An Analysis of the 2002 Farm Bill’s Value-Added Producer Grants Program

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.