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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
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    File URL: http://purl.umn.edu/49395
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    References listed on IDEAS

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    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(01), April.
    4. 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.
    5. 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.
    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.
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    12. 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.
    13. 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.
    14. 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.
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    More about this item

    Keywords

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

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