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USDA Announces $34 Million in Grants to Help Agricultural Producers Develop New Products, Expand Business Lines

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Gayle Aubrey
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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 businesses nationwide. The funding comes from USDA Rural Development’s Value-Added Producer Grant 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.

Examples of Texans receiving awards today include six projects from across the state that will receive a combined $962,411 to be utilized as working capital.  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 and 14 percent of total funding has been awarded to beginning farmers and ranchers. During 2015, more than one-third of Value-Added awards went to farmers and ranchers developing products for the local foods sector.

Value-Added Producer Grants are a key element of USDA’s Know Your Farmer, Know Your Food Initiative, which coordinates the Department’s work on local and regional food systems. These are major contributors to rural economic development. Congress increased funding for the Value-Added 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.

President Obama’s plan for rural America has produced historic investment in rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have strengthened America’s small towns and cities and helped improve the nation’s economy.

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. 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.  For information on this and other USDA Rural Development programs in Texas, visit http://www.rd.usda.gov/tx.