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Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income

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  • Uematsu, Hiroki
  • Mishra, Ashok K.

Abstract

Direct marketing strategies increasingly have been recognized as a viable business option in U.S. agriculture as they allow producers to receive a better price by selling products directly to consumers. The objective of this study is twofold. Using a national survey, we first estimated a zero-inflated negative binomial model to identify factors affecting the total number of direct marketing strategies adopted by farmers. Then we estimated a quantile regression model to assess the impact of the intensity of adoption of direct marketing strategies on gross cash farm income. The results show that the intensity of adoption has no significant impact on gross cash farm income and that participation in farmers markets is negatively correlated with gross cash farm income at all five quantiles estimated.

Suggested Citation

  • Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), April.
  • Handle: RePEc:ags:arerjl:105457
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    2. O'Hara, Jeffrey K. & Benson, Matthew, 2017. "Local Food Production and Farm to School Expenditures," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252669, Southern Agricultural Economics Association.
    3. Velandia, Margarita & Clark, Christopher D. & Lambert, Dayton M. & Davis, James A. & Jensen, Kimberly & Wszelaki, Annette & Wilcox, Michael D., 2014. "Factors Affecting Producer Participation in State-sponsored Marketing Programs: The Case of Fruit and Vegetable Growers in Tennessee," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(02), pages 249-265, August.
    4. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(2).
    5. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct selling," Working Papers halshs-00906894, HAL.
    6. Bartolini, Fabio & Brunori, Gianluca & Galli, Francesca, 2016. "Understanding motivations and determinants of direct sale strategy. The case of Tuscany Region," 149th Seminar, October 27-28, 2016, Rennes, France 244896, European Association of Agricultural Economists.
    7. Sene, Seydina & Paudel, Krishna P. & Park, Timothy A., 2016. "The Changing Structure of Retail Food Stores, Direct Marketing (DM) and Its Impact on Farmers’ Financial Performance," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235736, Agricultural and Applied Economics Association.
    8. repec:hal:journl:halshs-01098762 is not listed on IDEAS
    9. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2013. "Explaining the determinants of on-farm diversification: The case Study of Tuscany Region," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149903, Italian Association of Agricultural and Applied Economics (AIEAA).
    10. repec:bla:deveco:v:55:y:2017:i:1:p:3-22 is not listed on IDEAS
    11. Patrick Mundler & Sophie Laughrea, 2015. "Circuits alimentaires de proximité - Quels bénéfices pour le développement des territoires? Étude de cas dans trois territoires québécois," CIRANO Project Reports 2015rp-21, CIRANO.
    12. Hadrich, Joleen C. & Wolf, Christopher A. & Johnson, Kamina K., 2015. "Chacterizing U.S. Dairy Farm Wealth and Income Distributions," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205383, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    13. repec:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0079-8 is not listed on IDEAS
    14. Velandia, Margarita M. & Davis, James A. & Lambert, Dayton M. & Clark, Christopher D. & Wilcox, Michael D., Jr & Wszelaki, Annette & Jensen, Kimberly L., 2012. "Factors Affecting Producer Awareness of State Programs Promoting Locally Grown Foods: The Case of Fruit and Vegetable Growers in Tennessee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.

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