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Product Differentiation and Segregation in Agricultural Systems: Non-Genetically Modified and Specialty Corn and Soybean Crops in Iowa

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Author Info
Miranowski, John
Jensen, Helen H.
Batres-Marquez, S. Patricia
Ishdorj, Ariun

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Abstract

An important dimension of product differentiation and segregation for specialty crops is the added handling and transaction costs incurred. Some forms of business organization may realize lower costs of providing such services, and if specialty crop production is growing relative to commodity production, these two factors may have implications for industry structure. We use data from an Iowa grain handling survey to test hypotheses developed in the non-empirical transaction-costs literature with respect to organizational and financial governance of cooperatives and private and corporate firms. Preliminary results are discussed with respect to business organizations, added costs, investments, crops, and contracting. Keywords: contracting, cooperatives, corporations, grain handling, industry structure, segregation, specialty crops, transaction costs

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11433.

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Date of creation: 24 Feb 2004
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Handle: RePEc:isu:genres:11433

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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  1. Hendrikse, George W. J. & Veerman, Cees P., 2001. "Marketing cooperatives and financial structure: a transaction costs economics analysis," Agricultural Economics, Blackwell, vol. 26(3), pages 205-216, December. [Downloadable!] (restricted)
  2. Hart, Oliver & Moore, John, 1996. "The Governance of Exchanges: Members' Cooperatives versus Outside Ownership," Oxford Review of Economic Policy, Oxford University Press, vol. 12(4), pages 53-69, Winter.
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  3. Sykuta, Michael E & Cook, Michael L, 2001. " A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(5), pages 1273-79. [Downloadable!] (restricted)
  4. Hendrikse, George W J & Bijman, Jos, 2002. " Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(1), pages 104-19, February. [Downloadable!] (restricted)
  5. Bonin, John P & Jones, Derek C & Putterman, Louis, 1993. "Theoretical and Empirical Studies of Producer Cooperatives: Will Ever the Twain Meet?," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1290-320, September. [Downloadable!] (restricted)
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