Consumer willingness to pay for locally grown products: the case of South Carolina

Abstract A contingent valuation framework is used to evaluate South Carolina consumers' willingness to pay for the “locally grown” characteristic (defined here as South Carolina grown) in produce and animal products and to identify the sociodemographic characteristics affecting consumer preferences for this characteristic. Findings show that South Carolina consumers are willing to pay an average premium of 27% for local produce and 23% for local animal products. Premiums for local products are influenced by age, gender, and income as well as by perceived product quality, a desire to support the local economy, patronage of farmers markets, and consumer ties to agriculture. JEL Categories: D12, Q13. © 2009 Wiley Periodicals, Inc.