U.S. Department of Agriculture (USDA) Rural Development Deputy Under Secretary Vernita F. Dore today highlighted the importance of rural entrepreneurs to the U.S. economy and announced that USDA is investing nearly $34 million to help 258 agricultural businesses nationwide through its Value-Added Producer Grant (VAPG) program.
“This funding will enable farmers and ranchers to develop new products, improve the bottom line for their operations, and help create a robust local and regional food system,” Dore said. “Value-Added Producer Grants provide capital to enable ag producers to grow their business through diversification. USDA’s support is especially important for beginning farmers and smaller farm operations.”
Value-Added Producer Grants can be used to develop new agricultural products or additional markets for existing ones. Military veterans, socially-disadvantaged and beginning farmers and ranchers, operators of small- and medium-sized family farms and ranches, and farmer and rancher cooperatives are given priority when applying for these grants.
In Oregon, USDA is investing nearly $1.2 million to help nine agricultural producers develop new or expand existing value-added production.
For example, DD Ranch in central Oregon is receiving a $49,000 grant to expand their capacity to produce and sell packaged grass-fed beef, lamb, and heritage breed pork. This funding will help cover processing, feed, and labor costs to increase the company’s current wholesale, retail, and Community Supported Agriculture (CSA) sales in central Oregon and expand into the Portland metropolitan area market. In addition, the grant will help DD Ranch to develop a marketing strategy, product branding, and to overhaul their website.
Funding of each award announced today is contingent upon the recipient meeting the terms of the grant agreement.
Since 2009, USDA has awarded 1,115 Value-Added Producer Grants totaling $154 million. Approximately 18 percent of the grants have been awarded to beginning farmers and ranchers. During 2015, more than one-third of VAPG awards went to farmers and ranchers developing products for the local foods sector.
Congress increased funding for the VAPG program when it passed the 2014 Farm Bill. That measure builds on historic economic gains in rural America over the past seven years while achieving meaningful reform and billions of dollars in savings for taxpayers.