VAPG funds producers who want to capture more of the value of what they already grow — by processing it, differentiating it, or marketing it themselves. It is the one USDA grant programme where an independent feasibility study is written into the application requirements rather than left to the Agency’s discretion.
Who can apply: an Agricultural Producer, an Agricultural Producer Group, a Farmer or Rancher Cooperative, or a Majority-Controlled Producer-Based Business Venture (7 CFR 4284.920).
Two grant types: planning grants, which pay a Qualified Consultant to produce a feasibility study, business plan and/or marketing plan; and working capital grants, which fund the operating costs of the value-added venture.
Cost share: grant funds may pay up to 50 percent of project costs, and matching funds must at least equal the grant — grant plus match equals 100 percent of project costs.
Ceiling: the annual notification sets the maximum for a round, but in no event may total grant funds to a recipient exceed $500,000 (7 CFR 4284.928).
Term: the period of performance cannot exceed three years.
The commodity has to change in a way the rule recognises: a change in physical state, production in a manner that enhances value, physical segregation, use as a source of farm- or ranch-based renewable energy, or aggregation and marketing as a locally-produced food product — and in each case the customer base has to expand and a greater share of the revenue has to return to the producer. The applicant must already be producing the commodity that the value-added product is made from.
The project must also fit one of three purposes named in the rule: an Emerging Market Project, a Market Expansion Project, or a Food Safety Project (7 CFR 4284.922).
For a working capital grant, 7 CFR 4284.931 requires the applicant to provide a copy of a Feasibility Study prepared by a Qualified Consultant, together with the business plan completed for the project. For a planning grant, the grant funds themselves are used to pay a Qualified Consultant to conduct and develop that study, business plan and/or marketing plan (7 CFR 4284.925).
Qualified Consultant is defined at 7 CFR 4284.903 as “a third-party, without a conflict of interest, possessing the knowledge, expertise, and experience to perform the specific task required in an efficient, effective, and authoritative manner.”
A Feasibility Study is defined as a comprehensive analysis of the economic, market, technical, financial and management capabilities of a project or business in terms of its expectation for success — a thorough assessment of the practicality of the project, discussing strengths, weaknesses, opportunities and threats, and the resources required to carry it out.
Note the conflict-of-interest bar. Planning grant funds may not be used to compensate applicants or family members for participation in feasibility studies, and may not be used to evaluate the agricultural production of the commodity itself.
Matching funds must be at least equal to the grant amount, must come from eligible sources without a real or apparent conflict of interest, and must be used for eligible project expenses during the period of performance. The rule accepts applicant or third-party cash, an applicant loan or line of credit, non-Federal grants, and in-kind contributions within the limits it sets.
Applications proposing unallowable costs in excess of 10 percent of project costs are deemed ineligible to compete; below that threshold the Agency may treat the ineligible portion differently. Indirect costs are not allowable.
Wert-Berater is engaged as the Qualified Consultant: we prepare the feasibility study and, where required, the business plan that supports a working capital application, or the study a planning grant is funding. We are a third party with no interest in the venture, and our fee is fixed and unrelated to the award decision. Our service page for the plan side is USDA grant business plans; the underlying study work is described at VAPG feasibility studies.
Last reviewed September 2026. Figures and definitions are quoted from the current text of 7 CFR part 4284 subpart J.
Independent study and business plan work for value-added projects. Fixed fee quoted in one business day.
Schedule a Qualification Zoom VAPG feasibility studiesLegal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.
Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.