independence Avenue, SW Mail Stop 3253, Room 4208-South , Washington, District of Columbia 20250 Email: Phone: 202-690-1374

Criteria for Selecting Proposals

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.

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