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Do Purchasing Patterns Differ Between Large and Small Dairy Farms? Econometric Evidence from Three Wisconsin Communities

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  • Foltz, Jeremy D.
  • Jackson-Smith, Douglas
  • Chen, Lucy

Abstract

Using farm data from three dairy-dependent communities in Wisconsin, this study addresses the question: Do small farms spend more locally than large farms? The work develops a theoretical model of farm cost functions with transaction costs varying between local and distant input sources. This model is then tested econometrically, describing farm costs and where they were spent as a function of transaction/search costs and farm characteristics. The results suggest that scale does matter to farm spending patterns.

Suggested Citation

  • Foltz, Jeremy D. & Jackson-Smith, Douglas & Chen, Lucy, 2002. "Do Purchasing Patterns Differ Between Large and Small Dairy Farms? Econometric Evidence from Three Wisconsin Communities," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(1), pages 28-38, April.
    • Handle: RePEc:cup:agrerw:v:31:y:2002:i:01:p:28-38_00
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    Cited by:

    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. Foltz, Jeremy D. & Zeuli, Kimberly A., 2004. "Challenging the Goldschmidt Theory of Rural Purchasing Patterns," Staff Papers 12598, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    3. 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.
    4. 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.
    5. 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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