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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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  • Miranowski, John A.
  • Jensen, Helen H.
  • Batres-Marquez, S. Patricia
  • Ishdorj, Ariun

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.

Suggested Citation

  • Miranowski, John A. & Jensen, Helen H. & Batres-Marquez, S. Patricia & Ishdorj, Ariun, 2004. "Product Differentiation And Segregation In Agricultural Systems: Non-Genetically Modified And Specialty Corn And Soybean Crops In Iowa," Hebrew University of Jerusalem Archive 18323, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18323
    DOI: 10.22004/ag.econ.18323
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    References listed on IDEAS

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    1. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
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    4. George Hendrikse & Jos Bijman, 2002. "Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 104-119.
    5. Hart, Oliver & Moore, John, 1996. "The Governance of Exchanges: Members' Cooperatives versus Outside Ownership," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(4), pages 53-69, Winter.
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