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Globalization, Cropping Choices, and Profitability in American Agriculture

Published online by Cambridge University Press:  28 April 2015

Steven C. Blank
Steven C. Blank*
Affiliation:
Agricultural and Resource Economics Department, University of California, Davis
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Abstract

The paper discusses the linkages between the “globalization” of agricultural markets over recent decades and the decisions being made by individual farmers and ranchers in the United States. It is noted that technological advances lead to globalization of agricultural commodity markets and profit pressures. The continuing profit squeeze in agricultural production is having a significant effect on the cropping choices of America's farmers. When possible, acreage is being shifted out of low-revenue-generating crops and into higher-revenue-generating crops. This shift makes crop portfolios more risky over time, thus encouraging farmers to consider diversifying out of agriculture.

Keywords

cropping choicesglobalizationprofitrisksafety-first
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 2 , August 2001 , pp. 315 - 326
Copyright
Copyright © Southern Agricultural Economics Association 2001

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