USDA Rural Development has announced it is accepting applications for grants of up to $250,000 under the Value-Added Producer Grant program. VAPG helps agricultural producers and related businesses enter into value-added activities related to the processing and marketing of new products.

Grants are competitive and require matching funds. Proceeds may be used for working capital expenses related to producing and marketing a value-added agricultural product. Planning activities, such as conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product, also qualify for funding.

Value-added agricultural products are 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.

Application deadlines have been extended to April 29, 2021, for online submissions and May 4, 2021, for paper submissions. Apply through the USDA Rural Development New Mexico office. Eligible applicants must be located in a rural area as defined by USDA Rural Development. Read the details here.

Application rules are subject to change. Contact Ray Melton, Program Director at the USDA RD District Office by email or call 505-761-4956.