What is value-added agriculture & rural industry?

Value-added agriculture means generating more owner income from the farm by using one or more innovative manufacturing processes that increase the value of the original farm product. Even rural manufacturing firms can benefit from value-added innovation, since such companies use rural resources (land, labor, capital, etc.) even if they are not an agri-business manufacturer.  Both of these value-added opportunities can be termed "agri-manufacturing".

Why develop a value-added enterprise?

Agri-manufacturing contributes to economic sustainability for both farm and community. Adding value enables owners to obtain a bigger share of the consumer's dollar. Value-added products open new markets, improve wages, and support additional rural jobs and local spending. Value-adding enables small farms to compete with large operations, provides more job variety, enhances local sustainability, and attracts other related businesses. Most important, agri-manufacturing increases job skills, management abilities and enables existing rural resources to be used much more effectively and creatively for business development and diversification.

Return to MEP.org Home Page