From the US Department of Agriculture: Rural Development: Value Added Producer Grants in Pennsylvania

What does this program do?
The Value-Added Producer Grant (VAPG) program helps agricultural producers enter value-added activities to generate new products, create and expand marketing opportunities, and increase producer income.

You may receive priority if you are:

• Beginning farmer or rancher.
• Socially-disadvantaged farmer or rancher.
• Small or medium-sized farm.
• Ranch structured as a family farm.
• Farmer or rancher cooperative.
• Proposing a mid-tier value chain.

Grants are awarded through a national competition. Each fiscal year, applications are requested through a notice published in the Federal Register and through an announcement posted on Grants.gov.

VAPG is part of the Local Agriculture Market Program (LAMP) which is an umbrella program created under the 2018 Farm Bill.  Producers can find other grant funding opportunities at the LAMP web page.

Program Funding: Approximately $31 million in total available funding.

Maximum Grant Amount: Planning Grants $75,000; Working Capital Grants: $250,000.

Matching Funds Requirements: Cost share match requirement of 100 percent of the grant amount required for all applications.

Who may apply for this program?
Independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures, as defined in the program regulation, are eligible to apply for this program.

How may funds be used?
Grant and matching funds can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product. Examples of planning activities include conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product. Examples of working capital expenses include:

• Processing costs.
• Marketing and advertising expenses.
• Some inventory and salary expenses.

How do I get started?

Interested applicants are encouraged to review the materials, including application deadlines found in the Federal Register.  See the To Apply tab for guidance and important Preliminary Actions Required.  

Who can answer questions?
If you have questions, you can contact your nearest Rural Development Office.

Will I need to send any reports if I receive a grant?
Yes, if you receive a grant, you must send regular financial and performance reports. Your financial assistance agreement will explain how often to send the reports, what forms to use, and what information to put in the reports.

Where can I get more information?

The VAPG program has a regulation. It contains details about the program’s purpose, how to use grant funds, application requirements, and the selection process. Remember to read the Federal Register notice to get all the details about how to apply.

What law governs this program?

The VAPG program is authorized under section 231 of the Agriculture Risk Protection Act of 2000 (Pub. L. 106-224), as amended by section 6203 of the Agricultural Improvement Act of 2018.

 NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.