Title: The Industrialization of Agriculture: Implications for Public Concern and Environmental Consequences
1The Industrialization of Agriculture
Implications for Public Concern and Environmental
Consequences of CAFOs
- When/where did industrialized agriculture and
CAFOs come into being? - What are the driving forces behind agricultural
industrialization? - What consequences of industrialization and CAFO
have caused controversy? - How are these consequences being dealt with by
public policies and institutions?
2Outline
- 1.Review of Industrialization in the Poultry and
Swine Sector - 2.Viewing Industrialization in a Broader Context
for Conflict (or Policy) Analysis - 3.Consequences of Industrialization that Cause
Conflict Over CAFOs - 4. Concluding Thoughts about Public Policy and
Institutional Responses
31. Review of Industrialization in the Poultry and
Swine Sectors
- Marriage of Scientific Knowledge and Industrial
Economy Forces - Ag industrialization is not a new thing! (Its
been ongoing for many decades) - Selected Researchers Observations
- 1960s 70s - Poultry (broiler) Industry
- 1980s 90s - Swine Industry
4Ag Industrialization - Observations of
Researchers in the 1960s 1970s
- Scientific/Technological Knowledge Industrial
Economy Forces - Specialization in services products
- Substitution of off-farm activities for farm work
- Decreased importance of land vs. capital
- Separation of crop and animal production
- Shift from land-based to capital-based activity
- Could be located almost anywhere
-
5Separation of Crops Livestock Had Implications
for Location of Enterprises
Global
Manure ? ? ?
6Ag Industrialization - Observations of
Researchers in the 1960s 1970s
- Scientific Knowledge and Industrial Forces
- Specialization in services products
- Substitution of off-farm activities for farm work
- Decreased importance of land vs. capital
- Separation of crop and animal production
- Shift from land-based to capital-based activity
- Could be located almost anywhere
- Integration of Production-Marketing
Geographical Concentration - Broilers
7Integration of Production and Marketing
Geographical Concentration
- First Application in Broiler Industry in 1960s
- Industry Reorganization
- Growth from Economies of Scale in Processing
- Vertical Integration
- Agglomeration Economies Clustering of
production - Contracting
- Processors/Integrators own birds
- Contract fee reduced grower price risk
- Growers clustered near large processors
8Integration of Production and Marketing
Geographical Concentration
- Geographic Shifts in Broilers (toward South)
- Pre WW II
- Delmarva, South (AK,TX), New England, Midwest
(IN,IL) - Post WW II
- Arkansas, Southeast (GA, AL, NC) and South (TX,
MS), Delmarva - Consolidation has led to a highly industrialized
and vertically integrated sector - Production 90 contracted, Dominant four firms
Source Martin and Zering, 1997
9How Industrialization Happens
- Comparative analysis of broiler, fed cattle and
processing vegetable sectors - Identified three catalytic forces that trigger
structural change - New mechanical, biological or organizational
technology - Shifting market forces and demand
- New government policies and programs
Source Reimund, Martin and Moore, USDA Economic
Research Service, 1981
10 A Model of Structural ChangeFour Stage Process
- Technological change - innovators adopt new
technology - Locational shifts - production of the commodity
moves to areas more amenable to changed methods
than traditional ones - Growth and development - output rises as a
result of newly gained efficiencies - Adjustment to risks - new institutions for
coordination emerge and relationships within the
sector evolve in order to manage new risks.
Source Reimund, Martin and Moore, 1981
11Observations in 1980s 1990sFocus Swine
Industry
- Industrialization Trend Existed for Decades
- Accelerated in late 1980s early 1990s
- Significant Farm Exits, Consolidation, etc.
- Major Geographic Shifts in the 1990s
- Traditional Large Production Area was in Midwest
states (IA, IL, IN, MN, NE, OH, SD) - Rapid expansion in the N. Carolina in early 1990s
- Shifts to Great Plains (KS, OK) in late 1990s
- Some Factors Driving Evolution of Sector
12Factors Driving Rapid Evolution of the Swine
Sector
- New technology
- Biological Genetics and feeding
- Mechanical - Improved housing, disease control
- Organizational - Contracting, Vertical
Integration - Shifting market forces and demand
- Consumer meat preferences, Diet/Health
- New government policies and programs?
- State/Local Econ Dev Environmental Policies
- Business Climate?
- Market Control?
132. Viewing Industrialization in a Broader Context
for Conflict/Policy Analysis
- Externalities and Public Policy
- Existence of third party effects
(externalities) - Peoples actions and welfare are linked
- Existing Public Policy Determines Rules for who
can do what to whom? - Industrialization as a Dynamic Process
- New Linkages Between People
- New Patterns of External Effects
- Positive Opportunities (profits, jobs, income)
- Negative Burdens or Costs (water
degradation,odors)
14Viewing Industrialization in a Broader Context
for Conflict/Policy Analysis
- Existence of new opportunities (benefits) and
burdens creates incentives for individuals and
groups to change the policy rules - Those helped protect benefits and gains through
industrialization - Those harmed protect themselves from the
negative effects (damages or costs) of
industrialization - People selectively view the consequences of
industrialization depending on how they relate (
or -) to the process.
15Different Stakeholders will Selectively Perceive
or - Impacts of a Proposed CAFO
- - CAFO owner
- - Other producers
- - Integrator
- - Local Ag Suppliers
- - Farmer Interest Groups
- - Consumers
- - Local Officials
- Neighbors
- Residents of rural area or watershed
- Environmentalists
- Water suppliers
- State officials
- Federal officials
16Viewing Industrialization in a Broader Context
for Conflict/Policy Analysis
- Some Implications Questions
- Are the current public policies obsolete?
- How well do markets work to deal with the new
pattern of externalities? - Do institutions exist for people to discuss and
deal with negative and positive consequences of
industrialization? - How can these processes and policies be improved?
173.Consequences of Industrialization that Cause
Conflict Over CAFOs
- Three Dimensions of Conflict
- People - History of relationships and
personalities - Process - Patterns of interaction and possibly
conflict escalation - Problem - (or content ) the issues and interests
that are the reason for the dispute
Source Beer and Steif, 1997.
183. Consequences of Industrialization that Cause
Conflict Over CAFOs
- Content Examples
- National and Regional Scale
- Nutrient Overabundance
19Nutrient Cycle Doesnt Cycle!
Global
Manure ? ? ?
203. Consequences of Industrialization that Cause
Conflict Over CAFOs
- Selected Problem (or Content) Examples
- National and Regional Level
- Generally - Nutrient Overabundance
- Surface Water Quality
- Spills from manure lagoons
- Nitrogen and Phosphorus in the valued water
resources Ecosystem and economic effects - Public Health Concerns in late 1990s Pfiesteria
in water bodies in MD and NC and possible links
to high levels of phosphorus from farms and other
sources
21Phosphorus Cycle Has Become Fragmented
Regional Boundary
State Boundary
Feed Mill Farm
Animals
Global
People
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233. Consequences of Industrialization that Cause
Conflict Over CAFOs
- Selected Problem (or Content) Examples
- State level
- Existing Water Quality and/or Quantity
- Future Quality of Water (or Air) Resources and
their role in the States Development and
residents quality of life - Future viability of an animal sector and
associated income or jobs - Viability of other industries supported by
agriculture
243. Consequences of Industrialization that Cause
Conflict Over CAFOs
Selected Problem (or Content) Examples Local
Community Level
- Drinking water quality
- Surface and groundwater quality
- Water availability
- Dead animal disposal
- Insects and public health or nuisance issues
- Odors
- Air quality
- Property Values
- Farm or farmer viability
- Ag-related businesses
- Open space preservation
254.Concluding Thoughts about Public Policy
Responses
- Industrialization as a Dynamic Process
- New Patterns of Positive and Negative External
Effects - Different stakeholders perceive different
benefits or burdens depending on how they relate
( or -) to the process. - Question about policies and institutions that
allow people to effectively express their
concerns over the effects of industrialization
264.Concluding Thoughts about Public Policy
Responses
- How Are the Consequences of Industrialization Are
Being Dealt With By Public Policies and
Institutions? - Current Level of Conflict over CAFOs-- suggests
not very well. - Addition Efforts Looking at Boundary Issues at
Several Levels
274.Concluding Thoughts about Public Policy
Responses
- Explore Role of Boundary Issues
- Firm level What costs do firms consider?
- Federal State Local Govts - Who decides?
- Between Agencies Who Decides Who Implements
Policy?
283.Consequences of Industrialization that Cause
Conflict Over CAFOs
- Three Dimensions of Conflict
- People - History of relationships and
personalities - Process - Patterns of interaction and possibly
conflict escalation - Problem - (or content ) the issues and interests
that are the reason for the dispute
293.Consequences of Industrialization That Cause
Conflict Over CAFOs
- Acknowledge the People dimension
- Process Issues -Previous interactions in
policy-making - Environmentalists concerns about follow-through
of a business or agency - Neighbors frustration that no state agency has
jurisdiction over their concern (odors, insects,
water quantity)
303.Consequences of Industrialization That Cause
Conflict Over CAFOs
- Acknowledge the People dimension
- Process Issues Some Examples
- Previous interactions in policy-making
- Environmentalists concerns about follow-through
of a business or agency - Neighbors frustration that no state agency has
jurisdiction over their concern (odors, insects,
water quantity)
31Conflict can be over Process
- Results of Conflicts over Intensive Livestock
Operations Potential for Public Participation
Conflict Management project - Funded by PA Dept. of Ag. 1998 -2000
- Universities
- Penn State University
- Ag Law Center Dickinson Law School/PSU
- Juniata College
32Key Stakeholder Concerns Intensive Livestock
Operations Study
- Environmental Use
- Health and Safety
- The Role of Govt Officials
- Economic Impact
- Community Conflicts about Farming/Food
- Decision Making Processes
- The Possibility of Successful Resolution
33Selected Stakeholder Concerns
- Governments officials role (i.e. trust)
- Lack of clarity of laws and govt
responsibilities - Capabilities
- Bias and/or Conflicts of interest
- Decision making processes
- Respect and civility Desire to have their input
heard and considered - Frustration with current opportunities for
education and dialogue - Lack of control (e.g., local govt preemption)
34Need for Improved Conflict Management Methods
- Avoid
- High legal fees
- Economic costs, delays
- Losing control of decisions
- Tearing of social fabric
- Wasting community resources
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36Recommended Processes
- Mediation
- Consensus Seeking Processes
- Formal Public Hearings
- Formal Review and Comment
- Public Information Meetings
37Focusing on Different Goals
- Education of citizens
- Public information meetings
- Enhanced dialogue with citizens
- Formal review and comment Formal hearings
- Search for common ground to advise public
decision making - Consensus seeking processes
- Search for consensus and commitment by all
stakeholders - Mediation