Assessing the Returns from Organic Marketing Channels
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Organic farmers face heightened pressure in developing a portfolio of different marketing
channels and in bargaining competitively with increasingly sophisticated marketing
participants in the supply chain for organic products. This research assists producers by
identifying specific farm and demographic factors that enhance earnings given the choice
of marketing outlet. The two significant selectivity coefficients confirm that organic
earnings when marketing through a single outlet are biased upward since farmers who are
better suited to market through multiple outlets have already moved away from this
marketing strategy. An accurate evaluation of the projected earnings from any marketing
strategy must account for selectivity effects.