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Abstract

Using data from the 1978 Census of Agriculture and the 1978 Census of Agricultural Services, this paper examines some of the organizational characteristics of firms in seven agricultural service industry subgroups. Using the 48 contiguous states as units of analysis, an ecological analysis attempts to identify structure characteristics of farm systems that give rise to, and foster development of, off-farm agricultural service firms. Results show that considerable variation exists in the organizational and labor force characteristics across the seven industry subgroups. Other findings indicate that the spread of agricultural services in a state is positively associated with the proportion of farmland controlled by nonfamily corporations and with large-scale farming. Energy intensity and mechanization, on the other hand, are inversely correlated with the incursion of agricultural services in a state. Recommendations for future avenues of research in this area are offered.

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