Value-Added Producer Grant

The Value-Added Producer Grant (VAPG), administered by the Rural Business-Cooperative Service under the U.S. Department of Agriculture, is a discretionary funding program designed to support agricultural producers and producer-based businesses. This initiative aims to bolster rural economies by assisting farmers and ranchers in generating new products, expanding marketing opportunities, and increasing income through value-added activities. The VAPG program embodies USDA's commitment to strengthening America's agricultural sector, particularly by supporting innovative efforts that contribute to rural prosperity and sustainability. The grant supports two project types: planning and working capital. Planning grants help producers assess the feasibility of value-added ventures through activities such as business plans, marketing strategies, and legal evaluations. Working capital grants are intended for the operational phase, such as processing, packaging, or marketing of value-added products. All proposed projects must focus on value-added agricultural products, which are defined as products that have undergone a change in physical state or production method, have been segregated for identity preservation, or have been locally marketed to enhance their economic value. Eligibility is extended to Agricultural Producers, Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority-Controlled Producer-Based Businesses. These groups must demonstrate economic viability and sustainability within their applications. Notably, the program incentivizes first-time applicants and those seeking less than $125,000, potentially awarding them priority points to ensure broad geographic and economic distribution of funds. However, applicants paying more than 15% of the requested grant amount to third-party service providers for application preparation or grant management will be disqualified from Administrator priority consideration. Applications for the VAPG program are accepted exclusively through the Grant Application Portal (GAP), accessible via USDA’s eAuthentication system, which requires Level 2 access. The application process must be initiated by the entity's Authorized Representative, who is responsible for the accuracy and completion of all submitted materials. Collaborators such as grant writers or consultants may be added to the application, but must also have Level 2 eAuthentication credentials. Applicants are encouraged to complete a VAPG Self-Assessment survey and to contact their local Business Program Specialist for guidance before submission. The deadline for applications is April 15, 2026, at 1:00 p.m. Eastern Time. The program expects to award approximately 190 grants with total funding of $25 million and individual grant ceilings capped at $200,000. The program does require matching funds, which should be clearly documented and compliant with relevant federal regulations. Matching or grant funds may not be used for application preparation costs, and applicants are responsible for disclosing all third-party service contracts related to the grant. While the VAPG program is offered annually, the agency posts public notifications about upcoming cycles on the VAPG website and Grants.gov. For the FY2026 cycle, Administrator priorities include increasing access in underserved regions and supporting applicants new to the program. The award notification and project performance period details were not specified but are typically announced after the application window closes. Questions regarding the program may be directed to the USDA’s Program Management Division at (202) 720-1400.

Priority is awarded to new applicants and those requesting <$125,000; third-party service disclosure required.