Value-Added Ag-Based Economic Development: A Panacea or False Promise? Part Two of a Two-Part Companion Series: What is Value-Added and How Do We Study It?
Streeter, Deborah H.; Bills, Nelson L.
This paper is the second in a two-part companion series on Value-Added Ag-Based Economic Development. In the first part of the series, we focused on the definition of value-added and the difficulty of deciphering household income attributed to value-added activities. In particular, we constructed a framework for understanding range and characteristics of economic activities of the farm household outside commodity production. In this paper, we outline what policymakers and others hope to achieve through value-added agricultural development and examine whether there is any theoretical or empirical basis for such expectations. Using the framework and definitions developed in the first paper, we examine a range of economic activities (both value-added and parallel deployment of resources) and argue that they are not all created equal when it comes to income enhancement, regional employment and land use.
WP 2003-08 February 2003
Charles H. Dyson School of Applied Economics and Management, Cornell University