Income of Farmers Who Use Direct Marketing

Abstract

Policy makers are looking for ways to preserve farmlands, especially near urban areas. Farmers are also trying to find ways to increase their farm income by incorporating non-traditional activities into their farm routine. This paper attempts to quantify the contributions of selected nontraditional activities towards farmers’ efforts to enhance their farm income. For farmers involved in direct marketing, a logit model is used to estimate the probability of attaining high income for each activity considered. The results indicate that activities such as agrotourism, direct retailing to consumers, selling of farm related value-added products, greenhouse operations and urban location of farm markets will increase the chance of attaining high income levels.