ABSTRACT
This chapter presents a modification of the standard 'product life cycle' model designed to create a test of general hypotheses identifying where American production agriculture is in its life cycle. Such an empirical application of the Life Cycle Model (LCM) to an industry whose output is undifferentiated commodities is unique. Thus, a theoretical justification for using the LCM with a national commodity-based industry is presented. The justification includes several propositions derived using inductive logic, and definitions for the components of the LCM as described in the life cycle literature. The LCM shows the effects of the economic unit's comparative and absolute advantages and how they change over time. A theoretical explanation of how these advantages change when an industry faces international competition is presented after the LCM is introduced. Propositions are presented and tested in this chapter to provide deeper insights into the structural changes expected in agriculture as it progresses through its life cycle.
