Developing a Production Function for Small-Scale Farm Operations in Central Minnesota
Local food advocates promote direct-to-consumer food sales, arguing that such sales yield a variety of positive effects, including that smaller, direct-to-consumer producers have a greater economic impact compared to larger producers selling via wholesale channels. In this research study, we examine...
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| Format: | Article |
| Language: | English |
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Lyson Center for Civic Agriculture and Food Systems
2019-01-01
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| Series: | Journal of Agriculture, Food Systems, and Community Development |
| Subjects: | |
| Online Access: | https://foodsystemsjournal.org/index.php/fsj/article/view/660 |
| _version_ | 1797721140496433152 |
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| author | Ryan Pesch Brigid Tuck |
| author_facet | Ryan Pesch Brigid Tuck |
| author_sort | Ryan Pesch |
| collection | DOAJ |
| description | Local food advocates promote direct-to-consumer food sales, arguing that such sales yield a variety of positive effects, including that smaller, direct-to-consumer producers have a greater economic impact compared to larger producers selling via wholesale channels. In this research study, we examine this claim by exploring the relative economic contribution of small-scale, direct-to-consumer vegetable operations versus larger-scale, direct-to-wholesale vegetable operations in Central Minnesota. In this article, we detail the methods used to define the project, gather primary data, and construct the two production functions following the methods developed for the U.S. Department of Agriculture Agricultural Marketing Service’s Economics of Local Foods Systems Toolkit. In our analysis, we constructed two production functions for vegetables. The first was the default production function of vegetable operations from the input-output model IMPLAN. The second production function was constructed from detailed farm financial data on the purchasing patterns of 11 small vegetable operators in a 13-county area of Central Minnesota. Our results illuminate variations in relative impacts, but also in specific aspects of operational expenditures.
The production function for the sampled farms predicted a higher per dollar economic impact than the default IMPLAN production function. Our findings indicate that the small-scale, direct-to-consumer vegetable operations may have a greater positive impact on regional businesses than larger-scale, direct-to-wholesale operations, per dollar of output. Our results inform both farm business planning and economic development decision-making in rural regions. |
| first_indexed | 2024-03-12T09:29:23Z |
| format | Article |
| id | doaj.art-977b5d59d0594ee69cdba755734eb6ef |
| institution | Directory Open Access Journal |
| issn | 2152-0801 |
| language | English |
| last_indexed | 2024-03-12T09:29:23Z |
| publishDate | 2019-01-01 |
| publisher | Lyson Center for Civic Agriculture and Food Systems |
| record_format | Article |
| series | Journal of Agriculture, Food Systems, and Community Development |
| spelling | doaj.art-977b5d59d0594ee69cdba755734eb6ef2023-09-02T13:57:07ZengLyson Center for Civic Agriculture and Food SystemsJournal of Agriculture, Food Systems, and Community Development2152-08012019-01-018C10.5304/jafscd.2019.08C.006Developing a Production Function for Small-Scale Farm Operations in Central MinnesotaRyan Pesch0Brigid Tuck1University of Minnesota ExtensionUniversity of Minnesota ExtensionLocal food advocates promote direct-to-consumer food sales, arguing that such sales yield a variety of positive effects, including that smaller, direct-to-consumer producers have a greater economic impact compared to larger producers selling via wholesale channels. In this research study, we examine this claim by exploring the relative economic contribution of small-scale, direct-to-consumer vegetable operations versus larger-scale, direct-to-wholesale vegetable operations in Central Minnesota. In this article, we detail the methods used to define the project, gather primary data, and construct the two production functions following the methods developed for the U.S. Department of Agriculture Agricultural Marketing Service’s Economics of Local Foods Systems Toolkit. In our analysis, we constructed two production functions for vegetables. The first was the default production function of vegetable operations from the input-output model IMPLAN. The second production function was constructed from detailed farm financial data on the purchasing patterns of 11 small vegetable operators in a 13-county area of Central Minnesota. Our results illuminate variations in relative impacts, but also in specific aspects of operational expenditures. The production function for the sampled farms predicted a higher per dollar economic impact than the default IMPLAN production function. Our findings indicate that the small-scale, direct-to-consumer vegetable operations may have a greater positive impact on regional businesses than larger-scale, direct-to-wholesale operations, per dollar of output. Our results inform both farm business planning and economic development decision-making in rural regions.https://foodsystemsjournal.org/index.php/fsj/article/view/660Economic ImpactInput-Output ModelLocal FoodOpportunity CostSmall FarmSpecialty Crop Enterprises |
| spellingShingle | Ryan Pesch Brigid Tuck Developing a Production Function for Small-Scale Farm Operations in Central Minnesota Journal of Agriculture, Food Systems, and Community Development Economic Impact Input-Output Model Local Food Opportunity Cost Small Farm Specialty Crop Enterprises |
| title | Developing a Production Function for Small-Scale Farm Operations in Central Minnesota |
| title_full | Developing a Production Function for Small-Scale Farm Operations in Central Minnesota |
| title_fullStr | Developing a Production Function for Small-Scale Farm Operations in Central Minnesota |
| title_full_unstemmed | Developing a Production Function for Small-Scale Farm Operations in Central Minnesota |
| title_short | Developing a Production Function for Small-Scale Farm Operations in Central Minnesota |
| title_sort | developing a production function for small scale farm operations in central minnesota |
| topic | Economic Impact Input-Output Model Local Food Opportunity Cost Small Farm Specialty Crop Enterprises |
| url | https://foodsystemsjournal.org/index.php/fsj/article/view/660 |
| work_keys_str_mv | AT ryanpesch developingaproductionfunctionforsmallscalefarmoperationsincentralminnesota AT brigidtuck developingaproductionfunctionforsmallscalefarmoperationsincentralminnesota |