Running a farm takes more than hard work and dedication—it requires constant innovation to stay competitive in today’s market. That’s where the USDA Value-Added Producer Grant (VAPG) can make a difference. Designed to help farmers and agricultural producers create new revenue streams by transforming their raw products into value-added goods, the VAPG provides the financial support and resources needed to grow your business.
2021: VAPG Grant Unlocked
After her 2,000 lavender plants were in the ground, Missy did her research, trying to find the best course of action to support her rapidly growing lavender farm. When she found the VAPG Grant she knew the application process would be lengthly, but she had the passion (and the signature "Why Not?" attitude) to jump right in.
Turns out, she was right. This thing's a BEAST. The payoff, however, is even bigger. After she completed her application back in 2021, we got great news - we're in. Four years later, here I am working on the farm's blog in the dead of winter, able to keep my job full time at the farm. Now, Missy wants to share everything she learned throughut the process.
What Is The VAPG Grant?
The purpose of the VAPG grant is to see farmers succeed. The USDA selects 5 farms per year to recieve funds in a dollar-for-dollar matching format, and supports both planning and working capital grants. For a planning grant, you may receive up to $75,000 dollars, and for a working grant, you may recieve up to $250,000 dollars. Grants are awarded through a national competition.
The grant helps farmers and producers increase their income and expand their market reach by supporting value-added initiatives to generate new products, create and expand marketing opportunities, and increase producer income. (Turning raw products into higher-value goods, like making shower steamers from our farm grown lavender)
Is My Farm Eligible?
This grant is available to a variety of farm styles, including independent producers, farmer cooperatives, and small businesses. VAPG provides a Self Assesment Program Survey that determines if its right for you.
You may receive priority if you are:
Beginning farmer or rancher.
Veteran farmer or rancher.
Socially-disadvantaged farmer or rancher.
Small or medium-sized farm.
Ranch structured as a family farm.
Farmer or rancher cooperative.
Proposing a mid-tier value chain.
How do I Apply?
The official VAPG application can be found here. The portal usually opens in late winter, and deadlines falling around late spring or early summer. However, the exact timeline can vary each year based on USDA funding and announcements. To make sure you are well prepared be sure to:
Research eligibility and requirements on USDA’s website
Prepare a detailed proposal and business plan.
Gather supporting documents (e.g., financial records).
Submit the application before the deadline.
For the most accurate and up-to-date information, it's best to monitor:
The USDA Rural Development VAPG page.
Grants.gov for application announcements.
Your local USDA Rural Development office for personalized assistance.
Why Should I Apply?
The Value-Added Producer Grant (VAPG) offers several key benefits to farmers and agricultural producers looking to create or enhance value-added products. Some of the main advantages include financial support, opportunity to diversify your income, expand your market, reduce risk, create jobs, impact your community, long term business sustainability, not to mention access to USDA resources and expertise.
These benefits collectively help agricultural producers innovate, grow their businesses, and strengthen the rural economy. If you're considering applying for the VAPG, these advantages can make a significant difference in your farm’s future success.
Tips For Success:
Consult with a USDA office or agricultural consultant.
Ensure your value-added product idea is well-defined.
Mention potential challenges and how to overcome them (e.g., finding time to prepare).
Where Should I Go From Here?
Community is important to us - especially our fellow agriculture pursuers. That's why Missy has created a one on one webinar opportunity, which is a personal consultation that sets your farm up for success. Missy will guide you through the application process with simplified, step by step instructions from firsthand knowledge as a farmer, which makes the seemingly daunting process feel much more obtainable.
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