U.S. Agriculture: Commercial and Large Producer Concentration and Implications for Agribusiness Segments

This study examines rate of concentration of farms and sales for aggregate farm production and crop and livestock activities during the 1982 to 2002 period. Data from the Census of Agriculture are used to calculate Theil's relative entropy measure as an indicator of concentration. Results indicate that Grain segments are lagging behind cotton, potato and hog segments in terms of concentration of total sales, while concentration in the dairy segment appears to be gaining steam. Agribusiness serving less concentrated industry segments should look to the more concentrated segments as leading indicators for effective marketing strategies as concentration increases.