IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/168260.html
   My bibliography  Save this article

Does Agritourism Enhance Farm Profitability?

Author

Listed:
  • Schilling, Brian J.
  • Attavanich, Witsanu
  • Jin, Yanhong

Abstract

The impacts of agritourism on farm profitability are poorly understood. Using Census of Agriculture records, we employ propensity score matching to estimate the effects of agritourism on the net cash income per acre of New Jersey farms. We find that agritourism has statistically significant and positive effects on farm profitability. Profit impacts are highest among small farms operated by individuals primarily engaged in farming. Positive but smaller effects are observed for lifestyle farms. Profit effects among larger farms are not statistically significant.

Suggested Citation

  • Schilling, Brian J. & Attavanich, Witsanu & Jin, Yanhong, 2014. "Does Agritourism Enhance Farm Profitability?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-28, April.
    • Handle: RePEc:ags:jlaare:168260
    DOI: 10.22004/ag.econ.168260
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/168260/files/JARE_Apr2014__5_Attavanich_pp69-87_Supplement.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.168260?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2009. "Dealing with limited overlap in estimation of average treatment effects," Biometrika, Biometrika Trust, vol. 96(1), pages 187-199.
    2. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    3. Kirkpatrick, Joy, 2013. "Retired Farmer - An Elusive Concept," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 28(2), pages 1-5.
    4. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    5. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    6. Hoppe, Robert A. & MacDonald, James M. & Korb, Penelope J., 2010. "Small Farms in the United States: Persistence Under Pressure," Economic Information Bulletin 58300, United States Department of Agriculture, Economic Research Service.
    7. Lori Lynch & Wayne Gray & Jacqueline Geoghegan, 2007. "Are Farmland Preservation Program Easement Restrictions Capitalized into Farmland Prices? What Can a Propensity Score Matching Analysis Tell Us?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 502-509.
    8. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    9. Blank, Steven C., 2002. "Is Agriculture a "Way of Life" or a Business?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 17(2), pages 1-5.
    10. Sharp, J. S. & Smith, M. B., 2003. "Social capital and farming at the rural-urban interface: the importance of nonfarmer and farmer relations," Agricultural Systems, Elsevier, vol. 76(3), pages 913-927, June.
    11. Brown, Dennis M. & Reeder, Richard J., 2007. "Farm-Based Recreation: A Statistical Profile," Economic Research Report 56445, United States Department of Agriculture, Economic Research Service.
    12. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    13. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    14. Tew, Christine & Barbieri, Carla, 2012. "The perceived benefits of agritourism: The provider’s perspective," Tourism Management, Elsevier, vol. 33(1), pages 215-224.
    15. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    16. Carpio, Carlos E. & Wohlgenant, Michael K. & Boonsaeng, Tullaya, 2008. "The Demand for Agritourism in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-16.
    17. Phillip, Sharon & Hunter, Colin & Blackstock, Kirsty, 2010. "A typology for defining agritourism," Tourism Management, Elsevier, vol. 31(6), pages 754-758.
    18. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
    19. Gil Arroyo, Claudia & Barbieri, Carla & Rozier Rich, Samantha, 2013. "Defining agritourism: A comparative study of stakeholders' perceptions in Missouri and North Carolina," Tourism Management, Elsevier, vol. 37(C), pages 39-47.
    20. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna Tafidou & Evgenia Lialia & Angelos Prentzas & Asimina Kouriati & Eleni Dimitriadou & Christina Moulogianni & Thomas Bournaris, 2023. "Land Diversification and Its Contribution to Farms’ Income," Land, MDPI, vol. 12(4), pages 1-12, April.
    2. Brunella Arru & Roberto Furesi & Fabio A. Madau & Pietro Pulina, 2021. "Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    3. João Ricardo Faria & Franklin G. Mixon, 2016. "Farmer-Entrepreneurs, Agricultural Innovation, and Explosive Research and Development Cycles," Administrative Sciences, MDPI, vol. 6(4), pages 1-11, September.
    4. Gilles Grolleau & Naoufel Mzoughi & Qurat-Ul-Ain Talpur, 2023. "Emotional labour in the analysis of farm-based hospitality projects," Post-Print hal-04240587, HAL.
    5. Khairabadi, Omid & Sajadzadeh, Hassan & Mohammadianmansoor, Saheb, 2020. "Assessment and evaluation of tourism activities with emphasis on agritourism: The case of simin region in Hamedan City," Land Use Policy, Elsevier, vol. 99(C).
    6. Schmidt, Claudia & Tian, Zheng & Goetz, Stephan J. & Chase, Lisa, 2022. "Drivers of Agritourism and Direct Sales Clusters in the United States," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322207, Agricultural and Applied Economics Association.
    7. Lakner, Sebastian & Kirchweger, Stefan & Hoop, Daniel & Brümmer, Bernhard & Kantelhardt, Jochen, 2015. "Impact of diversification on technical efficiency of organic farming in Switzerland, Austria and Southern Germany," DARE Discussion Papers 1508, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    8. Arkadiusz Sadowski & Monika Małgorzata Wojcieszak, 2019. "Geographic differentiation of agritourism activities in Poland vs. cultural and natural attractiveness of destinations at district level," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-22, September.
    9. Sebastian Lakner & Stefan Kirchweger & Daniel Hoop & Bernhard Brümmer & Jochen Kantelhardt, 2018. "The Effects of Diversification Activities on the Technical Efficiency of Organic Farms in Switzerland, Austria, and Southern Germany," Sustainability, MDPI, vol. 10(4), pages 1-18, April.
    10. Salvatore Ammirato & Alberto Michele Felicetti & Cinzia Raso & Bruno Antonio Pansera & Antonio Violi, 2020. "Agritourism and Sustainability: What We Can Learn from a Systematic Literature Review," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    11. Shingo Yoshida & Hironori Yagi & Akira Kiminami & Guy Garrod, 2019. "Farm Diversification and Sustainability of Multifunctional Peri-Urban Agriculture: Entrepreneurial Attributes of Advanced Diversification in Japan," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    12. 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), pages 1-23, November.
    13. Michał Roman & Piotr Grudzień, 2021. "The Essence of Agritourism and Its Profitability during the Coronavirus (COVID-19) Pandemic," Agriculture, MDPI, vol. 11(5), pages 1-25, May.
    14. Meiyuan Wang & Bin He & Jinsong Zhang & Yanan Jin, 2021. "Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
    15. Xiaowen Jin & Hao Wu & Jing Zhang & Guangming He, 2021. "Agritourism Development in the USA: The Strategy of the State of Michigan," Sustainability, MDPI, vol. 13(20), pages 1-14, October.
    16. Matthias Firgo & Dieter Pennerstorfer, 2023. "The causal effect of agritourism on farm survival," Economics working papers 2023-15, Department of Economics, Johannes Kepler University Linz, Austria.
    17. Andrzej Tucki & Korneliusz Pylak, 2021. "Collective or Individual? What Types of Tourism Reduce Economic Inequality in Peripheral Regions?," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    18. Chadley R. Hollas & Lisa Chase & David Conner & Lori Dickes & R. David Lamie & Claudia Schmidt & Doolarie Singh-Knights & Lindsay Quella, 2021. "Factors Related to Profitability of Agritourism in the United States: Results from a National Survey of Operators," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    19. Brunella Arru & Roberto Furesi & Fabio A. Madau & Pietro Pulina, 2019. "Recreational Services Provision and Farm Diversification: A Technical Efficiency Analysis on Italian Agritourism," Agriculture, MDPI, vol. 9(2), pages 1-15, February.
    20. Schilling, Brian J. & Sullivan, Kevin P., 2014. "Characteristics of New Jersey Agritourism Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-13, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dettmann, E. & Becker, C. & Schmeißer, C., 2011. "Distance functions for matching in small samples," Computational Statistics & Data Analysis, Elsevier, vol. 55(5), pages 1942-1960, May.
    2. Tommaso Nannicini, 2007. "Simulation-based sensitivity analysis for matching estimators," Stata Journal, StataCorp LP, vol. 7(3), pages 334-350, September.
    3. Dettmann, Eva & Becker, Claudia & Schmeißer, Christian, 2010. "Is there a Superior Distance Function for Matching in Small Samples?," IWH Discussion Papers 3/2010, Halle Institute for Economic Research (IWH).
    4. Carlos A. Flores & Oscar A. Mitnik, 2009. "Evaluating Nonexperimental Estimators for Multiple Treatments: Evidence from Experimental Data," Working Papers 2010-10, University of Miami, Department of Economics.
    5. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    6. Michele Campolieti & Morley Gunderson & Jeffrey Smith, 2014. "The effect of vocational rehabilitation on the employment outcomes of disability insurance beneficiaries: new evidence from Canada," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-29, December.
    7. Gevrek, Z. Eylem & Seiberlich, Ruben R., 2014. "Semiparametric decomposition of the gender achievement gap: An application for Turkey," Labour Economics, Elsevier, vol. 31(C), pages 27-44.
    8. Sánchez-Braza, Antonio & Pablo-Romero, María del P., 2014. "Evaluation of property tax bonus to promote solar thermal systems in Andalusia (Spain)," Energy Policy, Elsevier, vol. 67(C), pages 832-843.
    9. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    10. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
    11. Peter R. Mueser & Kenneth R. Troske & Alexey Gorislavsky, 2007. "Using State Administrative Data to Measure Program Performance," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 761-783, November.
    12. Timothy B. Armstrong & Michal Kolesár, 2021. "Finite‐Sample Optimal Estimation and Inference on Average Treatment Effects Under Unconfoundedness," Econometrica, Econometric Society, vol. 89(3), pages 1141-1177, May.
    13. Wendimu, Mengistu Assefa & Henningsen, Arne & Gibbon, Peter, 2016. "Sugarcane Outgrowers in Ethiopia: “Forced” to Remain Poor?," World Development, Elsevier, vol. 83(C), pages 84-97.
    14. Andreas C. Drichoutis & Rodolfo M. Nayga, Jr. & Panagiotis Lazaridis, 2009. "Can Nutritional Label Use Influence Body Weight Outcomes?," Kyklos, Wiley Blackwell, vol. 62(4), pages 500-525, November.
    15. Steven Lehrer & Gregory Kordas, 2013. "Matching using semiparametric propensity scores," Empirical Economics, Springer, vol. 44(1), pages 13-45, February.
    16. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    17. Schilling, Brian J. & Attavanich, Witsanu & Sullivan, Kevin P. & Marxen, Lucas J., 2014. "Measuring the effect of farmland preservation on farm profitability," MPRA Paper 100122, University Library of Munich, Germany, revised Jun 2014.
    18. Luis Aranda, 2013. "Doubling Up: A Gift or a Shame? Multigenerational Households and Parental Depression of Older Europeans," Working Papers 2013:29, Department of Economics, University of Venice "Ca' Foscari", revised 2013.
    19. Maoyong Fan & Yanhong Jin, 2015. "The Supplemental Nutrition Assistance Program and Childhood Obesity in the United States: Evidence from the National Longitudinal Survey of Youth 1997," American Journal of Health Economics, MIT Press, vol. 1(4), pages 432-460, Fall.
    20. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:168260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.