The Value-Added Producer Grant (VAPG) program, funded through the Rural Business-Cooperative Service of the USDA, supports agricultural producers in developing value-added products. This program provides grants for planning or working capital projects aimed at processing and marketing agricultural products to create new products, expand marketing opportunities, and increase producer income. Applications are being accepted for fiscal year 2025, with a deadline of April 17, 2025. Approximately $30 million is anticipated for funding, contingent on federal appropriations.

The program is open to agricultural producers, producer groups, farmer and rancher cooperatives, and majority-controlled producer-based businesses. Applications must demonstrate the economic viability and sustainability of the proposed project to compete for funding. Reserved funds are allocated for beginning, veteran, and socially disadvantaged farmers or ranchers, as well as projects focusing on mid-tier value chains and food safety improvements. Projects located in persistent poverty counties may receive additional consideration if funding allows.

Grant amounts are capped at $75,000 for planning projects and $250,000 for working capital projects. A dollar-for-dollar matching funds requirement applies, meaning applicants must provide matching funds equal to the amount requested. Matching contributions can include cash or in-kind contributions, but income generated from the project cannot be used as a match. Projects must comply with regulations on allowable and unallowable costs, and funds cannot be used for expenses incurred before grant approval.

Applications must be submitted electronically through the Grant Application Portal and include a project narrative, work plan, budget, and supporting documents. Applicants must also register in the System for Award Management (SAM) and provide a Unique Entity Identifier (UEI). Applications will be scored on criteria such as project feasibility, operational efficiency, economic sustainability, work plan and budget, matching fund commitment, and alignment with program priorities. A total of 100 points is available, with a minimum of 50 points required for consideration.

Awards are expected to be announced by September 30, 2025. Successful applicants must adhere to USDA reporting and compliance requirements, including semiannual progress reports and a final project report. Specific federal policies, such as the Civil Rights Act and the Equal Opportunity for Religious Organizations provisions, apply. For additional information, applicants are encouraged to contact USDA Rural Development state offices or refer to the program’s website.