The Role of Community and Farm Characteristics in Farm Input Purchasing Patterns |
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| Authors: | Jeremy Foltz Kimberly Zeuli |
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| Institution: | Jeremy Foltz and Kimberly Zeuli are assistant professors at the Department of Agricultural and Applied Economics, University of Wisconsin-Madison. Authors are in alphabetical order;senior authorship is shared equally. |
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| Abstract: | This work uses unique data from three dairy-dependent communities in rural Wisconsin to test established theory and empirical studies that link farm structure to local purchasing patterns. A theoretical model of purchasing choices is developed to derive the demand determinants of local purchasing. This model is tested empirically across eleven major dairy farm inputs using a double-bounded Tobit model that also includes community characteristics. The empirical estimations find little support for a general linkage between farm-level characteristics and local purchasing patterns. The results do suggest that different community characteristics provide some explanations for diverse purchasing patterns. |
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