Research Objectives
The primary purpose of this paper is to discuss the dynamics behind
ensuring economic viability of a CSA farm and what are some ways that CSA
farmers can earn higher incomes in order to stay in business. I discuss the main
reasons why a consumer would want to become a shareholder of a CSA farm and
discuss the key features of this system that are attracting an increasing number of
customers. However, the current share prices barely cover the overhead costs and
labor costs in most CSA farms, so in order to ensure economic viability, farmers
must consider raising prices. Furthermore, because most CSA farms practice
organic farming, I argue that it produces positive externalities in the form of
Environmental Goods and Services that have not been captured in the share
prices. Another issue CSA farms must consider is the competitive pressures from
conventional farms that receive agricultural subsidies from the U.S. government.
In this paper, I discuss why the U.S. government should reconsider its agricultural
subsidies program so that it supports sustainable farming practices.
Another purpose is to discuss how we can study consumers’ willingness to
pay (WTP) for shares of a CSA farm based on people’s attitudes towards the
different characteristics of CSA. Past studies about CSA consumers have focused
on member satisfaction and what people value most using questionnaires which
ask respondents to pick options they find most compelling. Despite various
problems associated with the stated preference nature of contingent valuation
(CV), a CV survey better captures what CSA consumers value most and how
Research ObjectivesThe primary purpose of this paper is to discuss the dynamics behindensuring economic viability of a CSA farm and what are some ways that CSAfarmers can earn higher incomes in order to stay in business. I discuss the mainreasons why a consumer would want to become a shareholder of a CSA farm anddiscuss the key features of this system that are attracting an increasing number ofcustomers. However, the current share prices barely cover the overhead costs andlabor costs in most CSA farms, so in order to ensure economic viability, farmersmust consider raising prices. Furthermore, because most CSA farms practiceorganic farming, I argue that it produces positive externalities in the form ofEnvironmental Goods and Services that have not been captured in the shareprices. Another issue CSA farms must consider is the competitive pressures fromconventional farms that receive agricultural subsidies from the U.S. government.In this paper, I discuss why the U.S. government should reconsider its agriculturalsubsidies program so that it supports sustainable farming practices.Another purpose is to discuss how we can study consumers’ willingness topay (WTP) for shares of a CSA farm based on people’s attitudes towards thedifferent characteristics of CSA. Past studies about CSA consumers have focusedon member satisfaction and what people value most using questionnaires whichask respondents to pick options they find most compelling. Despite variousproblems associated with the stated preference nature of contingent valuation(CV), a CV survey better captures what CSA consumers value most and how
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