GUEST COLUMN, Val Ankeny, Center for Rural Affairs
Agricultural producers looking to expand their operations through value-added products are encouraged to apply for a Value Added Producer Grant (VAPG). Applications will be accepted through April 17.
The U.S. Department of Agriculture (USDA) Rural Development announced $30 million in funding for the VAPG program, which provides grants for producers as well as farmer and rancher cooperatives. The funding can be used to generate new products and create or expand marketing opportunities that help producers generate additional income.
Up to $75,000 is available for planning grants, or up to $250,000 for working capital grants. Matching funds of 100 percent are an eligibility requirement.
Planning activities may include conducting feasibility studies or the development of business and marketing plans. Working capital expenses may include processing costs, marketing and advertising expenses, or select inventory and salary expenses.
Value-added activities can include the development of products from produce grown on a farm, such as jams or jellies, syrups, sauces, and oils. Processing, packaging, and marketing a dairy farm’s milk into ice cream, cheese curds, and other products or weaving textiles from fleece harvested on the ranch are other examples of value-added products. Feeding cattle and owning them through harvest and processing and then selling the meat is another type of eligible value-added activity.
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