Opportunity Information: Apply for RDBCP VAPG 2020
The Value-Added Producer Grant (VAPG) is a discretionary grant program run by the U.S. Department of Agriculture (USDA), Business and Cooperative Programs, designed to help agricultural producers increase the value of what they produce by moving beyond raw commodity sales and into value-added processing and stronger marketing. In practical terms, the program supports projects where producers turn an agricultural product into something that can be sold at a higher margin, reach new buyers, or capture more of the consumer dollar. The underlying purpose is to help producers build viable, sustainable businesses that generate new products, expand marketing opportunities, and ultimately increase producer income.
This opportunity funds two main types of projects, and applicants generally choose the track that matches where they are in development. Planning grants support early-stage work needed to prepare a value-added business for launch or expansion. That kind of project commonly involves activities like feasibility studies, market research, business plan development, or other planning efforts that reduce risk and demonstrate that the idea can work financially. Working capital grants support the next stage: carrying out activities directly tied to processing and/or marketing a value-added agricultural product. These projects are geared toward implementation and operations, such as launching marketing campaigns, developing distribution channels, paying for eligible labor directly connected to the value-added effort, or covering other allowable operating costs needed to bring the value-added product to market. In both cases, the focus remains tightly tied to processing and marketing; proposals need to show that grant funds will be used for activities that directly advance those goals.
Eligibility is aimed at producer-led entities rather than outside firms. The program is intended to assist viable Independent Producers, Agricultural Producer Groups, Farmer and Rancher Cooperatives, and Majority-Controlled Producer-Based Businesses. The common thread across these categories is that agricultural producers themselves must be meaningfully involved and in control, ensuring the benefits of the value-added activity flow back to producers rather than being captured mainly by non-producer intermediaries. While the eligibility field is listed broadly as "Others (see text field entitled Additional Information on Eligibility for clarification)," the stated target applicants are producer-centered organizations and businesses that meet USDA definitions and requirements for these applicant types.
Awards are competitive, meaning proposals are scored against one another rather than funded on a first-come, first-served basis. The program sets a maximum award amount (award ceiling) of $250,000 per grant. For the referenced funding cycle (Funding Opportunity Number RDBCP VAPG 2020), USDA anticipated making about 550 awards. Because it is competitive, applicants must do more than describe an interesting idea; they must present a strong, credible plan with clear linkages between the proposed activities and measurable market or income outcomes.
A core requirement repeated throughout the opportunity is that proposals must demonstrate economic viability and sustainability. That means applicants should be prepared to show that the value-added venture can realistically succeed in the marketplace, that demand exists (or can be developed), that the business has a sound strategy for production and sales, and that the operation can sustain itself beyond the grant period. Strong applications typically connect the project to concrete market opportunities, explain why the product is value-added in a meaningful way, outline how processing and/or marketing will be executed, and provide realistic financial assumptions and operating plans. The program is ultimately about helping producers build durable, revenue-generating value-added enterprises rather than short-term experiments.
Administratively, this grant is categorized under the Agriculture funding activity area and is listed under CFDA number 10.352. The opportunity was created on December 12, 2019, with an original application closing date of March 5, 2020. Overall, the VAPG program is positioned as a catalyst for producer-driven innovation, helping agricultural businesses invest in the planning and operating capacity needed to develop new products, reach new markets, and strengthen farm and ranch income through value-added strategies.Apply for RDBCP VAPG 2020
- The Department of Agriculture, Business and Cooperative Programs in the agriculture sector is offering a public funding opportunity titled "Value-Added Producer Grant" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.352.
- This funding opportunity was created on Dec 12, 2019.
- Applicants must submit their applications by Mar 05, 2020. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $250,000.00 in funding.
- The number of recipients for this funding is limited to 550 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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