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

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.

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ERR 248

 Record created 2018-09-06, last modified 2020-10-28

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