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Living High on the Hog: Factory Farms, Federal Policy, and the Structural Transformation of Swine Production AgEcon
Starmer, Elanor; Wise, Timothy A..
U.S. farm policy reforms in 1996 produced significant overproduction of supported crops, with prices falling to levels that were often below average farm production costs. Among the beneficiaries of the policy shift were the largest corporate purchasers of supported crops, as they saw a steady supply of low-priced inputs. Industrial livestock firms were among the most significant buyers of U.S. corn and soybeans, the main components of livestock feed. Filling an important gap in the literature, this paper estimates the savings to industrial hog operations between 1997 and 2005 from feed components priced at levels below their production costs. The savings are found to be significant. We also find that industrial hog companies benefited from weak federal...
Tipo: Working or Discussion Paper Palavras-chave: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Industrial Organization; Livestock Production/Industries; Production Economics.
Ano: 2007 URL: http://purl.umn.edu/37709
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Feeding the Factory Farm: Implicit Subsidies to the Broiler Chicken Industry AgEcon
Starmer, Elanor; Witteman, Aimee; Wise, Timothy A..
Since the passage of the 1996 Farm Bill, the U.S. market prices of soybeans and corn have dropped 21% and 32%, respectively. These commodities are sold on the market at a price below what they cost to produce. If U.S. agricultural policies contribute to this trend, then they do so to the benefit of commodity purchasers, particularly the industrial operations that use the commodities as raw material inputs. Corporate-owned livestock operations are a case in point. This paper focuses on the broiler chicken industry, which, in the United States, is fully industrialized and vertically integrated. We compare the average costs of production for broiler feed components—corn and soybean meal—with market prices, and then use these cost-price margins to estimate the...
Tipo: Working or Discussion Paper Palavras-chave: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Farm Management; Food Consumption/Nutrition/Food Safety; Industrial Organization; Livestock Production/Industries; Political Economy; Production Economics.
Ano: 2006 URL: http://purl.umn.edu/37162
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