USDA Announces Grants to Boost Business Innovation

March 16, 2026

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.