Topics Topics   by James MacDonald and William McBride  Economic
Information Bulletin No. (EIB-43) 46 pp, January 2009  Livestock
agriculture has undergone a series of striking transformations.
Production is more specialized-farms usually confine and feed a
single species of animal, often with feed that has been
purchased rather than grown onsite, and they typically
specialize in specific stages of  animal production. Today's
livestock farms tend to be tightly linked to other stages of
production and processing through formal contracts. While the
farms are usually owned and operated by a family, they rely
increasingly on hired labor. And the farms that account for most
production are much larger than they were in the past.  What Is
the Issue?  Strong financial pressures have driven the
industrialization of U.S. livestock farms. Larger operations are
able to realize lower costs and higher returns, while tighter
coordination among firms at different processing stages can
reduce financial risks. But growing to a