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Are Consumers Willing to Pay for Organic When the Food is Already Local?

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  • Connolly, Cristina
  • Klaiber, H. Allen

Abstract

The emergence of community supported agriculture (CSA) farms has provided a new way for small farms to remain competitive while engaging their local community through direct marketing. In this study, we report on some of the first revealed preference valuation of CSA attributes, including the willingness to pay for competing organic certification programs. Using data on the prices and attributes of 188 CSA farms spanning Ohio and Pennsylvania we estimate willingness to pay measures from both hedonic and nearest-neighbor matching methods. Results from a semi-log hedonic reveal a willingness to pay of approximately 9% for organic branding compared to natural, which translates into an additional $48 per summer season share. We also find a statistically significant premium associated with longer seasons, delivery, and the provision of additional products beyond fruits and vegetables. In contrast we find no premium associated with competing certification programs.

Suggested Citation

  • Connolly, Cristina & Klaiber, H. Allen, 2012. "Are Consumers Willing to Pay for Organic When the Food is Already Local?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124364, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124364
    DOI: 10.22004/ag.econ.124364
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    Cited by:

    1. Gumirakiza, J. Dominique & Hopper, Laura, 2016. "Understanding Markets and Marketing Strategies, and Challenges in Locally Grown Fresh Produce Industry," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229809, Southern Agricultural Economics Association.
    2. Gumirakiza, Dominique & King, Stephen A. & Kingery, Thomas, "undated". "Clustering Online Shoppers and Explaining their Preferences for Ways to Receive Marketing Information about Local/Regional Fresh Produce," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259947, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety;

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