2022 Value-Added Producer Grant Applications Now Being Accepted

Applications are now being accepted for the FY 2022 USDA Value-Added Producer Grant Program (VAPG) with applications due May 2, 2022. Applicants are eligible to receive up to $250,000 in grant funding through the program, as detailed below. Approximately $19.75 million is currently available ($17 million in FY 2022 funding in addition to $2.75 million in COVID-19 relief funds).

The 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 (product must be in market less than two years at time of application) or launch an existing product in a new market are eligible projects for the VAPG program. 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 eligible 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 eligible 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. Applicants applying for COVID-19 relief funds may include a reduced cost share match requirement of 10 percent of the grant amount, though the number of applications awarded with these funds will be limited. COVID-19 relief funds will be utilized first until exhausted and then the Agency will continue making awards with the additional FY 2021 funds and any funds made available under the FY 2022 appropriations act, once enacted. Funds will be awarded in application scoring rank order. To be considered for both the COVID-19 relief funds and the FY 2021 or 2022 VAPG funds, the Applicant must submit a budget with a reduced cost share match of at least $1 for every $10 in grant funds and an alternate second budget that includes the standard cost-share match of at least $1 for every $1 in grant funds.

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 May 2, 2022. Projects are expected to begin September 30, 2022.

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 grants@morrisonco.net or call us at 530-893-4764.


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