The Role of State-Inspected Slaughter in the U.S. Pork Supply Chain: Program Evaluation, Survey, and Analysis

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2021-01-01
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Cook, Holly
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Dermot Hayes
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Economics

The Department of Economic Science was founded in 1898 to teach economic theory as a truth of industrial life, and was very much concerned with applying economics to business and industry, particularly agriculture. Between 1910 and 1967 it showed the growing influence of other social studies, such as sociology, history, and political science. Today it encompasses the majors of Agricultural Business (preparing for agricultural finance and management), Business Economics, and Economics (for advanced studies in business or economics or for careers in financing, management, insurance, etc).

History
The Department of Economic Science was founded in 1898 under the Division of Industrial Science (later College of Liberal Arts and Sciences); it became co-directed by the Division of Agriculture in 1919. In 1910 it became the Department of Economics and Political Science. In 1913 it became the Department of Applied Economics and Social Science; in 1924 it became the Department of Economics, History, and Sociology; in 1931 it became the Department of Economics and Sociology. In 1967 it became the Department of Economics, and in 2007 it became co-directed by the Colleges of Agriculture and Life Sciences, Liberal Arts and Sciences, and Business.

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1898–present

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  • Department of Economic Science (1898–1910)
  • Department of Economics and Political Science (1910-1913)
  • Department of Applied Economics and Social Science (1913–1924)
  • Department of Economics, History and Sociology (1924–1931)
  • Department of Economics and Sociology (1931–1967)

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The COVID-19 pandemic and other capacity-restricting events have motivated state and federal governments to invest over $100 million in grants for state-inspected meat processing plants. This paper analyzes the role of state-inspected plants, evaluates the Cooperative Interstate Shipment (CIS) program, and summarizes survey data from state-inspected plants and officials. The results of the survey indicate that most state-inspected plants are "small" or "very small," which is reflected in their cumulative production levels. All non-federally inspected hog slaughter accounts for 0.6 percent of total hog slaughter, and state-inspected slaughter comprises an even smaller share. Among the ten states that reported 2020 state totals, state-inspected hog slaughter accounted for 45 percent of non-federally inspected slaughter and just 0.2 percent of total hog slaughter. However, during large plant shutdowns brought on by COVID-19 outbreaks, state-inspected and custom-exempt meat processors were able to significantly increase their slaughter totals from the previous year. This was likely made possible by federal and state grants that encouraged small meat processors to expand and seek interstate shipment eligibility through the Cooperative Interstate Shipment (CIS) program or by switching to federal inspection. A multi-state difference-in-difference analysis failed to produce statistically significant evidence that the CIS program has effectively increased non-federally inspected slaughter within participating states. This result is likely due to the low rates of participation in the program so far, especially among slaughter facilities.

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Fri Jan 01 00:00:00 UTC 2021