Hostname: page-component-76fb5796d-dfsvx Total loading time: 0 Render date: 2024-04-26T18:31:52.542Z Has data issue: false hasContentIssue false

The Effects of Large-Scale Hog Production on Local Labor Markets

Published online by Cambridge University Press:  26 January 2015

Stacy Sneeringer
Affiliation:
Economic Research Service, U.S. Department of Agriculture, Washington, DC
Tom Hertz
Affiliation:
Economic Research Service, U.S. Department of Agriculture, Washington, DC
Get access

Extract

Although the negative externalities of large-scale hog production have been well studied, econometric estimates of its potentially positive labor markets effects are lacking. We use the geographic shifts in large-scale hog production between 1992 and 2007 to estimate such production's effects on local farm and nonfarm labor markets. We find that every additional 1000 head at large-scale facilities in a county generates 0.57 additional large-scale hog operation jobs, 0.04 fewer small-scale hog operation jobs, 0.16 fewer nonhog-related agricultural jobs, and 0.59 additional nonfarm jobs, for a total of 0.96 jobs. Our total estimate is lower than previous ones based on input-output modeling.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abdallah, C.W., Lanyon, L.E., and Hallberg, M.C.. “What We Know about Historical Trends in Firm Location Decisions and Regional Shifts: Policy Issues for an Industrializing Animal Sector.American Journal of Agricultural Economics 77(1995):1229–36.10.2307/1243353Google Scholar
Abeles-Alison, M., and Connor, L.J.. “An Analysis of Local Benefits and Costs of Michigan Hog Operations Experiencing Environmental Conflicts.” Agricultural Economics Report. Dept. of Agricultural Economics, Michigan State University, East Lansing, MI, 1990.Google Scholar
Angrist, J.D., and Pischke, J.. Mostly Harmless Econometrics: An Empiricist's Companion. Princeton, NJ: Princeton University Press, 2009.Google Scholar
Artz, G.M., Orazem, P.F., and Otto, D.M.. “Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach.American Journal of Agricultural Economics 89(2007):557–70.10.1111/j.1467-8276.2007.01003.xGoogle Scholar
Artz, G.M., and Stone, K.E.. “Analyzing the Impact of Wal-Mart Supercenters on Local Food Store Sales.American Journal of Agricultural Economics 88(2006):1296–303.10.1111/j.1467-8276.2006.00948.xGoogle Scholar
Basker, E.Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion.The Review of Economics and Statistics 87(2005):174–83.10.1162/0034653053327568Google Scholar
Benjamin, G.L.Industrialization in Hog Production: Implications for Midwest Agriculture. Assessing the Midwest Economy.” Federal Reserve Bank of Chicago Economic Perspectives 21(December 1996). Internet site: www.chicagofed.org/digital_assets/publications/economic_perspectives/1997/epjf97a.pdf (Accessed November 5, 2012).Google Scholar
Black, D., McKinnish, T., and Sanders, S.. “The Economic Impact of the Coal Boom and Bust.The Economic Journal 115(2005):449–76.10.1111/j.1468-0297.2005.00996.xGoogle Scholar
Bureau of Economic Analysis. Local Area Personal Income and Employment Methodology. 2011. Internet site: www.bea.gov/regional/pdf/lapi2009.pdf#pagemode=bookmarks (Accessed January 5, 2012).Google Scholar
Donham, K.The Concentration of Swine Production: Effects on Swine Health, Productivity, Human Health, and the Environment.The Veterinary Clinics of North America. Food Animal Practice 16(2000):559–97.11084993Google Scholar
Ejimakor, G.County-Level Impact of Pork Production and Processing in North Carolina.Journal of Food Distribution Research 27(2006):5862.Google Scholar
Key, N., and McBride, J.. The Changing Economics of U.S. Hog Production. U.S. Dept. of Agriculture Economic Research Service Report 52, 2007. Internet site: www.ers.usda.gov/publications/err-economic-research-report/err52.aspx/(Accessed November 5, 2012).Google Scholar
Kim, J., Goldsmith, P., and Thomas, M.H.. “Economic Impact and Public Costs of Confined Animal Feeding Operations at the Parcel Level of Craven County, North Carolina.Agriculture and Human Values 27(2010):29–12.10.1007/s10460-009-9193-xGoogle Scholar
Lazarus, W.F., Platas, D.E., and Morse, G.W.. “IMPLAN's Weakest Link: Production Functions or Regional Purchase Coefficients.” Journal of Regional Analysis and Policy 32(2002a):33–18.Google Scholar
Lazarus, W.F., Platas, D.E., Morse, G.W., and Guess-Murphy, S.. “Evaluating the Economic Impacts of an Evolving Swine Industry: The Importance of Regional Size and Structure.Review of Agricultural Economics 24(2002b):458–73.10.1111/1467-9353.00109Google Scholar
MacDonald, J.M., Ollinger, M.E., Nelson, K.E., and Handy, C.R.. “Consolidation in US meatpacking.” Agricultural Economics Report 785, USDA Economic Research Service, 1999.Google Scholar
Mayen, C., and McNamara, K.T.. “The Economic Impact of the Indiana Livestock Industries.” Purdue University Extension publication ID-354. Undated. Internet site: www.extension.purdue.edu/extmedia/ID/cafo/ID-354.pdf (Accessed November 5, 2012).Google Scholar
McBride, J., and Key, N.. Characteristics and Production Costs of U.S. Hog Farms, 2004. U.S. Dept. of Agriculture Economic Research Service. Economic Information Bulletin 32, 2007. Internet site: www.ers.usda.gov/Publications/eib-economic-information-bulltein/EIB32.aspx/ (Accessed November 5, 2012).Google Scholar
Minnesota IMPLAN Group. IMPLAN Professional, Version 2.0 Social Accounting and Impact Analysis Software. 1st ed. Stillwater, MN: IMPLAN Group, 1999.Google Scholar
Newmark, D., Zhang, J., and Ciccarella, S.. The Effects of Wal-Mart on Local Labor Markets. Working Paper, National Bureau of Economic Research 11782, 2005.Google Scholar
North Central Regional Center for Rural Development. Bringing Home the bacon? The Myth of the Role of Corporate Hog Farming in Rural Revitalization. A report to the Ken-Center for Sustainable Agriculture, 1999. Internet site: www.kerrcenter.com/publications/hog_reportl.pdf (Accessed November 5, 2012).Google Scholar
Otto, D., and Kliebenstein, J.. The Economic Importance of the Iowa Pork Industry. 1999. Internet site: www.econ.iastate.edu/outreach/agriculture/AglmpactStudy/hogs/state.htm (Accessed April 20, 2010). See also links to individual county estimates on same web page.Google Scholar
Palmquist, R.B., Roka, RM., and Vukina, T.. “Hog Operations, Environmental Effects, and Residential Property Values.Land Economics 73(1997):114–24.10.2307/3147081Google Scholar
Pew Charitable Trusts and Johns Hopkins Bloomberg School of Public Health. Putting Meat on the Table: Industrial Farm Animal Production in America. A Report of the Pew Commission on Industrial Farm Animal Production. Undated. Internet site: www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports-Industrial_Agricultre/PCIFAP_FINAL.pdf (Accessed November 5, 2012).Google Scholar
Rhodes, V.J.The Industrialization of Hog Production.Review of Agricultural Economics 17(1995):107–18.10.2307/1349725Google Scholar
Roe, B.R., Irwin, E.G., and Sharp, J.S.. “Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions.American Journal of Agricultural Economics 84(2002):259–78.10.1111/1467-8276.00296Google Scholar
Rural America Solutions Group. Forum on “The EPA's Assault of Rural America: How New Regulations and Proposed Legislation are Stifling Job Creation and Economic Growth.” House Visitor Center, Room 201, 2010. Internet site: http://republicans.resourcescommittee.house.gov/Calendar/EventSingle.aspx?EventID=209032 (Accessed November 5, 2012).Google Scholar
Sanders, J.M.Planning Gone Hog Wild: Mega-Hog Farm in a Mountain West County.” Master of Science thesis. Provo, UT: Department of Geography, Brigham Young University, 2007.Google Scholar
Sneeringer, S.Does Animal Feeding Operation Pollution Hurt Public Health? A National Longitudinal Study of Health Externalities Identified by Geographic Shifts in Livestock Production.” American Journal of Agricultural Economics 91 (2009a):124–37.10.1111/j.1467-8276.2008.01161.xGoogle Scholar
Sneeringer, S.Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture.” The B.E. Journal of Economic Analysis and Policy 9(2009b) (Contributions), Article 31.Google Scholar
Sneeringer, S.A National, Longitudinal Study of the Effects of Concentrated Hog Production on Ambient Air Pollution.American Journal of Agricultural Economics 92(2010):821–35.10.1093/ajae/aap030Google Scholar
Sneeringer, S., and Hertz, T.. “Appendices for ‘The Effects of Large-Scale Hog Production on Local Labor Markets’.” 2012. AgEcon Search. Internet site: http://ageconsearch.umn.edu.Google Scholar
Steelman, T.A., Page, B., and Burton, L.. “Change on the Range: The Challenge of Regulating Large-Scale Hog Farming in Colorado.” Working Paper, University of Colorado Graduate School of Public Affairs, Denver, CO, 2004.Google Scholar
Stirm, J.E.W., and St. Pierre, N.R.. “Identification and Characterization of Location Decision Factors for Relocating Dairy Farms.Journal of Dairy Science 86(2003):3473–87.10.3168/jds.S0022-0302(03)73952-614672177Google Scholar
Stith, P., Warrick, J., and Sill, M.. “Murphy's Law: For Murphy, Good Government Means Good Business.” The News and Observer, February 22, 1995. Internet site: www.pulitzer.org/archives/5897 (Accessed November 5, 2012).Google Scholar
Thu, K., Donham, K., Ziegenhorn, R., Reynolds, S., Thorne, P.S., Subramanian, P., Whitten, P., and Stookesberry, J.. “A Case Control Study of the Physical and Mental Health of Residents Living Near a Large-Scale Swine Operation.Journal of Agricultural Safety and Health 3(1997):1326.10.13031/2013.17747Google Scholar
Wing, S., and Wolf, S.. “Intensive Livestock Operations, Health, and Quality of Life among Eastern North Carolina Residents.Environmental Health Perspectives 108(2000):233–38.10.1289/ehp.0010823310706529Google Scholar
Wooldridge, J.M. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press, 2002.Google Scholar
Wooldridge, J.M. Introductory Econometrics: A Modern Approach. Mason, OH: South Western, Cengage Learning, 2009.Google Scholar