NC MarketReady

Value-Added Cost Share

Farmers markets are increasing in number throughout North Carolina, currently surpassing 130 unique markets. Consumers enjoy the opportunity to buy fresh, locally grown products directly from the farmers. Farmers markets support the local economy and encourage healthier meals that feature fresh fruits and vegetables. In addition to produce, many markets offer a wide variety of agricultural products including meat, honey, cut flowers, soaps, nursery plants, eggs, artisan cheese, baked goods and more.

Introduction to the USDA Value-Added Producer Grant

The primary objective of the USDA Value-Added Producer Grant (VAPG) is to help independent producers of agricultural commodities, agricultural producer groups, farmer and rancher cooperatives, and majority-controlled producer-based business ventures develop business plans and strategies to create marketing opportunities regarding production of value-added (bio-based) products from agricultural commodities. Awards are categorized for either planning activities (up to $100,000) or working capital expenses (up to $300,000).  Businesses of all sizes are encouraged to apply for VAPG funding, as there is no restriction on the minimum grant size that will be awarded; in FY 2007, 35 percent of awards were $50,000 or less.

Value-added refers to the incremental value realized by the producer from an agricultural commodity or product as the result of:

• A change in the physical state
• Differentiated production or marketing
• Physical product segregation
• Production of farm- or ranch-based renewable energy
• Aggregation and marketing of locally produced agricultural food products

USDA Rural Development initiated the VAPG in 2001, and since its inception, nearly 950 grants have been awarded.  Recipient project have ranged from planning activities on how to form a successful marketing cooperative or determine whether an idea is feasible in the marketplace to expanding marketing efforts to target customers and increasing the sales of an existing value-added enterprise. 

Planning grants may be used for the following activities:

• Business plan development
• Feasibility assessment
• Marketing analysis
• Legal advice
• Other professional guidance

Working capital grants may be used for the following activities:

• Normal expenses associated with the operation of the venture
• Processing value-added agricultural products
• Marketing value-added agricultural products
• Inventory purchases
• Salaries
• Office supplies

Ineligible uses of funds include the following:

• Costs of preparing the VAPG application packet
• Costs incurred prior to grant approval
• Political activities
• Plans, repairs, rehabilitation, acquisition or construction of a building or facility
• Purchase, rent or installation of fixed equipment
• Repair of privately owned vehicles
• Research or development
• Production-related expenses
• Purchase of land

For more information on the VAPG, visit http://www.rurdev.usda.gov/nc/vapg.htm or contact Bruce Pleasant at 919-873-2031 or bruce.pleasant@nc.usda.gov. 

For information on the N.C. Value-Added Cost Share Program, visit http://www.ncmarketready.org or contact Brittany Whitmire at 919-830-9557 or brittany_whitmire@ncsu.edu. 

Cooperative Extension Directory

Cooperative Extension Offices are located in every county.

Find Your Local Agents

Contact Information

Supported by:

Subscribe to RSS