The Influence of Local Selling Decisions on Organic Farm Incomes

Timothy Park and Luanne Lohr

No 61029, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: This paper examines the factors that influence earned income of organic farmers given their decisions to engage in local selling. The model explicitly accounts for the sorting of producers across different levels of commitment to local sales on the basis of both observable and unobservable heterogeneity. The significant selectivity coefficients confirm that when producers choose to market organic products primarily through local outlets, earnings are overestimated (biased upward) if the selectivity corrections are neglected. Positive selection effects are present for farmers most intensively involved in local sales, contributing to higher earnings on average for these producers.

Keywords: Agribusiness; Marketing (search for similar items in EconPapers)
Pages: 5
Date: 2010
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Citations: View citations in EconPapers (8)

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Journal Article: The Influence of Local Selling Decisions on Organic Farm Incomes (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61029

DOI: 10.22004/ag.econ.61029

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