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Supporting Local Food System Development Through Food Price Premium Donations: A Policy Proposal

Author

Listed:
  • Willis, David B.
  • Carpio, Carlos E.
  • Boys, Kathryn A.

Abstract

This study investigates consumer preferences for a marketing system that improves integration of farmers into a local food system. Attribute-based methods are used to estimate consumer willingness to pay for a locally grown product that is bundled with a local food bank (LFB) donation. Estimates reveal that, on average, households are willing to pay 11% more for locally grown relative to nonlocal agricultural products. When the locally grown product attribute is combined with a donation to support a LFB, the premium nearly doubles. Results suggest that the proposed system could provide resources to strengthen local food distribution networks.

Suggested Citation

  • Willis, David B. & Carpio, Carlos E. & Boys, Kathryn A., 2016. "Supporting Local Food System Development Through Food Price Premium Donations: A Policy Proposal," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 48(2), May.
    • Handle: RePEc:ags:joaaec:349134
    DOI: 10.22004/ag.econ.349134
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    References listed on IDEAS

    as
    1. Low, Sarah A. & Vogel, Stephen J., 2011. "Direct and Intermediated Marketing of Local Foods in the United States," Economic Research Report 118025, United States Department of Agriculture, Economic Research Service.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
    3. Hoppe, Robert A. & MacDonald, James M., 2013. "Updating the ERS Farm Typology," Economic Information Bulletin 147120, United States Department of Agriculture, Economic Research Service.
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