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Abstract
In this paper we seek to improve understanding of the dynamics of perennial crop
supply by comparing acreage change on land owned by incumbents compared to landown
ers entering or exiting perennial crop production. Spatially explicit land cover and land
ownership data is integrated at the field level which provides a novel data set for analyzing
supply changes at the level of the landowner. We contend that, in contrast to annual crops
where operators drive crop choice, the landowner is the primary decision maker when de
termining whether to plant orchards or vineyards due to associated establishment costs
and the long investment time horizon. This motivates viewing the landowner as the firm
within the context of the existing literature on firm entry and exit, which has primarily
focused on manufacturing. Results from our analysis generally agree with findings from
the existing literature on manufacturing. This provides a foundation for future research
that incorporates related theory that posits causal relationships and connects entry and
exit at the firm level with market level dynamics.