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The Role of Community and Farm Characteristics in Farm Input Purchasing Patterns

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  • Jeremy Foltz
  • Kimberly Zeuli

Abstract

This work uses unique data from three dairy-dependent communities in rural Wisconsin to test established theory and empirical studies that link farm structure to local purchasing patterns. A theoretical model of purchasing choices is developed to derive the demand determinants of local purchasing. This model is tested empirically across eleven major dairy farm inputs using a double-bounded Tobit model that also includes community characteristics. The empirical estimations find little support for a general linkage between farm-level characteristics and local purchasing patterns. The results do suggest that different community characteristics provide some explanations for diverse purchasing patterns.

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  • Jeremy Foltz & Kimberly Zeuli, 2005. "The Role of Community and Farm Characteristics in Farm Input Purchasing Patterns," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 508-525.
    • Handle: RePEc:oup:revage:v:27:y:2005:i:4:p:508-525.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2005.00261.x
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    References listed on IDEAS

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    1. Roe, Brian E. & Stockberger, Aaron, 2004. "Explaining Economic Linkages Between Farms And Local Communities: Looking Beyond Farm Size," 2004 Annual meeting, August 1-4, Denver, CO 20208, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lawrence, John D. & Otto, Daniel & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Staff General Research Papers Archive 5149, Iowa State University, Department of Economics.
    3. Earl O. Heady & Steven T. Sonka, 1974. "Farm Size, Rural Community Income, and Consumer Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 534-542.
    4. Lawrence, John D. & Otto, Daniel M. & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 15(1), pages 1-17.
    5. Zeuli, Kimberly A. & Levins, Richard A., 1995. "Minnesota Agricultural Economist 682," Minnesota Applied Economist\Minnesota Agricultural Economist 13183, University of Minnesota, Department of Applied Economics.
    6. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
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    Cited by:

    1. Pangbourne, Kate & Roberts, Deborah, 2012. "What multipliers don’t tell you: A spatial analysis of farm household linkages," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134718, Agricultural Economics Society.
    2. Saleh Ahmed & Douglas Jackson-Smith, 2019. "Impacts of Spatial Patterns of Rural and Exurban Residential Development on Agricultural Trends in the Intermountain West," SAGE Open, , vol. 9(3), pages 21582440198, August.
    3. Jeremy G. Weber & Conor Wall & Jason Brown & Tom Hertz, 2015. "Crop Prices, Agricultural Revenues, and the Rural Economy," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 459-476.
    4. Mishra, Ashok K. & Williams, Robert P. & Detre, Joshua D., 2009. "Internet Access and Internet Purchasing Patterns of Farm Households," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 240-257, October.
    5. Roberts, Deborah & Majewski, Edward & Sulewski, Piotr, 2011. "Measuring the local economic integration of farm households: Findings from two case study areas," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99595, European Association of Agricultural Economists.
    6. Vázquez, Ibán & Sineiro, Francisco & García, Ana Isabel, 2014. "Trayectorias de crecimiento de las explotaciones agrarias en la Cornisa Cantábrica," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(02), pages 1-32, December.
    7. Jason P. Brown & Stephan J. Goetz & Mary C. Ahearn & Chyi-lyi (Kathleen) Liang, 2014. "Linkages Between Community-Focused Agriculture, Farm Sales, and Regional Growth," Economic Development Quarterly, , vol. 28(1), pages 5-16, February.
    8. Weber, Jeremy G. & Wall, Conor & Brown, Jason P. & Hertz, Tom, 2013. "Crop Prices, Agricultural Revenues, and the Local Economy of the U.S. Heartland," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150404, Agricultural and Applied Economics Association.
    9. Linda Lobao & Curtis Stofferahn, 2008. "The community effects of industrialized farming: Social science research and challenges to corporate farming laws," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 25(2), pages 219-240, June.

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