The USDA recently announced the awarding of $25 million in grants to 247 businesses across the country. These grants are being provided through the Value-Added Producer Grant program. This program seeks to provide agricultural producers support in developing their businesses that take raw commodities and produce value-added products.

Authorized use of grant funds under this grant program include eligible economic planning activities and eligible working capital expenses. Economic planning activities include conducting feasibility studies and developing business plans for processing and marketing of the proposed value-added product. Eligible working capital expenses include processing costs, marketing and advertising expenses, and some inventory and salary expenses directly related to the value-added project.

The maximum grant amount for a planning grant is $75,000 and $200,000 for working capital grants. Additionally, there are cost sharing requirements that require cash or eligible in-kind matching funds equal to at least the amount of grant funds requested. For additional information on eligibility requirements, as well as application timeline and information, visit the Value-Added Producer Grant program homepage.

For more information regarding Ag Law and funding opportunities for rural businesses, contact Goosmann Law Firm at or call 712-226-4000.

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