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The Role of Community and Farm Characteristics in Farm Input Purchasing Patterns

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  • Jeremy Foltz
  • Kimberly Zeuli

Abstract

This work uses unique data from three dairy-dependent communities in rural Wisconsin to test established theory and empirical studies that link farm structure to local purchasing patterns. A theoretical model of purchasing choices is developed to derive the demand determinants of local purchasing. This model is tested empirically across eleven major dairy farm inputs using a double-bounded Tobit model that also includes community characteristics. The empirical estimations find little support for a general linkage between farm-level characteristics and local purchasing patterns. The results do suggest that different community characteristics provide some explanations for diverse purchasing patterns.

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  • Jeremy Foltz & Kimberly Zeuli, 2005. "The Role of Community and Farm Characteristics in Farm Input Purchasing Patterns," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 508-525.
    • Handle: RePEc:oup:revage:v:27:y:2005:i:4:p:508-525.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2005.00261.x
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    References listed on IDEAS

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    1. Lawrence, John D. & Otto, Daniel M. & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 15(1), pages 1-17.
    2. 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).
    3. Zeuli, Kimberly A. & Levins, Richard A., 1995. "Minnesota Agricultural Economist 682," Minnesota Applied Economist\Minnesota Agricultural Economist 13183, University of Minnesota, Department of Applied Economics.
    4. Lawrence, John D. & Otto, Daniel & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Staff General Research Papers Archive 5149, Iowa State University, Department of Economics.
    5. Earl O. Heady & Steven T. Sonka, 1974. "Farm Size, Rural Community Income, and Consumer Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 534-542.
    6. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
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    Cited by:

    1. Pangbourne, Kate & Roberts, Deborah, 2012. "What multipliers don’t tell you: A spatial analysis of farm household linkages," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134718, Agricultural Economics Society.
    2. Saleh Ahmed & Douglas Jackson-Smith, 2019. "Impacts of Spatial Patterns of Rural and Exurban Residential Development on Agricultural Trends in the Intermountain West," SAGE Open, , vol. 9(3), pages 21582440198, August.
    3. Jeremy G. Weber & Conor Wall & Jason Brown & Tom Hertz, 2015. "Crop Prices, Agricultural Revenues, and the Rural Economy," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 459-476.
    4. Mishra, Ashok K. & Williams, Robert P. & Detre, Joshua D., 2009. "Internet Access and Internet Purchasing Patterns of Farm Households," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 240-257, October.
    5. Roberts, Deborah & Majewski, Edward & Sulewski, Piotr, 2011. "Measuring the local economic integration of farm households: Findings from two case study areas," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99595, European Association of Agricultural Economists.
    6. Vázquez, Ibán & Sineiro, Francisco & García, Ana Isabel, 2014. "Trayectorias de crecimiento de las explotaciones agrarias en la Cornisa Cantábrica," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(02), pages 1-32, December.
    7. 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.
    8. 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.
    9. 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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