USDA Value-Added Producer Grant (VAPG)

Who qualifies

• Must be an Independent Agricultural Producer (individual, LLC, corporation, partnership, or other entity) who produces and owns the agricultural commodity that will become the value-added product — you cannot be solely a processor or marketer
• Agricultural Producer Groups: associations, coalitions, or alliances of agricultural producers acting together for a common purpose
• Farmer or Rancher Cooperatives (including new-generation cooperatives) where agricultural producers form the majority of membership
• Majority-Controlled Producer-Based Business Ventures: entities where >50% of equity and voting control is held by agricultural producers of the commodity
• Federally-recognized Tribal entities that produce agricultural commodities
• The value-added activity must result from one of five statutory methodologies: (1) change in physical state (e.g., grain → flour), (2) enhancement of value through production/marketing in a manner that adds value (e.g., certified organic, pasture-raised), (3) physical segregation creating price premium (e.g., identity-preserved non-GMO), (4) association with a particular production region or locality, or (5) production and marketing of a product in a manner that contributes to a customer paying a premium (Mid-Tier Value Chain)
• For working capital: must have already completed or contracted for a feasibility study, business plan, or marketing plan for the proposed value-added project
• Must be a legal entity with legal authority to contract with the federal government
• Must have an active SAM.gov registration with a valid Unique Entity Identifier (UEI) prior to submission
• Project activities must begin within 90 days of award; project period maximum 36 months
• Applicants are limited to one VAPG application per solicitation
• Previous VAPG recipients may not receive a new grant for the same value-added project

Hard requirements

• Rural location required

What it covers

How to apply

1. 1

   Confirm rural location eligibility

   Contact your local USDA Rural Development state office to verify your operation's location qualifies as rural (outside urbanized areas of 50,000+). This is a hard gate — confirm before investing time in the application. Find your office at rd.usda.gov/contact-us.

   ~2 hrs

2. 2

   Register in SAM.gov and obtain UEI

   Create or renew your System for Award Management registration at sam.gov/content/entity-registration. This takes 7–10 business days for new registrations (sometimes longer). Do this first — you cannot submit without an active SAM registration with a Unique Entity Identifier (UEI).

   ~4 hrs

3. 3

   Register on Grants.gov and locate the NOFO

   Register at grants.gov/applicants/registration. Search for Opportunity Number RDBCP-VAPG-[YEAR] or browse Assistance Listing 10.352. Download the complete Application Package including all required forms (SF-424, SF-424A, Project Narrative template, Work Plan, Budget Detail spreadsheet, and commitment letter template).

   ~3 hrs

4. 4

   Develop narrative and secure commitment letters

   The Project Narrative (core of your application) addresses four scored sections: (1) Nature of Venture — describe the value-added product, market opportunity, and customer demand; (2) Personnel Qualifications — demonstrate your team's capacity to execute; (3) Commitments and Support — collect signed letters from buyers, distributors, and technical advisors before deadline; (4) Work Plan and Budget — detailed timeline, milestones, and line-item budget. Commitment letters from customers or distributors documenting price premiums are critical scoring differentiators.

   ~40 hrs

5. 5

   Document matching funds

   Prepare written documentation of your 1:1 match. Cash contributions score higher than in-kind. In-kind contributions (your own labor, commodity inventory, equipment use) are allowed but limited — in-kind labor is capped at 50% of total matching funds, and agricultural commodity inventory may cover up to 49%. If pledging in-kind, document the fair market value with third-party attestation. Note: you cannot switch from in-kind to cash match after award.

   ~5 hrs

6. 6

   Submit via Grants.gov before electronic deadline

   Submit the complete application package electronically via Grants.gov (preferred) or by paper to your USDA Rural Development state office. Electronic deadline is typically 11:59 p.m. ET on the closing date; paper deadline is close of business 5 days later. Applications are scored at the state level — a national scoring team reviews borderline cases. Awards are announced approximately September 30 of the fiscal year.

   ~6 hrs

Industry & certifications

NAICS codes: 111110, 111120, 111130, 111140, 111150, 111160, 111191, 111199, 111211, 111219, 111310, 111320, 111331, 111332, 111333, 111334, 111335, 111336, 111339, 111411, 111419, 111421, 111422, 111910, 111920, 111930, 111940, 111991, 111992, 111998, 112111, 112112, 112120, 112130, 112210, 112310, 112320, 112330, 112340, 112390, 112410, 112420, 112511, 112512, 112519, 112910, 112920, 112930, 112990

Deadline & timing

VAPG has run annually with NOFOs published January–March and deadlines April–May. The FY 2024 cycle opened January 17, 2024 with an April 11 electronic deadline. FY 2023 opened March 17 with a May 11 deadline. As of May 2026, no FY 2025 NOFO has been posted in the Federal Register — monitor rd.usda.gov and grants.gov (Assistance Listing 10.352) for the next opening. Watch for the notice under Opportunity Number pattern RDBCP-VAPG-[YEAR].

Programs that stack well

• USDA Rural Business Development Grant (RBDG)
• Usda Farmers Market Promotion Program
• Usda Local Food Promotion Program
• Small Business Administration 7a Loan
• USDA Business & Industry (B&I) Loan Guarantee

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