Value Added Producer Grants

Deputy Agriculture Secretary Kathleen Merrigan announced that applications are being accepted for grants to provide economic assistance to independent producers, farmer and rancher cooperatives and agricultural producer groups through the Value-Added Producer Grant Program.

"By creating value-added products, farmers and ranchers can expand economic opportunities, create jobs and keep wealth in rural communities," Merrigan said. "These funding opportunities will promote business expansion and entrepreneurship by helping local businesses get access to capital, technical assistance and new markets for their products and services."

For example, in Caroline County, Md., Richard and Wenfei Uva owners of Seaberry Farm received a Value-Added Producer Grant to expand their processing capacity to produce beach plum jams and jellies, juice, and puree for retail and wholesale markets. The Beach plum, Prunus maritime, is a native fruiting shrub that grows in coastal sand dunes from southern Maine to Maryland. Seaberry Farm planted three acres of Beach plum in 2006 and will double the acreage in 2011.

Located in Oxnard, Calif., San Miguel Produce is owned by Roy Nishimori and Jan Berk, independent producers of organic and conventional cooking greens. In 2009, they received a Value-Added Producer Grant for socially disadvantaged farmers and ranchers. With this grant, San Miguel Produce has been able to expand markets for their "Cut 'n Clean Green" products and increase revenues.

Application deadline is August 29, 2011. For further details about eligibility rules and application procedures, see the June 28, 2011, Federal Register. Value-Added Producer Grants may be used for feasibility studies or business plans, working capital for marketing value-added agricultural products and for farm-based renewable energy projects. Eligible applicants include independent producers, farmer and rancher cooperatives, and agricultural producer groups. Value-added products are created when a producer increases the consumer value of an agricultural commodity in the production or processing stage. To see a video featuring Deputy Secretary Merrigan discussing the VAPG program click here.

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $150 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.

Click here for additional information about the agency's programs or to locate the USDA Rural Development office nearest you.