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U.S. Agriculture: Commercial and Large Producer Concentration and Implications for Agribusiness Segments

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  • Rios, Ana R.
  • Gray, Allan W.

Abstract

This study examines rate of concentration of farms and sales for aggregate farm production and crop and livestock activities during the 1982 to 2002 period. Data from the Census of Agriculture are used to calculate Theil's relative entropy measure as an indicator of concentration. Results indicate that Grain segments are lagging behind cotton, potato and hog segments in terms of concentration of total sales, while concentration in the dairy segment appears to be gaining steam. Agribusiness serving less concentrated industry segments should look to the more concentrated segments as leading indicators for effective marketing strategies as concentration increases.

Suggested Citation

  • Rios, Ana R. & Gray, Allan W., 2005. "U.S. Agriculture: Commercial and Large Producer Concentration and Implications for Agribusiness Segments," 2005 Annual meeting, July 24-27, Providence, RI 19136, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19136
    DOI: 10.22004/ag.econ.19136
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    File URL: https://ageconsearch.umn.edu/record/19136/files/sp05ri05.pdf
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    References listed on IDEAS

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    1. 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.
    2. Sporleder, Thomas L., 1974. "Entropy Measures of Spatial Concentration in Poultry Processing," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 6(1), pages 133-137, July.
    3. repec:ags:joaaec:v:30:y:1998:i:2:p:285-99 is not listed on IDEAS
    4. Hubbell, Bryan J. & Welsh, Rick, 1998. "An Examination of Trends in Geographic Concentration in U.S. Hog Production, 1974–96," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(2), pages 285-299, December.
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    Cited by:

    1. Blank, Steven C. & Volpe, Richard J. III & Erickson, Kenneth W., 2008. "The relationship between industry structure and production contracting: raising questions at the beginning of a trend," 2008 Annual Meeting, June 23-24, 2008, Big Sky, Montana 291743, Western Agricultural Economics Association.

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