Impacts of Technology Adoption: Comparing Returns to the Farming Sector in Maine under Alternative Technology Regimes

This thesis tests if certain technology choices are associated with a reduction in the proportion of farming activities in the agro-food system in Maine. Goodman, Sorj, and Wilkinson define appropriationism as the replacement of farming sector activities by industrial inputs. Based on the concept of appropriationism, industrial fanning systems using large amounts of synthetic inputs contribute less to fanning than more agrarian systems, like organic fanning. Thus, returns to the farming sector should be greater for organic compared with conventional potato fanning in Maine since organic farming uses fewer industrial inputs. Goodman et. al. define substitutionism as the displacement of farming sector commodities and activities by industrial processes in the marketing sector. Based on the concept of substitutionism, retunls to the fanning sector should be greater for Lay's ClassicBTM potato chips made from natural potatoes compared with Baked Lay'sBTM potato crisps manufactured from processed dehydrated potatoes. Returns to the fanning sector are defined as returns to the farnler or fann family from farming activities, returns to f a m ~ labor, and returns to fanners and farm labor producing inputs used on the farm. Results show absolute returns to the farming sector are less for organic compared to conventional tablestock potato fanns in Maine. However as a proportion of fann revenues, large organic fanns that market at least 25% of their produce to retail stores or directly to consumers do as well as conventional farms. When comparing returns as a proportion of consumer expenditures, these organic farms do better than conventional farnls. Returns to the farming sector are less for organic because of yield penalties, cost of marketing services, and diseconomies of size for organic tablestock potato farms. Expanding acreage and reintegrating livestock with cropping systems may increase returns to the fanning sector. Organic farming demonstrates difficulties in providing marketing services at the fann level. Providing marketing services limits the ability to expand production to capture economies of size. Maine organic potato fanners emphasize non-monetary values such as supporting sustainable agriculture, self-sufficiency, the intrinsic value of work, and close community and family connections. Returns to the farming sector as a proportion of consumer expenditures are about three times greater for Lay's ClassicBTM potato chips than for Baked Lay'sBTM potato crisps, since the value that fanners receive for potatoes used to produce dehydrated potato flakes in one pound of crisps is about half of the value that fanners receive for potatoes …