Agribusiness refers to the integration of farming with input supply, processing, distribution, and retail; what is a common impact?

• A. It lowers production costs but reduces technology use
• B. It reduces consumer access to food
• C. It increases efficiency but concentrates control and power
• D. It eliminates small farms

Answer: (C)

Vertical integration across inputs, processing, distribution, and retail creates efficiencies through economies of scale and standardized practices, which lowers costs and speeds delivery throughout the food system. At the same time, this consolidation concentrates control and power in a few large firms, giving them greater influence over prices, contracts, and terms for farmers and suppliers. Other options don’t fit as well because agribusiness typically increases technology use and efficiency rather than reducing it, can improve or stabilize consumer access through better supply chains, and does not automatically eliminate small farms, though it can threaten them.