Comparing Consumer's WIllingness to Pay for Conventional, Non-Certified Organic and Organic Milk from Small and Large Farms

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Considering local milk, data from auction experiments was used to determine whether farm size affects consumer willingness to pay (WTP) for conventional, non-certified organic, and organic versions. Tobit models including socio-demographics and variables from the theory of planned behavior were used to examine WTP for each. While farm size was insignificant for each type, WTP for large farm non-certified organic was not higher than small farm conventional. Further, WTP for small farm non-certified organic was not significantly less than large farm organic. Small farms could potentially use these differences in attempts to compete with large farms.

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