A U.S. Department of Agriculture (USDA) program is helping producers turn raw commodities into value-added products, allowing more of the income to remain in rural communities.
The Value-Added Producer Grant (VAPG) program, administered by USDA Rural Development, supports agricultural producers, as well as farmer and rancher cooperatives, that want to start or expand value-added activities. Producers can apply for up to $50,000 in planning grants or up to $200,000 in working capital grants. Applications are due April 22.
Funds can be used to pay for eligible post-harvest operational costs directly related to the processing and/or marketing of the product, such as turning fruit into jam, milk into cheese, or finishing and processing beef cattle for direct-to-consumer sale.
Kyle and Morgan Lammers, owners of KL Beef Co. near Hartington, Nebraska, used a VAPG award to strengthen their direct-to-customer beef business by improving shipping and investing in professional marketing. What started as a way to add income to their cattle operation has grown into a thriving business that connects customers directly to Nebraska-raised beef.
VAPG can help address a common challenge for small family operations: finding time and resources for anything beyond the daily work of the farm. Planning grants can be used for feasibility studies or business and marketing plans. Working capital grants can support processing, packaging, advertising, and certain inventory or staffing costs.
The goal is simple: generate new products, open new markets, and increase producer income, while keeping more value in rural communities.
For more information and application assistance, contact your local USDA Rural Development office. A list of office locations can be found at rd.usda.gov.
By Val Ankeny, senior policy associate, Center for Rural Affairs
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Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.
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