Assessing the economic impacts of food hubs on regional economies: a framework that includes opportunity cost

Includes bibliographical references (pages 168-171).The number of food hubs—businesses that aggregate and distribute local food—in the United States is growing, fueled in part by increasing public support. However, there have been few data-driven assessments of the economic impacts of these ventures. Using an input-output-based methodology and a unique data set from a successful food hub, we measure net and gross impacts of a policy supporting their development. We estimate a gross output multiplier of 1.75 and an employment multiplier of 2.14. Using customer surveys, we estimate that every $1 increase in final demand for food hub products generates a$0.11 reduction in purchases in other sectors

‘Local’ Producers’ Production Functions and Their Importance in Estimating Economic Impacts

WP 2014-15 April 2014The authors also acknowledge support from: the National Institute for Food and Agriculture, USDA, Competitive Grant No. 2012-67011-19957; the Agricultural Marketing Service, USDA, Cooperative Agreement No. 12-25-A-5568; the Northeast Sustainable Agriculture Research and Education Program, Grant No. GNE11-021; and, the Colleges of Agriculture and Life Sciences and Architecture, Art and Planning at Cornell University

Agriculture-Based Economic Development in NYS: Trends and Prospects

E.B. 2012-11Policymakers, industry leaders, planners and economic development professionals in New York State (NYS) face a set of fundamental questions about agriculture-based economic development (AED) and its potential to support and/or enhance the economic vitality of communities across the state. Agribusiness firms need to effectively and continuously adapt to changing economic conditions, consumer preferences, and technological advancements. To that end, firms are seeking innovative methods to attract new and growing markets for their commodities and products, vertically integrate their operations in both upstream and downstream markets, invest in value-added consumer-driven activities, and develop domestic and international joint ventures and strategic alliances. Such activities suggest growing farm-to-food developments at the farm, as well as increased interaction and coordination with others in the agribusiness industry. Understanding the economic contributions and evolving linkages between agricultural production, agricultural service, food manufacturing, and distribution and marketing to consumer markets is essential in defining appropriate firm, industry, and public policy strategies to strengthen opportunities for economic development and improve the competitiveness of agribusiness industries. This report is part of a larger ongoing effort to assist with these efforts. The focus is on up-to-date baseline economic information on the current status and trends of New York State agricultural and food system economic activity. By integrating multiple data sources, we are able to provide more detailed sub-industry level estimates of total output, employment, and value added than previously published. Longer term trends in farm and food production are also summarized. In addition, forward and backward linkages between farm commodity production and the wider grow the economy are estimated and discussed to better inform priorities on development initiatives and industry performance

Assessing the Economic Impacts of Food Hubs to Regional Economies: a framework including opportunity cost

WP 2015-03 February 2015JEL Classification Codes: Q18; R15The number of food hubs (‘local food’ aggregation and distribution businesses) is growing, fueled in part by increasing public support. However, few data-driven economic impact assessments have evaluated these ventures. Using an input-output-based methodology and, a unique data set from a successful food hub operation, we measure the net and gross impacts from a policy supporting its development. We estimate a food hub gross output multiplier of 1.75, and employment multiplier of 2.14. However, utilizing customer surveys, we estimate that for every $1 increase in final demand for food hub products, a$0.11 offset in purchases occurs in other sectors

Impacts of Local Food System Activities by Small Direct-to-Consumer Producers in a Regional Economy: A Case Study From Upstate NY

WP 2013-16 May 201

Assessing Barriers to Expansion of Farm-to-Chef Sales: A Case Study from Upstate New York

Columbia County Bounty is a local organization made up of farmer and culinary business members, with a mission that includes promoting connections between local agricultural producers and culinary businesses. A case study was conducted to address questions raised by CCB related to expanding farm-to-chef marketing in their area. Common barriers for restaurants included larger time commitments, inconvenience, and consistency in product volumes and quality; however, satisfaction with local wholesale distributors may create new opportunities for farmers to work collaboratively with them in including more local products in their distribution. A closer inspection of channel performance by farms in the study will drive changes in future channel strategies and utilization of farm-to-chef marketing, as farms are already benefiting from strong direct marketing channels and restaurants procuring local products from these channels