USDA’s Value-Added Producer Grant Program is now open. USDA Rural Development will award approximately $30 million in grant funding during this year’s round. Applications are due by 11:59 p.m. ET on April 17, 2025.
Here are some important considerations for meat and poultry processors interested in applying for this grant.
Eligibility – eligible applicants must produce more than 50% of the agricultural commodity to which value will be added.Processors that don’t own any of the livestock being processed are ineligible.
Definition of Value-Added – The definition includes commodities that have “undergone a change in physical state” or “produced in a manner that enhances the value.” Under this definition, cutting, grinding,and/or portioning meat or poultry qualifies as adding value. However, proposals with added value components (e.g., jerky, prepared food, etc.) tend to score higher.
Types of Grants:
- Planning grants of up to $75,000 to fund economic planning activities such as developing business and marketing plans and feasibility studies to establish viable marketing opportunities for value-added products. Funds may only be used to pay a Qualified Consultant to conduct and develop a Feasibility Study, Business Plan, and/or Marketing Plan associated with the post-harvest processing and/or marketing of a Value-Added Agricultural Product.
- Working capital grants of up to $250,000 to fund the operation of a value-added business venture;specifically, to pay for eligible expenses related to the processing and/or marketing of the value-added product.
Reserved Funds – As in past years, at least 10% of the total funding is reserved for Beginning and socially Disadvantaged Farmers (including veterans), Mid-Tier Value Chains, and Persistent Poverty Counties.This year, the reserved funds also include projects where more than 50% of the project cost is for post-harvest food safety purposes.
Matching Funds Required – All grants require a 1:1 match in funds. Applicant or family member in-kind labor can be used for up to 50% of the matching requirement, and the value of the raw commodity to be processed can be used for up to 100% of the matching fund requirements in working capital grants.
No Construction or Equipment Funding – No funds can be used for construction or equipment.
Simplified Applications – The VAPG program offers a simplified application, which does not require submission of a feasibility study or business plan, for the following categories:
- Working Capital Grants less than $50,000 – Applicants requesting less than $50,000 can submit a simplified Market Expansion or Emerging Market application.
- Market Expansion request of $50,000 or more – Producers able to demonstrate that their project will meet the definition of Market Expansion may submit a simplified application with a Marketing Plan or Business Plan. Agricultural Producer Groups, Cooperatives, and Majority-Owned Producer-Based Businesses are not eligible for this category.
- Food Safety – Applications demonstrating that more than 50% of the project Cost will be used for Food Safety purposes may submit a simplified application.
Scoring Criteria:
Nature of the Proposed Venture: 0-30 points
Describe the technological feasibility of the project, as well as the operational efficiency,profitability, and overall economic sustainability resulting from the project.
Qualifications of Project Personnel: 0-20 points
Personnel must be listed, along with their qualifications.
Commitments and Support: 0-10 points
This includes commitments from producers supplying ht commodities and market outlets. It also includes community supports.
Work Plan and Budget: 0-20 points
Applicants must submit a comprehensive work plan and budget.
Priority Points: 0-10 points
This allows points for underserved producers.
Priority Categories: 0-10 points
This allows the administrator or State Rural Development Director to improve the geographic diversity of awardees.
Additional Information:
- USDA Value-Added Producer Grant Site
- Value-Added Grant Regulations
- Value-Added Grant Overview Webinar
Want to request technical assistance?
As the lead technical assistance coordinator for the USDA—Agricultural Marketing Service (AMS) Meat and Poultry Processing Capacity Technical Assistance (MPPTA) Program, Flower Hill Institute (FHI) can match you with resources and network cooperators to guide you through the application process and post-award management.
To request technical assistance or for more information about the MPPTA program, visit the FHI website using the button below.
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