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Anti-Corporate Farming Laws and Industry Structure: The Case of Cattle Feeding

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  • Schroeter, John R.
  • Azzam, Azzeddine M.
  • Aiken, J. David

Abstract

Nine mid-western states have laws that restrict the involvement of publicly held corporations in agriculture. Opponents argue that the laws' direct efforts to regulate ownership structure may have an adverse indirect impact on size structure. Restricting corporate involvement might stifle the emergence and growth of efficient, large-scale establishments if corporations have advantages over other organizational forms in meeting capital requirements. Since 1982, Nebraska has had an anti-corporate farming law that prohibits corporate ownership of feedlots. We test whether the implementation of the Nebraska law had an impact on the stochastic process governing the evolution of the state's feedlot size distribution.

Suggested Citation

  • Schroeter, John R. & Azzam, Azzeddine M. & Aiken, J. David, 2006. "Anti-Corporate Farming Laws and Industry Structure: The Case of Cattle Feeding," Staff General Research Papers Archive 12491, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:12491
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    Cited by:

    1. Jürgen Wandel, 2011. "Business groups and competition in post-Soviet transition economies: The case of Russian “agroholdings”," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 403-450, December.
    2. Wandel, Jürgen, 2011. "Integrierte Strukturen im Agrar- und Ernährungssektor Russlands: Entstehungsgründe, Funktionsweise, Entwicklungsperspektiven und volkswirtschaftliche Auswirkungen. Band I und II," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 63, number 63.

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