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VAPG grants may be used to fund economic planning and feasibility studies, provide needed working capital for value-added business ventures, or cover expenses relating to obtaining food safety certification and making practice and equipment upgrades to improve food safety.
There are two types of grants currently available through VAPG:
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Planning grants to fund economic planning activities such as the development of business and marketing plans and feasibility studies needed to establish viable marketing opportunities for value-added products.
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Working capital grants to fund the operation of a value-added business venture; specifically, to pay for eligible expenses related to the processing and/or marketing of the value-added product.
It is important to note that grant funds may not be used for repair, acquisition, or construction of a building or facility or to purchase, rent, or install fixed equipment. A list of ineligible uses of grant funds is outlined more specifically in the program’s regulations.
Typically, all grant funds awarded must be matched with non-federal funds on a 1:1 basis. Matching funds may be in the form of cash or eligible in-kind contributions. Up to 25% of the total project cost (up to 50% of the match) may come from the farmers’ own time and effort put into the project.
Entities eligible to apply for VAPG funds include:
- Independent, individual agricultural producers;
- Groups of agricultural producers;
- Majority-controlled producer-based business ventures;
- Farmer or rancher cooperatives.
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