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Local Effects of Hog Production on Farm and Non-Farm Economic Outcomes

  • Sneeringer, Stacy E.
  • Hertz, Thomas

In the past 20 years the average scale of hog operations has expanded more than fourfold, and some of the new large-scale hog feeding operations have been opposed by residents in some communities. While the environmental effects of such production have been relatively well studied, less examined are its potential positive effects on local labor markets and economies. Existing estimates based on production-function and input-output analysis imply that each additional 1000 hogs in inventory in a county generates between 3 and 7 local jobs. In this paper we adopt an econometric approach instead, to estimate the effects of changes in hog production on changes in both farm and non-farm outcomes. We find that total county employment increases by less than previously reported, with about two additional jobs being created per 1000 head of hogs in inventory.

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File URL: http://purl.umn.edu/61463
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Paper provided by Agricultural and Applied Economics Association in its series 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado with number 61463.

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Date of creation: 2010
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Handle: RePEc:ags:aaea10:61463
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  1. Georgeanne M. Artz & Peter F. Orazem & Daniel M. Otto, 2007. "Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 557-570.
  2. David Neumark & Junfu Zhang & Stephen Ciccarella, 2005. "The Effects of Wal-Mart on Local Labor Markets," NBER Working Papers 11782, National Bureau of Economic Research, Inc.
  3. Artz, Georgeanne M. & Jackson, Rebecca & Orazem, Peter F., 2010. "Is It a Jungle Out There? Meat Packing, Immigrants, and Rural Communities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), August.
  4. Georgeanne M. Artz & Kenneth E. Stone, 2006. "Analyzing the Impact of Wal-Mart Supercenters on Local Food Store Sales," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1296-1303.
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