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Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Costs

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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.

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Agricultural and Resource Economics Review

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Vol. 45, Iss. 1

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2016-04

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Cambridge University Press

Keywords

economic impact assessment; food hub; food policy; food systems; local food

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Jablonski, B.B.R., T.M. Schmit, and D. Kay. 2016. “Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Costs.” Agricultural and Resource Economics Review 45(1):143-172.

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