Value Added Producer Grants

The Value-Added Producer Grants (VAPG) program is one of the nation’s most effective programs in fostering innovative agricultural operations, including organic and grass-fed based enterprises. This program provides competitive grants to producers for one of the following two activities:

     Develop business plans and feasibility studies (including marketing plans or other planning activities) needed to establish viable marketing opportunities for value-added products; or

     Acquire working capital to operate a value-added business venture or alliance.  Working capital applications generally must be supported by an independent feasibility study as well as a business plan.

The following individuals and organizations can apply: individual independent agricultural producers, groups of independent producers, producer-controlled entities, organizations representing agricultural producers, and farmer or rancher cooperatives to create or develop value-added producer-owned businesses. Agricultural producers include farmers, ranchers, loggers, agricultural harvesters and fishermen that engage in the production or harvesting of an agricultural commodity.

The term “value-added” includes an agricultural commodity or product that has undergone a change in physical state or was produced, marketed, or segregated (e.g. identity-preserved, eco-labeling, etc.) in a manner that enhances its value or expands the customer base of the product. VAPG has been expanded in the 2008 Farm Bill to include locally produced and marketed food products and mid-tier value chains. Mid-tier value chains are local and regional supply networks that link independent producers with businesses and cooperatives that market value-added agricultural products. The mid-tier value chain provision is aimed at assisting farmers and ranchers who are too large or remote to engage substantially in marketing directly to consumers but too small to profitably engage in high volume, low margin raw commodity production. It is intended to capitalize on the increasing demand for high quality products from family farms adhering to strong environmental and social values.

The program is administered by the Cooperative Division of USDA’s Rural Business Cooperative Service, and grant applications are first screened through each state’s USDA Rural Development Office. Applications are due June 22, 2009. For more information call USDA’s Wisconsin office ofRural Development at (715) 345–7610 or visit their website: http://m1e.net/c?79772770-WdmQUkWSiYMEE%404225871-SzIAr5rFWyVtE