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Environmental Regulations and the Structure of U.S. Hog Farms

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  • Nene, Gibson
  • Azzam, Azzeddine M.
  • Schoengold, Karina

Abstract

The U.S hog production industry has been continually subjected to rapid structural changes since the early 1990s. The industry's move towards more concentrated large hog farms and geographical concentration of such farms, have triggered public concerns over the dangers such big animal feeding operations are likely to pose to the waters of the country. This study investigates the implications of state-level environmental regulations on the structure of hog farms. The results of this study suggest that environmental regulations will result in one of three possible scenarios: (1) a more competitive industry in which small hog operations are not adversely affected which will allow more small operations to enter rather than exit the industry; (2) a more concentrated hog production industry in which large operations survive while small operations exit the industry; (3) no change in the structure of the industry where both sizes of operations are not significantly affected by environmental stringency.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49395.

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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49395

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Keywords: Perfect competition; U.S. hog production industry; Environmental regulations; Environmental Economics and Policy; Livestock Production/Industries;

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  1. Herath, Deepananda P.B. & Weersink, Alfons & Carpentier, Chantal Line, 2003. "Spatial Dynamics Of The Livestock Sector In The United States: Do Environmental Regulations Matter?," 2003 Annual meeting, July 27-30, Montreal, Canada 22059, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
  3. Ronald A. Fleming, 1999. "The Economic Impact of Setback Requirements on Land Application of Manure," Land Economics, University of Wisconsin Press, vol. 75(4), pages 579-591.
  4. Michael L. Katz & Harvey S. Rosen, 1983. "Tax Analysis in an Oligopoly Model," NBER Working Papers 1088, National Bureau of Economic Research, Inc.
  5. Hamilton, Stephen F., 1999. "Demand shifts and market structure in free-entry oligopoly equilibria," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 259-275, February.
  6. Weersink, Alfons & Raymond, Mark, 2007. "Environmental regulations impact on agricultural spills and citizen complaints," Ecological Economics, Elsevier, vol. 60(3), pages 654-660, January.
  7. Deepananda P. Herath & Alfons J. Weersink & Chantal L. Carpentier, 2005. "Spatial and Temporal Changes in the U.S. Hog, Dairy, and Fed-Cattle Sectors, 1975–2000," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 49-69.
  8. Jeffrey M. Gillespie & Joan R. Fulton, 2001. "A Markov chain analysis of the size of hog production firms in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 557-570.
  9. Fleming, Ronald & Babcock, Bruce A. & Wang, Erda, 1998. "Resource or Waste? The Economics of Swine Manure Storage and Management," Staff General Research Papers 1087, Iowa State University, Department of Economics.
  10. Stephen F. Hamilton & David L. Sunding, 1997. "The Effect of Farm Supply Shifts on Concentration and Market Power in the Food Processing Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 524-531.
  11. Key, Nigel D. & McBride, William D., 2007. "The Changing Economics of U.S. Hog Production," Economic Research Report 6389, United States Department of Agriculture, Economic Research Service.
  12. David L. Sunding, 1996. "Measuring the Marginal Cost of Nonuniform Environmental Regulations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1098-1107.
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