Agribusiness firms: Location Determinants and Economic Contribution

In 1991, many rural areas were seeking economic growth and diversification. Agribusiness sectors were identified as being frequently involved in playing central roles in aiding this desired growth. Food processing and other value-added agribusinesses are such stimulants. Related businesses can add to this overall economic growth and potential of a rural area. In this article a study is reflected upon that dealt with the actual benefit of agribusiness to rural areas over other forms of business in creating jobs, income, etc. The study focused upon 2 types of markets, non-metropolitan and small metropolitan areas (whose populations were < 250,000) in 3 states, Nebraska, North Dakota and South Dakota. Agribusinesses were broken down into durable goods, non-durable goods and other service firms. Logistics, utilities, state and local taxes, higher education and technical training, incentives and the local infrastructure were covered. Local business and political leaders in these markets lack enough information to properly address their objectives. The number of those employed in non-agricultural businesses was higher. The composition of the agricultural work force between the two were different. Decision makers were encouraged to take all of these into consideration in accessing and planning their economic growth objectives