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Producer Attitudes Toward Mandatory Agricultural Marketing Organizations: Evidence from the California Fresh Peach and Nectarine Industry

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  • Plakias, Zoe T.
  • Goodhue, Rachael E.
  • Williams, Jeffrey

Abstract

We examine how various producer-level and farm-level factors affect producers' support for marketing orders, focusing on the California fresh peach and nectarine industries and the 2011 referendum vote in which their marketing orders were terminated. We form hypotheses regarding the effects of different factors. We then employ marketing order referendum voting data and additional data collected via a producer survey to test these hypotheses empirically. Some of our results conform to our predictions. For example, we find that producers with greater production of peaches and nectarines were less likely to vote for continuance of the marketing order. However, some results did not conform to our predictions. We found that gross income from farming and related activities to be insignificant and producers with some organic production or some direct sales are both more likely to vote for continuation. Our results suggests important dimensions of differentiation between producers for policymakers, regulators and industries to consider as they ponder the future of marketing orders.

Suggested Citation

  • Plakias, Zoe T. & Goodhue, Rachael E. & Williams, Jeffrey, 2015. "Producer Attitudes Toward Mandatory Agricultural Marketing Organizations: Evidence from the California Fresh Peach and Nectarine Industry," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205739, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
  • Handle: RePEc:ags:aaea15:205739
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    File URL: http://ageconsearch.umn.edu/record/205739/files/AAEA%202015%20-%20Plakias%20et%20al.%20-%205-27-15%20Version.pdf
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    References listed on IDEAS

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    1. Filson, Darren, et al, 2001. "Market Power and Cartel Formation: Theory and an Empirical Test," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 465-480, October.
    2. Nicholas E. Piggott, 2000. "The Incidence of the Costs and Benefits of Generic Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 665-671.
    3. Chanjin Chung & Harry M. Kaiser, 2000. "Distribution of Generic Advertising Benefits Across Participating Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 659-664.
    4. Julian M. Alston & John W. Freebairn & Jennifer S. James, 2003. "Distributional issues in check-off funded programs," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 277-287.
    5. John M. Crespi & St├ęphan Marette, 2003. "Are uniform assessments for generic advertising optimal if products are differentiated?," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 367-377.
    6. Mixon, Bobby & Turner, Steven C. & Centner, Terence J., 1990. "An Empirical Analysis Of A Marketing Order Referendum For A Specialty Crop," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(01), July.
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    Keywords

    Agribusiness; Agricultural and Food Policy; Industrial Organization; Political Economy;

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