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Economic And Structural Relationships In U.S. Hog Production

Author

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  • McBride, William D.
  • Key, Nigel D.

Abstract

Rapid change in the size and ownership structure of U.S. hog production has created new and varied challenges for the industry. This report describes an industry becoming increasingly concentrated among fewer and larger farms, and becoming more economically efficient. These changes have not come without problems. The increasing market control and power concentrated among packers and large hog operations, and the manure management problem posed by an increasing concentration of hog manure on fewer operations, are paramount concerns. Addressing these concerns through regulations would likely impose economic costs that could be passed on to consumers. In addition, the relative mobility of the hog industry means that regulations could result in significant changes in the location of hog production facilities, with ripple effects in local economies. Balancing environmental and economic interests will challenge policymakers dealing with the implications of structural change in U.S. hog production.

Suggested Citation

  • McBride, William D. & Key, Nigel D., 2003. "Economic And Structural Relationships In U.S. Hog Production," Agricultural Economics Reports 33971, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uerser:33971
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    File URL: http://purl.umn.edu/33971
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    References listed on IDEAS

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    Cited by:

    1. Somwaru, Agapi & Zhang, Xiaohui & Tuan, Francis C., 2003. "China'S Hog Production Structure And Efficiency," 2003 Annual meeting, July 27-30, Montreal, Canada 22003, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    3. Ahearn, Mary Clare & Banker, David E. & MacDonald, James M., 2003. "Price And Nonprice Terms In U.S. Agricultural Contracts," 2003 Annual meeting, July 27-30, Montreal, Canada 21947, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. William D. McBride & Nigel Key & Kenneth H. Mathews, 2008. "Subtherapeutic Antibiotics and Productivity in U.S. Hog Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 270-288.
    5. Terence centner, 2004. "Developing institutions to encourage the use of animal wastes as production inputs," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 21(4), pages 367-375, January.
    6. Martinez, Stephen W., 2007. "The U.S. Food Marketing System: Recent Developments, 1997-2006," Economic Research Report 55962, United States Department of Agriculture, Economic Research Service.
    7. Anderson, John D. & Lacy, Curt & Forrest, Charlie S. & Little, Randall D., 2004. "Expected Utility Analysis of Stocker Cattle Ownership Versus Contract Grazing in the Southeast," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(03), December.
    8. Elanor Starmer, Aimee Witteman and Timothy A. Wise, "undated". "06-03 "Feeding the Factory Farm: Implicit Subsidies to the Broiler Chicken Industry"," GDAE Working Papers 06-03, GDAE, Tufts University.
    9. Yu, Li & Hurley, Terrance & Kliebenstein, James & Orazem, Peter, 2012. "A test for complementarities among multiple technologies that avoids the curse of dimensionality," Economics Letters, Elsevier, vol. 116(3), pages 354-357.
    10. Nigel Key, 2005. "How much do farmers value their independence?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 117-126, July.
    11. repec:oup:revage:v:27:y:2005:i:1:p:49-69. is not listed on IDEAS
    12. Colino, Evelyn V. & Irwin, Scott H. & Garcia, Philip, 2008. "How Much Can Outlook Forecasts be Improved? An Application to the U.S. Hog Market," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37620, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    13. Abler, David G., 2004. "Multifunctionality, Agricultural Policy, and Environmental Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
    14. Key, Nigel D. & McBride, William D., 2008. "Do Production Contracts Raise Farm Productivity? An Instrumental Variables Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
    15. Ahearn, Mary Clare & Korb, Penelope J. & Banker, David E., 2005. "Industrialization and Contracting in U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(02), August.
    16. Yu, Li & Hurley, Terrance M. & Kliebenstein, James B. & Orazem, Peter F., 2012. "Firm Size, Technical Change, and Wages in the Pork Sector, 1990-2005," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), August.
    17. Michael G. Hogberg & Kellie Curry Raper & James F. Oehmke, 2009. "Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 314-330.
    18. MacDonald, James M. & Perry, Janet E. & Ahearn, Mary Clare & Banker, David E. & Chambers, William & Dimitri, Carolyn & Key, Nigel D. & Nelson, Kenneth E. & Southard, Leland W., 2004. "Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities," Agricultural Economics Reports 34013, United States Department of Agriculture, Economic Research Service.
    19. Tonsor, Glynn T. & Featherstone, Allen M., 2006. "Heterogeneous Production Efficiency of Specialized Swine Producers," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35379, Southern Agricultural Economics Association.
    20. Key, Nigel D. & McBride, William D. & Mosheim, Roberto, 2006. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry, 1992-2004," 2006 Annual meeting, July 23-26, Long Beach, CA 21323, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Ronald Rich, 2008. "Fecal free: Biology and authority in industrialized Midwestern pork production," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 25(1), pages 79-93, January.
    22. Key, Nigel D., 2004. "Manure Application Standards and EQIP Payments: The Distribution of Economic and Environmental Costs and Benefits across US Hog Farms," 2004 Annual meeting, August 1-4, Denver, CO 19937, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    23. Timothy A. Wise, "undated". "05-07 "Identifying the Real Winners from U.S. Agricultural Policies"," GDAE Working Papers 05-07, GDAE, Tufts University.
    24. 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.
    25. Hoppe, Robert A. & Korb, Penelope J., 2006. "Understanding U.S. Farm Exits," Economic Research Report 7212, United States Department of Agriculture, Economic Research Service.

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