Local Foods Go Downstream: Exploring the Spatial Factors Driving U.S. Food Manufacturing

Abstract

Manufacturing, specifically food and beverage production, is a key employer in rural areas and has linkages to the agricultural sector. Using data drawn from the National Establishment Time-Series for 2013–15, we explore what entrepreneurship, farm marketing channel innovations, and more traditional spatial factors influence the location decisions of food and beverage manufacturing establishment start-ups in the U.S. We find that traditional spatial decision factors still matter but, in addition, proxies for farm adoption of downstream innovations are also related to start-ups. We conclude by discussing implications of our findings for food market dynamics and rural economic development policy.