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Abstract
This paper examines the complex relationship between urbanization and high-value crops
production in the US. High-value products (HVPs) are defined to include farms
producing fruit, vegetable, and greenhouse and nursery crops. Analysis of historical
(1949-2002) shifts in production and redefinitions of metropolitan counties shows that
HVPs production has been highly concentrated in metropolitan counties but in stable
proportions, especially in the Northeast, Southeast and Pacific regions. To help
understand these spatial relationships, a model of location and production is developed to
emphasize how urbanization economies, agglomeration economies, and firm-specific
factors affect the HVP production. The model is implemented for the greenhouse/nursery
sector in the Northeast. Results show that current greenhouse/nursery production levels
are positively correlated across counties. A critical element in assuring the continued
economic vibrancy of greenhouse/nursery business will depend on operators adapting to
increased competition for land in metropolitan areas while exploiting the marketing
options offered by proximity to a growing number of non-farm residents.