IN SIDE RURAL DEVELOPMENT
VAPG program creates rural
jobs, boosts local economies
By Peter J.Thomas, Administrator
Business and Co-op Programs
USDA Rural Development
he Value-Added Producer
Grants (VAPG) program
is a great example of the
commitment USDA
Rural Development has
made to carrying out President Bush’s
agenda for building a stronger rural
America. You can read about an
example of a project funded by this
program on page 12 and learn about
funding priorities and the next application
deadline on page 33 of this
issue of Rural Cooperatives.
The VAPG program is helping to
accelerate the pace of the transformation
of the nation’s agricultural
economy to one focused on producer-
owned, value-added businesses.
With global competition increasing
for production of crops, many producers
realize that their best bet for
success in the years ahead will be to
move higher on the value-added
chain that starts with their crops and
livestock.
Since 2001, USDA Rural
Development has awarded $100 million
for 584 VAPG projects. Not only does
VAPG help producers generate more
profits from their operations and keep
that income turning over in rural communities,
it also helps create jobs.
For example, Value-Added Partners Inc.
(VAP) received a VAPG in 2001 for
$500,000 to help market dough and
bread products made from hard red
winter wheat. The co-op was originally
formed by a group of producers looking
for value-added processing alternatives
for their hard red winter wheat. This
variety is the region’s major crop, preferred
by producers as a consistent
source of clean, high-quality wheat that
has above-average test weights and protein
levels.
In 1999, VAP began its equity drive
to purchase a site for a frozen-dough
processing plant. The producer
response was strong. VAP also obtained
a Business and Industry Guaranteed
Loan from USDA for $7.5 million,
allowing the cooperative to purchase a
site in Alva, Okla.
The processing plant now produces
several types of dough and bread
products, including its latest addition:
a frozen cinnamon roll that can be
microwaved. The plant’s main line
produces pizza crust and can process
10,000 pounds of dough per hour.
VAP has 80 full-time employees and
recently launched its own trucking
company to handle the shipping of
its products.
Recently, we have revised the
VAPG program so that it can be
maximized so that more people can
benefit. Because of this action, more
grants will be awarded, creating
more jobs and strengthening the
economies of more rural communities.
To echo Agriculture Secretary
Mike Johanns, “the Bush Administration
is committed to working
with farmers, ranchers and rural
entrepreneurs to increase their economic
opportunities and to create
jobs that boost local economies.
These grants provide America’s
farmers and ranchers with the
investment funds needed to expand
their role in developing and marketing
value-added products.”
Rural Development is committed to
providing determined leadership to
increase economic opportunities and
improve the quality of life for citizens
living in America’s rural communities.
With 47 state offices and 800 field
offices, we look forward to working
with you to bring opportunities to you
and your communities.
