The Influence of Local Selling Decisions on Organic Farm Incomes
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Timothy A Park
This paper examines the factors that influence the earned income of organic farmers, given their decisions to engage in local selling. The model explicitly accounts for the sorting of producers across different levels of commitment to local sales on the basis of both observable and unobservable heterogeneity. The significant selectivity coefficients confirm that when producers choose to market organic products primarily through local outlets, earnings are overestimated (biased upward) if the selectivity corrections are neglected. Positive selection effects are present for farmers most intensively involved in local sales, contributing to higher earnings on average for these producers. After controlling for key farm and demographic characteristics, selling more locally suggests lower earnings for organic farmers.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Article
- Evaluating Reforms in Canadian Chicken Marketing Mechanisms Using a Linear-Quadratic Inventory Model
- Prices as Quality Signals: Evidence from the Wine Market
- The Effect of Proposition 2 on the Demand for Eggs in California
- An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans
- Protected Designation of Origin Revisited
- The Influence of Local Selling Decisions on Organic Farm Incomes
- Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market
- Prices, Promotions, and Supermarket Mergers
- The Impact of Perceived Prices on Willingness to Pay in Experimental Auctions
- The Demand for Seafood Eco-Labels in France
- Agricultural Trade Liberalization and Downstream Market Power: The Ad Valorem Case
