The U.S. Department of Agriculture is accepting applications for grants to help farmers, ranchers, and producers maximize the value of the items they produce. Value-added products are agricultural products that have been modified or physically changed to enhance their value. Examples include salsa made from tomatoes and energy produced from farm animal methane.

USDA Value-Added Producer Grants help producers generate new products, create marketing opportunities, and increase their incomes through activities such as planning — including conducting feasibility studies and developing business plans for processing and marketing the proposed value-added agricultural product. Proceeds may be used for working capital expenses related to producing and marketing the product.

The maximum award for a planning grant is $75,000. The maximum award for a working capital grant is $250,000. Awardees must contribute matching funds equal to the amount of the grant unless they are applying for COVID-19 relief funds, which allows for a reduced matching requirement of 10% of the grant amount.

USDA is offering priority points to projects that advance key priorities under the Biden-Harris Administration to help communities recover from the COVID-19 pandemic, advance equity, and combat climate change.

Electronic applications may be submitted via Grants.gov until 9:59 p.m. Mountain Time on April 25, 2022. Paper applications can be sent to the USDA Rural Development office in Albuquerque, but they must be postmarked by May 2, 2022. Eligible applicants must be located in a rural area as defined by USDA Rural Development. 

Applicants must register ahead of time with the System for Award Management (SAM) if they aren’t already registered. The registration is free, but several steps must be completed. USDA recommends starting the registration process at least a month before any application deadline.

Read the details here and contact Ray Melton at the New Mexico USDA RD office for assistance.