Maryland Value-Added Producer Matching Grant (USDA Option)

Up to 15% match for USDA Value Added Producer Grant

Maryland Value-Added Producer Matching Grant (USDA Option) is designed to encourage participation in USDA's highly competitive Value-Added Producer Grant Program offers both planning and working capital components. The USDA VAPG does not award funding for capital equipment purchases.

Maryland Value-Added Producer Matching Grant (USDA Option)

Overview

The USDA Value-Added Producer Grant Program is offered annually. It requires a non-federal financial matching commitment, and each application for MARBIDCO’s Maryland Value-Added Producer Matching Grant (MVAPMG) must include a “verification of matching funds."

To incentivize Maryland farmers to apply and to increase their competitiveness in the application process, the MVAPMG offers a grant of up to 15% of the USDA matching requirement. To be eligible to apply to MARBIDCO for funding, an applicant must also qualify under the USDA VAPG Program, and funds will only be awarded to those who receive the USDA VAPG award.

These federal grant funds can be used for planning (up to $75,000) or working capital expenses (up to $250,000) per USDA regulations. Eligible purposes include feasibility studies or business plans, and working capital for producing and marketing value-added agricultural products.

Application Submission Process

Under the USDA VAPG, all applications will be screened for eligibility.

Applicants must attach a completed copy of their federal application form to MARBIDCO as part of the submission including all required attachments. All MVAPMG applicants meeting the MARBIDCO requirements will receive a commitment letter of matching funds to be included with their federal applications.

The MVAPMG commitment amount cannot exceed 15% of the required non-federal match, and it may be for a lesser amount depending on the quantity of MVAPMG applications that are received and the size of the pool of available MARBIDCO funds.

MVAPMG monetary awards will only be provided to those applicants who are successful in obtaining USDA VAPG awards.

Eligible applicants must be independent producers, agricultural producer groups, farmer or ranch cooperatives, or majority-controlled producer-based business ventures (all defined terms under federal regulations). In addition, applicants must be making a product that is “value-added”. 

MARBIDCO 2024 Deadline: Applicants seeking to receive MARBIDCO matching funds for the USDA VAPG must apply to MARBIDCO at least two weeks before the federal deadline. The MARBIDCO electronic application deadline is 4:00 p.m. on April 1, 2025. Applications received in the mail with a March 29, 2025, postmark will also be accepted. Applicants must attach a completed copy of their federal application form as part of the application submission including all required attachments. Send Completed Applications to: MARBIDCO Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403. Send electronically to brawlings@marbidco.org

USDA Applications Deadline: USDA is making the grants available under the Value-Added Producer Grants program. The grants help farmers and ranchers generate new products, create marketing opportunities, and increase their incomes through value-added activities. Electronic applications will be accepted via the VAPG application portal until 11:59 p.m. Eastern Time on April 17, 2025. The VAPG Application Portal User Guide (PDF) can be found here. Additional information is available on Grants.gov or by contacting your local USDA Rural Development office.

NOTE: The maximum cumulative amount of grant funding a single applicant may receive from all MARBIDCO grant incentive programs is $50,000.

Questions regarding the USDA-VAPG can be addressed to the Maryland/Delaware Office of USDA-Rural Development at 302-857-3629 or visit USDA’s website for more information. Questions regarding the MARBIDCO matching grant may be addressed to Brittany Rawlings at brawlings@marbidco.org.

The USDA VAPG offers two options:

Grant and matching funds can be used for planning activities or for working capital expenses related to producing and marketing a value-added agricultural product.

  1. Examples of planning activities include conducting feasibility studies and developing business plans for processing and marketing the proposed value-added product.

  2. Examples of working capital expenses include:

  • Processing costs

  • Marketing and advertising expenses

  • Some inventory and salary expenses

Note that capital assets such as equipment, fixed buildings, and certain types of infrastructure are not eligible as part of the USDA Value Added Producer Grant. MARBIDCO offers another program (MRBIFF) for this purpose for eligible farmers that is unique to Maryland.