nep-agr New Economics Papers
on Agricultural Economics
Issue of 2008‒06‒27
six papers chosen by
Angelo Zago
University of Verona

  1. Contract and Exit Decisions in Finisher Hog Production By Fengxia Dong; David A. Hennessy; Helen H. Jensen
  2. Infrastructure (Rural Road) Development and Poverty Alleviation in Lao PDR By Syviengxay Oraboune
  3. Insuring Against Losses from Transgenic Contamination: The Case of Pharmaceutical Maize By David Ripplinger; Dermot J. Hayes; A. Susana Goggi; Kendall Lamkey
  4. Economic Impacts of the 2008 Floods in Iowa By Eathington, Liesl; Swenson, David A.; O'Brien, Meghan
  5. Infrastructure Development of Railway in Cambodia: A Long Term Strategy By Chap Moly
  6. How Pro-Poor is the Selection of Seasonal Migrant Workers from Tonga under New Zealand’s Recognised Seasonal Employer (RSE) Program? By John Gibson; David McKenzie; Halahingano Rohorua

  1. By: Fengxia Dong (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); David A. Hennessy (Center for Agricultural and Rural Development (CARD)); Helen H. Jensen (Center for Agricultural and Rural Development (CARD); Midwest Agribusiness Trade Research and Information Center (MATRIC))
    Abstract: Finisher hog production in North America has seen a shift toward larger production units and contract-organized production since around 1990. Given the efficiency gains and conversion costs associated with contract production, growers may have to choose between long-term commitment through investments and atrophy with intent to exit in the intermediate term. A model is developed to show that growers with any of three efficiency attributes (lower innate hazard of exit, variable costs, or fixed contract adoption costs) are not only more likely to contract but will also produce more and expend more on lowering business survival risks. Using the 2004 U.S. Agricultural Resource Management Survey for hogs, a recursive bivariate probit model is estimated in which exit is affected directly and also indirectly through the contract decision. It is confirmed that contracting producers are less likely to exit. Greater specialization and regional effects are important in increasing the probability of contracting. More education, having non-farm income, and older production facilities are significant factors in increasing the expected rate of exit. The findings suggest further exits by non-contract producers.
    Keywords: agricultural industrialization, hog production, occupation choice, production contracts, recursive bivariate probit, relationship-specific investments, sector dynamics.
    JEL: D23 Q12 J26 J43
    Date: 2008–06
  2. By: Syviengxay Oraboune
    Abstract: Rural road in Lao PDR defined as connecting road from village to main road, where it will lead them to market and access to other economic and social service facilities. However, due to mostly rural people accustom with subsistence farming, connecting road seems less important for rural people as their main farming produce is for own consumption rather than markets. After the introduction and implementation of New Economic Mechanism (NEM) since 1986, many rural villages have gradually developed and integrated into market system where people have significantly changed their livelihood with a better system. This progress has significantly contributed in improving income earning of people, better living standard and reduce poverty. The paper aims to illustrate the significant of rural road as connecting road from village to markets or a market access approach of farm produces. It also demonstrates through which approach, rural farmers/people could improve their income earning, develop their farming system, living standard and reduce poverty.
    Keywords: Rural road, Poverty, Subsistence farming system, Value chain, Network, Roads, Infrastructure, Laos
    JEL: O21 O53 R40
    Date: 2008–04
  3. By: David Ripplinger; Dermot J. Hayes (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); A. Susana Goggi; Kendall Lamkey
    Abstract: Concerns about the risk of food supply contamination and the resulting financial losses have limited the development and commercialization of certain pharmaceutical plants. This article develops an insurance pricing model that helps translate these concerns into a cost-benefit analysis. The model first estimates the physical dispersal of maize pollen subject to a number of weather parameters. This distribution is then validated with the limited amount of currently available field trial data. The physical distribution is then used to calculate the premium for a fair-valued insurance policy that would fund the destruction of possibly contaminated fields. The flexible framework can be readily adapted to other crops, management practices, and regions.
    Keywords: contemporaneous fertility, costs and benefits, insurance, pharmaceutical maize, pollen dispersal, risks and benefits, stochastic model.
    Date: 2008–06
  4. By: Eathington, Liesl; Swenson, David A.; O'Brien, Meghan
    Abstract: Measuring the economic consequences of the 2008 Iowa floods requires careful consideration of what exactly is to be counted as an economic outcome. Property losses and damaged infrastructure mark reductions in overall private and public assets. Ruined or slowed businesses result in constrained productivity. Workers get laid off and household incomes decline. Alternatively, natural disasters require a tremendous amount of recovery spending which stimulates economic activity. This brief report looks at the scope of economic consequences and describes the kinds of economic impacts that might be anticipated in Iowa.
    Date: 2008–06–19
  5. By: Chap Moly
    Abstract: Infrastructure development means for the making of living environment, transport and communications, disaster prevention and national land conservation, agriculture, forestry and fisheries, and energy production and supply. Transport infrastructure development in Cambodia involved with (1) road, (2) railway, (3) port, inland-water way and (4) aviation. All model of transport infrastructure have special different kinds of importance. Railway is different from other base important of railways are transport passengers and traffic freight especially transport for heavy goods in huge capacity and in long distance by safer and faster. Transport in Cambodia for traffic freight export import base from Thailand and other via Sisophon and Shihanoukvill port. Traffic is increasing rapidly during nowadays railway condition in adequate of demand required. This is why Railway is selected as the topic of this paper to prevent monopoly of road transport. This paper, does review about infrastructure development plan for Railway in Cambodia as a long term strategy by review and analysis forecast on the previous performance of Royal Railways of Cambodia (RRC) transport traffic involved with condition of infrastructure development of railway in Cambodia. And also review the plan of development RRC but just only detail a plan of rehabilitation that is immediately needed. Suggest some recommendation at the last part. As Cambodia is a member country of ASEAN and also Mekong sub-region. For make sure that transport networks work effectively with a progress of economic integration, we make clear what is important for infrastructure development of railway in Cambodia from the standpoint of the development plan of Mekong sub-region. This paper is organized by 4 sections. Section 1 review about Infrastructure Development of Railway in Cambodia (IDRC) Historical Background, Follow by Section 2 will review the Current Situation of IDRC and some analysis of transport performance from previous years, Then Section 3 review of the focusing on traffic transport of RRC in the future, Section 4 review Infrastructure Development of Railway in Cambodia Future plans in long term; at last conclusion and recommendation. In section 1 does review history background of RRC from the rail first begun. But why is needed to review? Because of history background is involved infrastructure development of RRC in present time. History background made big gaps constraint and obstacle for socioeconomic development and poverty reduction, also left Cambodia with tragedy and left developed behind. After that remain infrastructure development needs huge fund and long time for restoration, reconstruction, rehabilitation and development into new technology as most of world practice.
    Keywords: Asia, Developing countries, Service sector, Networks, Cambodia, Railway, Infrastructure
    JEL: R41 R49
    Date: 2008–04
  6. By: John Gibson (University of Waikato); David McKenzie (World Bank, BREAD and IZA); Halahingano Rohorua (University of Waikato)
    Abstract: Temporary migration programs for unskilled workers are increasingly being proposed as a way to both relieve labour shortages in developed countries and aid development in sending countries without entailing many of the costs associated with permanent migration. New Zealand’s new Recognised Seasonal Employer (RSE) program is designed with both these goals in mind, enabling unskilled workers from the Pacific Islands to work in horticulture and viticulture in New Zealand for a period of up to seven months. However, the development impact on a sending country will depend not only on how many workers participate, but also on who participates. This paper uses new survey data from Tonga to examine the process of selecting Tongans to work in the RSE, and to analyze how pro-poor the recruitment process has been to date. We find that the workers recruited come from largely agricultural backgrounds and have lower average incomes and schooling levels than Tongans not participating in the program. We also compare the characteristics of RSE workers to those of Tongans applying to permanently migrate to New Zealand through the Pacific Access Category, and find the RSE workers to be more rural and less educated. The RSE therefore does seem to have succeeded in creating new opportunities for relatively poor and unskilled Tongans to work in New Zealand.
    Keywords: development seasonal migration; selectivity
    JEL: J61 O15
    Date: 2008–06–18

This nep-agr issue is ©2008 by Angelo Zago. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.