IDEAS home Printed from https://ideas.repec.org/p/ags/aaea09/49395.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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.

Suggested Citation

  • Nene, Gibson & Azzam, Azzeddine M. & Schoengold, Karina, 2009. "Environmental Regulations and the Structure of U.S. Hog Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49395, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49395
    DOI: 10.22004/ag.econ.49395
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/49395/files/AAEA%20final%20paper.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.49395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael L. Katz & Harvey S. Rosen, 1985. "Tax Analysis in an Oligopoly Model," Public Finance Review, , vol. 13(1), pages 3-20, January.
    2. 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.
    3. Herath, Deepananda P.B. & Weersink, Alfons & Carpentier, Chantal Line, 2005. "Spatial Dynamics of the Livestock Sector in the United States: Do Environmental Regulations Matter?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-24, April.
    4. 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.
    5. Roka, Fritz M. & Hoag, Dana L., 1996. "Manure Value and Liveweight Swine Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(1), pages 193-202, July.
    6. Joan Fulton & Jeffrey Gillespie, 1995. "Emerging Business Organizations in a Rapidly Changing Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1219-1224.
    7. 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.
    8. Ronald A. Fleming & Bruce Babcock & Erda Wang, 1998. "Resource or Waste? The Economics of Swine Manure Storage and Management," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 96-113.
    9. V. James Rhodes, 1995. "The Industrialization of Hog Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(2), pages 107-118.
    10. 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.
    11. Terence Centner & Jeffrey Mullen, 2002. "Enforce Existing Animal Feeding Operations Regulations to Reduce Pollutants," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 16(2), pages 133-144, April.
    12. 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.
    13. Weersink, Alfons & Raymond, Mark, 2007. "Environmental regulations impact on agricultural spills and citizen complaints," Ecological Economics, Elsevier, vol. 60(3), pages 654-660, January.
    14. 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.
    15. Huang, Wen-yuan & Magleby, Richard & Christensen, Lee, 2005. "Economic Impacts of EPA's Manure Application Regulations on Dairy Farms with Lagoon Liquid Systems in the Southwest Region," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(1), pages 209-227, April.
    16. Roka, Fritz M. & Hoag, Dana L., 1996. "Manure Value And Liveweight Swine Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(1), pages 1-10, July.
    17. Ribaudo, Marc & Agapoff, Jean & Cattaneo, Andrea, 2003. "Can Eqip Be Effective In Helping Farmers Meet Manure Management Goals?," 2003 Annual meeting, July 27-30, Montreal, Canada 22025, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. 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.
    19. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azzeddine Azzam & Gibson Nene & Karina Schoengold, 2015. "Hog Industry Structure and the Stringency of Environmental Regulation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 333-358, September.
    2. Abay Mulatu & Ada Wossink, 2014. "Environmental Regulation and Location of Industrialized Agricultural Production in Europe," Land Economics, University of Wisconsin Press, vol. 90(3), pages 509-537.
    3. Sneeringer Stacy E, 2009. "Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-35, July.
    4. Fertő, Imre & Csonka, Arnold, 2017. "Válság- és agglomerációs hatások a magyarországi sertéstartásban [Crisis and agglomeration in Hungary s pig production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 105-122.
    5. Ribaudo, Marc & Agapoff, Jean, 2005. "Importance of Cost Offsets for Dairy Farms Meeting a Nutrient Application Standard," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-12, October.
    6. Stonehouse, D. P. & de Vos, G. W. & Weersink, A., 2002. "Livestock manure systems for swine finishing enterprises," Agricultural Systems, Elsevier, vol. 73(3), pages 279-296, September.
    7. Huang, Haixiao & Miller, Gay Y., 2003. "Manure Value, Pricing Systems, And Swine Production Decisions," 2003 Annual meeting, July 27-30, Montreal, Canada 22233, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Huang, Wen-Yuan & Magleby, Richard S. & Somwaru, Agapi, 2001. "The Economic Impacts Of Alternative Manure Management Regulations On Hog Farms In The Heartland: An Individual-Farm Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20676, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Csonka, Arnold & Fertő, Imre, 2016. "Crisis and Agglomeration in the Hungarian Hog Sector," 149th Seminar, October 27-28, 2016, Rennes, France 244787, European Association of Agricultural Economists.
    10. Kaplan, Jonathan D. & Johansson, Robert C., 2003. "When The !%$? Hits The Land: Implications For Us Agriculture And Environment When Land Application Of Manure Is Constrained," 2003 Annual meeting, July 27-30, Montreal, Canada 22002, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. 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.
    12. Key, Nigel D. & McBride, William D. & Mosheim, Roberto, 2008. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-13, April.
    13. Herath, Deepananda P.B. & Weersink, Alfons, 2004. "The Locational Determinants Of Large Livestock Operations: Evidence From The U.S. Hog, Dairy, And Fed-Cattle Sectors," 2004 Annual meeting, August 1-4, Denver, CO 19927, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Sneeringer, Stacy & Hogle, Regina, 2008. "Variation in Environmental Regulations in California and Effects on Dairy Location," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 133-146, October.
    15. Alfons Weersink & Christin Eveland, 2006. "The Siting of Livestock Facilities and Environmental Regulations," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 159-173, March.
    16. Blemings, Benjamin T. & Bock, Margaret & Scarcioffolo, Alexandre, 2022. "Hoggin' the Road: Negative Road Externalities of Pork Slaughterhouses," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322466, Agricultural and Applied Economics Association.
    17. McBride, William D. & Key, Nigel D., 2003. "Economic And Structural Relationships In U.S. Hog Production," Agricultural Economic Reports 33971, United States Department of Agriculture, Economic Research Service.
    18. Fleming, Ronald A., 1998. "Using Setback Requirements As An Economic Incentive To Reduce Livestock Waste Odors," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20838, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Laroche Dupraz, C. & Postolle, A., 2013. "Food sovereignty and agricultural trade policy commitments: How much leeway do West African nations have?," Food Policy, Elsevier, vol. 38(C), pages 115-125.
    20. Jianyu Yu & Zohra Bouamra-Mechemache, 2016. "Production standards, competition and vertical relationship," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(1), pages 79-111.

    More about this item

    Keywords

    Environmental Economics and Policy; Livestock Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea09:49395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.