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

Jeremy Foltz and Kimberly Zeuli

Review of Agricultural Economics, 2005, vol. 27, issue 4, 508-525

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. Copyright 2005, Oxford University Press.

Date: 2005
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