USDA Announces Grants to Boost Business Innovation
Value-Added Producer Grant helps ag producers generate new products
USDA Rural Development announced the availability of funding for farmers and producers to help them create and market value-added products.
The Value-Added Producer Grant (VAPG) program helps U.S. agricultural producers
generate new products from raw agricultural commodities or expand marketing opportunities for their value-added products, which can help strengthen rural economies.
Common value-added products include:
• Fruit pies and jams
• Cheeses, yogurts, and ice cream
• Tomato and pepper salsa
• Flavor-infused honey
• Dried meats and jerkies
Eligible applicants for the Value-Added Producer Grant program include:
• Agricultural producers
• Agricultural producer groups
• Farmer or rancher cooperatives
• Business ventures majority-owned by producers
Applicants must demonstrate that they own and produce more than 50% of the raw
commodity and that they will receive a greater revenue from the value-added product
than from the raw commodity alone. A maximum of $200,000 in grant funds per
applicant is available for operational working capital, and a maximum of $50,000 is
available for planning grants. The grants funds are subject to a 1:1 match requirement,
which may include cash or eligible in-kind contributions.
Value-Added Producer Grant program is currently taking applications
Electronic applications will be accepted via the VAPG application portal until 1:00 p.m.
Eastern Time on April 22, 2026. Approximately $25 million in VAPG funds is available
nationwide. Grants are awarded through a nationally competitive process.
The Value-Added Producer Grant program is administered locally by USDA Rural
Development staff in Ohio. If you have any questions related to VAPG funding or
eligibility, our Ohio staff is ready to assist. Please forward this information to any farmer
or producer who may be interested in beginning or expanding a value-added product
operation.






