Urbanization and the Viability of Local Agricultural Economies

JunJie Wu, Monica Fisher and Unai Pascual


Urbanization presents both opportunities and challenges for farmers and farm-supporting sectors on the urban fringe. This paper examines the effects of urbanization on the viability of input suppliers and output processors and on the cost and profitability of farming. An analytical model is developed to provide insights into such effects. This model motivates a multiple-equation empirical model that we estimate using county-level panel data for California, Idaho, Oregon, and Washington. Results provide evidence that urbanization has a significant impact on agricultural infrastructure, farm production costs, and net farm income and suggest that agriculture-related opportunities of urbanization outweigh the challenges. (JEL O18)

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.