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USDA’s Value-Added Producer Grant Program and Its Effect on Business Survival and Growth

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  • Rupasingha, Anil
  • Pender, John
  • Wiggins, Seth

Abstract

The USDA’s Rural Development mission area (RD) implements several loan and grant programs to support businesses in rural areas, including the Value-Added Producer Grant (VAPG) program. This report examines the impacts of the VAPG program on business survival and growth. The VAPG program provides financial assistance for agricultural producers to enter into value-added activities related to processing and/or marketing of value-added products. The study was conducted by combining data on the VAPG program obtained from RD with establishment-level data from the National Establishment Time-Series (NETS), and comparing business survival and employment growth outcomes of VAPG recipients to the outcomes of businesses having similar observable characteristics and employment growth histories that did not receive VAPGs. The results show that VAPGs enable recipient businesses to reduce the risk of failing and to provide more jobs than the comparison group.

Suggested Citation

  • Rupasingha, Anil & Pender, John & Wiggins, Seth, 2018. "USDA’s Value-Added Producer Grant Program and Its Effect on Business Survival and Growth," Economic Research Report 276236, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:276236
    DOI: 10.22004/ag.econ.276236
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    Cited by:

    1. Martinez, Steve W. & Park, Timothy, 2021. "Marketing Practices and Financial Performance of Local Food Producers: A Comparison of Beginning and Experienced Farmers," USDA Miscellaneous 313069, United States Department of Agriculture.
    2. Tessa Conroy & Sarah A. Low, 2022. "Entrepreneurship, Broadband, and Gender: Evidence from Establishment Births in Rural America," International Regional Science Review, , vol. 45(1), pages 3-35, January.
    3. Solano, Alexis & Kimber, Kandace & Turner, Honie, 2018. "A Two-way Fixed Effects Approach to Analyzing the Value-Added Producer Grant Program," 2018 Annual Meeting, August 5-7, Washington, D.C. 274487, Agricultural and Applied Economics Association.

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