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Abstract
The economic impact of rural community size on retail sales is analyzed using a multicommunity approach. The Conservation Reserve Program is used to illustrate how farm policy initiatives which change personal farm income affect community retail sales in different sized communities. Regression coefficients are estimated and hypotheses tested which help interpret the interdependent nature of the retail sector within multicommunity clusters. The approach provides a framework which helps explain why some communities are becoming retail growth centers while the retail sector in other adjacent communities is stagnating or declining. An increased understanding of the consumer processes occurring between adjacent communities may help local leaders develop strategies for coping with future changes in local economies.