USDA is investing more than $45 million in 325 projects through the Value-Added Producer Grant (VAPG) program.

USDA is investing more than $45 million in 325 projects through the Value-Added Producer Grant (VAPG) program. (Photo: Nerthuz/Thinkstock)

"Value-Added Producer Grants are one of USDA's most sought-after funding sources for veteran and beginning farmers, and rural-based businesses," Vilsack said. "These grants provide a much-needed source of financing to help producers develop new product lines and increase their income, and keep that income in their communities. Economic development initiatives like this one are working – the unemployment rate in rural America is at an eight-year low and incomes rose 3.4% last year. Small business entrepreneurship, which Value-Added Producer Grants support, is a major reason why rural America is a making a comeback."

VAPG grants can be used to develop new product lines from raw agricultural products or promote additional uses for established products. Veterans, socially-disadvantaged groups, beginning farmers and ranchers, operators of small- and medium-sized family farms and ranches, and farmer and rancher cooperatives are given special priority.

"Through the Value-Added Producer Grant program, USDA Rural Development invests both in the quality of food and quality of life in rural areas," said USDA Rural Business-Cooperative Service Administrator Sam Rikkers. "

USDA has awarded 1,441 VAPG awards since 2009, totaling $183 million. Congress increased funding for the program in the 2014 Farm Bill. The 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. Secretary Vilsack has identified local and regional food systems as a key component of rural economic development.

Source: USDA