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.

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.

Policy makers and economic developers are increasingly interested in the impacts of local food systems, yet attempts to obtain accurate estimates are often complicated by a lack of available data. Utilizing a unique data set from producers in New York, the authors examine the extent of differential purchasing and sales patterns for small-scale direct agriculture (SDA) producers. The supplemental data are integrated into a regional input–output model to assess the total effects and distributional implications of equivalent policies targeted to agriculture sectors. The authors demonstrate that SDA producers have different expenditure patterns than other agricultural producers and, for equivalent policy shocks targeted toward agriculture industry expansion, have lower total employment and output impacts but higher effects on labor income and total value added than non-SDA producers. The results underscore the importance of collecting appropriate data for analysis and outline the local economic benefits of small-scale local food system participants.

As lockdown and school closure policies were implemented in response to the coronavirus, the federal government provided funding and relaxed its rules to support emergency food provision, but not guidance on best practices for effectiveness. Accordingly, cities developed a diverse patchwork of emergency feeding programs. This article uses qualitative data to provide insight into emergency food provision developed in five cities to serve children and families. Based on our qualitative analysis, we find that the effectiveness of local approaches appears to depend on: (i) cross‐sector collaboration, (ii) supply chains, and (iii) addressing gaps in service to increased risk populations.

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.