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Linkage between direct marketing and farm income: a double‐hurdle approach

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  • Joshua D. Detre
  • Tyler B. Mark
  • Ashok K. Mishra
  • Arun Adhikari

Abstract

This study identifies factors affecting the adoption of a direct marketing strategy (DMS) by farmers and its impact on the gross sales of farm operations in the United States. The authors use a double-hurdle model and the 2002 Agricultural Resource Management Survey to evaluate empirically the adoption of a DMS and its impact on gross sales of farm operations managed by American farmers. Results suggest that production of organic crops and the regional location of the farm positively affect adoption of a DMS. Adoption of DMS, however, has a negative relation to large farms, farms with production contracts, and farms specializing in cash grains. Farms adopting a DMS are typically those with organic crops and those located in regions with access to a large metropolitan customer base. Our results show that farmers who have adopted a DMS continue to capture a larger proportion of the consumers' dollar increase gross sales than those who have not adopted a DMS. [EconLit citations: Q120; Q130; Q140]. (C) 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Joshua D. Detre & Tyler B. Mark & Ashok K. Mishra & Arun Adhikari, 2011. "Linkage between direct marketing and farm income: a double‐hurdle approach," Agribusiness, John Wiley & Sons, Ltd., vol. 27(1), pages 19-33, Winter.
  • Handle: RePEc:wly:agribz:v:27:y:2011:i:1:p:19-33
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    File URL: http://hdl.handle.net/10.1002/agr.20248
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Gallardo, R. Karina & Olanie, Aaron & Ordóñez, Rita & Ostrom, Ostrom, 2015. "The Use of Electronic Payment Machines at Farmers Markets: Results from a Choice Experiment Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 18(1).
    3. Gallardo, Rosa Karina & Olanie, Aaron, 2012. "The Use of Wireless Capability at Farmers Markets: Results from a Choice Experiment Study," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124891, Agricultural and Applied Economics Association.
    4. Rimal, Abrindra & Onyango, Benjamin, 2013. "Attitudes toward Locally Produced Food Products: Households and Food Retailers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 44(1), March.
    5. 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.
    6. Bignell, Wesley, 2011. "Comparing Locally Oriented and Mainstream Farming: Observations from the Oregon Blueberry Industry," Western Economics Forum, Western Agricultural Economics Association, vol. 10(02).
    7. Timothy Park & Ashok K. Mishra & Shawn J. Wozniak, 2014. "Do farm operators benefit from direct to consumer marketing strategies?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 213-224, March.
    8. Park, Timothy A. & Mishra, Ashok K. & Wozniak, Shawn J., 2011. "Farm Operator Benefits from Direct Marketing Strategies: How Does Local Food Impact Farm Financial Performance?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103756, Agricultural and Applied Economics Association.
    9. Gupta, Clare & Jablonski, Becca B.R., 2016. "Farm Impacts of Farm-to-Grocer Sales: The Case of Hawai’i," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), November.
    10. Acharya, Ram, 2016. "Motivation, Attitude, and Participation in Agricultural Fairs," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235916, Agricultural and Applied Economics Association.
    11. Rimal, Arbindra, 2016. "Purchasing Locally Produced Fresh Vegetables: National Franchise vs. Locally Owned and Operated Restaurants," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), July.
    12. repec:ags:aaea16:236057 is not listed on IDEAS
    13. Park, Timothy A., 2015. "Direct Marketing and the Structure of Farm Sales: An Unconditional Quantile Regression Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), May.
    14. Bauman, Allison & Jablonski, Becca B.R. & Thilmany McFadden, Dawn, 2016. "Evaluating Scale and Technical Efficiency among Farms and Ranches with a Local Market Orientation," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 242364, Agricultural and Applied Economics Association.

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