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Do Purchasing Patterns Differ Between Large and Small Dairy Farms? Econometric Evidence from Three Wisconsin Communities

Published online by Cambridge University Press:  15 September 2016

Jeremy D. Foltz ,
Douglas Jackson-Smith  and
Lucy Chen
Jeremy D. Foltz
Affiliation:
Department of Agricultural and Resource Economics, University of Connecticut
Douglas Jackson-Smith
Affiliation:
Department of Sociology, Social Work, and Anthropology, Utah State University
Lucy Chen
Affiliation:
Program on Agricultural Technology Studies, University of Wisconsin-Madison
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Abstract

Using farm data from three dairy-dependent communities in Wisconsin, this study addresses the question: Do small farms spend more locally than large farms? The work develops a theoretical model of farm cost functions with transaction costs varying between local and distant input sources. This model is then tested econometrically, describing farm costs and where they were spent as a function of transaction/search costs and farm characteristics. The results suggest that scale does matter to farm spending patterns.

Keywords

community economicsdairy industryfarm sizepurchasing patterns
Type
Articles
Information
Agricultural and Resource Economics Review , Volume 31 , Issue 1 , April 2002 , pp. 28 - 38
Copyright
Copyright © 2002 Northeastern Agricultural and Resource Economics Association 

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