We assess emerging relationships between production decisions and market channel selection among a small sample of hemp growers (22) in Colorado and Kentucky using qualitative interviews. We found producers differences by market channel, product and state. For instance, producers who relied on intermediated marketing strategies cultivated more acres on average and used fewer distinct market channels and strategies than those relying on direct markets. Product differences were found regarding processing, storage and perishability. Respondents identified four factors critical to their choice of market channels for their hemp products: research, profitability, trust and knowledge. The findings can help inform public and private decision-making regarding best hemp marketing practices and future needs of the hemp industry.

Agritourism is a consumer-driven innovation that producers are exploring as a means to diversify and grow farm-based revenues. In order to help guide management and policy decisions, we conduct an exploratory spatial data analysis and find that travel infrastructure, region and rurality, characteristics of the local economy, and proximity to outdoor attractions are all significantly associated with the probability of a county being an agritourism hot spot. Mapping our primary spatial analysis’ residuals, we further identify counties with unique agritourism market conditions as a starting point to identify best practices that other regions interested in agritourism development might follow.

This study explores how participation in direct and intermediated marketing channels and key operational factors influence agricultural producers’ financial performance. Accordingly, we divide the sample of local and regional food marketers into quartiles segmented by profitability performance as an initial exploration of how strong and weak performance may vary across scale, location, and choice of direct and intermediated channels. Moreover, other financial metrics that vary across types of producers and performance-based quartiles are analyzed. This paper provides initial evidence that participation in direct and intermediated markets may allow farms of any scale of sales volume to be financially viable.

In recent years, the growth in local food marketing channels has been significant. Most of the research in this field examining the economic implication of these trends has focused post-farmgate including supply chain analysis (e.g., Hardesty et al., 2014; King et al., 2010), regional economic impacts (e.g., Brown et al., 2014; Hughes et al., 2008; Jablonski et al., 2016) and consumer values and motivations that have driven demand (e.g., Costanigro, 2014; Lusk and Briggeman, 2009). To date, with the exception of a few case studies examining expenses and sales by channel assessment (LeRoux et al., 2010; Hardesty and Leff, 2010; Jablonski and Schmit, 2016) there has been little research that examines the impact on financial viability among farms selling through these markets. The goal of this paper is twofold: first, to identify the factors that have the greatest influence on the efficiency of farmers and ranchers that participate in local food systems, and second, to estimate the relationship between marketing strategy and farm financial efficiency, with a particular focus on variations across farm size. Our estimation of the stochastic production frontier suggests that scale, production enterprise specialty, market outlet choices, land ownership, and management of expenses have the greatest influence on producer financial efficiency. Our model suggests that scale has the largest impact on financial efficiency, providing evidence that, all else constant, the most important factor in the efficiency of direct market producers is scale. When profit is defined as operating profit, results indicate that marketing channel is not an important indicator of efficiency. But when profit is defined as return on assets, marketing channel is an important indicator of efficiency, albeit less than is scale. Results from this analysis indicate there are economies of scale associated with farms and ranches that sell through local and regional markets, and that scale rather than marketing channel has the largest influence on efficiency.

The fresh produce sector is subject to season-specific market conditions so understanding differential impacts of various factors across marketing periods is important. We analyze the market structure, key factors influencing shipments, and seasonal price relationships in regional apple markets at the shipping-point and terminal-market levels using a symmetric variable threshold autoregressive model that allows threshold bands (which define price ranges considered in shipping decisions) to vary seasonally. We find that transportation costs and seasonality have a significant impact on threshold bands of market pairs and that the impact varies seasonally. This varying band across seasons may represent suppliers who perceive more or less opportunities to adjust their supply between regional markets and gain advantage by being responsive to market conditions.

Despite the heightened efforts to implement eco-labeling schemes as the market-based vehicle for improving environmental quality, the overall effectiveness of eco-labels are still uncertain due to complex and sometimes unexpected market responses. In this paper, we assess the overall changes in carbon emissions resulting from two types of labeling on fresh apples, carbon labels and location designation labels (e.g., locally grown), both of which can have mixed implications for carbon emissions due to fluctuating supply chain factors. We employ an equilibrium displacement model that integrates existing estimates of differences across production systems, and our own estimates of consumer responses to labels in order to simulate the changes in prices, trade flows and estimate carbon impacts across several scenarios in the US fresh apple market. We find that both labels ultimately affect market outcomes and overall carbon emissions. With location designation labels, consumers’ preference for local products leads to a net decrease in carbon emissions during the local growing season, while the interaction of various market dynamics results in a subsequent net increase in carbon emissions during the local off-season. The interaction of a carbon label with the location label lowers the overall attractiveness of products and reduces the quantity demanded, and thus, reduces the carbon emissions in both seasons. Overall, providing the location designation label increases annual carbon emissions, whereas providing both the location designation and carbon labeling decreases annual emissions. In short, the dynamics and interdependency of labeling strategies are important to consider in the context of eco-labeling.

There is evidence that consumers are increasingly purchasing food directly from local producers, but little is understood about which market-specific, intrinsic, extrinsic, and demographic attributes influence the probability of preferring to purchase fresh produce through direct-market channels. A multinomial logit model is used to analyze a national dataset of fresh produce consumers with a focus on exploring differences among those that prefer to purchase direct always, occasionally (seasonally and as a secondary source), and never. Results suggest that to increase patronage and loyalty of current customers, producers may emphasize the availability of fresh, superior, vitamin-rich, and locally-grown produce at market locations through booth displays, ads in magazines, radio spots, and electronic newsletters. To attract new customers who do not currently admit a preference for purchasing direct, producers may find greater success by locating in convenient-to-reach venues, showcasing a variety of colorful offerings, and working to enhance the overall aesthetic appeal of market locations.

In the past decade, sales of meat products labeled as natural (minimally processed) and produced without antibiotics and hormones have increased dramatically. In response to growing demand for meat products differentiated by various production attributes, many smaller-scale beef enterprises are considering direct marketing of their beef products to end-consumers as a viable approach to sustaining their family farming operations. This research uses survey data from Colorado consumers, and factor and cluster analysis to determine market segments for various (varied by production protocols and other meat attributes) natural beef products. Findings from the cluster analysis indicate that there are multiple segments of consumers who are likely to purchase natural beef, and that different segments are motivated by different factors. The most important factor explaining almost two-thirds of the differences among consumer responses relates to consumers' perceptions of the importance of meat attributes related to production practices (e.g. use of antibiotics, hormones and environmentally friendly grazing). Interestingly, the two consumer segments that are willing to pay a significantly higher premium for natural, local beef are motivated by different aspects of the meat and its intrinsic production attributes. One segment, representing 12.5% of consumers, ranked the importance of all production attributes significantly lower than the sample average. Consumers in this segment appear to be motivated by their perceptions of the extrinsic quality of natural beef products. The other segment, 13% of consumers, appears to be altruistic, ranking all production attributes such as ‘no antibiotics’, ‘no hormones’, and ‘humane treatment’, significantly higher than all of the other clusters. These results indicate the potential strength of production methods (and marketing of such quality differences) as product differentiation criteria. This paper illustrates the type of market research that may be useful for beef producers seeking value-added marketing opportunities, and portrays the types of consumers who are fueling the growth in natural meats in the United States. Such market analysis can facilitate producers' ability to effectively develop product concepts, labeling and promotional strategies targeted at the most receptive consumer segments, and illustrates that there is more than one type of consumer interested in purchasing products differentiated by sustainable production methods.