Campus Units

Economics

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

2002

Journal or Book Title

Choices

Volume

17

First Page or Article ID Number

6

Last Page

10

Abstract

Commodity agriculture as currently practiced in the U.S. Midwest is an extremely efficient way of organizing production and distribution. It allows for inexpensive production and bulk transfer of huge quantities of meat and grain and has resulted in enormous cost savings to U.S. and international consumers. This system has evolved in accordance with market forces, and we expect that these same forces will allow the current system to survive for decades.

There are aspects of the commodity system, however, that are not desirable. For example, the commingling that occurs to take advantage of bulk handling means that signals cannot be sent from consumers to producers. Consumers might desire food products that are different from the commodity standard and they might be willing to pay a premium, but the farmer does not get this signal.

Comments

This is a manuscript of an article from Choices 17 (2002): 6. Posted with permission.

Copyright Owner

Choices

Language

en

File Format

application/pdf

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