The USDA is making US$30 million available to farmers, ranchers and food entrepreneurs to develop new product lines through the Value-Added Producer Grant (VAPG) program, says Agriculture Secretary Tom Vilsack.
“Farmers and ranchers are creative people who, with a little help, can put that creativity to work and improve the bottom line for their operations,” Vilsack said.
“Value-Added Producer Grants enable them to develop new product lines to grow their businesses and expand their contributions to our nation’s economy.”
“This support is especially important for beginning farmers, military veterans engaging in farming and smaller farm operations participating in the local and regional food system.”
The grants can be used to develop new product lines from raw agricultural products or additional uses for already developed product lines.
Military veterans, socially disadvantaged, and beginning farmers and ranchers; operators of small- and medium-sized family farms and ranches; farmer and rancher cooperatives; and applicants that propose mid-tier value chain projects are given special priority in applying for VAPGs.
Additional priority is given to group applicants who seek funding for projects that “best contribute” to creating or increasing marketing opportunities for these type of operators.
Businesses can submit paper applications by July 7, 2015 and electronic applications by July 2, 2015.
Since 2009, USDA has awarded 853 VAPG totaling US$104.5 million.
Approximately 19% of the grants and 13% of total funding has been awarded to beginning farmers and ranchers.
During the 2013-2014 funding cycle, nearly half of VAPG awards went to farmers and ranchers developing products for the local food sector.
The grants are a key element of the USDA’s Know Your Farmer, Know Your Food Initiative, which coordinates the Department’s work on local and regional food systems.
Vilsack has identified local and regional food systems as one of the four pillars of rural economic development.
