nep-agr New Economics Papers
on Agricultural Economics
Issue of 2009‒02‒07
forty-one papers chosen by
Angelo Zago
University of Verona

  1. Best Management Practices: How Economical is it in Southern Agricultural Systems? By Matekole, Augustus N.; Westra, John V.; Appelboom, Timothy W.
  2. Predicting Financial Stress in Young and Beginning Farmers in the United States By D’ Antoni, Jeremy; Mishra, Ashok K.; Chintawar, Sachin
  3. Water Conservation Policy Alternatives for the Ogallala Aquifer in the Texas Panhandle By Taylor, Robert H.; Almas, Lal K.; Lust, David G.
  4. Supply Response of Crops in the Southeast By Smith, Rachel K.; Duffy, Patricia A.; Novak, James L.; Wilson, Norbert L.
  5. The Food, Conservation and Energy Act of 2008: Preliminary Analysis of Selected Provisions By Westhoff, Pat; Brown, Scott
  6. State Support for Ethanol Use and State Demand for Ethanol Produced in the Midwest By Thompson, Wyatt
  7. Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: A Quantile Regression Approach By Adhikari, Arun; Mishra, Ashok; Chintawar, Sachin
  8. Potential Economic Impacts of the Managed Haying and Grazing Provision of CRP By Dickson, Amanda; Dicks, Michael R.
  9. The Impact of Adoption of Genetically Modified Corn on the Off-Farm Labor Supply in the United States By Chintawar, Sachin; Mishra, Ashok; Gillespie, Jeffrey
  10. Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture By Sneeringer, Stacy E.
  11. Will Higher Shipping Costs Drive the U.S. to Source More Localized Produce? By Woods, Timothy; Saghaian, Sayed; Ona, Lucia
  12. Productivity Shocks and National Food Security for Japan By TANAKA Tetsuji; HOSOE Nobuhiro
  13. Producer Perceptions of Corn, Soybean and Cotton Price Risk By Riley, John Michael; Anderson, John D.
  14. How Much Did Speculation Contribute to Recent Food Price Inflation? By Amanor-Boadu, Vincent; Zereyesus, Yacob
  15. Potential Impacts of Food Borne Ill Incidence on Market Movements and Prices of Fresh Produce in the US By Palma, Marco; Ribera, Luis; Bessler, David; Paggi, Mechel; Knutson, Ron
  16. The Effect of Ethanol Production on the U.S. National Corn Price By Fortenbery, T. Randall; Park, Hwanil
  17. The Impact of the Average Crop Revenue Election (ACRE) Program on the Effectiveness of Crop Insurance By Hong, Sung Wook; Power, Gabriel J.; Vedenov, Dmitry V.
  18. Effects of Food Safety Standards on Seafood Exports to US, EU and Japan By Nguyen, Anh Van Thi; Wilson, Norbert L. W.
  19. Expectations of Farm Policy: An Empirical Evaluation By Mark, Tyler; Detre, Joshua; Mishra, Ashok
  20. Impacts of the Fair and Equitable Tobacco Reform Act of 2004 on Shareholders’ Wealth in the Tobacco Industry By Tiller, Kelly J.; Feleke, Shiferaw T.; Carver, Brian C.
  21. Economic Impacts of Establishing Short Rotation Woody Crops to Support Energy Production in Minnesota By Lazarus, William F.; Tiffany, Douglas G.
  22. Case Studies of Successful Small Scale Farming in North Carolina By Yeboah, Anthony K; Owens, John Paul; Bynum, Jarvetta; Boisson, Daniel
  23. Changes in Agricultural Input Costs and Their Impact on Net Farm Income By Taylor, Richard D.; Koo, Won W.
  25. Attributes Preferred and Premiums Offered for Naturally Produced Beef Cattle By Springer, Job D.; Biermacher, Jon T.; Childs, M. Dan; Alkire, Deke O.; Grooms, Brandon
  26. Causes and Implications of the Food Price Surge By Meyers, William; Meyer, Seth
  27. Impact on the SURE Program on North Dakota Farms By Taylor, Richard D.; Koo, Won W.
  28. Economics of the Variable Rate Technology Investment Decision for Agricultural Sprayers By Mooney, Daniel F.; Larson, James A.; Roberts, Roland K.; English, Burton C.
  29. An Analysis of the EQIP program for Lesser Prairie Chickens in the Northern Texas Panhandle By Jones, DeDe; Gueck, Nicole; Warminski, Patrick
  30. The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable Water Supply: Some Evidence from Ecuador By Zapata, Samuel D.; Benavides, Holger M.; Carpio, Carlos E.; Willis, David B.
  31. Measuring the Potential Economic Impact of a Regional Agricultural Promotion Campaign: The Case of South Carolina By Carpio, Carlos E.; Isengildina-Massa, Olga
  32. Evaluating Dryland Crop/Livestock System Alternatives for Risk Management under Declining Irrigation in the Texas Panhandle By Lust, David G.; Almas, Lal K.; Stewart, Bob A.; Colette, W. Arden
  33. The Impact of the World Food Price Crisis on Nutrition in China By Jensen, Robert T.; Miller, Nolan
  34. Economic Feasibility of Ethanol Production from Sweet Sorghum Juice in Texas By Morris, Britany; Richardson, James; Frosch, Brian; Outlaw, Joe; Rooney, William
  35. Food safety risk perceptions as a tool for market segmentation: The USA poultry By Onyango, Benjamin; Rimal, Arbindra; Miljkovic, Dragan; Hallman, Willaim
  36. How Much are Consumers Paying for Organic Baby Food? By Smith, Travis A.; Huang, Chung L.; Lin, Biing-Hwan
  37. Partial Factor Productivity, Agronomic Efficiency, and Economic Analyses of Maize in Wheat-Maize Cropping System in Pakistan By Amanullah; Almas, Lal K.
  38. Factors Influencing Salaries of Agricultural Economics Professionals at Land Grant Institutions By Popp, Jennie; Abdula, Arby; Newton, Doris; Pittman, Dianne; Danforth, Diana
  39. Impacts of China's Food Consumption on U.S. Soybean Exports By Chen, Wei; Marchant, Mary A.; Song, Baohui
  40. Differentiated Agri-Food Product Trade and the Linder Effect By Haq, Zahoor; Meilke, Karl D.
  41. The Dynamic Effects of Open-Space Conservation Policies on Residential Development Density By Lewis, David J.; Provencher, Bill; Butsic, Van

  1. By: Matekole, Augustus N.; Westra, John V.; Appelboom, Timothy W.
    Abstract: Conventional drainage systems tend to aggravate runoff and nutrient leaching problems on farms especially during the off-season. This study uses a biophysical economic model to identify, evaluate and determine multifunctional benefits of implementing and establishing nitrogen rate fertilizer application and conservation tillage practices as best management practices (BMPs) in the lower Mississippi River Basin (MRB). Simulation results showed that agricultural producers generally preferred no tillage to conventional tillage in reducing nutrient runoffs from fields because of higher net revenue per acre. Finally, given nitrogen runoff restrictions, farmers reduced crop acreage and nitrogen fertilizer application rates to help minimize losses.
    Keywords: biopysical economic model, tillage practices, nitrogen fertilizer application rates, MRB, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management,
    Date: 2009
  2. By: D’ Antoni, Jeremy; Mishra, Ashok K.; Chintawar, Sachin
    Keywords: Financial stress, Young and Beginning farmers, farm type, farming regions, operating leverage, Agricultural and Food Policy, Agricultural Finance, Farm Management,
    Date: 2009–01–19
  3. By: Taylor, Robert H.; Almas, Lal K.; Lust, David G.
    Abstract: The continued decline in the availability of water from the Ogallala Aquifer has led to an increased interest in conservation policies designed to extend the life of the aquifer to sustain rural economies in the Texas Panhandle. This study evaluates the effectiveness of five policies in terms of changes in the saturated thickness of the aquifer as well as the impact each policy has on crop mix, water use per acre, and the net present value of farm profits over a sixty-year planning horizon for the region.
    Keywords: Ogallala Aquifer, Groundwater Conservation, Water Management Policy, Texas Panhandle, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Production Economics, Resource /Energy Economics and Policy,
    Date: 2009
  4. By: Smith, Rachel K.; Duffy, Patricia A.; Novak, James L.; Wilson, Norbert L.
    Abstract: An econometric model was used to estimate the supply response of corn, cotton, and soybeans in the Southeast United States. The analysis includes state-level data from 1991-2005 for Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia, taking into account the effect of wealth, revenue risk, and farm program provisions. Estimated elasticities were low and many parameters were not statistically significant.
    Keywords: Supply Response, Government Programs, Risk, Wealth, Agricultural and Food Policy, Q11, Q18,
    Date: 2009
  5. By: Westhoff, Pat; Brown, Scott
    Abstract: This report provides preliminary analysis of impacts of selected Food, Conservation and Energy Act of 2008 (FCEA) provisions.
    Keywords: Agricultural and Food Policy,
    Date: 2008–07
  6. By: Thompson, Wyatt
    Abstract: This study examines US demand for ethanol produced in the Midwest and assesses how state policies that target ethanol demand affect biofuel and agricultural commodity markets.
    Keywords: Agricultural and Food Policy, Resource /Energy Economics and Policy,
    Date: 2008–11
  7. By: Adhikari, Arun; Mishra, Ashok; Chintawar, Sachin
    Keywords: Adoption, Technology, Profitability, GM crops, Quantile Regression, Agribusiness, Agricultural Finance, Farm Management,
    Date: 2009–01–16
  8. By: Dickson, Amanda; Dicks, Michael R.
    Abstract: According to the Executive Order 12866, a qualitative and quantitative assessment for any Federal mandate resulting in annual expenditures of $100 million or more is required. This study determines how many of the approximately 34.5 million acres of CRP land is brought back in economic use, how that use is allocated between grazing and haying, and the economic impact.
    Keywords: CRP, land allocation, economic impact, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies,
    Date: 2008–01–16
  9. By: Chintawar, Sachin; Mishra, Ashok; Gillespie, Jeffrey
    Abstract: With the production and cropping efficiency gains from adoption of Genetically Modified (GM) corn, the number of acres planted has increased steadily over the past decade. Also, the adoption of GM crops in general has an impact on the labor allocation decisions of farm operators. Using a large sample of Agricultural Resource Management Survey (ARMS) data, we estimate a two-stage left-censored simultaneous Tobit model to estimate the impact of adoption of GM corn on the off-farm labor supply of farm operators. Results indicate that the adoption of GM corn has had a negative and significant impact on the off-farm labor supply.
    Keywords: Adoption, GM corn, Off farm labor, two-stage left-censored simultaneous Tobit, Agribusiness, Agricultural Finance, Consumer/Household Economics, Farm Management,
    Date: 2009–01–16
  10. By: Sneeringer, Stacy E.
    Abstract: Research on environmental regulation’s effects on economic activity has largely focused on manufacturing, ignoring one of the major polluters in the U.S. – commercial agriculture. As livestock production has become increasingly mobile, regulation has become an important criterion in firm location. This article extends the literature on environmental regulation’s economic effects to commercial agriculture by exploiting a series of regulations adopted in North Carolina in the 1990s. During this time, the state’s hog production more than tripled as a consequence of welcoming state legislation. This sudden growth creates an opportunity to study how environmental regulation affects the location of economic activity, the externality costs of legislation aimed at economic growth, and the effects of swine on air pollution. The last of these foci is of particular importance to upcoming federal regulation of large-scale livestock production under the Clean Air Act. By exploiting the distinct trend breaks in hog production in North Carolina, I am able to non-parametrically control for trends in the rest of the country as well as trends in North Carolina prior to the enactment of the lax regulations. I find that the laws led to an additional 11% increase per year in hog production in North Carolina relative to the rest of the U.S., as well as a 10% increase per county per year in ambient air pollution. Through a series of falsification tests and examinations of alternative hypotheses, I conclude that the air pollution is attributable to the hogs; a doubling of production yields a 92% increase in ambient air pollution. The magnitude of the changes in air pollution is large enough to result in significant public health effects, totaling in cost to at least 20% of North Carolina’s hog production revenue.
    Keywords: Livestock, externality, regulation, public health, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Health Economics and Policy, Livestock Production/Industries, Q5,
    Date: 2009
  11. By: Woods, Timothy; Saghaian, Sayed; Ona, Lucia
    Abstract: The recent wide fluctuations in diesel fuel costs and subsequent trucking costs has raised speculation within the produce industry of potential structural shifts in the location of production. Recent increases in demand for local produce seem to further support speculation toward this end. A component pricing model is used to actually examine the impact of fuel prices on farm gate and retail produce prices for strawberries, lettuce, and potatoes. The study finds that distribution costs, while significantly increasing in absolute value, have surprisingly little contribution to changes in retail prices even in markets distant to the primary production regions. These results suggest that factors other than lower distribution costs for local produce will ultimately need to drive the supply for these products.
    Keywords: produce, local, marketing margin, fuel cost, Agribusiness, Crop Production/Industries, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing, Q11, Q12, Q13, Q18,
    Date: 2009
  12. By: TANAKA Tetsuji; HOSOE Nobuhiro
    Abstract: Agriculture is the focus of much contention in free trade negotiations. The Japanese government is against liberalizing the rice trade on the grounds that it would threaten "national food security" in the events of such shocks as crop failure, war, and embargo. Trade liberalization is expected to make Japan more dependent upon food imports and to make the Japanese economy more susceptible to these risks. Using a stochastic computable general equilibrium model, we conducted Monte Carlo simulations to quantify impact of rice productivity shocks and export quotas by major rice exporters to Japan and found little chance for trade liberalization for Japan to suffer from such shocks.
    Date: 2009–04
  13. By: Riley, John Michael; Anderson, John D.
    Abstract: Risk is an inevitable part of agricultural production and all producers face various forms of risk. This study used the subjective price expectations and price distributions of survey participants to determine how producer’s expectations compare with that of the market. Data used for this study were gathered through survey responses from Mississippi State University Extension meeting and workshop participants. Individual respondent’s discreet stated price and price distribution information was fitted to a continuous distribution and an implied mean and standard deviation was determined. This was compared to market price and price risk data. Participants largely over-estimated price. Individual volatilities resulting from each fitted distribution were lower than that implied by the market.
    Keywords: price risk, price perception, subjective probability elicitation, Production Economics, Q13,
    Date: 2009
  14. By: Amanor-Boadu, Vincent; Zereyesus, Yacob
    Abstract: Recent increases in commodity prices have led to calls for the regulation of speculators. These calls have come from many reputable quarters including leading agricultural and food policy institutions such as International Food Policy Research Institute as well as different members of the U.S. Congress. They are based on an assumption that speculative activities are a primary or major source of the volatility in the markets and that controlling these activities through regulations would bring more stability to the market. The paper tests this hypothesis and assesses the contribution of speculative activities in the commodity markets over the past decade to price inflation. The paper argues that government regulatory policies to control speculation in commodity markets is a second best solution that would probably yield neutral or negative benefits to the very people the policy aims to protect.
    Keywords: speculators, inflation, prices, ARIMA, Agricultural and Food Policy, Agricultural Finance,
    Date: 2009
  15. By: Palma, Marco; Ribera, Luis; Bessler, David; Paggi, Mechel; Knutson, Ron
    Abstract: For many decades, fresh fruits and vegetables enjoyed a reputation as the healthiest products full of essential vitamins, minerals, and other beneficial substances for a balanced diet. However, numerous recent food outbreaks associated with fresh produce have raised concerns on the mind of the consumer. Following an outbreak, consumers reduce their immediate consumption of the affected products. Even tough fresh fruits and vegetables have unique characteristics and flavors, consumers tend to substitute affected outbreak products with other fruits and vegetables. The potential impact of food borne illness on consumption has also a longer term impact, reducing consumption of the products over a period of several months after the outbreak. This paper used historical decomposition analysis to study both, the contemporaneous and lagged effects of food borne illness in the fresh produce industry using three case studies, spinach, cantaloupes, and tomatoes.
    Keywords: Food safety, fresh produce, historical decomposition, Food Consumption/Nutrition/Food Safety,
    Date: 2009
  16. By: Fortenbery, T. Randall (U of Wisconsin); Park, Hwanil
    Abstract: A system of equations representing corn supply, feed demand, export demand, food, alcohol and industrial (FAI) demand, and corn price is estimated by three-stage least squares. A price dependent reduced form equation is then formed to investigate the effect of ethanol production on the national average corn price. The elasticity of corn price with respect to ethanol production is then obtained. Results suggest that ethanol production has a positive impact on the national corn price and that the demand from FAI has a greater impact on the corn price than other demand categories. Thus, significant growth in ethanol production is important in explaining corn price determination.
    Date: 2008–04
  17. By: Hong, Sung Wook; Power, Gabriel J.; Vedenov, Dmitry V.
    Abstract: This paper analyzes the effect of the ACRE program adopted in the final version of the 2007 Farm Bill on the risk-reducing effectiveness of insurance products. To the best of our knowledge this is a first attempt to analyze the effect of the ACRE program on the risk management decisions of crop producers. In particular, we compare the risk-reducing effectiveness of the two most common insurance contracts — APH and CRC — under the provisions of the 2002 Farm Bill and under ACRE program for representative cotton producer in Texas and corn producer in Illinois. These particular crop/region combinations are selected so as to represent situations of low and high price-yield correlations, respectively.
    Keywords: Crop insurance, Farm Bill, ACRE, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Crop Production/Industries, Risk and Uncertainty,
    Date: 2009–01–15
  18. By: Nguyen, Anh Van Thi; Wilson, Norbert L. W.
    Abstract: Estimating the panel gravity model with bilateral pair and country-by-time fixed-effects separately for each seafood product, we found that food safety regulations have differential effects across seafood products. In all three industrialized markets, shrimp is most sensitive, while fish is the least sensitive to changing food safety policies. The enforcement of the US HACCP, the EU Minimum Required Performance Level and the Japanese Food Safety Basic Law caused a loss of 90.45%, 99.47%, and 99.97% to shrimp trade in these markets, and a reduction associated with fish trade was 66.71%, 82.83%, and 89.32%.
    Keywords: food safety, seafood, international trade, gravity model, HACCP, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, International Relations/Trade, C33, F13, Q17, Q18,
    Date: 2009–01–16
  19. By: Mark, Tyler; Detre, Joshua; Mishra, Ashok
    Keywords: Agricultural Resource Management Survey, Government Payments, Farm Policy Expectations, Farm Management, Production Economics, Q12, Q18,
    Date: 2009
  20. By: Tiller, Kelly J.; Feleke, Shiferaw T.; Carver, Brian C.
    Abstract: This study examines the impact and efficiency of the design of the Fair and Equitable Tobacco Reform Act of 2004 in deregulating the tobacco production industry. Results offer a number of policy implications of which deregulation of an economically challenged industry can be achieved without the use of taxpayer funds.
    Keywords: Tobacco Buyout, Tobacco Industry, Event Study, Agribusiness, Agricultural and Food Policy,
    Date: 2009
  21. By: Lazarus, William F.; Tiffany, Douglas G.
    Abstract: The utilization of short rotation woody crops (SRWC) to produce wood on marginal crop and pasture land could greatly enhance the production of wood for various uses in Minnesota with utilization for energy being of current interest. SRWC involves the more intensive application of inputs on more valuable land than naturally regenerated forests that currently supply the bulk of the forest products industry in Minnesota. Breeding efforts to improve productivity and disease resistance in hybrid poplar species are making the technology of SRWC competitive with agricultural uses of marginal land. This study models the economic impact of a potential shift in use of the land resource by replacing production of hay and pasture that provides feed for cow-calf beef operations in northwest and west central Minnesota with SRWC. Regional economic impacts of such a shift are measured with established input-output techniques, using the software tool IMPLAN. To complete this analysis, the magnitudes and sectors of expenditures needed to produce either beef calves or hybrid poplar plantations were compared using farm records and hybrid poplar budgets. Construction of a $175 million energy conversion facility capable of making 44 million gallons of ethanol and 7.6 million gallons of mixed alcohols by catalytic means following gasification would result in creation of 2,412 jobs during the construction period, with $158 million in value-added (mainly employee compensation and business taxes). Operation of the facility after the end of construction, if supported by 200,000 acres of hybrid poplar production, would not change the number of jobs very much compared with using the land for cow-calf operations. However, the SRWC-related jobs would likely be at higher average salary levels and business tax collections would be higher, for a value-added increase of $80 million annually. In addition to greater wood supplies to support the forest products industry, logging pressures may be reduced on public forest land as a consequence of greater deployment of technology and methods that can result in production per acre that is eight to ten-fold greater than naturally regenerated forests.
    Keywords: Hybrid Poplar, SRWC, IMPLAN, economics, energy, ethanol, OSB, Resource /Energy Economics and Policy,
    Date: 2009–01
  22. By: Yeboah, Anthony K; Owens, John Paul; Bynum, Jarvetta; Boisson, Daniel
    Abstract: The goal of this study focuses on determining factors that contribute to a successful small farm in North Carolina and on identifying ways to further enhance successful small farming. North Carolina farms vary extensively in size and other characteristics, ranging from very small retirement and residential farms to establishments with millions of dollars in sales. Farming continues to be a distinctive industry in part because most production, even among very large farms, is carried out on family-operated farms whose operators often balance farm and off-farm employment and investment decisions. The case studies of successful small farmers conducted in November 2007 were the primary sources of data. The North Carolina Cooperative Extension Program identified three “successful†farmers from its sampling frame to participate in the case studies. Researchers identified sets of variables associated with small farm success through various literature, published and unpublished reports and recommendations from experts in the field. After the variables were operationalized, a questionnaire was developed as a guide for conducting the case studies interview protocols. Each case study consisted of a one-visit protocol with electronic follow-up. Researchers conducted on-site interviews, and then toured the individual farms. The case study farmers used a diverse mix of enterprises including specialty crops and a combination of marketing strategies. The educational level ranged from post high school to Ph.D. although all farmers attended several workshops. All farmers minimized risk through diversity, contractual sales and insurance. Only one farmer used computers for record keeping and finance. The overall “love of farming†seemed to be the biggest driving force behind the farmer’s view of success.
    Keywords: Small Farmer, Agribusiness, Agricultural Finance, Teaching/Communication/Extension/Profession,
    Date: 2009
  23. By: Taylor, Richard D.; Koo, Won W.
    Abstract: The recent rapid increase in commodity prices is not an unique event. It has happened several times in the past. Commodity prices have always dropped, returning to a more normal level. Production costs, on the other hand, follow commodity prices up but do not follow them down. Net farm income has increased rapidly in most commodity sectors of agriculture. However, production costs have increased substantially during the past few years. Those cost increases will reduce net farm incomes in the future if commodity prices do not continue to increase.
    Keywords: net farm income, production costs, gross income, Agribusiness, Agricultural Finance,
    Date: 2008–10
  24. By: Devkota, Nirmala; Paudel, Krishna P.
    Abstract: Nutrient runoff from agricultural land can be reduced through production termination to mitigate water pollution. The willingness to accept value to terminate the broiler production is evaluated using sample selection model. The result showed a positive relationship between the decision to participation and stated WTA value indicating the producers are willing to terminate the production but at high cost. The farmer’s perception about government role on water pollution, farm income, information and awareness about other pollution reduction alternatives play a major role on stated WTA amount as well as on participation decision.
    Keywords: Environmental Economics and Policy,
    Date: 2009
  25. By: Springer, Job D.; Biermacher, Jon T.; Childs, M. Dan; Alkire, Deke O.; Grooms, Brandon
    Abstract: A growing number of beef cattle producers in the US are using limited information to determine whether or not it would be economical for them to grow naturally produced cattle. The objective was to discover the attributes that marketing companies prefer for the naturally produced cattle they purchase, and to elicit the price premiums being offered for cattle that possess these attributes. Results of a phone survey of companies that purchase natural cattle show that 27 out of 32 companies report their willingness to pay a premium of $5.95/cwt for cattle that have never received antibiotics, ionophores, hormones or animal by-products.
    Keywords: Key words: attributes, beef, cattle, naturally produced, premiums, Agribusiness, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, Marketing,
    Date: 2009–01–16
  26. By: Meyers, William; Meyer, Seth
    Abstract: This paper analyzes the food price surge of 2005 to 2008 in order to better understand the factors causing higher and more volatile food prices during this period, to ascertain the relative importance and possible persistence of the different factors, and to suggest possible implications for future market behavior and policy reactions.
    Keywords: Agricultural and Food Policy,
    Date: 2008–12
  27. By: Taylor, Richard D.; Koo, Won W.
    Abstract: Agricultural producer groups have stressed for years the need for a disaster title in the farm bill. In the 2008 Farm Bill, the Supplemental Revenue Assistance Program (SURE) was included to address that need. Previously, producers had to convince Washington to fund ad hoc and emergency disaster declarations in times of low crop returns. This study reviews the SURE program and estimates the effectiveness of the program for North Dakota farmers. The SURE program replaces disaster funding; however it also probably prevents additional assistance under extra ordinary conditions.
    Keywords: SURE, Supplemental Revenue Assistance Program, 2008 Farm Bill, net farm income, North Dakota Representative Farm Model, disaster funding, Agricultural Finance, Farm Management, Risk and Uncertainty,
    Date: 2008–12
  28. By: Mooney, Daniel F.; Larson, James A.; Roberts, Roland K.; English, Burton C.
    Abstract: Producers lack information about the profitability of variable rate technology (VRT) for agricultural sprayers. An economic framework was developed to evaluate the returns required to pay for VRT investments. Payback variables included input savings, yield gains, and reduced application costs. We illustrate the framework with two example investment scenarios.
    Keywords: capital budgeting, decision aid, farm management, precision agriculture, map-based, sensor-based, site-specific management, variable rate technology, Farm Management, Q10, Q16,
    Date: 2009
  29. By: Jones, DeDe; Gueck, Nicole; Warminski, Patrick
    Abstract: The Environmental Quality Incentives Program (EQIP) for the Lesser Prairie Chicken provides monetary compensation to agricultural producers for species habitat development. The advantages and disadvantages of program enrollment, as well as the overall economic impact are evaluated for a typical ranch operation in the Northern Texas Panhandle from 2009-2013.
    Keywords: Prairie Chicken, FARM Assistance, EQIP, Environmental Economics and Policy,
    Date: 2009
  30. By: Zapata, Samuel D.; Benavides, Holger M.; Carpio, Carlos E.; Willis, David B.
    Abstract: This study estimates the willingness to pay (WTP) of Loja’s households to protect two micro-basins that supply over 40 percent of potable water to the city. Results indicate that households have an average WTP of $5.80 per month, which corresponds to a 25 percent increase in the self-reported monthly water bill, to preserve the basins.
    Keywords: Basin protection, contingent valuation, Loja, Ecuador, Environmental Economics and Policy, Land Economics/Use,
    Date: 2009
  31. By: Carpio, Carlos E.; Isengildina-Massa, Olga
    Abstract: This study evaluated the impact of the South Carolina (SC) agricultural promotion campaign after its first season. Analysis of the survey data revealed that consumer demand for state grown produce has increased by 3.4% which could result in an increase in producer surplus of $2.9 million. Since the SC Department of Agriculture invested $500,000 in the promotion program in 2007, this figure indicates a benefit-cost ratio of 5.8.
    Keywords: Demand for local products, state branding and promotion programs, contingent valuation, equilibrium displacement models, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis,
    Date: 2009
  32. By: Lust, David G.; Almas, Lal K.; Stewart, Bob A.; Colette, W. Arden
    Abstract: Production budgets for dryland crop and crop/livestock systems are developed to estimate yields, costs and returns for dryland wheat and sorghum and for alternative dryland crop/livestock systems. A crop simulation model aids yield estimation. The yield and return distributions are used to estimate risk and relative risk for included alternatives.
    Keywords: Relative Risk, Ogallala Aquifer, Crop-Livestock Systems, Wheat, Sorghum, Crop Production/Industries, Farm Management, Livestock Production/Industries, Production Economics, Productivity Analysis,
    Date: 2009
  33. By: Jensen, Robert T. (U of California, Los Angeles); Miller, Nolan (Harvard U)
    Abstract: World food prices have increased dramatically in recent years. We use panel data from 2006 to examine the impact of these increases on the consumption and nutrition of poor households in two Chinese provinces. We find that households in Hunan suffered no nutrition declines. Households in Gansu experienced a small decline in calories, though the decline is on par with usual seasonal effects. The overall nutritional impact of the world price increase was small because households were able to substitute to cheaper foods and because the domestic prices of staple foods remained low due to government intervention in grain markets.
    Date: 2008–08
  34. By: Morris, Britany; Richardson, James; Frosch, Brian; Outlaw, Joe; Rooney, William
    Abstract: The economic feasibility of producing ethanol from sweet sorghum juice is projected using Monte Carlo simulation models to estimate the price ethanol plants will likely have to pay for sweet sorghum and the uncertain returns for ethanol plants. Ethanol plants in high yielding regions will likely generate returns on assets of 11%-12% and in low yield areas the returns on assets will be less than 10%.
    Keywords: Sweet Sorghum, Ethanol, Monte Carlo Simulation, Agribusiness, Agricultural Finance, Crop Production/Industries, Farm Management, Risk and Uncertainty, D20 G10 D81 C15,
    Date: 2009–01–16
  35. By: Onyango, Benjamin; Rimal, Arbindra; Miljkovic, Dragan; Hallman, Willaim
    Abstract: This study uses data from a 2006 survey on potential AI outbreak in USA to explore application of risk perceptions as a segmentation tool in the poultry meat market. Preliminary results from principal component analysis (PCA) suggest that the poultry meat specific safety level will drive people consumption choices in AI outbreak. Based on the perceived safety level, poultry meat product market was categorized into: (1) the home cooked and familiar brands; (2) the technological/novel; and (3) organic/fast food poultry products. The results further show differential public trust AI advice across institutions.
    Keywords: Avian Influenza, Market segmentation, poultry industry, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,
    Date: 2009–01–16
  36. By: Smith, Travis A.; Huang, Chung L.; Lin, Biing-Hwan
    Abstract: Using retail purchase data, price premiums and discounts associated with household demographics, market factors, and product attributes (focusing on the organic attribute for strained baby food) are estimated using a hedonic pricing model. Results suggest that the organic premium ranges from about 12 to 49 percent in 2004 and from 30 to 52 percent in 2006. Tests for significant changes relative to product attributes show that while the price of conventional baby food has stayed relatively the same, the premium for organic baby food has increased.
    Keywords: organic baby food, hedonic price, market factors, product attributes, Nielsen Homescan, organic premium, Consumer/Household Economics, Demand and Price Analysis,
    Date: 2009
  37. By: Amanullah; Almas, Lal K.
    Abstract: Getting maximum benefits from cereals do not lie in reducing N-rate and its number of splits but lowering cost per unit cereal production through higher yields. Field experiments were conducted on maize (Zea mays L.) at the New Developmental research Farm of NWFP (Northwest Frontier Province) Agricultural University Peshawar-Pakistan during 2002-03 and 2003-04 in order to investigate effects of variable rates of N and its time of application on the partial factor productivity (PFPN), agronomic efficiency (AEN), net returns (NR), value-cost ratio (VCR) and marginal returns (MR). The 2 x 3 x 6 factorial experiment was designed having two plant densities (D1 = 60,000 and D2 = 100,000 plants ha-1) and three N levels (N1 = 60, N2 = 120 and N3 = 180 kg N ha-1) applied to main plots, while six split application of N in different proportions were applied to subplots in two equal (T1), three equal (T2), three unequal (T3), four equal (T4), five equal (T5) and five unequal splits (T6) at sowing and with 1st, 2nd, 3rd and 4th irrigation at two wk intervals. Maize ranked first with maximum PFPN, AEN, NR, VCR and MR at higher than at lower plant density, and the increase in all these parameters studied in the experiments was more in 2003-04 as compared to 2002-03. Both PFPN and AEN showed negative relationship with increase in N rates and the cast that vary, but NR, VCR and MR showed positive relationship with increase in N rates and the cost that vary. Among time of N application, maximum PFPN, AEN, NR, VCR and MR were calculated when N was applied in five equal splits (T5) almost comparable with T4 and T6 but was more economical when compared with T1, T2, and T3. In conclusion, the findings suggest that growing maize at D2 applied with N3 in four to five splits is more economical in the wheat-maize cropping system of NWFP.
    Keywords: maize, Zea mays L., planting density, nitrogen, agronomic efficiency, economics, Crop Production/Industries, Farm Management, International Development, Production Economics, Productivity Analysis,
    Date: 2009
  38. By: Popp, Jennie; Abdula, Arby; Newton, Doris; Pittman, Dianne; Danforth, Diana
    Abstract: Research in the mid 1900s suggested that salary gaps existed between men and women in academia. Though the research helped bring attention to salary gaps, less focus was on causes of salary differences. More recent research suggested differences in salaries were based on performance. A survey was sent to agricultural economics professionals at land grant intuitions to identify the factors that influence their salaries. Results of the ordered probit model suggest that seven variables can be used to explain salaries: having attained tenure, working at an 1862 institution, the amount of grant dollars, the number of journal articles, highest academic rank and the percentage of appointment that is in administration (positive influences) and importance of family time (negative influence). Other variables tested – gender, ethnicity and other preferences – were not found to influence salary levels.
    Keywords: salary and performance, tracking survey, Institutional and Behavioral Economics, A11, A14,
    Date: 2009
  39. By: Chen, Wei; Marchant, Mary A.; Song, Baohui
    Abstract: A model examines how the international and China’s market prices impact China’s soybean imports from the U.S. and South America. Based on soybean crushing ratios and a market clearing presumption, an equation of China’s soybean oil import prices is designed to achieve the goal.
    Keywords: China's Soybean Imports, U.S. Soybean Exports, South American Soybean Exports, Price Elasticities, Soybean Crushing Ratios, Marke Clear, GMM, Agribusiness, International Relations/Trade, Q17,
    Date: 2009
  40. By: Haq, Zahoor; Meilke, Karl D.
    Abstract: Using a generalized gravity equation, this study tests for the Linder effect in differentiated agrifood product trade, i.e. as the demand structures of two countries become more similar, their trade intensity increases. Two proxies of demand structure, the Balassa index and the absolute value of the difference in per capita GDPs of trading partners, are used to capture the Linder effect. In addition, two measures of bilateral trade, the Grubel and Lloyed index, and the value of bilateral trade are used as the dependent variable. The study investigates the role of the Linder effect in explaining the trade of 37 differentiated agri-food and beverage products categorized into eight product groups: cereals; fresh fish; frozen fish; vegetables; fresh fruit; processed fruit; tea and coffee; and alcoholic beverages. The data covers trade across 52 developed and developing countries from 1990 to 2000. The type of proxy used for the Linder effect and the way in which bilateral trade is measured influence the outcome of the statistical tests for the Linder effect. The Linder effect for cereals, frozen fish, vegetables, processed fruits, and tea and coffee, using the value of trade as the dependent variable, is often accepted but it is generally rejected when the GL index is used as the measure of trade intensity. In brief, the results do not provide strong support for the Linder effect in the trade of differentiated agri-food products.
    Keywords: Agri-food, Generalized Gravity Equation, Grubel and Lloyed index, Linder Effect, trade, Agricultural and Food Policy, International Relations/Trade,
    Date: 2008–10
  41. By: Lewis, David J. (U of Wisconsin); Provencher, Bill; Butsic, Van
    Abstract: Recent economic analyses emphasize that designated open-space increases the rents on neighboring residential land, and likewise, the probability of undeveloped land converting to residential uses. This paper addresses a different question: What is the effect of local open space conservation on the rate of growth in the density of existing residential land? The analysis is relevant for exurban development and also for remote lakeshore development, where shoreline development density can rapidly increase over time and open-space policies are often advocated as a way to protect ecosystems by reducing development. A discrete choice econometric model of lakeshore development is estimated with a unique parcel-level spatial-temporal dataset, using maximum simulated likelihood to account for i) the panel structure of the data, ii) unobserved spatial heterogeneity, and iii) sample selection resulting from correlated unobservables. Results indicate that, contrary to the intuition derived from the current literature, local open space conservation policies do not increase the rate of growth in residential development density, and some open space conservation policies may reduce the rate of growth in residential development density. This is consistent with land-value complementarity between local open space and parcel size. Spatially-explicit simulations at the landscape scale examine the relative effects of conservation policies on the time path of development.
    Date: 2008–01

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