Structure of Input Supplying Industries and Techniques of Analysis

Abstract

HIS paper surveys the character of structural change in selected farm input industries, stresses the need for increased economic research in these factor markets, and presents some encountered and anticipated research problems and techniques of analysis. G. Edward Schuh has provided a useful review of economic research since 1950 in the agricultural input markets [17]. His summary emphasized the relative lack of economic research and policy attention to these markets. Schuh's research review was organized around two concepts of structure: market structure research and structural relation research.1 His annotation ranged the full spectrum of productive factors. This paper is more limited in scope. It deals with U.S. feed, seed, petroleum, fertilizer, pesticide, and farm machinery markets.2 Further, it tends to stress market structure research problems. This is because of particular inter-industry organizational developments during the 1960's. The substantial structural adjustments noted in these markets apparently have helped generate expanded research interest in the purchased input industries.3 Recent emphasis in both market structure and structural relation research by the Economic Research Service and several state experiment stations suggest this increase.4 Most recently, 14 states have joined a