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USDA Makes $31 Million in Grants Available to Help Farmers and Ranchers Add More Value to Their Products to Access New and Better Markets

Miguel Ramirez
San Juan
Release Date

WASHINGTON, March 17, 2023 – U.S. Department of Agriculture (USDA) Rural Development Under Secretary Xochitl Torres Small today announced that USDA is making $31 million in grants available to help farmers and ranchers access new and better markets by adding more value to their products.

USDA is making the grants available under the Value-Added Producer Grants program. The grants help agricultural producers generate new products, create marketing opportunities and increase their incomes through value-added activities.

USDA is offering priority points to projects that advance key priorities under the Biden-Harris Administration to help rural communities and people address climate change and environmental justice, advance racial justice, place-based equity, and opportunity, and create more and better market opportunities.

Eligible applicants include independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures.

Funding priority will be given to beginning farmers or ranchers who are military veterans or socially disadvantaged individuals; small and mid-sized family farms or ranches; and farmer or rancher cooperatives. Priority also will be given to projects that propose a mid-tier value chain by developing a supply network that moves agricultural products from production through consumption in a local or regional market.

The funding may be used for planning activities or working capital expenses related to producing and marketing a value-added agricultural product. Planning activities may include conducting feasibility studies and developing business plans. Working capital expenses may include costs associated with processing, marketing, advertising, inventory and salaries.

The maximum award for a planning grant is $75,000. The maximum award for a working capital grant is $250,000.

Electronic applications will be accepted via Grants.gov until 11:59 p.m. Eastern Time on May 11, 2023. Paper applications must be sent to the State Office where the project is proposed.

Paper applications must be postmarked and mailed or sent overnight by May 16, 2023. Applications also may be delivered in person or emailed to an RD field office by close of business May 16, 2023.

Additional information is available on page 16396 of the March 17 Federal Register or by contacting your local USDA Rural Development office.

If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.


#USDA is an equal opportunity provider, employer, and lender.