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Abstract

Profound change is occurring in the structure of the agricultural sector. These changes are likely to impact lenders as well as producers, input suppliers, and output processors/handlers. One facet of the structural change is what is likely to happen with respect to size and control of farming operations. To the extent structural transformations are driven by genuine economic efficiencies, objectors are unlikely to prevail. However, structural changes occurring as a result of exploitation of market power are less secure and may, indeed, be challenged. The challenge for policy makers is to take the long view in assessing the possible consequences of the revolution in structure occurring in agriculture.

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