Consumers’ Willingness to Purchase Locally Produced Agricultural Products: An Analysis of an Indiana Survey

Abstract

Using a survey of over 320 consumers from across the state of Indiana, we estimate an ordered probit model to determine the demographic and attitudinal factors which are most important in predicting the likelihood of consumers to purchase products that are produced within the state. Our results indicate that the willingness to purchase locally produced agricultural products increases with time of residency in the state, and we find a greater tendency for female consumers to purchase such products. We also find that quality perceptions play a critical role in these food purchase decisions. We underscore the importance of maintaining minimum quality standards to maximize the effectiveness of state level agricultural promotion programs.