The changing structure of US agriculture and implications for research in agribusiness firms

Jensen, Farrell E.; Pope, C. Arden

doi:10.1002/1520-6297(198722)3:2<139::aid-agr2720030202>3.0.co;2-9

Agribusiness

1987

DOI: 10.1002/1520-6297(198722)3:2<139::aid-agr2720030202>3.0.co;2-9

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The changing structure of US agriculture and implications for research in agribusiness firms

Farrell E. Jensen

C. Arden Pope

Abstract: Substantial structural changes in US agriculture have major impacts on farms and supporting agribusiness firms. These changes are reflected by a reduction in the scope of the on-farm agricultural production sector and a greater reliance on purchased technology in the form of service capital and intermediate inputs. Agribusiness firms that take advantage of growing opportunities to develop new technologies and embody them into marketable service capital will benefit from the structural changes.

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Cited by 3 publications

References 7 publications

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Trends and composition of private food and agricultural R & D expenditures in the United States

Pray

Neumeyer

1990

Agribusiness

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This article presents new data on the level and trends in private sector R & D on food, agriculture, and agricultural inputs. Private food and agricultural R & D grew about 4.6% annually between 1960 and 1986. The growth rate went down to 3.8% between 1980 and 1986. Much of the decline was accounted for by the decline in agricultural machinery R & D. Research divided by sales increased during the 1980s, indicating that the slowdown in R & D growth was due to the slowdown in sales rather than mergers or decreasing productivity of R & D.

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Trends and composition of private food and agricultural R & D expenditures in the United States

Pray

Neumeyer

1990

Agribusiness

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Dynamic relationships between agribusiness sales and research

White

1992

Agribusiness

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Agribusiness sales have been volatile, depending on such factors as agricultural exports, farm commodity prices, and government programs. While agribusiness sales are used to finance private sector research, the impact of volatility in sales on research expenditures has generally been ignored. The objective of this study is to determine whether dynamic relationships between agribusiness sales and research exist. Panel data for chemicals, machinery, and seed are analyzed using a vector autoregression model. Statistically significant dynamic relationships were identified. These results have important implications for public sector research policy and private sector research management. There have been three major cross-sectional surveys of private sector research by agribusinesses, conducted in 1965,' and 19762 and in 1984.3 These survey results indicate the level of sales and the level of research expenditures by different industries. The relationships between sales and research expenditures are of interest because they can be used to forecast changes in private research expenditures that are not regularly reported. Sales data and other variables that are available can be used to forecast research expenditures. Periodic surveys of sales and research expenditures appear to be most useful if the relationships between sales and research expenditures are both static and stable. However, the proportion of sales devoted to research, commonly referred to as research intensity, changed between 1965 and 1984 for all 10 agribusiness industries reported by Jensen and Pope.4It should not be surprising that research intensity has continually changed over the period of these surveys. The research intensity variable is a ratio of research expenditures to sales. The numerator of this ratio would be influenced by the costs and benefits of conducting research. These benefits and costs, in turn, can Fred C .

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Adaptations to the farm crisis: Macro level implications of micro level behaviors

Schulman

Cotten

1993

Applied Behavioral Science Review

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The changing structure of US agriculture and implications for research in agribusiness firms

Cited by 3 publications

References 7 publications

Trends and composition of private food and agricultural R & D expenditures in the United States

Trends and composition of private food and agricultural R & D expenditures in the United States

Dynamic relationships between agribusiness sales and research

Adaptations to the farm crisis: Macro level implications of micro level behaviors

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