Value-Added Producer Grant Program

August 31, 2005


A total of $14.3 million in grants was allocated for fiscal year 2005 from the U.S. Department of Agriculture (USDA) to support the development of value-added agriculture business ventures. Value-Added Producer Grants are available to independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures seeking funding for one of the following activities: (1) planning activities needed to establish a viable value-added marketing opportunity for an agricultural product (e.g. conduct a feasibility study, develop a business plan, develop a marketing plan); or (2) acquiring working capital to operate a value-added business venture that will allow producers to better compete in domestic and international markets. Grant awards for fiscal year 2005 supported energy generated on-farm through the use of agricultural commodities, wind power, water power or solar power. The maximum award per grant was $100,000 for planning grants and $150,000 for working capital grants. Matching funds of at least 50% were required. Applications were due on or before May 6, and the anticipated award date is September 30, 2005. Information about grant recipients and projects from previous years' solicitations is available on the program Web site above. Application guides and materials for the Value-Added Producer Grant are available at USDA Coordinators for each state are available to assist with questions related to the application process and forms, and other issues.

Program Overview

Implementing Sector: Federal
Category: Financial Incentive
State: Federal
Incentive Type: Grant Program
Web Site:
Start Date: 3/7/05
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Wind (Small)
  • Anaerobic Digestion
Incentive Amount: Average of $125,000
Maximum Incentive: $100,000 for planning grants; $150,000 for working capital grants
Equipment Requirements: Cost-share required


Name: 2005 Announcement of Value-Added Producer Grant Availability (3/7/05 Federal Register) Producer Grant Application Deadlines Value-Added Producer Grant Announcement (3/7/05 Federal Register)
Effective Date: 3/7/05
Expiration Date: Applications due 5/6/05
Name: Program Regulations: 7 CFR 4284
Effective Date: 6/1/04
Name: Farm Security And Rural Investment Act of 2002, Sec. 6401
Date Enacted: 5/13/02
Effective Date: FY 2003
Expiration Date: FY 2007


Name: RBS National Office
Address: Mail Stop 3250
Washington DC 20250
Phone: (202) 720-7558

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.