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Profitability, Land Reallocation, and Farm Structural Change: Evidence from U.S. Greenhouse, Nursery, and Floriculture Production

Author

Listed:
  • Kim, Minsu
  • Schmidt, Claudia
  • Goetz, Stephan J.
  • Tian, Zheng

Abstract

We examine how greenhouse, nursery, and floriculture (GNF) production affects farm viability and structural change in U.S. agriculture. Using state-level panel data from the U.S. Census of Agriculture and US State Energy Data System (SEDS) for 2012–2022, we estimate fixed-effects models and a competition-based land-allocation system. Greater shares of land devoted to GNF are associated with increases in total and average farm size, and declines in farm numbers, indicating land reallocation rather than farm entry. Higher productivity and government support increase GNF adoption, while higher productivity in the other sector reduces it. Non-GNF production is sensitive to temperature variation, whereas GNF is not, highlighting its role as a climate-resilient production system.

Suggested Citation

  • Kim, Minsu & Schmidt, Claudia & Goetz, Stephan J. & Tian, Zheng, 2026. "Profitability, Land Reallocation, and Farm Structural Change: Evidence from U.S. Greenhouse, Nursery, and Floriculture Production," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404715, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404715
    DOI: 10.22004/ag.econ.404715
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