Value-Added Grant Program Information

The Agency has announced availability of approximately $18.4 million to help independent agricultural producers enter into value-added activities. Potential uses include a wide range of products that allow the producer to enhance the revenue stream generated from their crops and other production. Examples include conversion to organic production, processing of raw commodities to a finished product, and the conversion of farm crops to create renewable energy sources.

The maximum allowable grant amount is $100,000 for a planning grant and $300,000 for working capital. Awards may be made for planning activities or for working capital expenses, but not for both. Applicants must provide matching funds at least equal to the amount of the grant requested.

The grants may be used for activities such as feasibility studies, marketing, and business plans needed to establish a viable value-added marketing opportunity for an agricultural product. They also may be used to provide working capital for operating a value-added business venture, marketing value-added agricultural products and for farm-based renewable energy projects. Applicants must be an independent producer, agriculture producer group, farmer or rancher cooperative or majority-controlled producer-based business.

Grant funds awarded under the Value-Added Producer Grant Program will be made on a national competitive basis, and applications for the 2008 funding cycle must be received no later than March 31, 2008.

Detailed information and program requirements were included in the January 29, 2008 publication of the Federal Register.

Questions regarding this program may be directed to USDA Rural Development at
785-271-2736.