In this paper, we assess whether or not organic agriculture has a positive impact on local economies. We first identify organic agriculture hotspots (clusters of counties with positively correlated high numbers of organic operations) using spatial statistics. Then, we estimate a treatment effects model that classifies a county's membership in an organic hotspot as an endogenous treatment variable. By modeling what a hotspot county's economic indicators would have been had the county not been part of a hotspot, this model captures the effect of being in a hotspot on a county's economic indicators. We perform the same analysis for general agricultural farm hotspots to confirm that the benefits associated with organic production hotspots are, in fact, due to the organic component. Our results show that organic hotspot membership leads to a lower county-level poverty rate and a higher median household income. A similar result is not found when investigating the impact of general agriculture hotspots. On the other hand, our result is robust to alternative hotspot definitions based on type of organic operations to alternative methods of estimating average treatment effects on the treated. These results provide strong motivation for considering hotspots of organic handling operations, which refers to middlemen such as processors, wholesalers and brokers, and hotspots of organic production to be local economic development tools, and may be of interest to policymakers whose objective is to promote rural development. Our results may incentivize policymakers to specifically focus on organic development, rather than the more general development of agriculture, as a means to promote economic growth in rural areas, and may further point them in the direction of not only encouraging the presence of organic operations, but of fostering the development of clusters or hotspots of these operations.
This study identifies clusters of certified organic operations in the United States and determines the form of spatial autocorrelation present in the operations’ distribution. We identify large hot spots of organic operations along the West Coast and in the Midwest and Northeast with some variation based on how we define an organic operation. Further analyses suggest that organic operations do not necessarily follow the same geographic patterns as nonorganic agricultural and general business establishments. Spatial autoregressive models confirm the presence of significant spatial dependence in the distribution of certified organic operations for a number of different definitions of an organic operation.
The purpose of this paper is to investigate the formation of hotspots of organic operations (geographically close areas that have positively correlated high numbers of organic operations), paying particular attention to the role of the organic certifying agent. We analyze the association of county-level factors related to policy, economics, demographics and organic certifiers with the probability that a county is in a hotspot or coldspot (geographically close areas that have positively correlated low numbers of organic operations) of organic operations. The results suggest that a high presence of government run organic certifying agents, as well as a high presence of private organic certifying agents who provide outreach services, are both positively associated with the probability that a county belongs to a hotspot. Other factors, such as the level of property taxes and the distance of the county from the nearest interstate, are also significantly correlated with the probability that a county is in a hotspot. Understanding factors associated with organic hotspots is important given the surge in momentum in the organic industry and the concerns that demand for organic products may be outpacing domestic supply. In particular, understanding the role that certifiers play in the formation of organic hotspots is important, as certain services provided by certifiers may be indicative of the level of communication between organic operations and their communities. The results of this paper may encourage public institutions that approve and regulate organic certifiers to provide incentives for offering outreach services, and private institutions interested in promoting organic operations to work more closely with certifying agents as a means to boost organic hotspots.
Food employee contamination of ready-to-eat foods through improper food handling practices is an important contributing factor for foodborne illness in retail and food service establishments. Decreasing the incidence of improper food handling practices is a frequent topic of retail food policy deliberations that often involves estimating the degree to which a proposed policy might affect a specific food handling practice. However, the potential reduction in contaminated servings of food, and therefore foodborne illnesses avoided, associated with a given proposed policy change, is all too often uncertain. This article discusses the components, assumptions, and applications of the food handling practices model, a quantitative model that estimates the impact of food handling practices on servings of food moving along three consecutive stages: the contamination stage, the pathogen control stage, and the foodborne illness stage. To our knowledge, this article is the first time the model has been presented in an academic platform, and we also explore unique and interesting aspects of the model not addressed in publicly available documents. Risk-based estimates for contaminated servings of food attributed to changes in one or multiple food handling practices are derived that provide an important link between increased compliance with proper food handling practices and public health. Model estimates show that decreases in the incidence of inappropriate food handling practices lead to varying levels of contaminated food servings avoided, depending on the food handling practice. The ability to derive such estimates provides stakeholders and the general public with a means of understanding the relative impact of proposals to reduce improper food handling and to help inform regulatory food safety policy discussions and decision making.
Based on a survey of U.S. food retailers, our study finds that almost one third of U.S. food retailers charge slotting fees for certified organic food products, a retailing area where slotting fees had not previously been well documented. Econometric results from both ordered response and binary response models suggest that a number of firm-level attributes do influence the presence and=or relative size of organic slotting fees in a manner that is mostly consistent with an economic efficiency rationale and partly consistent with a market power=strategic behavior rationale for slotting fees.
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