The USDA’s Value-Added Producer Grant (VAPG) program is a cornerstone for farmers, ranchers, and agricultural producers who wish to diversify their operations and expand their value-added products. For the current 2025 cycle and future cycles, there are some significant changes that you need to know if you’re interested in applying.
Eligible Uses of VAPG Funds
For the current cycle, the deadline is April 17th.
In 2025, there is approximately $30 million in total available funding with a $75,000 max for planning grants and $250,000 max for working capital grants. As in previous cycles, the VAPG funds can be used for a wide range of expenses related to creating value-added products, including:
Advertising & Marketing: Promoting your value-added products through various channels (print, digital, media).
Storage & Commercial Kitchen Rental: Renting facilities to store or process products.
Packaging and Ingredients: Purchasing materials and ingredients to produce your value-added goods.
Processing & Labor: Costs associated with processing, product development, and labor for these activities.
Website Development: Building or improving your online presence.
Tradeshows & Conferences: Attending events to market your products, though swag items are not eligible for funding.
Transportation & Insurance: Shipping products or covering insurance costs related to the project.
Utilities: Utility expenses that are directly tied to the value-added project.
Simplified Food Safety Application
One of the major highlights for the 2025 cycle is the simplified food safety application process. For this application type and reserve funds, more than half of the project expenses must be allocated to food safety purposes. Possibilities may include:
Food safety training
Audits/certifications
Food safety related equipment, such as:
Sorting or prep tables
Portable wash tanks
Storage containers and liners
Food safety signage
Sanitation supplies
Field packaging equipment
No Letters of Support or Third-Party Business Plan Required
For the 2025 cycle, the VAPG application process has been further simplified by removing the requirement for letters of support. Additionally, business plans (required for some application types) no longer need to be prepared with assistance from a third party. However, applicants will still need to demonstrate that their project is feasible and aligns with the objectives of the VAPG program.
New Online Application Portal
Perhaps one of the most notable updates is the launch of the new application portal. This portal will be the primary platform for submitting applications, tracking progress, and managing users involved in the application process.
Here’s what you need to know about using the portal:
E-authentication (eAuth): To apply, you’ll need to create an E-authentication account, which you will be prompted to do when you open the portal – just click “Need an Account?” if you don’t have one already. You will need to create a Login.gov account (if you don’t have one already) and be ready to verify your phone number, photo ID, and Social Security Number. View a guide HERE.
Managing Users: Once you start the application, you’ll be able to add and manage users who can edit the application. However, only the primary applicant can submit the final application, ensuring that the application is always under the control of the person ultimately responsible for the project.
External User Guide: A detailed external user guide for the new portal has been posted on the VAPG website and linked directly within the application portal. This guide will help you navigate the system and ensure that the application process is as smooth as possible.
Next Steps for Producers
Log in to the new application portal early. Doing this will enable you to familiarize yourself with the new application process, as well as ensure that you complete the eAuthentication process. Note that the eAuthentication process must be completed before starting the application. If you have questions, the KCARD staff is ready to help walk you through the process.
Obtain your UEI from Sam.gov if you don’t have one already. If you do, verify you can access it and that it is updated.
Start Your Application. Begin your application and gather the required documentation. If you’re working with a TA provider, make sure to add them as an authorized user.
If you have questions, contact us at (859) 550-3972 or email us at kcard@kcard.info.