The portal to apply for a Value Added Producer Grant is open until April 17, 2025, but agriculture producers and food manufacturers should prepare now to apply. The VAPG program, funded and administered by the U.S. Department of Agriculture Rural Development, awards up to $75,000 for feasibility research and planning and up to $250,000 for operating expenses to individual businesses and organizations engaged in adding value to agricultural products.
Agricultural producers and producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based businesses in rural areas, as defined in the program regulation, are eligible to apply for this program, which includes a matching-fund mandate.
Grant and matching funds can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product. Examples of planning activities include conducting feasibility studies, developing business plans, and developing marketing plans for the proposed value-added product. Examples of working capital expenses include processing costs, marketing and advertising costs, and some inventory and salary expenses.
Applicants must identify where they will access matching funds. Grantees must send regular financial and performance reports.
The New Mexico District Office of USDA Rural Development has reported in the past that VAPG funds available in New Mexico are sometimes redistributed to other states because New Mexico businesses and organizations neglect to submit an application. VAPG grants are awarded just once a year.
USDA Rural Development offers a self-assessment tool where businesses and organizations can determine if they are eligible. The New Mexico District Office, which serves the state’s rural areas (including most of New Mexico), is available to answer questions.
Read the announcement, which contains pertinent links.
Read two examples of New Mexico businesses that successfully obtained a VAPG: Milk & Honey Soap in 2010 and Southwestern Seas in 2015.