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Value-Added Producer Grants.

VAPG helps qualifying agricultural producers plan or operate projects that turn raw commodities into higher-value products and expand producer income and markets.

Offered byUSDA Rural Business-Cooperative Serviceverified 2026-07-10

Overview

What it does.

The producer is the direct applicant. A Chester or Randolph County farm or producer-owned venture can compete nationally if it meets producer-control, commodity, value-added, match, registration, and notice requirements.

Best for: Farmers, producer groups, and producer-owned ventures developing processed, branded, marketed, or otherwise value-added agricultural products.

Eligibility

Who and what may qualify.

Eligible applicants

  • Independent agricultural producers
  • Agricultural producer groups
  • Farmer or rancher cooperatives
  • Majority-controlled producer-based business ventures meeting ownership and commodity requirements

Applicants excluded by the source

  • Businesses that do not own and produce the required share of the raw agricultural commodity
  • General food businesses without qualifying producer ownership or control

Eligible uses

  • Feasibility studies and business or marketing plans
  • Working capital for processing, packaging, advertising, inventory, and salaries tied to an eligible value-added product

Uses excluded by the source

  • General agricultural production costs outside the approved value-added project
  • Costs incurred outside the approved grant period or current notice

Application

How to start.

  1. Complete USDA's eligibility self-assessment and discuss the project with the Illinois Business Programs office
  2. Develop the feasibility, business, marketing, working-capital, and match documentation
  3. Maintain active SAM registration and apply under the next VAPG notice

Timing: The FY2026 application window closed April 22, 2026; monitor for the next annual notice.

Planning notes

Limits to account for.

  • Applicant must satisfy agricultural-producer and commodity ownership requirements
  • A substantial match is required
  • Awards are nationally competitive and application preparation is extensive

Other capital can help provide match, but federal and nonfederal sources must satisfy VAPG matching and duplicate-cost rules.

Evidence

Official sources.