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 ar

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.

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.

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.

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.

Awards are typically made during September each year. The Period of Performance is 1-3 years.

Applicants must follow the procedures described in an annual Federal Register notice.

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.

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.

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.