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 which offers both planning and working capital grant components. The USDA VAPG does not award funding for capital equipment purchases.

Maryland Value-Added Producer Matching Grant (USDA Option)

APPLICATION

Overview

The USDA Value-Added Producer Grant Program is offered annually and opens on January 15, 2026. It requires a non-federal financial matching commitment, which qualified MARBIDCO applicants may be eligible to receive. MARBIDCO will make grants available to eligible applicants to provide up to 15% of the matching funds requirement under the USDA VAPG.  These funds are required for planning or working capital purposes in accordance with USDA regulations. Eligible purposes include determining appropriate marketing techniques and creating business plans or paying operating expenses before a business has sufficient cash flow from operations.  Additionally, a commitment letter will be provided to qualified applicants approximately seven days in advance of the federal deadline. Funds will only be disbursed to applicants who are awarded 2026 USDA Value-Added Producer Grants.

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 $50,000) or working capital expenses (up to $200,000) per USDA regulations. Eligible purposes include feasibility studies or business plans, and working capital for producing and marketing value-added agricultural products. The USDA-VAPG is a highly competitive nationwide grant program with approximately $25 million available for distribution in 2026 - $5 million less than last year.

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 2026 Application 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 application deadline is 4:00 p.m. on April 1, 2026. Applications received in the mail with a March 27, 2026 postmark will also be accepted. Send Completed Applications to: MARBIDCO Programs, 1410 Forest Drive, Suite 21, Annapolis, MD 21403. Send electronically to brawlings@marbidco.org

USDA VAPG Application: The USDA VAPG Application Window opens January 15, 2026.  Electronic applications will be accepted via the VAPG application portal until 1:00 p.m. Eastern Time on April 15, 2026.  The application portal can be found by clicking on the following link: https://vapg.rd.usda.gov/s/login/?ec=302&startURL=%2Fs%2F The VAPG Application Portal User Guide (PDF) is 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 by telephone at 302-857-3629, or visit USDA Development Office or USDA website for more information. Questions regarding the MARBIDCO matching grant may be addressed to Brittany Rawlings at brawlings@marbidco.org.

Two glass jars filled with peach jam, surrounded by fresh peaches and green leaves on a rustic surface with a beige cloth.

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. MARBIDCO offers up to $7,500 for Planning Grants and up to $25,000 for Working Capital Grants.

  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.

Application portal for the USDA Value-Added Producer Grant