Brand Name Effect of Organic Farming for Small‐Scale Farms

Xuanli Liu and Mohamed Ibrahim

No 230012, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: Small-scale farms had been challenged in their survival and development for years after big farms took the dominant position in the US agricultural sector. The trend was reversed in the last decade due to the rapid growth in consumer demand for organic products and the U.S. small farms has been revitalized. This investigation is to evaluate the impacts of organic production in the development of small-scale farms. Through analysis of historical data and production practices, we find that organic products give small-farms some leverage in price negotiation. Organic production provides small farms a chance to differentiate products as local, fresh, and more important organic, which helps them to seize a lucrative market niche that big farm have difficulty in wedging in, therefore, avoids the direct competition with big farms in the conventional marketplaces. USDA data on prices of agricultural products confirmed the impact of organic products in changing the value distribution along the supply chain and in enabling small farms to retain a relatively large value share. A conclusion possibly be reached is that small-scale farms have an effective way to survive through organic production.

Keywords: Crop Production/Industries; Farm Management; Production Economics (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea16:230012

DOI: 10.22004/ag.econ.230012

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