Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Cost. (29th April 2016)

• Record Type: Journal Article
• Authors: Jablonski, B. B. R.; Schmit, T. M.; Kay, D.
• Is Part Of: Agricultural and resource economics review. Volume 45:Number 1(2016)
• Page Start: 143
• Page End: 172
• Publication Date: 2016-04-29
• Subjects: economic impact assessment, -- food hub, -- food policy, -- food systems, -- local food; Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/age.2016.9
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract : 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.