The United States Department of Agriculture, Rural Development New Mexico State Director Ryan Gleason announced the availability of $18.4 million nationwide in Value-Added Producer Grant (VAPG) funds. The VAPG program gives eligible agricultural producers the opportunity to increase their income by developing businesses that produce and market value-added agriculture products such as turning chile into salsa or peanuts into peanut butter.

“We grow some great products in New Mexico,” said Gleason. “The next step to ensuring the long-term profitability of our agricultural producers is to help them earn more of the ultimate consumer’s dollar by adding additional value to these wonderful products.”

The VAPG program provides up to 50 percent of eligible costs for two types of activities: planning and working capital. Funds can be used for planning how to establish a viable marketing opportunity for an agricultural product. Other planning activities include feasibility studies and the development of business or marketing plans.

The financial assistance may also be used as working capital for a value-added business venture within the first two years of operation. The maximum amount that can be awarded for a planning grant is $100,000. Rural Development may also award a working capital grant of up to $300,000 if the application can prove the money is needed for an individual project.

Applications for the Value Added Grant program must be postmarked and mailed, shipped, or sent overnight no later than March 31, 2008, to Rural Development’s State Office located at 6200 Jefferson, NE Room 255 in Albuquerque, New Mexico 87109. For more information on application forms and details visit the VAPG website or contact the New Mexico Rural Development State Office at 505-761-4953.

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As the lead federal agency for rural development needs, USDA Rural Development provides financing to rural New Mexico communities, for affordable housing, business development, infrastructure, and community facilities and development. Further information on Rural Development programs is available at a local USDA Rural Development office or by visiting USDA’s web site.