Value-Added Producer Grant

The Value-Added Producer Grant (VAPG) program, administered by the Rural Business-Cooperative Service within the U.S. Department of Agriculture, is designed to support agricultural producers in generating greater value and income from their commodities. This program is part of the Local Agriculture Market Program (LAMP), established under the 2018 Farm Bill, and represents a strategic effort to enhance the viability and competitiveness of American agriculture by fostering value-added ventures. With approximately $25 million in funding estimated for Fiscal Year 2026, VAPG aims to empower producers through two primary types of grants: Planning Grants (up to $50,000) and Working Capital Grants (up to $200,000). The program's objectives include developing new products, improving market access, and ultimately increasing the financial returns for agricultural producers. The grants are available to individual agricultural producers, producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures. Eligible applicants must demonstrate control over more than 50% of the raw agricultural commodity being used and show that their value-added strategy will result in higher revenue retention compared to selling the raw commodity. Priority consideration is given to beginning, veteran, and socially disadvantaged farmers or ranchers, small or medium-sized family farms, farmer and rancher cooperatives, and applicants proposing Mid-Tier Value Chain projects. Ten percent of total program funds are specifically reserved for projects serving these priority populations, as well as those addressing food safety improvements aimed at market access. Eligible uses of grant funds differ based on the grant type. Planning Grants support the development of feasibility studies, business plans, or marketing strategies prepared by qualified consultants. Working Capital Grants, by contrast, fund activities directly associated with the production and marketing of value-added agricultural products, such as processing, packaging, advertising, inventory, and salaries. However, working capital projects must be implementation-ready, independent of external facility or infrastructure projects, and cannot include planning activities. Applicants must match grant funds dollar-for-dollar through cash or in-kind contributions, and all proposed expenses—whether grant or match—must be for eligible project purposes as defined in federal regulations. Applications for the FY2026 funding round opened on February 17, 2026, and must be submitted via the USDA’s Grant Application Portal by 1:00 p.m. ET on April 22, 2026. Applicants are encouraged to start early and are required to be registered in SAM.gov and possess a Unique Entity Identifier (UEI). All applications must include the required forms and narrative components as outlined in 7 CFR 4284, Subpart J, including a comprehensive work plan, budget, and—if applying for working capital—a feasibility study. The program does not require a pre-application step such as a letter of intent, but applicants using third-party service providers for application development must disclose compensation amounts and contracts if requested. Evaluation of applications is competitive and based on scoring criteria totaling a maximum of 100 points. Applications are assessed on the technological feasibility, operational efficiency, and financial sustainability of the proposed venture; qualifications of key personnel; the clarity and completeness of the work plan and budget; level of cash match; previous VAPG funding history; and whether the applicant qualifies for priority or Administrator points. A minimum of 50 points is required for funding consideration. Administrator priorities for FY2026 include geographic diversity, support for domestic manufacturing or energy production, and program integrity. Selected applicants will receive a formal Notice of Award by September 30, 2026, and must begin project activities within 90 days. Grant performance periods can extend up to three years depending on the project’s complexity. Reporting is required on a semiannual basis and at project closeout. For questions, applicants should contact their USDA Rural Development State Office or the National Office via [email protected] or (202) 720-1400. Comprehensive application instructions, eligibility criteria, and guidance documents are available on the USDA Rural Development website.

Submit early; Disclose third-party service costs; Ensure SAM and UEI registration; Use self-assessment for eligibility