Agribusiness firms: Location determinants and economic contribution

This article assesses factors influencing the location of agribusiness firms and evaluates their economic contribution to the local economy vis-a-vis other types of firms. Data are from a survey of 297 basic-sector firms (70 of which were agribusiness) in the Upper Midwest region. Factors affecting location decisions were found to differ significantly, both between agribusinesses and other firms and among agribusinesses of different types (e.g., food processors vs. farm machinery manufacturers). Agribusinesses employed fewer workers directly, but through their higher level of in-state purchases, they generated greater secondary (multiplier) effects. © 1992 John Wiley & Sons, Inc.