To what extent do you think the average farmer is likely to be replaced if they choose not to enter the industry?
Given the smallish number of large-scale American agribusinesses, I wouldn’t be surprised if convincing someone not to farm actually does reduce the number of farmers in the long term, but I’d expect it to have a smaller effect on reducing the number of farmed chickens. Though I know nothing about agriculture as an industry, I’d naively expect a drop in farmers to lead to higher chicken prices, which would then lead existing businesses to expand their operations.
Does anyone know more about the economics at work here? Maybe land-use laws make it difficult to expand existing businesses and easier for a new farmer to get started in a new location?
I think the economics are definitely worth worrying about, but I also think they work out. There are a small number of large firms that contract out to farmers(eg Tyson’s), but a large number of contract farmers. Farmers tend to stop producing more chickens at a point where the marginal cost of an additional chicken are increasing. If we can get the marginal farmer to stop producing, then we would expect that the farmers that would replace them would have higher costs and therefore produce fewer chickens.
To what extent do you think the average farmer is likely to be replaced if they choose not to enter the industry?
Given the smallish number of large-scale American agribusinesses, I wouldn’t be surprised if convincing someone not to farm actually does reduce the number of farmers in the long term, but I’d expect it to have a smaller effect on reducing the number of farmed chickens. Though I know nothing about agriculture as an industry, I’d naively expect a drop in farmers to lead to higher chicken prices, which would then lead existing businesses to expand their operations.
Does anyone know more about the economics at work here? Maybe land-use laws make it difficult to expand existing businesses and easier for a new farmer to get started in a new location?
I think the economics are definitely worth worrying about, but I also think they work out. There are a small number of large firms that contract out to farmers(eg Tyson’s), but a large number of contract farmers. Farmers tend to stop producing more chickens at a point where the marginal cost of an additional chicken are increasing. If we can get the marginal farmer to stop producing, then we would expect that the farmers that would replace them would have higher costs and therefore produce fewer chickens.