Q. How concentrated is U.S. agricultural production?
A. In farm structure discussions, concentration
of production
is now a bigger issue than the declining number of farms.
Census of agriculture data show that farm production has
become more concentrated over time. For example, 17 percent
of U.S. farms produced 50 percent of farm sales in 1900,
compared with only 2 percent of farms in 1997. On the
other hand, the 17-percent figure for 1900 also indicates
that some concentration already existed a century ago.
Production was not evenly distributed across all farms
in 1900.
Examining concentration in other industries
provides perspective on concentration in farm production.
Farming remains much less concentrated than other industries.
The 2 percent of U.S. farms accounting for half of agricultural
sales in 1997 actually includes 46,100 farm operations,
far too many for any individual farmer to hold much
market power. In most industries, concentration is not
considered a policy issue until a small number of firms—such
as two to four—comes to dominate the industry.
Reference
Stanton, B.F. "Changes in Farm Size and Structure in American
Agriculture in the Twentieth Century," Size, Structure, and
the Changing Face of American Agriculture. Arne Hallam
(ed.), Boulder, CO: Westview Press, 1993.
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