Article

Impacts Of Concentration In Hog Production On Economic Growth In Rural Illinois: An Econometric Analysis

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Abstract

This article incorporates a political decision process into an urban land use model to predict the likely location of a public good. It fills an important gap in the literature by modeling the endogenous location of open space. The article compares open space decisions made under a majority-rules voting scheme with welfare-improving criterion and finds households tied to a location in space compete against each other for public goods located nearer them. Significant differences emerge between the two decision criteria, indicating that requiring referenda for open space decisions is likely to lead to inefficient outcomes. Specifically, many open space votes are likely to fail that would lead to welfare improvements, and any open space decisions that do pass will require amenities larger than needed to achieve the social optimum. The more dispersed and large the population, the larger is the gap between the socially efficient level and the level needed for a public referendum to pass.

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... Retail trade: decreased retail trade and fewer, less diverse retail firms. (Goldschmidt 1978a;Heady and Sonka 1974;Rodefeld 1974;Fujimoto 1977;Marousek 1979;Swanson 1980;Skees and Swanson 1988;Foltz et al, 2002;Foltz & Zueli, 2005, Smithers, 2004Gomez & Zhang, 2000) 8. ...
... Regional Economic Impact Models: Results of analysis from several recent economic impact models (Gomez and Zhang, 2000;Deller, 2003;Foltz, et al., 2002) indicate that industrial agriculture poses detrimental effects to community well being. ...
... The results of one study in Illinois (Gomez and Zhang, 2000) found that large hog farms actually hinder economic growth in rural communities. In a study of 2240 non-metropolitan US counties, Deller (2003) found that large scale agriculture, measured in sales and value added, and counties' dependence on agriculture, tends to result in lower levels of economic growth. ...
... Recent studies, including those in the Midwest, reveal tendencies of economic decline in communities with greater concentration of CAFOs, similar to Goldschmidt's thesis of greater rural community decline with greater industrialization of agriculture. The econometric analysis conducted by Gomez and Zhang (2000) over a decade revealed the negative impact of swine CAFOs on economic growth in rural Illinois counties, as indicated by sales tax receipts. They found that purchases from small businesses declined as concentration of CAFOs intensified. ...
... (1988, p. 63.) Recent studies, including those in the Midwest, reveal tendencies of economic decline in communities with greater concentration of CAFOs, similar to Goldschmidt's thesis of greater rural community decline with greater industrialization of agriculture. The econometric analysis conducted by Gomez and Zhang (2000) over a decade revealed the negative impact of swine CAFOs on economic growth in rural Illinois counties, as indicated by sales tax receipts. They found that purchases from small businesses declined as concentration of CAFOs intensified. ...
... 6. Community services: fewer or poorer quality public services, fewer churches (Tetreau, 1940;Fujimoto, 1977;Goldschmidt, 1978a;Swanson, 1980). 7. Retail trade: decreased retail trade and fewer, less diverse retail firms (Goldschmidt, 1978a;Heady and Sonka, 1974;Rodefeld, 1974;Fujimoto, 1977;Marousek, 1979;Swanson, 1980;Skees and Swanson, 1988;Gomez and Zhang, 2000;Foltz et al., 2002;Smithers et al., 2004;Foltz and Zueli, 2005). 8. Reduced enjoyment of property: deterioration of landscape, odor in communities with hog CAFOs Wing and Wolf, 1999;Wing and Wolf, 2000;Wright et al., 2001;McMillan and Schulman, 2003;Reisner et al., 2004;Constance and Tuinstra, 2005). ...
... b Fujimoto (1977), Goldschmidt (1978b), Buttel and Larson (1979), Swanson (1980), MacCannell (1988), Durrenberger and Thu (1996), Lyson et al. (2001), Peters (2002), Wilson et al. (2002), Crowley and Roscigno (2004), Smithers et al. (2004), Lyson and Welsh (2005). c Gomez and Zhang (2000), Foltz et al. (2002), Deller (2003). d Tetreau (1938Tetreau ( , 1940, Heffernan (1972), Rodefeld (1974), Martinson et al. (1976), Poole (1981), Wolf (1999, 2000), Reisner et al. (2004). ...
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Social scientists have a long history of concern with the effects of industrialized farming on communities. Recently, the topic has taken on new importance as corporate farming laws in a number of states are challenged by agribusiness interests. Defense of these laws often requires evidence from social science research that industrialized farming poses risks to communities. A problem is that no recent journal articles or books systematically assess the extent to which research to date provides evidence of these risks. This article addresses the gap in the literature. We evaluate studies investigating the effects of industrialized farming on community well-being from the 1930s to the present. Using a pool of 51 studies, we document the research designs employed, evaluate results as to whether adverse consequences were found, and delineate the aspects of community life that may be affected by industrialized farming. Of these studies, 57% found largely detrimental impacts, 25% were mixed, finding some detrimental impacts, and 18% found no detrimental impacts. Adverse impacts were found across an array of indicators measuring socioeconomic conditions, community social fabric, and environmental conditions. Few positive effects of industrialized farming were found across studies. The results demonstrate that public concern about industrialized farms is warranted. Scholars often debate whether research should be oriented around disciplines’ accumulated body of knowledge or, conversely, provide critical knowledge in the public interest. Social scientists’ long-term engagement in building the body of research on industrialized farming allows for accomplishment of both objectives.
... Besides the direct effects of agriculture on locale economies, agricultural production influences the location of upstream and downstream sectors (Drabenstott et al. 1999, Welsh et al. 2003) as well as local land use and, consequently, the supply of natural amenities. Natural amenities have an impact on the quality of life of the local population and may also provide input to other sectors (Taff 1996, Gómez and Zhang 2000, Herriges et al. 2005). In areas with increased spatial concentration of pig production there has been concern about the environmental impact of industrial pig production because several local areas dominated by such productions have witnessed environmental problems (Abdalla et al. 1995, Wossink and Wefering 2003). ...
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Infrastructure development is a priority on policy agendas in the EU and worldwide, because of the very high investment needs in basic infrastructure, especially in lagging behind regions and countries. The paper provides a descriptive analysis of the infrastructural gaps in EU transition economies at national and, as far as possible, regional level for some infrastructure sectors: transport, telecommunication, environment and energy. The analysis suggests that, on average, internal divergences in the infrastructures’ endowment are present between the urbanised capital cities regions and the peripheral and rural areas, in all the Member States; yet, the density and quality of such endowment is significantly higher in the Western countries and limited in the Eastern ones.
... Given the slim profit margins commonly available in commodity markets, it is not surprising that farms producing larger volumes are more likely to survive. Yet the loss of small-and medium-scale farms has been associated with many negative social and economic effects in rural communities (Goldschmidt 1947;Gomez and Zhang 2000;Lobao 1990;Lyson, Torres, and Welsh 2001;MacCannell 1988). ...
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The pasture-based model of agriculture potentially offers opportunities for small- and medium-scale livestock producers in local, regional, and national markets. Our data indicate that many consumers value the attributes associated with locally produced pasture-raised products. We used ordered probit and binary probit analyses of these data to identify the demographic segments that showed the greatest interest in these attributes. This interest suggests a broad education and marketing effort to articulate salient attributes and to differentiate and increase the availability of these products in the marketplace.
... Data in the study also showed that communities with heavy hog concentration suffered larger population losses than those with conventional hog operations. According to the authors, the results of this study suggest that without public policy to protect rural communities, the most probable outcome is the continuing decline of rural communities in the future as the size of agriculture and livestock production units continue to increase (Gómez and Zhang, 2000 ...
... For example, Chism and Levins (1994) found sharply decreased local farm-related expenditures as livestock operations in Minnesota communities increased in scale. Over a decade, purchases from small businesses, as measured by sales tax receipts, declined in rural communities in Illinois as the concentration of CAFOs intensified in communities (Gomez & Zhang, 2000). Large-scale CAFOs and contract feeders use animals, feed and supplies from non-local vertical integrators that purchase large volumes of feed and supplies from non-local sources. ...
... However, Kneafsey together with the co-authors [8] have concluded that local food systems, in which the production, processing, sales and consumption of food products take place within relatively small distances, make a significant positive effect on the local economy. Gómez and Zhang [5] have found that the economic aspects of local food depend on the performance of local farmers, and the demand for local and regional food has become the key driver in the farm-and community-based economy, creating new jobs and contributing to economic growth. ...
Chapter
Green procurement is a fast-growing trend in the European Union, and it positively affects the development of local territories. In Rezekne municipality, criteria for green public procurement (GPP) of food products are not employed by procuring institutions or it is done infrequently; therefore, the reasons that hinder the application of GPP criteria and motivate the introduction of the criteria in public food procurement operations have to be examined. The present research continues and supplements the previous ones. The authors of the paper have developed a questionnaire for a survey of experts aimed at identifying expert opinions about the implementation of GPP at municipal institutions to purchase food products. The research aim is to examine the factors that hinder local food sales through green public procurement in Rezekne municipality. The research results showed that the experts considered the fact that such “food products are free of genetically modified organisms” or they are healthy to be the most motivating factor after assessing all the factors motivating municipal institutions to implement GPP to purchase food products. Assessing the expected results of use of GPP as a sustainable food system, the experts rated the factor “Fostering environmentally friendly production methods” higher than the other ecological factors. Research methods used: monographic, descriptive, analysis, synthesis, statistical analysis, a sociological method – an expert survey.
... A similar study by MacCannell (1988) of comparable types of communities found that the concentration and industrialization of agriculture were associated with economic and community decline locally and regionally. Studies in Illinois (Gomez and Zhang 2000), Iowa (Durrenberger and Thu 1996), Michigan (Abeles-Allison and Conner 1990), and Wisconsin (Foltz et al. 2002) demonstrated decreased tax receipts and declining local purchases with larger operations. A Minnesota study (Chism and Levins 1994) found that the local spending decline was related to enlargement in scale of individual livestock operations rather than crop production. ...
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A consensus of the Workgroup on Community and Socioeconomic Issues was that improving and sustaining healthy rural communities depends on integrating socioeconomic development and environmental protection. The workgroup agreed that the World Health Organization's definition of health, "a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity," applies to rural communities. These principles are embodied in the following main points agreed upon by this workgroup. Healthy rural communities ensure a) the physical and mental health of individuals, b) financial security for individuals and the greater community, c) social well-being, d ) social and environmental justice, and e) political equity and access. This workgroup evaluated impacts of the proliferation of concentrated animal feeding operations (CAFOs) on sustaining the health of rural communities. Recommended policy changes include a more stringent process for issuing permits for CAFOs, considering bonding for manure storage basins, limiting animal density per watershed, enhancing local control, and mandating environmental impact statements.
... Second, agroindustrial animal production has had adverse economic effects. While producers face declining commodity prices associated with the technological treadmill (Cochrane 1993), the process of industrialization has led to declining property values for their neighbors, and it has restrained economic growth in rural communities (Abeles-Allison and Connor 1990; Gomez and Zhang 2000;Kilpatrick 2001). Third, the spatial concentration of the animals creates large volumes of environmentally hazardous waste, especially manure. ...
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Historically, the rules governing red meat food safety in the U.S. were driven as much by global trade and industry rationalization as by food safety. Contemporary and historical documents, statutes, and regulations; a survey of producer and farmers' market representatives; and key informant interviews show that these rules, and their implementation, have affected the current development of niche marketing opportunities. Three significant issues arise from this research: a) the elimination of the state meat inspections limits producer access to slaughter; b) the Hazard Analysis and Critical Control Points (HACCP) rule limits producer access to processing; and c) uncertainty at the local level limits producer access to direct markets. We conclude that the accumulated rules affect producers' quality of life; and they raise several issues about the relationship between sustainability and policy including barrier mitigation, balancing competing qualities, and the effects of the broader policy context.
... Data in the study also showed that communities with heavy hog concentration suffered larger population losses than those with conventional hog operations. According to the authors, the results of this study suggest that without public policy to protect rural communities, the most probable outcome is the continuing decline of rural communities in the future as the size of agriculture and livestock production units continue to increase (Gómez and Zhang, 2000). A second study by Gómez of 248 towns in hog-producer counties covering the period 1981- 1999 demonstrate that smaller hog farms contribute to stronger rural economies and large hog farms are associated with lower economic growth. ...
... Data in the study also showed that communities with heavy hog concentration suffered larger population losses than those with conventional hog operations. According to the authors, the results of this study suggest that without public policy to protect rural communities, the most probable outcome is the continuing decline of rural communities in the future as the size of agriculture and livestock production units continue to increase (Gómez and Zhang, 2000). ...
... In contrast, the quality of jobs and pay for CAFOs workers places them at a socioeconomic disadvantage. Several studies have shown that siting of CAFOs in agriculturally dependent communities has resulted in greater income inequality (Lobao, 1990), increased dependency on state/federal aid (Durrenberger and Thu, 1996) weakened economic growth (Gomez and Zhang, 2000) and less local spending (Foltz et al., 2002). However, in studies that examined the perceptions of groups who are dependent on these types of jobs (including farm owners and workers, white and Hispanic males), support for CAFO siting and expansion is high and associated with feelings that CAFOs are economically positive for the community and important providers of jobs ...
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National security is a continuing topic of concern and part of that is the growing understanding of the connection to global crime. Often though only traditional national security issues, which are conceptualized around state sovereignty and military capability are addressed, and when exploring the criminal nexus only traditional or mainstream crimes, such as drug and weapons trafficking are analyzed. This article departs from this in two ways. First, it centers on the illegal wildlife trade, which consists of both animals and plants, and is an often overlooked green crime outside of mainstream criminological studies. Second, it argues that the illegal wildlife trade is not only a threat to national security, but also threatens other equally important non-traditional aspects of security. This article demonstrates that non-traditional security concerns and the marginalized crime of wildlife trafficking should be the focus of more research and government focus as it poses significant threats to environmental, human, economic, and national security.
... In the U.S. for example, "in 1996, 57 million pigs were distributed among one million farms; in 2001 these same 57 million pigs were raised on 80,000 farms, and over half were raised in just 5000 facilities" (Walker et al., 2005, p. 351). Rapid growth of factory farms for more profitability has displaced small farms, disrupted social and economic systems, increased unemployment and lowered the value of homes and real estate located nearby (Gomez & Zhang, 2000). One study of corporate hog farming in Oklahoma found that Seabord Farms' stockholders profited from arrangements in which taxpayers funded subsidies, interest-free loans, tax reductions and exemptions and provision of infrastructure. ...
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This paper addresses an area which has not been given serious consideration in social welfare and social work literature, the instrumental use of nonhuman animals, in particular as food, and argues that the welfare of humans and other animals are intertwined. The paper examines the consequences of animal exploitation for humans in terms of health, well-being, environmental damage, and exploitation of vulnerable human groups. The paper concludes that a necessary redefinition of social welfare entails attention to these issues and the recognition that other animals have inherent value and their rights must be respected.
... The social and economic well-being of communities does not benefit directly from the total production or sales of local farms; rather community benefits come from increasing the number of individual farms and farmers(Donham et al. 2007a). There is a clear negative relationship between farm concentration and economic growth and prosperity in surrounding communities(Gómez and Zhang 2000). There are significant social and economic benefits from large numbers of farms and farmers as opposed to farm concentration and research supports that communities with fewer total farms experience lower average family incomes, higher rates of poverty, and persistent low wages for farm workers (Pew Commission 2008). ...
... The economic aspects of local food depend on the performance of local farmers, and the demand for local and regional food has become the key driver in the farm-and communitybased economy, creating new jobs and contributing to economic growth (Gómez and Zhang, 2000). ...
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Technical Report
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Executive Summary 1. Livestock are raised in 208 countries around the world for human consumption. This sector provides meat-based protein, milk and supply raw material for other industrial products. It is estimated that globally between 600 million (Thornton et al., 2002; Thornton et al., 2009) and 1.3 billion (The World Bank, 2020; van de Steeg et al., 2009) people are dependent on livestock for their livelihood. Livestock contributes only 1.5 percent to the global economy. 2. Livestock production occupies up to 75 percent of global agricultural land (Foley et al., 2011) and up to 45 percent of the land surface of the planet (Ritchie and Roser, 2013). Livestock farming consumes 30 percent of agricultural freshwater (Mekonnen and Hoekstra, 2012; Ran et al., 2017), 58 percent of the economically appropriated plant biomass and farmed animals have come to dominate the biosphere with 60 percent of all mammals on the planet being domesticated. 3. From a nutritional and economic perspective, livestock products play a surprisingly small role in our diets and economy. Livestock products provide only 17 percent of average global calorie intake and 30 percent of average global protein intake (Mottet et al., 2017), and livestock now consume more human edible protein than they produce (Steinfeld et al., 2006a). 4. Total number of livestock estimated to be raised in 2018 are 28.6 billion. It includes 1.4 billion cattle, 206 million buffaloes, 1.2 billion sheep, a little over 1 billion goats, 978 million pigs, and 24 billion poultry. 5. Total greenhouse gas (GHG) emissions from the production of six types of livestock (cattle, buffaloes, sheep, goats, pigs and poultry) are estimated to be in the range of 10.7 – 16.9 gigatonnes (Gt) of CO2 equivalents (CO2e) assuming a global warming potential (GWP) for methane of 34 and 86 respectively. 6. This includes enteric fermentation (CH4) between 3.4 – 8.8 Gt CO2e, manure management (CH4) between 343 – 890 Mt CO2e, manure management (N2O) at 119 Mt CO2e, manure grazing (N2O) at 870 Mt CO2e, animal feed (CO2) at 143 Mt CO2e, fertiliser (N2O) at 253 Mt CO2e, fertiliser (CO2) at 291 Mt CO2e, crop residue (N2O) at 77 Mt CO2e, foregone soil carbon sequestration (CO2) at 1.4 Gt CO2e, LUC for pasture expansion (CO2) at 1.8 Gt CO2e, LUC for cropland expansion (CO2) at 141 Mt CO2e, degraded grazing land (CO2) at 244 Mt CO2e, animal respiration (CO2) at 1.86 Gt. 7. Our results show that, total livestock related emissions are in the range of 19.2 – 30.3 percent of the total anthropogenic global emissions from all economic sectors (55.6 Gt in 2018). 8. Our results include estimates for foregone soil carbon sequestration from the land that is used to grow animal feed, land use change (LUC) due to pasture and cropland expansion, degraded grazing land and includes animal respiration, However, we did not include transport, energy and processing related emissions due to lack of publicly available granular data at local to global scale. We assume that our estimates would significantly improve if we include energy, transport and processing related emissions. 9. We also estimated carbon sequestration potential from afforestation of cropland that is currently used to grow animal feed. It ranged from 38 Gt CO2 assuming low biomass estimates to 225 Gt CO2 assuming the highest estimates of biomass accumulation. 10. Further research can help to refine these estimates by using granular data about each stage of livestock value chain 11. While we estimate total GHG emissions attributable to global livestock sector, there are several other environmental, social and health impacts that need further attention by future research, practice and policy.
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A number of studies have suggested a quantitatively important relationship between public-sector capital accumulation and private sector productivity, with the most compelling evidence derived from analyses of state-level data. estimates herein of production functions that use standard techniques to control for unobserved, state-specific characteristics, however, reveal essentially no role for public-sector capital in affecting private sector productivity. Only estimates of state production functions that do not include such controls find substantial productivity impacts. This result reconciles existing econometric estimates with the findings of Hulten and Schwab based on growth accounting techniques, as such techniques effectively control for state-specific effects. Region-level estimates are essentially identical to those from state data, suggesting no quantitatively important spillover effects across states. Copyright 1994 by MIT Press.
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This article incorporates a political decision process into an urban land use model to predict the likely location of a public good. It fills an important gap in the literature by modeling the endogenous location of open space. The article compares open space decisions made under a majority-rules voting scheme with welfare-improving criterion and finds households tied to a location in space compete against each other for public goods located nearer them. Significant differences emerge between the two decision criteria, indicating that requiring referenda for open space decisions is likely to lead to inefficient outcomes. Specifically, many open space votes are likely to fail that would lead to welfare improvements, and any open space decisions that do pass will require amenities larger than needed to achieve the social optimum. The more dispersed and large the population, the larger is the gap between the socially efficient level and the level needed for a public referendum to pass.
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This article incorporates a political decision process into an urban land use model to predict the likely location of a public good. It fills an important gap in the literature by modeling the endogenous location of open space. The article compares open space decisions made under a majority-rules voting scheme with welfare-improving criterion and finds households tied to a location in space compete against each other for public goods located nearer them. Significant differences emerge between the two decision criteria, indicating that requiring referenda for open space decisions is likely to lead to inefficient outcomes. Specifically, many open space votes are likely to fail that would lead to welfare improvements, and any open space decisions that do pass will require amenities larger than needed to achieve the social optimum. The more dispersed and large the population, the larger is the gap between the socially efficient level and the level needed for a public referendum to pass.
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This paper deals with location decisions of manufacturing firms in Spain. We analyse how agglomeration economies and, especially, transport accessibility influence location decisions of firms. During the 1990s there was an intense programme of high capacity road construction which improved accessibility to municipalities. We analyse the location decisions of firms at municipality level and in three industries. The main empirical contributions of this paper are the econometric techniques used (spatial econometrics models) and some of the explanatory variables (local added value, road accessibility, and the characteristics of firms in neighbouring municipalities). The results show that agglomeration economies (including road network improvements) are important in industrial location decision-making.