I think factory farming has definitely hurt small farms in a tremendous way. Factory farms can sell goods at a much cheaper price and pay larger amounts of money for land. They are back by large investment firms. Small farmers can not do this and are facing extreme pressure from factory farms.
Yes. Factory farms are part of corporate consolidation of the entire agricultural process (from production to distribution) and tend to eliminate the competition from smaller farms.
Watch Food, Inc. for a further exploration of the effects factory farming has on smaller farms.
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