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Value-Added Agriculture Producer Grant (VAPG)

The Value-Added Agriculture Producer Grant (VAPG) Program was authorized by the Agriculture Risk Protection Act of 2000 and was amended by the Farm Security and Rural Investment Act of 2002, better known as the 2002 Farm Bill.

The program was created with two primary objectives. The first is to encourage independent producers of agricultural commodities to furthered refine these products increasing their value to end users. The second objective is to establish an Information resource center to collect, disseminate, coordinate, and provide information on value-added processing to independent producers and processors.

Grants may be used for planning activities and working capital for marketing value-added agricultural products and for farm-based renewable energy. Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures.

The maximum amount that can be awarded is $500,000, and all VAPG funds must be matched by an equal amount of funds from the applicant or a third party.

For more information about the program, please contact the  USDA Rural Development Area Office nearest you. 

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 Last modified: June 15, 2009