Value Added Producer Grant applications now being accepted

Applications are now being accepted for the FY 2021 USDA Value-Added Producer Grant Program with applications due March 22, 2021. Applicants are eligible to receive up to $250,000 in grant funding through the program, as detailed below.

The Value-Added Producer Grant (VAPG) program helps agricultural producers enter into value-added activities related to the processing and/or marketing of new products. The goals of this program are to generate new products, create and expand marketing opportunities, and increase producer income.

Who is eligible to apply? 

  • Independent producers (individual or family farms)
  • Agricultural producer groups (non-profit associations representing farmers/producers)
  •  Farmer- or rancher-cooperatives
  • Majority-controlled producer-based business ventures

What projects are eligible for this program? 

Projects that either help agricultural producers launch a new product or launch an existing product in a new market (product must be in market less than two years at time of application).

Grant and matching funds can be used for planning activities or for working capital expenses related to producing and marketing the specific value-added agricultural product.

Examples of planning activities include conducting feasibility studies, developing business plans, and conducting market research related to the processing and marketing of the proposed value-added product.

Examples of working capital expenses include processing costs (packaging, labels, co-packing), marketing and advertising expenses (display advertising, social media campaigns), and some inventory (ingredients) and salary expenses (processing time, marketing time, etc).

What are the funding levels? Applicants applying for planning grant funds can request up to $75,000 in grant funds. Applicants applying for working capital grant funds can request up to $250,000 in grant funds.

Is there a cost-sharing/match requirement? A $1 for $1 match is required.

What is the grant duration? Planning grants are typically completed within 12 months; Working Capital grants within 36 months.

What is the anticipated award timeline? Applications are due on March 22. Projects are expected to begin September 2021.

The full Value Added Producer Grant Notice can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at or call us at 530-893-4764.


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