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Explaining State Bans on Corporate Farming

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  • Knoeber, Charles R

Abstract

State laws banning corporate farming present a puzzle for a rent-seeking explanation of political outcomes since family farmer proponents may receive no direct benefit from these bans. An explanation, developed here, is that these farmers benefit indirectly. Forestalling corporate entry preserves the farm political coalition structured around those cooperatives patronized by family farmers and so indirectly preserves federal subsidies and supply restrictions. That the incidence of state bans is positively related to the importance of federal farm programs, the importance of cooperatives, and the homogeneity of farmers within a state is consistent with this indirect rent-seeking explanation. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Knoeber, Charles R, 1997. "Explaining State Bans on Corporate Farming," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 151-166, January.
    • Handle: RePEc:oup:ecinqu:v:35:y:1997:i:1:p:151-66
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    Cited by:

    1. Matthey, Holger & Royer, Jeffrey S., 1999. "Testing The Impact Of Corporate Farming Laws On Hog Industry Growth: A Partial Adjustment Approach," 1999 Annual meeting, August 8-11, Nashville, TN 21697, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Wachenheim, Cheryl J. & Saxowsky, David, 2003. "Profits and Risk: Fitting an Old Framework to a New Agriculture," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2003, pages 1-10.
    3. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    4. Adhikari, Bishwa B. & Harsh, Stephen B. & Cheney, Laura Martin, 2003. "Factors Affecting Regional Shifts Of U.S Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 22200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Chao Hu & Jianping Tao & Donghao Zhang & Damian Adams, 2021. "Price Signal of Tilled Land in Rural China: An Empirically Oriented Transaction Costs Study Based on Contract Theory," Land, MDPI, vol. 10(8), pages 1-20, August.

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