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Limits to Capital: Assessing the Role of Race on the Paycheck Protection Program for African American Farmers in America

AAEA members release new research in AEPP

Disparities in PPP loans were identified within African American farmers due to their income levels and location (rural compared to urban). Sheding light on the greater challenges faced by African American farms in rural areas in contrast to those in urban areas. Major differences in PPP loan amounts awarded to African American farmers versus white farmers were also identified depending on the lender used. n African American farmers who applied for PPP through farm credit associations received on average $5,000 less than the white farmer. This result is due to the lesser number of African American farmers applying for PPP through farm credit associations. Capital limitations may have imposed restrictions on the lender African American farmers could use when applying to the PPP. Forty-four percent of African American farms applied for a PPP loan through a Non-Traditional Lender versus 2% of white farmers.

In the recently released article “Limits to Capital: Assessing the Role of Race on the Paycheck Protection Program for African American Farmers in America” released in the Applied Economics Perspectives & Policy, Ana Claudia Sant’Anna from West Virginia University andKevin Kim from Mississippi State University and Iryna Demko find out if the limit to capital could have been a factor in the approval of PPP loans to African American farmers.

Sant’Anna says, “PPP provided relief to small businesses across all industrial sectors of the economy. Thus, it is important to increase farmers’ awareness and participation in programs that are not exclusively targeted to agricultural businesses. For the PPP, providing greater technical assistance, advertising to minority groups and associations, and allowing for lending through non-traditional lenders could reduce the challenges in accessing the program due to limited capital.”

If you are interested in setting up an interview, please contact Allison Ware in the AAEA Business Office.

ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes three journals, the Journal of the Agricultural and Applied Economics Association (an open access journal), the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit

Contact: Allison Ware
Senior Communications & Membership Manager
(414) 918-3190