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  production input industries

Commercial inputs—including pesticides, fertilizer, machinery, energy, seed, and biotechnology products—have an impact on crop production, as well as on natural resources such as air, water, and wildlife. ERS researches the factors that influence the choices farmers make among various inputs, and how these inputs can be used more efficiently.


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Concentration and Technology in Agricultural Input Industries—Examines the causes and consequences of industry consolidation and its effect on market efficiency. In some cases, concentration realizes economies of scale, which can improve market efficiency by driving down production costs. The protection of intellectual property rights is integral to the agricultural biotechnology marketplace, stimulating research and development, investment, and the development of substitute markets. However, excessively broad intellectual property rights can hinder the market for innovation. Recent data on mergers, acquisitions, and strategic collaborations in the agricultural biotechnology industry, as well as the emergence of life science conglomerates, indicate some level of consolidation. However, the move by some companies to divest their seed operations calls into question the long-term viability of these conglomerates. AIB-763 (3/01).

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updated: June 4, 2001

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