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The Role of Craft Breweries in Expanding (Local) Hop Production

Published online by Cambridge University Press:  22 October 2019

Elizabeth A. Dobis
Affiliation:
Northeast Regional Center for Regional Development, The Pennsylvania State University, 7F Armsby Building, University Park, PA16802, United States.
Neil Reid
Affiliation:
Department of Geography and Planning, The University of Toledo, 2801 W. Bancroft St., Toledo, OH43606; e-mail: neil.reid@utoledo.edu.
Claudia Schmidt
Affiliation:
Department of Agricultural Economics, Sociology, and Education, The Pennsylvania State University, 207D Armsby Building, University Park, PA16802; e-mail: cschmidt@psu.edu.
Stephan J. Goetz
Affiliation:
Department of Agricultural Economics, Sociology, and Education and Northeast Regional Center for Regional Development, The Pennsylvania State University, 207C Armsby Building, University Park, PA16802; e-mail: sgoetz@psu.edu.

Abstract

Hop production has expanded dramatically in recent years along with the number of local craft breweries, but to date the relationship between these two phenomena has not been explored systematically. Using a state-level pooled count data model with observations from 2007, 2012, and 2017, we examine the independent lagged effects of breweries on the number of hop farms and acres grown, holding constant fixed effects and key economic and geographic factors. Our results confirm that the number of breweries is associated with more hop production (farms and acres) five years later, while warmer temperatures and higher land prices discourage it. (JEL Classifications: L66, Q11, R30)

Type
Articles
Copyright
Copyright © American Association of Wine Economists 2019

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Footnotes

This paper was presented at the 13th Annual Meeting of the American Association of Wine Economists in Vienna, Austria, 14–18 July 2019. We thank the editors and an anonymous referee for reviewing our paper and conference attendees for their helpful comments. This work was supported in part by the United States Department of Agriculture, National Institute of Food and Agriculture under grant 2018-51150-28696 and by the Pennsylvania State University and NIFA Multistate/Regional Research Appropriations under project NE1749. Any opinions expressed are strictly those of the authors and not of the funders.

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