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USDA to Award Up To $44 Million in Grants for Agriculture Producers

Name
Vicki Schurman
City
Lincoln
Release Date

USDA Rural Development State Director Maxine Moul has announced that USDA has $44 million available nationwide to farmers, ranchers, or producers through its Value-Added Producer Grant Program. The Value-Added Producer Grant program awards competitive grants that facilitate the creation and development of value-added products. 

“The VAPG program is USDA’s premier rural development tool for producers,” said Moul.  “USDA Rural Development Nebraska wants to build on its track record of helping agricultural producers across the state by enabling farmers, ranchers, and cooperatives to grow their businesses through the development and marketing of new and existing products.”

The VAPG program contributes to business creation in rural areas, while also enhancing food choices for consumers.  Independent agricultural producers, farmer or rancher cooperatives, and producer controlled entities are eligible.  VAPG grants may be used for planning activities or working capital expenses related to producing or marketing a value-added product.

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.

Since the inception of the program, Nebraska’s USDA Rural Development has awarded 104 Value-Added Producer Grants totaling $11.8 million. 

Two examples of awards from the Value-Added Producer Grant Program in Nebraska are:

  • CornCoctions, LLC in Wood River, Nebraska, received a $30,000 grant to develop a business and marketing plan in order to determine the feasibility of producing value-added products from corn plant material.  The business and marketing plan will focus on the ability to use corn leaves to produce a dry tea, liquid beverage, food additive and/or other food products.

  • Burbach’s Countryside Dairy, LLC in Hartington, Nebraska, received a $240,000 grant to introduce a new product and expand its value-added product line to include yogurt.  The project will commercialize production and sales of this entirely new product, which is expected to reach a customer base of more than 17,000.

To discuss applicant and project eligibility or for more information on the VAPG program in Nebraska, please contact Business Program Specialist Brant Richardson, brant.richardson@ne.usda.gov or (402) 437-5568. 

Congress increased funding for the Value-Added program when it passed the 2014 Farm Bill. That law builds on historic economic gains in rural America over the past six years, while achieving meaningful reform and billions of dollars in savings for taxpayers.  

President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities.