USDA Rural Development-OR Value Added Producer Grant

Oregon Rural Development Value Added Producer Grant Program

Value-Added Producer Grant (VAPG) Program in Oregon

The VAPG program provides 50%-matching grants to farmers, ranchers, foresters, and fishers for either planning or working capital purposes to implement value-added ventures -- i.e. marketing or processing that add value to the commodities they produce -- as well as for some types of on-farm renewable energy generation projects. The goal of the program is to help agricultural producers generate new products, expand market opportunities, and increase their income from the commodities they produce.

New VAPG program regulations!

Interim rule - A new "interim" rule to govern the VAPG program was published in the Federal Register on February 23, 2011, and went into effect on March 25, 2011. This interim rule will govern the 2011 round of VAPG applications.
What's new with VAPG in 2011 - notable changes in the VAPG program from previous years

Program Information

VAPG Program Overview (PDF, 114 KB)

National USDA Rural Development VAPG Web site
FAQs (PDF, 24 KB)

Eligibility

VAPG Eligibility Assessment

There are five eligible value-add activities that VAPG can support:

Category	Commodity Processing	Nonstandard Production Methods*	Commodity Segregation	On-farm Renewable Energy	Locally Produces Food Products*
Purpose	Increasing value by changing the commodity's physical state	Increasing value by raising the commodity using a "nonstandard" production method	Increasing value by keeping the commodity physically apart in production and distribution	Primarily *** transforming ag commodities & their byproducts into energy on the farmstead	Increasing value by marketing the commodity within state or within 400 miles of the farm
Examples	Wine, jam, flour, sliced fruit, biodiesel	Organic, free-range, "natural"	GMO-free, varietal purity	Biomass, anaerobic digesters	Locally Grown
Type of Assistance	Planning or Working Capital **	No Planning Grants - Working Capital ONLY **	Planning or Working Capital **	Planning or Working Capital **	Planning or Working Capital **

* Note! Branded products (or products packaged in a non-standard way) are not VAPG-eligible.
** Note! Working Capital applications must be supported by an already-completed independent feasibility study and business plan. If you are planning to seek a Working Capital grant, you should make arrangements to obtain your supporting feasibility study as soon as possible.
*** Note! Energy projects using wind, solar, geothermal or hydro resources are eligible only if the energy will be used on-farm to power another value-added activity; simple energy generation from these resources is not eligible.

Application Information and Tools