(Wines&Vines) - Passage of the Farm Bill earlier this year was good news for the wine industry as well as other agriculturally based businesses. Based on the funding provided by that bill, U.S. Agriculture secretary Tom Vilsack recently announced the 247 recipients of $25 million in Value-Added Producer Grants (VAPG). The Farm Bill had increased mandatory funding for the Value-Added Producer Grants program from $15 million to $63 million during the next five years and reauthorized an additional $40 million in discretionary funds. A total of 28 wineries and/or vineyards in 20 states received $3,281,928 in grants from this program.

According to the USDA, the main objective of the VAPG program is “to help agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based, value-added products. Generating new products, creating and expanding marketing opportunities and increasing producer income are the end goals of this program.” Priority may be given to beginning farmers or ranchers, socially disadvantaged farmers or ranchers, small- or medium-sized family farms or ranches, and farmer or rancher cooperatives, according to the U.S. Agriculture Department.

Under USDA regulations for this program, the maximum grant awarded for planning grants was $75,000, while the maximum for working capital grants was $200,000. In addition, the program requires a cost-sharing requirement of cash or eligible in-kind matching funds equal to at least the amount of the grant funds requested.

“The funding we are announcing will have far-reaching, positive impacts in rural communities across the country,” Vilsack said. “The investments will help businesses create new products, expand their operations, and support local and regional food systems.”