By Andi Anderson
The U.S. Department of Agriculture (USDA) continues to support agricultural producers through programs designed to encourage innovation, business development, and market expansion.
One such initiative is the Value Added Producer Grant (VAPG) Program, which provides financial assistance to producers seeking to create and market value-added agricultural products.
Recently, Mike Sexton, USDA Rural Development Iowa State Director, highlighted fiscal year 2026 funding awarded to agricultural producers in Iowa through the VAPG Program. The funding aims to help farmers and agribusinesses develop new income opportunities, strengthen local food systems, and improve the resilience of agricultural supply chains.
Discussing the program's benefits, Sexton stated, “This funding can help create additional options for farmers and other ag producers as they seek new revenue streams. They can use the grant funds from this program to develop value-added agricultural products, pay processing costs, conduct market research, and implement business and marketing strategies. Under the leadership of President Donald Trump and Agriculture Secretary Brooke Rollins, USDA is supporting innovative Iowa producers as they expand markets, strengthen local food accessibility, and help build a more resilient food supply chain.”
USDA Rural Development is investing $26.5 million in 194 agricultural projects nationwide through the program. Of that amount, $11.6 million is supporting 80 beef producer projects across the country. These investments are intended to help producers improve profitability, diversify operations, and meet changing consumer demands.
In Iowa, two agricultural businesses received funding through the fiscal year 2026 program. O'Connell Organic Acres LLC, a family-owned farm in Dubuque County, received a grant of $199,762 in working capital. The funding will support labor, marketing activities, processing expenses, supply purchases, and e-commerce software. The farm produces grass-fed beef, pasture-raised pork, and poultry products.
Another recipient, Blair Carney Farms LLC in Adair County, received a $48,000 grant. The funding will be used for marketing and processing activities that support the expansion of the company's Black Angus beef product offerings and market reach.
The Value Added Producer Grant Program typically accepts applications from agricultural producers between January and May, depending on funding availability. The program helps producers add value to agricultural commodities through processing, marketing, and product development initiatives.
Through investments such as these, USDA Rural Development continues to promote economic growth in rural communities while supporting innovation in agriculture. By helping producers expand market opportunities and improve business operations, the program contributes to a stronger agricultural sector and a more resilient food supply system.
Photo Credit: usda
Categories: Iowa, Livestock, Beef Cattle