Value-Added Producer Grant funding helps agricultural producers, businesses grow 

Date:

By Kalee Olson, policy associate, Center for Rural Affairs

On March 1, the U.S. Department of Agriculture Rural Development announced the availability of $19.75 million in total funding for projects as part of the Value-Added Producer Grants (VAPG) program. 

Individual farmers and ranchers, as well as agricultural businesses and producer groups, may apply for the grants, which must be used to develop new products or expand existing markets for value-added products. The applicant must produce at least 50 percent of the raw agricultural product to which value is being added.

In addition to regular funding, applicants may specifically apply for COVID-relief funds allocated to the program. These grant funds require a 10% match, as opposed to the dollar-for-dollar match required for regular funding. Applicants may apply to either or both funding sources; however, separate budgets are required for each.  

Two separate grants are available. Planning grants of up to $75,000 help pay for feasibility studies and business planning. Working Capital grants fund up to $250,000 to cover marketing and product development costs. Projects requesting more than $50,000 require a previous feasibility study and business plan to verify product viability.

Priority is given to projects that increase opportunities for small and mid-sized farms, and/or for beginning, veteran, and socially disadvantaged producers. Additionally, extra points will be awarded for addressing community recovery from COVID-19, among other considerations.

This year, applicants will be required to register for a government identification number (UEI-Unique Entity Identifier). This can take two to five weeks to activate, so applicants are encouraged to register early.

Contact your state USDA Rural Development office for application materials and assistance. Online applications will be accepted until April 25 through grants.gov and paper applications must be postmarked by May 2.

Share post:

spot_img

Related articles

CHS opens new operation in Worthing to export local produce worldwide

By Carrie Moritz, Gazette             Last Wednesday, CHS celebrated a milestone event at its Worthing, SD location. There, they...

Soil Health School offers new segment on diverse rangelands

By Stan WiseSouth Dakota Soil Health Coalition PIERRE, SD – Healthy pastures are about more than just grass. That’s a...

South Dakota farm income predicted to fall, but farmers remain optimistic 

Abbey Stegenga South Dakota News Watch Farmers in South Dakota and across the U.S. will likely take home less income...

Beekeeper says adulterated honey is a factor in plummeting production

Drought, pesticide use and habitat loss are also problems By: Joshua Haiar , South Dakota Searchlight One of the nation’s...

Log In

Latest articles

Phase One of 4th street project nears completion

Concrete crews have completed all concrete work on 4th Street, Center Avenue and Canyon Avenue including curb and...

Williamson proud of his service & grateful for the Honor Flight

By Garrick Moritz, Gazette Mark Williamson was pretty humble about his recent trip to Washington DC on an Honor...

Jasper man dies in fatal crash

Minnehaha County, S.D.- A Jasper, MN man died in a collision Thursday evening, November 14, three miles north...

Pierret Benefit Well Supported

Though we have not received the final tally of funds raised at the Mark Pierret Benefit held on...

GHS Football celebrates players

The GHS Annual Football Banquet honored the parents and players after a rough season on Monday, Nov. 18. The...

A new sport at Garretson

The rise of powerlifting across the state has found its way back to the Blue Dragons by Delilah Johnson,...
s2Member®