An Analysis of the 2002 Farm Bill’s Value-Added Producer Grants Program
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Our objective is to identify the determinants for success among USDA’s Value-
Added Producer Grants (VAPG) program recipients. Business development has
become an important program in departments of agricultural economics. Market
share was found to be an important determinant of VAPG success. Size variables
including greater sales and increased grant dollars, as well as a lower number of
producers, were also determinants of business success. Departments of agricultural
economics are likely best able to assist VAPG recipients by providing
information on price discovery, explaining their relationship to potential plant
location, and providing education on best management practices to help producers
avoid costly mistakes.