2014 Application Deadline: February 24, 2014 Program Objective
• To help agricultural producers enter into value-added activities related to the processing and/or marketing of biobased value-added products.
• To expand markets and increase financial returns to agricultural producers.
Nationally Competitive Grants Available
• Planning Grant (max $75,000): To facilitate economic planning activities to determine the viability of a valueadded venture, and may include costs for an independent feasibility study and development of a marketing and business plan.
• Working Capital Grant (max $200.000): For operational costs directly related to the processing and/or marketing of the value-added product. Requires a third party feasibility study (FS) and business plan (BP) to implement the project, with two exceptions: (1) FS and BP requirement waived for ANY applicant requesting less than $50k; or
• (2) FS requirement waived for an Independent Producer applicant requesting any amount who proposes to expand the market for an existing value-added product they have produced and marketed successfully for two years or more.
• Example Ineligible Costs: Land, buildings, equipment, vehicles, R&D, engineering design, agricultural production, crop harvesting, delivery of raw commodity to a processing facility, conflict of interest transactions, and industrywide feasibility studies.
• Matching Funds Required: Must be equal to or greater than the grant amount, without conflicts of interest, and must contribute to eligible value-added project purposes.
Agricultural Producers May Apply
• Independent Producer (IP)
• Farmer or Rancher Cooperative (COOP)
• Agricultural Producer Group (APG)
• Majority-Controlled Producer Business (MAJ)
• must produce and own more than 50% of the subject agricultural commodity
• may not produce under contract for another entity that owns the commodity
• may not contract out production of the agricultural commodity
• must maintain ownership through sale of the value-added product (MTVC projects exempt) projects
• must demonstrate entry into an "emerging market" for applicants (does not apply to IP)
Priority Status Beginning Farmer or Rancher Mid-Tier Value Chain Proposals Small or Medium Family Farm Farmer or Rancher Cooperative Socially-Disadvantaged Farmer or Rancher Discretionary priority by Rural Business-Cooperative Service Administrator – geographic diversity
Value-Added Methods Change in Physical State Product Segregation Local Foods Marketing & Distribution
Non-Standard Agriculture Production Farm- or Ranch-based Renewable Energy
Resources: Applications must meet ALL program requirements Information and application materials available on the VAPG website: http://www.rurdev.usda.gov/BCP_VAPG.html
o Application Toolkits
o Program Regulation
o Notice of Funding Availability
o Program Information Sheets
Contact Information: Rural Development State Offices: 1-800-670-6553 then press "1" or
o http://www.rurdev.usda.gov/StateOfficeAddresses.html Agricultural Marketing Resource Center website: http://www.agmrc.org
This document is for informational purposes only. If interested in applying for a VAPG grant, an applicant shall follow the official instructions provided in the annual Notice of Funding Availability.