Value-Added Producer Grants in Michigan

The Value-Added Producer Grant (VAPG) program helps U.S. agricultural producers enter into value-added activities that generate new products from raw agricultural commodities, create and expand marketing opportunities, and increase producer income through enhanced product value and market reach. The program is part of the Local Agriculture Market Program (LAMP) authorized under Section 231 of the Agriculture Risk Protection Act of 2000, as amended by the 2018 Farm Bill.

Eligible applicants include agricultural producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures. Applicants must demonstrate that they own and produce more than 50 percent of the raw commodity and will retain greater revenue from the value-added product than from the raw commodity alone. Priority consideration is given to beginning farmers or ranchers, veteran farmers or ranchers, socially disadvantaged farmers or ranchers, small or medium-sized family farms or ranches, farmer or rancher cooperatives, and mid-tier value chain proposals. Administrator priorities for FY 2026 also award points for applicants who have never previously received a VAPG grant, applicants requesting less than $125,000, and applicants contributing to geographic diversity. Applicants paying more than 15 percent of their requested grant amount for third-party professional application preparation or grant management services are ineligible for Administrator priority points.

Eligible projects support either planning activities (such as feasibility studies, business plans, and marketing plans) with awards up to $50,000, or working capital needs (such as processing, packaging, advertising, inventory, and salaries) with awards up to $200,000. All proposals require a 100 percent matching fund commitment.

Applicants are encouraged to take the VAPG Self-Assessment Survey prior to applying. To begin, applicants should contact a USDA Rural Development program official in Michigan to review program requirements. Applications must be submitted through the VAPG Grant Application Portal following instructions in the application guide and Notice of Funding Opportunity.