WHY ARE FARMS GETTING LARGER? THE CASE OF THE U.S.

Agricultural production continues to shift to larger farms in the U.S. I show that the shift is persistent over time, large, and ubiquitous across commodities. I review theories of farm size, and classify three channels for analysis: 1) scale effects, through technological economies and managerial diseconomies; 2) the roles of relative factor prices and factor shares; and 3) policy and institutions. Finally, I evaluate the empirical evidence on the forces driving structural change, distinguishing between crops and livestock because of important differences in the role of scale economies and coordination, and I offer some directions for the future.


Subject(s):
Issue Date:
2011
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/115361
Total Pages:
48




 Record created 2017-04-01, last modified 2017-12-04

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