The Decision to Direct Market: An Analysis of Small Fruit and Specialty-Product Markets in Virginia

Abstract

Farmers are increasingly interested in high-value alternatives to commodity production. Direct marketing is a potentially attractive marketing alternative, having been shown to offer increased net incomes to farmers. Nevertheless, there is a dearth of literature on the determinants of the decision to direct market. This paper uses an ordered logit regression to analyze how farm size, the importance of high-value crops, organic production, experience, and demographic factors affect a producer’s reliance on direct markets. The results show that farm size, high-value crop production, non-certified organic production methods, and household size are determinants of the share of total farm output sold through direct marketing outlets.