Abstract
Utilizing four counties in western North Carolina as a study area, this paper examines the existence of a critical mass threshold in agricultural production below which crucial support services could be expected to close down or relocate outside the region. Twenty-two key stakeholder interviews suggest that for most support service businesses, no such critical mass threshold exists at the regional level. For those support service types most at-risk, an IMPLAN model was utilized to determine the economic impact to the region.
Highlights
The structure of the American agriculture is decidedly changed from that of the previous century
Utilizing four counties in western North Carolina as a study area, this paper examines the existence of a critical mass threshold in agricultural production below which crucial support services could be expected to close down or relocate outside the region
Twenty-two key stakeholder interviews suggest that for most support service businesses, no such critical mass threshold exists at the regional level
Summary
The structure of the American agriculture is decidedly changed from that of the previous century. The research provides local policy makers with evidence for and against the existence of a critical mass threshold and highlights which support service categories may be most at-risk These techniques, and the challenges faced by western North Carolina, are generalizable to other rural regions, especially those in Appalachia and other mountainous regions. One likely reason more institutions do not pursue these types of market interventions is that farmland preservation and agritourism initiatives cost much less, compared to building new processing, distribution, or sales facilities Despite this relative lack of domestic attention, economic theory suggests that for those concerned with the long-term economic sustainability of local agriculture, the promotion and maintenance of a viable system of agricultural support products, services, and institutions should remain a core concern. The IMPLAN economic model leverages inputs developed during the interview phase to estimate the potential magnitude of the impact that these trends might impose on the region’s economy
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