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Do Farmers’ Markets Boost Main Street? Direct-to-Consumer Agricultural Production Impacts on the Food Retail Sector

Author

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  • O'Hara, Jeffrey K.
  • Shideler, David

Abstract

We estimate the county-level impacts of direct-to-consumer (DTC) agricultural production on two food and beverage retail subsectors in Arkansas, Louisiana, Oklahoma, and Texas using a first-difference model. We test for the endogeneity of DTC agricultural production by using a drought index and the lagged value of DTC production as instruments. We find that DTC agricultural production impacts the food services and drinking places subsector (which includes restaurants). This effect on food retail sales is positive in metropolitan counties and negative in nonmetropolitan counties. Our results inform planners about the complementarity between local agricultural production and food retail sectors.

Suggested Citation

  • O'Hara, Jeffrey K. & Shideler, David, 2018. "Do Farmers’ Markets Boost Main Street? Direct-to-Consumer Agricultural Production Impacts on the Food Retail Sector," Journal of Food Distribution Research, Food Distribution Research Society, vol. 49(2), July.
    • Handle: RePEc:ags:jlofdr:292174
    DOI: 10.22004/ag.econ.292174
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    Cited by:

    1. Catherine Brinkley & Gwyneth M. Manser & Sasha Pesci, 2021. "Growing pains in local food systems: a longitudinal social network analysis on local food marketing in Baltimore County, Maryland and Chester County, Pennsylvania," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(4), pages 911-927, December.
    2. Jeffrey K. O'Hara & Marcelo Castillo & Dawn Thilmany McFadden, 2021. "Do Cottage Food Laws Reduce Barriers to Entry for Food Manufacturers?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 935-951, September.
    3. Drago Cvijanović & Svetlana Ignjatijević & Jelena Vapa Tankosić & Vojin Cvijanović, 2020. "Do Local Food Products Contribute to Sustainable Economic Development?," Sustainability, MDPI, vol. 12(7), pages 1-18, April.

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