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USDA Grants Available for Producers to Create Value Added Products

Name
Samantha Evenson
City
Bismarck
Release Date

USDA Rural Development announced that funding is available to farmers, ranchers, businesses and food entrepreneurs to develop new product lines and expand markets through USDA’s Value-Added Producer Grant (VAPG) program.

“Funds from the VAPG program can help farmers and ranchers add value, further process and successfully market the agricultural abundance of North Dakota,” said Ryan Taylor, USDA Rural Development state director. “The program can help producers get creative, diversify our commodity-driven economy and create jobs and economic opportunities for our state.”

Grants may be used to develop product lines from raw agricultural products, support further processing of existing goods or expand marketing opportunities. Funding may also be used for working capital and planning activities. Independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures are eligible to apply.

For example in 2015, Meadowlark Granary in Bottineau received a $24,000 grant for improved packaging and labeling, vending fees, advertising, web design and other production and marketing expenses. The business produces whole wheat flour, baking kits, wholegrain breads, bread crumbs and croutons from hard red spring wheat grown on a local family farm.  

More information on how to apply is on page 20607 of the April 8 Federal Register. The deadline to submit paper applications is July 1, 2016. Electronic applications submitted through grants.gov are due June 24, 2016. For additional information, contact the North Dakota Rural Development office at (701) 530-2037.