By Scout Nelson
The U.S. Department of Agriculture opens applications for the Value-Added Producer Grant program on January 15. Farmers and ranchers may apply through the VAPG portal until April 15, 2026. This program supports producers who want to increase income by adding value to raw agricultural products.
The Value-Added Producer Grant helps farmers move beyond selling raw commodities. It supports projects that create new products, expand marketing opportunities, and improve overall farm income. Producers may use the funding to reach new buyers, grow local and regional markets, and strengthen long-term business plans.
The program offers two types of grants. Planning grants support early-stage activities such as feasibility studies, business plans, and marketing strategies. Working capital grants help cover costs linked to processing, packaging, advertising, inventory, and employee salaries. Planning grants offer up to fifty thousand dollars, while working capital grants provide up to two hundred thousand dollars.
Total funding available through the program is about $25 million. All grants require a one-on-one match. Applicants must match the full grant amount using cash or approved in kind contributions.
Some applicants receive priority consideration. These include beginning farmers, veteran farmers, socially disadvantaged farmers, family owned small or medium farms, cooperatives, and producers working on mid-tier value chain projects. The USDA also reserves ten percent of total funds for beginning, veteran, and socially disadvantaged farmers, mid-tier value chain proposals, and food safety projects that improve market access.
Eligible applicants include individual agricultural producers, producer groups, cooperatives, and producer led business ventures. Applicants must show their own and produce more than half of the raw product used. They must also prove they will earn more income from the value-added product than from selling raw commodities alone.
Overall, the Value-Added Producer Grant program helps farmers build stronger businesses, improve market reach, and create new income opportunities. It supports innovation in agriculture while helping rural communities grow and remain competitive. Producers interested in applying may find more program details on the USDA website.
Photo Credit: usda
Categories: South Dakota, Business, Government & Policy