Extension Education

Minority-Owned Agricultural Businesses and Challenges with the Paycheck Protection Program: Seeking Ways to Reach Farmers

Kevin Kim(a), Ana Claudia Sant’Anna(b) and Iryna Demko(c)
(a)Mississippi State University, (b)West Virginia University, (c)Progressive Insurance

JEL Codes: JEL Codes: G18, J15, Q14
Keywords: Access to credit, Paycheck Protection Program, Minority farmers

Publish Date: June 24, 2024
Volume 6

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Abstract

The Paycheck Protection Program (PPP) was a source of relief to agricultural producers during COVID-19, but it did not reach all farmers equally. Areas with a higher population of female and African American producers had lower PPP approval rates due to lack of knowledge about eligibility and the application process. Through in-person interviews with Extension specialists and farmers, we identified the communication strategy used to inform minority farmers about the PPP. Lending institutions, associations, and government agents were part of disseminating information on the PPP. Information was shared via word of mouth, emails, phone calls, social media, and online meetings. We find that these communication methods were not as effective as they could have been in reaching minority farmers. We provide recommendations to increase the efficiency of the communication methods used in reaching minority farmers: (1) building a connection with farmers prior to using online resources; (2) using personalized communications; and (3) seeking partnerships to leverage their social capital.

About the Authors: Kevin Kim is an Assistant Professor at Mississippi State University. Ana Claudia Sant’Anna is an Assistant Professor at West Virginia University (Corresponding author email: anaclaudia.santanna@mail.wvu.edu). Iryna Demko is a Lead Data Analyst at Progressive Insurance.

Acknowledgements: This project was partially funded by USDA-NIFA Multi-State Hatch Project WVA00731 (n. 1021884). Research protocols were approved by the Institutional Review Board at West Virginia University (#IRB-23-577).

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