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Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income

Published online by Cambridge University Press:  15 September 2016

Hiroki Uematsu  and
Ashok K. Mishra
Hiroki Uematsu
Affiliation:
Department of Agricultural Economics and Agribusiness at the Louisiana State University AgCenter in Baton Rouge, Louisiana
Ashok K. Mishra
Affiliation:
Department of Agricultural Economics and Agribusiness at the Louisiana State University AgCenter in Baton Rouge, Louisiana
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Abstract

Direct marketing strategies increasingly have been recognized as a viable business option in U.S. agriculture as they allow producers to receive a better price by selling products directly to consumers. The objective of this study is twofold. Using a national survey, we first estimated a zero-inflated negative binomial model to identify factors affecting the total number of direct marketing strategies adopted by farmers. Then we estimated a quantile regression model to assess the impact of the intensity of adoption of direct marketing strategies on gross cash farm income. The results show that the intensity of adoption has no significant impact on gross cash farm income and that participation in farmers markets is negatively correlated with gross cash farm income at all five quantiles estimated.

Keywords

direct marketing strategiescount datagross cash incomequantile regression
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 40 , Issue 1 , April 2011 , pp. 1 - 19
Copyright
Copyright © 2011 Northeastern Agricultural and Resource Economics Association 

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