The location of food manufacturing plant investments in corn belt counties

Capturing value-added activity is often promoted as a rural development str ategy, but this is difficult for specific communities lacking the resources to support food manufacturing activity. This study analyzes the relationsh ip between local attributes and food manufacturing plant investments in Cor n Belt counties between 1987 and 1995. Plant investment locations tend to o ccur in counties with access to input and product markets, developed transp ortation networks, agglomeration economies, favorable fiscal policies, and a low wage environment. Supply-oriented firms locate near agricultural comm odities and low-cost labor, Demand-oriented firms favor locations near prod uct markets and transportation systems.