Producer-owned business models are rapidly evolving. Producer-owned, value-added ventures face a number of organizational challenges, including capital acquisition, security exchange registration, antitrust exemption, borrowing eligibility, and operational flexibility. This paper examines the success of evolving producer-owned business models in addressing these challenges. The need for uniform criteria to distinguish producer-owned business from other business forms throughout the complex structure of policies and laws affecting value-added ventures is highlighted.

The transition from agricultural producer to agribusiness entrepreneur is littered with obstacles not associated with traditional farming operations. Producers are typically faced with an established market for their products as well as defined production practices and budgets. These familiar industry institutions are not available for use in the agribusiness environment. As a result, entrepreneurs are faced with new, unfamiliar situations that can significantly affect the success of their proposed or fledgling business.

Value-added centers have been established in many states. These centers vary greatly in objectives, operational structures, staffing, and funding. This paper uses examples of several centers and programs, with a specific emphasis on three centers, to provide a better understanding of value-added centers and their operations.