USDA Value-Added Producer Grant (VAPG) — FY2026

Competitive grants for agricultural producers, producer groups and farmer cooperatives to process and market value-added farm products — up to $50,000 for planning and up to $200,000 for working capital, with a 1:1 matching requirement.

• •Issued by: Government of the United States · U.S. Department of Agriculture · Rural Business-Cooperative Service
• •Notice of Funding Opportunity No. RDBCP-VAPG-2026, published 17/02/2026
• •Nodal Agency: USDA Rural Development (RBCS)
• •Regulation: 7 CFR Part 4284, Subpart J

The Value-Added Producer Grant helps farmers and ranchers start or expand businesses that process and/or market their own farm products — for example milk into cheese, tomatoes into sauce, or raw pulses into packaged dal. The goals are new products, new markets and higher income for producers.

Eligible Applicant Types (for-profit)

Federally recognised Tribes and Tribal entities are encouraged to apply if they meet one of these four definitions.

Who is NOT Eligible

• •Applicants who fail the ineligibility checks in 7 CFR 4284.921, including issues found in the federal Do Not Pay portal.
• •Corporations convicted of a federal felony in the last 24 months, or with unpaid, assessed federal tax not under a payment agreement.
• •General food processing companies that are not producers or producer-controlled.

Reserved Funds — 10% Each

• •Beginning, Veteran and Socially-Disadvantaged Farmers or Ranchers
• •Mid-Tier Value Chain projects
• •Food Safety projects (majority of the grant improves food safety for market access)

Applicants not funded from a reserve also compete for the general funds. Funds are also set aside for projects in persistent poverty counties.

Example — Working Capital Grant

• •Allowed uses only — grant and matching funds have the same restrictions and may be used only for eligible purposes (7 CFR 4284.925). Construction and equipment purchase are not allowed.
• •No costs before approval — grant funds cannot pay costs incurred before the grant approval date.
• •Match spent first or equally — matching funds must be spent at a rate equal to or ahead of grant funds.
• •In-kind rules — raw commodities, time, and unpaid goods/services count only as in-kind; projected project income cannot count as match; other federal funds cannot be used (except certain Tribal self-determination grants).
• •No cash-to-in-kind switch after award, because cash match earns more points.
• •One application per solicitation. A project that already got a Planning Grant cannot get another; one that got a Working Capital Grant cannot get any further grant.
• •Previous awardees must propose substantially different products or markets, and must spend all current VAPG funds and file final reports by the deadline (or cancel the current award).
• •No conflicts of interest involving owners, staff, agents or family members.
• •Start within 90 days of the award date.
• •Alcohol projects need a valid TTB permit; hemp projects need a valid hemp licence — both verified before award.
• •Consultant fees — fees paid to grant writers or consultants must be disclosed; if over 15% of the grant requested, the application loses eligibility for Administrator priority points.

Before / With the Application

After Selection

• •Agency-approved Financial Assistance Agreement and Letter of Conditions
• •Form RD 1940-1 (Request for Obligation of Funds)
• •Form RD 1942-46 (Letter of Intent to Meet Conditions)
• •Form RD 400-4 (Assurance Agreement)
• •SF LLL (Disclosure of Lobbying Activities), if applicable
• •SF 270 (Request for Advance or Reimbursement)
• •Copy of consultant contract, if requested

• •Step 1 — Register: Obtain a UEI and complete SAM.gov registration well before the deadline.
• •Step 2 — Choose grant type: Planning or Working Capital, depending on where the project stands.
• •Step 3 — Start in the portal: An authorised representative (usually the majority owner) starts the application in USDA's Grant Application Portal. Grant writers may help, but the applicant is responsible for all content.
• •Step 4 — Submit: Complete and submit before 1:00 p.m. ET on the deadline. Late applications are not accepted.
• •Step 5 — Eligibility review: The Agency checks completeness and eligibility; ineligible applicants are told why and given appeal rights.
• •Step 6 — Scoring: A review panel scores criteria (a)–(c); the RD State Office scores (d)–(f); the Administrator may add up to 10 points.
• •Step 7 — Ranking & award: Reserved funds are awarded first in rank order, then general funds. Selected applicants receive a Notice of Federal Award.
• •Step 8 — Reporting: Semi-annual financial (SF-425) and performance reports; a final report within 120 days after the grant ends.

Scoring — Maximum 100 Points (minimum 50 to be considered)

USDA Rural Business-Cooperative Service, Value-Added Producer Grants Fiscal Year 2026 Notice of Funding Opportunity (RDBCP-VAPG-2026), published 17 February 2026; 7 CFR Part 4284, Subpart J.