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on Agricultural Economics |
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Issue of 2009‒03‒28
forty-nine papers chosen by |
| By: | Smale, Melinda; Cohen, Marc J.; Nagarajan, Latha |
| Abstract: | "There are no easy solutions to the ongoing food price crisis. Maize and wheat prices doubled between 2003 and 2008, and the price of rice doubled in the first four months of 2008, rising 33 percent in a single day. Even with declines in food prices later in 2008, prices remain well above 2000–2005 levels. To address the complex causes of this phenomenon, IFPRI has recommended a combination of “emergency” and “resilience” actions. One of the proposed policies emphasizes the need to boost agricultural production. This “emergency” agriculture package requires carefully targeted subsidies to ensure increases in production of major foodcrops (rice, wheat, and maize) in favorable environments with good soils, moisture, and market infrastructure. Following the Green Revolution model, delivery of improved varieties of seed, fertilizers, and other inputs, along with targeted, short-term subsidies, would augment production through higher yields rather than area expansion, so that scarce land can be reserved for other crops and uses. As part of the “resilience” package, IFPRI proposes scaled-up investment in agricultural growth to bolster production responses over the longer term. Until recently, public complacency regarding food abundance has contributed to a prolonged decline in agricultural investment by aid donors and developing-country governments. In-depth field research—undertaken by IFPRI with the Food and Agriculture Organization of the United Nations (FAO) and other partners in India, Kenya, and Mali—brings to light new evidence about farmers' access to seed and the role of village markets in supplying it, with a focus on semi-arid environments. The findings point to several policy options aimed at improving the effectiveness of these markets, which can be crucial for reducing the potential negative impacts of high food prices. Such options might be considered in tandem with those recommended for more favorable environments, where seed systems already function more effectively. This brief introduces the issues that drove this research project, relevant concepts, and methods. The accompanying briefs present findings of specific country case studies." from text |
| Keywords: | Food prices, Local markets, Farmers, Seeds, Agricultural growth, Millet, Pigeonpea, Sorghum, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:issbrf:59&r=agr |
| By: | Robles, Miguel; Torero, Maximo; von Braun, Joachim |
| Abstract: | "The food price crisis of 2007–08 had several causes—rising demand for food, the change in the food equation through biofuels, climate change, high oil prices—but there is substantial evidence that the crisis was made worse by the malfunctioning of world grain markets. Dozens of countries imposed restrictions on grain exports that resulted in significant price increases, given the thinness of markets for major cereals. A number of countries adopted retail price controls, creating perverse incentives for producers. Speculative price spikes built up, and the gap between spot and futures prices widened, stimulating overregulation and trader policing in some countries and causing some commodity exchanges in Africa and Asia to halt grain futures trading. Some food aid donors defaulted on food aid contracts. The World Food Programme (WFP) had difficulty getting access to enough grain quickly for its humanitarian operations. Developing countries began urgently rebuilding their national stocks and reexamining the “merits” of self-sufficiency policies for food security. These reactions began as consequences, not causes, of the price crisis, but they exacerbated the crisis and increased the risks posed by high prices. By creating a positive feedback loop with high food prices, they took on a life of their own, increasing price levels and price volatility even more, with adverse consequences for the poor and for long-term incentives for agricultural production. Because they impeded the free flow of food to where it is most needed and the free flow of price signals to farmers, these market failures imposed enormous efficiency losses on the global food system, hitting the poorest countries hardest. Changes in supply and demand fundamentals cannot fully explain the recent drastic increase in food prices. Rising expectations, speculation, hoarding, and hysteria also played a role in the increasing level and volatility of food prices. The flow of speculative capital from financial investors into agricultural commodity markets has been drastic, and the number of future traded contracts is increasing over time. From May 2007 to May 2008, the volume of globally traded grain futures and options rose significantly. Excessive speculation in the commodity futures market could, in principle, push up futures prices and— through arbitrage opportunities—spot prices above levels justified by supply and demand fundamentals. The supposed impact of speculation is sometimes confused, however, with the impact of hedging, which reflects consumers' genuine concerns about future fundamentals and desire to hedge against risks. This brief analyzes the role of financial speculation in the behavior of agricultural prices in recent years." from text |
| Keywords: | Food prices, Agricultural prices, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:issbrf:57&r=agr |
| By: | Gbetibouo, Glwadys Aymone |
| Abstract: | "Climate change is expected to have serious environmental, economic, and social impacts on South Africa. In particular, rural farmers, whose livelihoods depend on the use of natural resources, are likely to bear the brunt of adverse impacts. The extent to which these impacts are felt depends in large part on the extent of adaptation in response to climate change. This research uses a “bottom-up” approach, which seeks to gain insights from the farmers themselves based on a farm household survey. Farm-level data were collected from 794 households in the Limpopo River Basin of South Africa for the farming season 2004–2005. The study examines how farmer perceptions correspond with climate data recorded at meteorological stations in the Limpopo River Basin and analyzes farmers' adaptation responses to climate change and variability. A Heckman probit model and a multinomial logit (MNL) model are used to examine the determinants of adaptation to climate change and variability. The statistical analysis of the climate data shows that temperature has increased over the years. Rainfall is characterized by large interannual variability, with the previous three years being very dry. Indeed, the analysis shows that farmers' perceptions of climate change are in line with the climatic data records. However, only approximately half of the farmers have adjusted their farming practices to account for the impacts of climate change. Lack of access to credit was cited by respondents as the main factor inhibiting adaptation. The results of the multinomial logit and Heckman probit models highlighted that household size, farming experience, wealth, access to credit, access to water, tenure rights, off-farm activities, and access to extension are the main factors that enhance adaptive capacity. Thus, the government should design policies aimed at improving these factors. " from authors' abstract |
| Keywords: | Climate change, Climate variability, Perception, Adaptation, Agriculture, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:849&r=agr |
| By: | von Braun, Joachim; Torero, Maximo |
| Abstract: | "The 2007–08 international food price crisis caused hardship on a number of fronts. The steep rise in food prices led to economic difficulties for the poor and generated political turmoil in many countries. The crisis could also result in long-term, irreversible nutritional damage, especially among children. There is a global interest in preventing such events from recurring. The price crisis was triggered by a complex set of long-term and short-term factors, including policy failures and market overreactions. One important factor in the crisis was the entry of significant financial resources into futures markets, including food commodity markets, which contributed to a price spike during the first six months of 2008. This episode highlights the need to modify the architecture of international financial and agricultural markets to address the problem of price spikes, especially their effects on the livelihoods of the poor. Although a set of guiding principles for regulating agricultural and commodity futures markets should be developed and recent inappropriate trade policy instruments such as export bans should be reviewed, these actions are not sufficient to avoid extreme price spikes and to ensure that the world can respond to emergency needs for food. We propose two global collective actions to meet these goals. First, a small physical food reserve should be established to facilitate a smooth response to food emergencies. Second, an innovative virtual reserve should be set up to help prevent market price spikes and to keep prices closer to levels suggested by long-run market fundamentals like supply and demand. This brief offers some specifics on implementing a proposal described in our earlier IFPRI policy brief titled Physical and Virtual Global Food Reserves to Protect the Poor and Prevent Market Failure (June 2008). Price instability is a general feature of agricultural markets. The proposals made here are designed not to stabilize prices generally, but to prevent damaging price spikes. The proposed actions will entail costs, but the modest costs of the required organizational elements must be balanced against the benefits of more effective international financial architecture. These benefits will include prevention of economic hardship, improved market efficiency, stronger incentives for long-term investment in agriculture, and prevention of political instability." from Author's text |
| Keywords: | Food prices, Food policy, Markets, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:polbrf:10&r=agr |
| By: | Haggblade, Steven; Hazell, Peter B. R.; Reardon, Thomas |
| Abstract: | "Rural residents across the developing world earn a large share of their income—35–50 percent—from nonfarm activities. Agricultural households count on nonfarm earnings to diversify risk, moderate seasonal income swings, and finance agricultural input purchases, whereas landless and near-landless households everywhere depend heavily on nonfarm income for their survival. Over time, the rural nonfarm economy has grown rapidly, contributing significantly to both employment and rural income growth. Long neglected by policymakers, the rural nonfarm economy has attracted considerable attention in recent years. In poor agrarian countries struggling with growing numbers of marginal farmers and lackluster agricultural performance, such as those in much of Africa, policymakers view the rural nonfarm economy as a potential alternative to agriculture for stimulating rural income growth. In countries whose economies are successfully shifting from agriculture to other sectors, policymakers see the rural nonfarm economy as a sector that can productively absorb the many agricultural workers and small farmers being squeezed out of agriculture by increasingly commercialized and capitalintensive modes of farming. Given frequently low capital requirements in the nonfarm economy, policymakers in both settings view the rural nonfarm economy as offering a potential pathway out of poverty for many of their rural poor. Expectations everywhere are high. How realistic are these expectations? Can the rural nonfarm economy indeed grow rapidly enough to productively absorb a growing rural labor force? And in doing so, can it, in fact, provide a pathway out of poverty for the rural poor? A recent book published for IFPRI by Johns Hopkins University Press and Oxford University Press in India, Transforming the Rural Nonfarm Economy: Opportunities and Threats in the Developing World, marshals empirical evidence from around the globe to explore these key policy questions. The book, edited by Steven Haggblade, Peter B. R. Hazell, and Thomas Reardon, examines key factors affecting growth and equity in the rural nonfarm economy in order to identify settings and policies that favor rural nonfarm growth and enable the poor to participate in growing segments of the evolving rural nonfarm economy." from text |
| Keywords: | Agricultural industries Developing countries, Agriculture Economic aspects Developing countries, Developing countries Rural conditions., Nonfarm economy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:issbrf:58&r=agr |
| By: | Harris, Wes |
| Abstract: | Presented to USDA Economists Group, Washington, DC, 03 March 2009 |
| Keywords: | Farm Bill, Cotton, Peanuts, Agricultural and Food Policy, Q18, |
| Date: | 2009–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdags:47908&r=agr |
| By: | Jiang, Qiang |
| Abstract: | The increasing interests in climate change heighten the need for an agro-economic model to analyse climate change impacts on farmers’ incomes. Many researchers have turned to crop yield response models to estimate farmers’ yield and income loss. A classic method used by economists to establish yield response models is to build up the statistic relationship between historical yield changes and climate change through regression models. However, without comprehensive experimental data from each region such as crop yields response to CO2 concentration, these crop-yield response models may provide misleading predications. An alternative approach is the use of crop biophysical simulation models. Based one biophysical model Agricultural production systems simulator (APSIM), we develope an agro-economic model, WATER-BIOMASS DYNAMI, to simulate the change of crop yields and farmers' income affected by varied climate change scenarios and other economic factors. We used the WATER-BIOMASS DYNAMIC model to analyse the agricultural economic impacts of four climate change scenarios in the Australian Wagga Wagga wheat production area. |
| Keywords: | APSIM, Climate change, agricultural economics, wheat, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48172&r=agr |
| By: | Bayot, Ruvicyn; Templeton, Debbie |
| Abstract: | Rice, a staple food for over 70% of Asians, is also the single biggest user of water, requiring 2â€Â3 times more water per unit of grain produced than crops such as wheat and maize. With growing populations, increased urbanisation and environmental degradation, the supply of fresh water is depleting. Recognising the water constraints to rice yield, the aim of the project entitled ‘Developing a System of Temperate and Tropical Aerobic Rice (STAR) in Asia’ was to develop waterâ€Âefficient aerobic rice technologies. This paper highlights the success of that project. |
| Keywords: | Aerobic rice, economic impact, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47635&r=agr |
| By: | Spielman, David J.; Kelemework, Dawit |
| Abstract: | "The rapidly changing nature of the global food and agriculture system suggests the need to rethink how innovation can contribute to developing-country agriculture. While scientific and technological changes in agriculture can help foster productivity growth and poverty reduction, their contributions are incomplete without commensurate changes in the wider system of which they are a part. A more systems-oriented understanding of how innovation occurs in a society and economy is critical to promoting dynamism, responsiveness, and competitiveness in developing-country agriculture and, ultimately, to enhancing productivity and reducing poverty. However, without adequate measures of the properties and performance of an agricultural innovation system, it is difficult for policymakers, investors, donors, and practitioners to promote policies and investments that foster greater innovativeness in agriculture. This suggests the need for a measure of agricultural innovativeness that preferably extends beyond the “black box” approach of measuring only inputs and outputs, focusing on the underlying processes that contribute to building the capabilities needed to create an innovative agricultural sector. To this end, this paper attempts to provide a “proof of concept” that innovativeness in developing-country agriculture can be measured. It first identifies a set of indicators from secondary data sources that measure the key elements of an agricultural innovation system. Several hundred indicators are reviewed, validated, and aggregated into a unique Agriculture, Development, and Innovation Index (ADII). The paper then provides a toolkit for collecting and analyzing “systems-oriented” indicators that add more process-related nuances to the ADII with both attributional and relational data. This is illustrated with data collected in Ethiopia and Vietnam in 2007–08." from authors' abstract |
| Keywords: | Agriculture, Developing countries, Innovation, Science and technology, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:851&r=agr |
| By: | Santarcangelo y Juan Fal, Juan |
| Abstract: | The aim of this paper is to analyze the impact of the economic policies on the Argentinean Agricultural sector for the period 1980-2007. By evaluating the changes that have been taken place in the production styles and the role played by the rise in profitability of cereals, oleaginous crops and beef cattle, we seek to identify the main elements that will allow us to understand the general path that the sector has taken for the period under analysis. After explaining the general evolution of the sector, we end up our analysis identifying the future challenges that the country will face regarding food security, health regulations and environmental problems. |
| Keywords: | agriculture, livestock, profitability, food security, Argentina., |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47949&r=agr |
| By: | Fridfinnson, Brooke; Rude, James |
| Abstract: | In terms of the global situation, trade is biofuels is small relative to world-wide production; however, given ambitious consumption mandates in many developed countries as well as increasing energy consumption, this will not likely remain the case in the long-run. Although biodiesel has been classified as an industrial good, ethanol is currently marketed as an agricultural product, though not specifically for fuel use. The removal of trade barriers, particularly in the developed countries, would not only ease pressure on the traditional feedstocks and lower world ethanol prices, but allow countries with a comparative advantage to capitalize on the opportunity to produce low-cost biofuel. Whether the removal of these trade barriers on biofuels would affect their efficacy as a political tool remains to be seen. |
| Keywords: | biofuel, commodity, trade, Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:catpwp:48119&r=agr |
| By: | Davenport, Scott; Chadha, R; Gale, R |
| Abstract: | This paper forms part of a project titled ‘Facilitating Efficient Agricultural Markets in India: An Assessment of Competition and Regulatory Reform Requirements funded by the Australian Centre for International Agricultural Research (ACIAR). The project follows from previous research which found that India’s border reforms need to be complemented by ‘behind-the-border’ domestic reforms if government policy objectives of improved productivity, higher rural employment and incomes and enhanced food security are to be met. The project is being undertaken by Indian and Australian collaborators with expertise in agricultural policy development. Stage 1 of the project is designed to develop a common understanding among those collaborators of contemporary market based policy development principles and the extent to which they have been adopted in other developing countries. The BRICs economies of Brazil, Russia, India and China, as well as South Africa, were chosen for this purpose. A comparative overview of agricultural policy developments in these economies is underway drawing observations about policy reform impacts on agricultural production and the extent to which policy reforms have been consistent with competition policy and microeconomic reform principles applied in developed economies, such as Australia. The extent to which trade practices law has emerged in developing economies as an alternative to direct regulation is also considered. Preliminary findings are reported to facilitate broader discussion and encourage input from interested parties. Stage 2 of the project, commencing later in 2009, will involve the application of competition policy principles to the marketing regulations of a selection of agricultural industries in India. Consideration will be given to clarifying regulatory objectives, assessing their consistency with accepted forms of ‘market failure’ and assessing whether regulatory measures address those policy objectives in a manner least restrictive on competition. As well as facilitating efficient policy reform within India’s agricultural sector, the project aims to enhance the development of market based agricultural policy frameworks and the policy development skills of Indian and Australian policy makers. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48154&r=agr |
| By: | Ulimwengu, John M.; Workneh, Sindu; Paulos, Zelekawork |
| Abstract: | "Previous studies implicitly assume uniform price-effects across regions or provinces within countries. They also do not address the issue of integration between the world food market and local markets. Instead, they assume a complete transmission of changes in world food prices to local food prices. In this paper, we first establish evidence of regional price heterogeneity across Ethiopia. We also applied the Johansen test for market integration over 95 local maize markets and found that none of the Ethiopian regional markets for maize is integrated to the world market. However, there is significant short-term price effects between the world maize market and some Ethiopian regional markets. Using the Almost Ideal Demand System, we estimate loss in household consumption and calorie intake as induced by food price increases. The results suggest a great deal of heterogeneity across regions as well as between rural and urban areas. Studies that fail to account for the characteristics of household demand across locations are more likely to induce misleading policy recommendations. " from authors' abstract |
| Keywords: | Price, Integration, Demand, Elasticity, Poverty, Food prices, maize, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:846&r=agr |
| By: | Anderson, Kym; Croser, Johanna L; Lloyd, Peter J |
| Abstract: | For decades the world’s agricultural markets have been highly distorted by national government policies, but very differently for different commodities. Hence a weighted average across countries of nominal rates of assistance or consumer tax equivalents for a product can be misleading as an indicator of the trade or welfare effects of policies affecting that product’s global market. This is especially the case when some countries tax and others subsidize its production or consumption. This article develops a new set of more-satisfactory indicators for that purpose, drawing on the recent literature on trade restrictiveness indexes. It then exploits a global agricultural distortions database recently compiled by the World Bank to generate the first set of estimates of those two indicators for each of 28 key agricultural commodities from 1960 to 2004, based on a sample of 75 countries that together account for more than three-quarters of the world’s production of those agricultural commodities. These reveal the considerable extent of reforms in agricultural policies of developing as well as high-income countries over the past two decades. |
| Keywords: | agricultural price and trade policies; Distorted commodity markets; trade restrictiveness index |
| JEL: | F13 F14 Q17 Q18 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:7230&r=agr |
| By: | Curtis, Kynda; Bishop, Carol; Harris, Thomas |
| Abstract: | As water resources in arid regions decline, agricultural producers are encouraged to adopt water conserving strategies. The implementation of alternative low-water use crops is one option, but is it economically feasible? Data on current and alternative crops for this study include enterprise budgets, producer interviews, and field trials in Northwestern Nevada, USA. We use WinEPIC, a Windows-based version of the EPIC model, which synthesizes both agronomics and economics, to model yields and returns of alternative crop production under differing irrigation levels. Risk analysis or the distribution of net returns to alternative crop production is also examined. This study determined that there are alternative crops that could be feasibly substituted for alfalfa and reduce water use by at least one-half while providing net returns that meet or exceed returns from alfalfa and keep producers profitable in agriculture |
| Keywords: | alternative crops, arid regions, economic feasibility, irrigation, WinEPIC, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48053&r=agr |
| By: | Jaeck, M.; Lifran, Robert |
| Abstract: | The aim of this paper is to elicit the sensitivity of farmers to payments for agro-environmental services in a context of strong agro-ecological and policy constraints. We present results from a choice experiment survey performed among the whole population of agricultural decision-makers (104) in the Camargue area. Several econometric models have been estimated, the most significant being the Latent Classes one. The estimated parameters of the utility function, together with the parameter associated with the monetary attribute provided the monetary value of each relevant agro-ecological attribute and the associated outcomes (average and risk yield). |
| Keywords: | Agricultural Technological Choices, Agro-environmental measures, Policy Instruments design, Choice Experiments, Sample Selection Model, Latent classes Model, Random Parameter Model, Rice production, Labelling, Organic farming, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47948&r=agr |
| By: | Gerber, Nicolas; Von Eckert, Manfred; Breuer, Thomas |
| Abstract: | The various calculations of the impacts of biofuel production on the mid-term projections of food and agricultural commodity prices are difficult to reconcile. This is largely due to the intricate set of assumptions, the differences in the baseline scenario and in the projection horizon they are built upon. For similar reasons, studies evaluating the impact of biofuel production on food and commodity prices to date do not provide a clear consensus. Rather than discussing the merits of the different assumptions and methodologies, this paper focuses on the global trends that can be extracted from the different sources. Agreed upon by all sources is the fact that between 2005 and 2007 many agricultural commodity prices increased sharply, especially nominal prices. The impact of commodity prices on final food prices affecting household food expenditures is less clear. Nonetheless, many food price indices (national CPIs, WB food price index and FAO food price index) have also risen over the same period. It is a fact that the increasing demand for feedstocks from the biofuel sector is one among several factors impacting on agricultural commodity prices. Other factors cited include poor harvests, the structural change in food demand in certain countries, population growth, high oil prices, or the devaluation of the US dollar. To calculate the longer term projected commodity prices, these factors are integrated in the simulations, which are then subjected to different biofuel production scenarios. These scenarios largely determine the extent of the biofuels’ impact on food and commodity prices. Despite considerable differences in projection results, methodologies and assumptions, some common trends can be observed. The latest EU and US biofuel programs and legislations are expected to have the largest impact on vegetable oils over the mid term, increasing world real prices by more than 30% between 2011 and 2016. The impacts on prices are generally projected as lesser (+3 to 15%) for commodities such as wheat, corn and soybean, whilst the price of oilseed meals (an important part of fodder markets and a by-product of vegetable oil production) is predicted to decline (-11 to -17%) due to the increase in vegetable oil production. A (hypothetical) freezing of biofuel production at the 2007 levels predicts a decline in cassava, oils, sugar and wheat prices by less than 10% between 1997 and 2020. The price decreases would reach 10 to 20% had biofuel production completely stopped in 2007. The magnitude of the impacts is more contrasted when looking at real regional prices, but across all given regions biofuel mandates and targets are projected to impact oilseed prices most strongly (+25 to +72%), followed by grain prices (+5 to +21%). |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:48193&r=agr |
| By: | Kingwell, Ross; Harris'Adams, Keely |
| Abstract: | If agriculture is included in an Australian emissions trading scheme then it may face from 2015 at the earliest, a price for its greenhouse gas emissions; and thereby have incentives to offset and lessen its emissions. Yet because there is currently little understanding of the spatial pattern of emissions in agricultural regions of Australia, the extent of the challenge the sector faces in reducing its emissions is not fully recognised. To improve our understanding, this study uses the National Greenhouse Accounts methodology to estimate the spatial and temporal patterns of agricultural emissions since 1990 in the key agricultural region in Australia’s southwest. This region generates almost 40 percent of the nation’s winter crop production and supports over a quarter of the nation’s sheep. The quantity and trajectory of emissions from each shire in this region are reported, thereby identifying where emission problems may be worsening or easing. The composition and causes of changes in emissions are discussed. This study also generates spatial estimates of sequestration costs by drawing on land and forestry cost and tree growth data. Many relatively low cost sites for carbon sequestration, based on permanent reforestation, are identified with the implication that agriculture may be able to cost-effectively offset its emissions, as well as some of those from other sectors. However, an implication of this study’s findings is that in some shires eventually there may be strong land use competition between farming and forestry. |
| Keywords: | greenhouse gas emissions, spatial analysis, agriculture, offsets, sequestration, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48161&r=agr |
| By: | Cuevas-Cubria, Clara |
| Abstract: | In Australia, as in other countries, the environmental costs and benefits of biofuel production and use have been found to vary greatly according to the production method and feedstocks used. In general, the use of biodiesel produced in Australia has been found to provide greater environmental benefits than ethanol, both in terms of reduced greenhouse gas (GHG) emissions and reduced air pollutant emissions. In this paper, estimates of GHG and air pollutant emissions arising from biofuels and petroleum fuels production and use are employed to calculate the change in environmental externalities when substituting biofuels for petroleum fuels in Australia. These estimates of externalities highlight the need to better understand the environmental implications of biofuel production and use. |
| Keywords: | biofuels, environmental policy, greenhouse gas emissions, air pollutants, externalities, Australia, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47624&r=agr |
| By: | Hoang, Viet-Ngu; Coelli, Tim |
| Abstract: | This paper develops a new measure of total factor productivity growth in agricultural production which incorporates environmental effects. The new measure is called the Total Factor Nutrient-Orientated Productivity (TFNP) Index, and incorporates a materials balance condition. TFNP measures changes in nutrient-orientated efficiency and can be decomposed into efficiency change (EC), technological change (TC) and nutrient-orientated technological change (NTC) components. An empirical analysis, involving country-level data from OECD countries during 1990-2003, is provided using DEA methods. Estimates of mean technical and nutrient-orientated efficiency are 0.798 and 0.526, respectively. Estimated mean TFNP growth is 1.5% per year, with nutrient-orientated technological progress contributing 0.8%. |
| Keywords: | Total factor productivity, environment, nutrient balance, DEA, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47636&r=agr |
| By: | Rose, Gus; Kingwell, Ross |
| Abstract: | Labour scarcity and affordability have encouraged many farmers in Western Australia to focus more on cropping than sheep production. Many farmers are opting to run low input livestock systems. This paper examines labour demand for sheep and cropping during the production year, combined with various scenarios of labour availability and cost. The implications for farm profitability and enterprise selection are examined using the bio-economic farming systems model MIDAS (Model of an Integrated Dryland Agricultural System). Labour requirements for sheep are far greater than those for cropping. Additionally the labour requirements for sheep are high in all production periods whilst the seasonal nature of cropping means more time is required only at certain times of the year, particularly at seeding and harvest. This means that the most profitable labour option is employing casual labour during periods of peak demand for cropping. The lesser relative profitability of the sheep enterprise makes employing a permanent worker the least profitable labour option. By contrast, employing casual labour during busy periods for cropping is more profitable but it is also associated with only small areas of perennial pastures being sown which has environmental implications. The logistics of employing labour at only certain times of the year compared to employing a full time worker means that farmers need to pay more per week to employ these workers or do the extra work themselves. |
| Keywords: | agriculture, labour, farm modelling, cropping, sheep, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47947&r=agr |
| By: | Nordblom, Tom; Reeson, A.; Finlayson, J.; Hume, I.H.; Whitten, S.; Kelly, J.A. |
| Abstract: | Land-use change in upper catchments impact downstream water flows. As trees use large amounts of water the expansion of upstream plantations can substantially reduce water availability to downstream users. There can also be impacts on downstream salinity due to reduced dilution flows. In some jurisdictions afforestation requires the purchase of water rights from downstream holders, while in others it does not, effectively handing the water rights to the upstream landholders. We consider the economic efficiency and equity (profitability and distributional) consequences of upstream land use change in the presence of a water market under alternate property rights regimes and different salinity scenarios. |
| Keywords: | experimental-economics, tree-plantations, environmental-services, urban, irrigation, stock & domestic, water use, land use, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47945&r=agr |
| By: | Gruère, Guillaume; Sengupta, Debdatta |
| Abstract: | "We herein investigate the observed discrepancy between real and perceived commercial risks associated with the use of genetically modified (GM) products in developing countries. We focus particularly on the effects of GM-free private standards set up by food companies in Europe and other countries on biotechnology and biosafety policy decisions in food-exporting developing countries. Based on field visits made to South Africa, Namibia, and Kenya in June 2007, and secondary information from the press and various publications, we find 31 cases of interactions between private GM-free standards and biosafety policy decisions in 21 countries. Although we cannot infer the direct involvement of supermarkets and food companies in biosafety policy processes in developing countries, we find that by setting up GM-free standards, these actors are indirectly influential via their local traders, who face the possibility of exclusion if they do not comply with the standards. Organic producers' and anti-GM organizations also play a role in spreading perceptions of commercial risks that are not always justified. By comparing cases, we differentiate three types of relevant commercial risks: real risks, potential risks, and unproven risks. We then identify two critical, yet misleading, presumptions perpetuated by the various interest groups to spread the fear of potential or unproven risks: the infeasibility of non-GM product segregation and the lack of alternative buyers. We also find that information asymmetries and risk-averse behaviors related to perceived market power can help insert unfounded export concerns into biosafety or biotechnology policy decisions. The results of our analysis are used to suggest a simple framework to separate real commercial risks from others, based on five critical questions designed to aid decision makers when they face pressures to reject GM crop testing, application, consumption or use for fear of alleged export losses. " from authors' abstract |
| Keywords: | Genetically modified food, Private standards, International trade, Biosafety, Science and technology, biotechnology, Developing countries, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:847&r=agr |
| By: | Ronan, Glenn |
| Abstract: | Andrew Fearne, Professor of Food Marketing and Supply Chain Management and a Director of the dunnhumby Academy of Consumer Research at Kent University, UK, is a current Thinker in the Adelaide Thinkers in Residence (ATIR) program. Professor Fearne is the 14th person to undertake a Thinkers appointment. The residency theme, Food and Wine Value Chains: Prosperity through Collaboration, has provided a timely opportunity for partners, including wine companies, government agencies, universities, an industry association and a regional development board to review micro and macro strategies and policies from a value chain perspective. The residency was initiated to improve sustainable competitive advantage within South Australian food and wine value chains. Its timing has coincided with, and aligns with, community concern and national policy issues in grocery pricing, water policy, drought/climate change, health-wellbeing agendas, waste and food security; all converging and impacting on food and wine supply chains. The paper provides background about the Adelaide Thinkers in Residence program and partner objectives for the residency: it refers to other chain research involving Professor Fearne at dunnhumby and in Tasmania, where better insight to consumer behaviour is the basis for product and process adjustment, with the possibility of better outcomes for consumers and stakeholders; it outlines a major wine value chain analysis project in SA and identifies some main themes to emerge from this Thinker’s program. Professor Fearne will be reporting to the South Australian Government during 2009. |
| Keywords: | value chain analysis, food and wine, planning and policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47944&r=agr |
| By: | Meade, Richard; Fiuza, Gabriel; Lu, Andrea; Boyle, Glenn; Evans, Lewis |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48163&r=agr |
| By: | O'Donnell, Chris J. |
| Abstract: | The total factor productivity (TFP) of a multiple-output multiple-input firm can be defined as the ratio of an aggregate output to an aggregate input. With this definition, index numbers that measure changes in TFP can be expressed as the ratio of an output quantity index to an input quantity index. This paper uses the term multiplicatively complete to describe TFP index numbers that are constructed in this way. O'Donnell (2008) shows that, irrespective of the returns to scale and/or scope properties of the production technology, all multiplicatively complete TFP index numbers can be decomposed into widely-used measures of technical change and technical efficiency change, as well as unambiguous measures of scale and mix efficiency change. Members of the class of multiplicatively complete TFP index numbers include the Fisher, Tornquist and Moorsteen-Bjurek indexes, but not the popular Malmquist index of Caves, Christensen and Diewert (1982a). This paper uses data envelopment analysis (DEA) to compute and decompose Moorsteen-Bjurek indexes of world agricultural TFP change for the period 1970- 2001. In a DEA model that prohibits technical regress, only two countries are found to maximize TFP during the study period: Nepal from 1970 to 1995, and Thailand for several years in the late 1990s. The paper explains how changes in the agricultural terms of trade have drawn other larger agricultural producers away from TFP-maximizing input-output points. The annual rate of technical progress in global agriculture is estimated to be less than 1% per annum. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47625&r=agr |
| By: | Marsh, Dan; Baskaran, Ramesh |
| Abstract: | Water pollution is widely considered to be one of the most important environmental issues facing New Zealand. Waikato region residents have reported that water pollution is easily their most important environmental concern in each of four attitude surveys conducted by Environment Waikato. Technical and regulatory mechanisms to reduce water pollution, especially non-point source pollution from agriculture are the focus of an intensive research effort both in New Zealand and internationally. This work should assist farmers and policy makers to identify the most cost effective options for achieving any given improvement in water quality. Research described in this paper aims to complement existing research projects by developing appropriate methodology for valuation of water quality improvements in New Zealand. It is envisaged that this type of information will inform the policy process by allowing decision makers to consider both the costs and the benefits of different levels of water quality improvements. This paper describes the first phase focussed on the Karapiro catchment which used focus groups and choice modelling in order to understand and quantify the value of water quality improvements in the catchment. |
| Keywords: | Water Quality, Non Market Valuation, Choice Modelling, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47951&r=agr |
| By: | Kingwell, Ross; Metcalf, Tess |
| Abstract: | The Australian government is introducing a Carbon Pollution Reduction Scheme in 2010, as part of its climate change policy. After 2015 agriculture may be covered by this scheme. This paper examines how different broadacre farming systems may be affected by the policy settings of this scheme. Using the bio-economic farming systems model MIDAS (Model of an Integrated Dryland Agricultural System) the impacts of the Carbon Pollution Reduction Scheme on the profitability of different broadacre farming systems in the southwest of Australia are investigated. Results show a range of profit and enterprise impacts across the various farm types. In a scenario where agriculture is not covered by the scheme, reductions in profit range from 7 to 12 percent, attributable to more expensive ‘covered’ inputs such as fuel and fertiliser; and farmers reduce their use of expensive energy inputs such as chemicals and fertilisers. In a covered scenario profits decline by 15 to 25 percent of ‘business-as-usual’ profit and optimal farm plans involve a combination of reduced livestock numbers, the introduction of permanent woody perennial plantations on marginal lands and other changes to the farm enterprise mix to reduce emissions. |
| Keywords: | agriculture, greenhouse gases, economic modelling, abatement, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48162&r=agr |
| By: | Farquharson, Bob; Kelly, Jason; Welsh, Pam; Mazur, Kasia; Bennett, Jeff |
| Abstract: | Farm and catchment managers in Australia face decisions about controlling invasive native species (or scrub) which may infest agricultural land. The treatment of this land to remove the infestation and re-establish native pastures is likely to be expensive for landholders. Yet there are potential social benefits from such remediation and so a policy question arises of what to do to about facilitating such change. New South Wales state government legislation addresses this issue through regulations, and the Catchment Management Authorities are responsible for administering public funds to achieve associated natural resource improvements. However, the extent of the private costs and social benefits associated with such changes are not known, which precludes benefit-cost analyses using the traditional welfare economics framework. This paper reports results of a social and private economic analysis of the impacts of a typical infestation remediation decision. We show that for the landholder the private costs exceed the benefits achieved from increased livestock productivity. However, there are social benefits expressed by the willingness to pay by members of the local catchment community for improvements in native vegetation and biodiversity. When these social benefits are included, the economic analysis shows a positive social net benefit. This raises questions of how to reconcile the public and private accounting, and whether any changes to policies, regulations or procedures for natural resource management in New South Wales are warranted. |
| Keywords: | Invasive native scrub, environmental values, choice modelling, financial, economic, Namoi catchment, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48157&r=agr |
| By: | Taing, William; Ahmadi-Esfahani, Fredoun |
| Abstract: | In this paper, we use a simulation model to measure the potential market and welfare effects of recently introduced genetically modified (GM) canola in Australia. The short-run results indicate that non-GM canola may emerge as a niche product commanding a premium. In the long run, GM technology appears to enhance aggregate welfare. However, when production cost savings are trivial and consumers become highly concerned about GM food products, aggregate welfare may decline. The policy implications of the analysis are explored. |
| Keywords: | canola market, genetically modified crops, segregation, welfare., |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48191&r=agr |
| By: | Lloyd, Peter J.; Croser, Johanna L.; Anderson, Kym |
| Abstract: | Despite reforms over the past quarter-century, world agricultural markets remain highly distorted by government policies. Traditional indicators of those price distortions such as the nominal rate of assistance and consumer tax equivalent provide measures of the degree of intervention, but they can be misleading as indicators of the true effects of those policies. By drawing on recent theoretical literature that provides indicators of the trade- and welfare-reducing effects of price and trade policies, this paper develops more-satisfactory indexes for capturing distortions to agricultural incentives. It then exploits the Agricultural Distortion database recently compiled by the World Bank to generate estimates of them for both developing and high-income countries over the past half century, based on a sample of 75 countries that together account for all but one-tenth of the world’s population, GDP and agricultural production. While they are still only partial equilibrium measures, they provide a much better approximation of the true trade and welfare effects of sectoral policies without needing a formal model of global markets or even price elasticity estimates. |
| Keywords: | Distorted incentives, agricultural and trade policies, trade restrictiveness index, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48049&r=agr |
| By: | Thomas, Cameron |
| Abstract: | The Australian government’s proposed Carbon Pollution Reduction Scheme (CPRS) is likely to have a significant impact on the price of farm inputs (diesel, fertiliser, water and electricity). Furthermore, offsets (reduction or removal of greenhouse gas emissions that counterbalances emissions elsewhere in the economy) are a potential area of expansion under the scheme with particular interest in the agricultural sector. Agrichar is one of the new technologies and farming practices being investigated to counteract CPRS-imposed costs. Its two claimed benefits which relate both to the profitability of cane growers as well as to climate change are: the reduction in fertiliser application; and the carbon which agrichar can store in the soil for hundreds to thousands of years. This study drew on the Farm Economics Analysis Tool (FEAT) developed by the Queensland Department of Primary Industries and Fisheries specifically for the sugarcane industry. An analysis was conducted for a typical sugarcane farming enterprise in the Herbert Region of North Queensland. The scenarios included in the analysis recognised the change in input prices due to an emissions trading scheme, the change in farm practices when agrichar is included in operations and the potential to trade in offsets from that additional carbon stored by the use of agrichar. The sugarcane grower was found to benefit from the inclusion of agrichar into the operations. Agrichar is seen as a potential and viable option for sugarcane growers and should be considered as an alternative under the emissions trading scheme to minimise the impact of the rise in input costs. Further scientific and policy development could see the possibility for stored carbon to be traded in the offsets market, providing additional, although minor, cash flow to the grower. |
| Keywords: | CPRS, sugarcane profitability, carbon offsets, agricultural adaptation, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47641&r=agr |
| By: | Karen Macours |
| Abstract: | This paper analyzes the impact of formal property rights on plot use and credit access in 20 communities in Guatemala, and shows how these impacts differ depending on the community conflict context. The paper proposes a new instrument based on detailed information about the geographic location of the plots and historical titling processes to address the endogeneity concerns that are common in the property rights literature. The paper sheds light on whether the effect of land titles on plot use and credit access varies with the prevalence of conflicts and different types of conflict resolution mechanisms. The findings suggest that these factors might be crucial to understand the potential impacts on plot use of possible titling programs. |
| Keywords: | Land titling, Conflicts, Latin America |
| JEL: | O12 O13 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:2017&r=agr |
| By: | Gregg, Daniel |
| Abstract: | East Timor formally obtained its independence in 2002 following a protracted period of occupation by Indonesia which ended in 1999. It was initially faced with a series of issues such as a low level of infrastructure, poor quality germplasm for the major staple crops, and being one of the world’s poorest nations (Piggin and Palmer, 2003). Many East Timorese experience annual periods of food shortage, sometimes exacerbated by droughts and pest damage (Piggin and Palmer, 2003). In response to a shortage of suitably adapted varieties for the major staple crops of East Timor, a project called Seeds of Life was developed in 2000 to locate and test local and international crop varieties with the aim of improving the germplasm stock in the country (Piggin and Palmer, 2003). Seeds of Life recruited willing farmers to participate in On-Farm Demonstration Trials (OFDTs) in 2006 which was hoped to result in independent replanting and seed dissemination by these participants to neighbouring farmers. Two international maize varieties were extended to participating farmers for trial – these were LYDMR (Late Yellow with Downy Mildew Resistance) and Suwan 5 (a popular Thai variety with Downy Mildew Resistance). Given the reported potential for the new varieties to increase farm maize yields, the self-selection of participants in the Seeds of Life program, and that the adoption process was only in its first phase, a significant proportion of non-adoption following OFDTs was observed (approximately 32% of participants). A survey conducted in 2007 provided data for the estimation of a binary probit regression model to assess the reasons for non-adoption. Results obtained corroborated the findings of Seeds of Life researchers prior to variety extension; yet initial testing of varieties did not explicitly involve the inclusion of factors that were considered likely to affect the utility of prospective adopters. Non-inclusion of factors relevant to household utility when assessing new crop varieties may lead to the selection of less than optimal varieties. Stochastic dominance methods are a potential solution to this issue allowing researchers to consider the impact of new crop varieties on household utility and thus adoption decisions prior to their extension. Stochastic dominance methods can be derived from the same utility maximisation framework as the probit regression model and easily incorporate non-normal distributions of returns. Their capabilities in assessing high numbers of potential innovations and their similarity in ease of application to existing methods such as mean-variance dominance analysis are also advantages. In this paper tests for stochastic dominance are retrospectively applied to the two introduced and the local maize varieties to demonstrate their application as a competitive and relevant ex ante technology assessment tool in developing countries. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48159&r=agr |
| By: | Hughes, Neal |
| Abstract: | The intertemporal management of irrigation water involves a consumption-storage decision, where the benefits of using water today are evaluated against the uncertain benefits of storing water for future use. Traditionally in Australia, state governments have centrally managed the major water storages: making decisions on water allocations given prevailing storage levels. However, in practice there are a number of factors which may prevent a centralised approach from achieving an optimal allocation of water. This paper considers in detail two decentralised approaches to storage management: carryover rights and capacity sharing. This paper also presents a quantitative analysis of storage management, involving the application of a stochastic dynamic programming model. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47642&r=agr |
| By: | Zahrnt, Valentin |
| Abstract: | Policy-makers are quarrelling about the future of the Common Agricultural Policy (CAP). France intends to conclude a CAP reform during its 2008 EU Presidency before a thorough Budget Review is due in 2009 that will revise CAP spending. The Doha Round of WTO negotiations might necessitate further decisions on agricultural tariff cuts at any time. This Policy Brief provides recommendations for agricultural policy reform in the EU. It argues, first, that all measures that distort market prices and production should be abolished. This includes production quotas, land set-asides, storage aids, export refunds, output payments, and area payments. Second, the Single Farm Payment (SFP), which provides income support to farmers independently of their current production decisions, should be phased out because it does not serve any societal need. Third, targeted subsidies that reward farmers for providing socially valued services that are not remunerated on the market, such as maintaining scenic landscapes, should be adapted. Many of these subsidies should be provided at the national or local level without or with little EU co-financing. |
| Keywords: | CAP, EU, multifunctionality, subsidies, Agricultural and Food Policy, Food Security and Poverty, Political Economy, |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ecippb:47838&r=agr |
| By: | Xayavong, Xila; Islam, Nazrul |
| Abstract: | Various methods can be used to construct input-output data for sectoral modelling. These methods are broadly classified in the literature as commodity based survey, non-survey and hybrid approaches. Each approach has its own strengths and weaknesses. This paper presents an alternative approach to map the flows of goods and services. The case study of generating inputoutput data for agricultural industries in Western Australia is used to show how value chain modelling can accurately and reliably provide input-output data. |
| Keywords: | Value Chain Analysis, Make Table, Use Table, Input-Output Table, Agri-food industry., |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47950&r=agr |
| By: | Kandulu, John; Bryan, Brett |
| Abstract: | Evaluations of pathogen management options have focussed on assessing relative removal effectiveness as a basis for prioritising alternative management investment decisions. Using a case study of the Myponga catchment, South Australia, this paper presents results of a cost-effectiveness risk analysis of 13 catchment- and treatment-based water quality management alternatives for mitigating Cryptosporidium risk. A range of costs and benefits including set-up and operating costs, farm business costs and benefits, and environmental service benefits are considered in comparing the net cost associated with each management alternative. Considering the broader range of costs and benefits changes the relative cost-effectiveness of water quality management alternatives significantly. Combinations of catchment- and treatment-based management alternatives proved to be relatively more cost-effective at mitigating Cryptosporidium risk. Specifically, the combination of spatially targeted water course management upstream of the catchment with reservoir treatment by ultra-violet radiation provides a cost-effective Cryptosporidium risk mitigation strategy especially when the adoption of dung beetles and treatment by enhanced coagulation are included as complementary low cost alternatives. Considering the broader range of costs and benefits enhances the potential to increase the cost-effectiveness of investment in Cryptosporidium risk mitigation as well as produce a range of significant secondary benefits for water quality, biodiversity, and carbon sequestration. |
| Keywords: | Cryptosporidium, Catchment management, benefit cost, cost effectiveness, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48190&r=agr |
| By: | Vanzetti, David; Peters, Ralf |
| Abstract: | Developed countries have agreed to provide duty free and quota free access to imports from LDCs covered by 97 per cent of tariff lines. However, LDCs would like to extend the agreement to 100 per cent coverage, since 3 per cent of tariff lines can cover a substantial proportion of LDC exports. Products of major interest include textiles and clothing and agricultural goods such as rice, oilseeds, sugar and bananas. The potential trade and welfare impacts of expanding the coverage are analysed using a general equilibrium model. Estimates indicate LDCs stand to gain $7.5 billion in additional exports. |
| Keywords: | WTO negotiations, trade, agricultural tariffs, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47646&r=agr |
| By: | Armbruster, Walt; Coyle, William |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48152&r=agr |
| By: | Samarasinghe, Oshadhi; Greenhalgh, Suzie |
| Keywords: | Natural Capital, soil characteristics, value of soil, hedonic prices, rural land value, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47632&r=agr |
| By: | Garnaut, Ross |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47769&r=agr |
| By: | Hardaker, Brian; Lien, Gudbrand |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48160&r=agr |
| By: | Morales, L. Emilio; Griffith, Garry; Wright, Vic; Umburger, Wendy; Fleming, Euan |
| Abstract: | Beef consumers in Australia have shown differences in their preferences for products and sensitivity to price. This can be explained by the influence on expected quality of cues related to health, production process and eating experience. Eating experience is difficult to predict as consumers generally do not have enough information to form reliable expectations. In this context, branded beef can help to signal quality and reduce the degree of uncertainty that consumers experience when shopping. Focus group research identified different segments, premiums for preferred products and potential for large-scale differentiation and branding in the Australian market. |
| Keywords: | Beef Branding, Consumer Preferences, Segmentation, Focus Groups., |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48063&r=agr |
| By: | Polyakov, Maksym; Wear, David N.; Huggett, Robert |
| Abstract: | Timber supply has traditionally been modelled using aggregate data. In this paper, we build aggregate supply models for four roundwood products for the US state of North Carolina from a stand-level harvest choice model applied to detailed forest inventory. The simulated elasticities of pulpwood supply are much lower than reported by previous studies. Cross price elasticities indicate a dominant influence of sawtimber markets on pulpwood supply. This approach allows predicting the supply consequences of exogenous factors and supports regular updating of supply models. |
| Keywords: | Timber supply, harvest choice, conditional logit, elasticity, expectations, simulation., |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48168&r=agr |
| By: | Chambers, Adam; Trengove, Graham |
| Abstract: | On 29th April 2008, Senator Penny Wong outlined details of Water for the Future; the Rudd Government’s $12.9 billion plan to secure the long term water supply of all Australians. Funding under Water for the Future will be used to support significant water reform across the country. In order to formulate strategies to achieve the objectives of the Plan, decision makers will require information related to the relative profitability of different irrigation activities, such as production costs and returns, as well as the potential irrigator response to and impacts of reductions in water availability or changes to water policy more generally. The aim of this paper is to highlight the potential for unexpected outcomes to arise from policies which are formulated in a world of information asymmetry. The heterogeneity of irrigation sectors and indeed individual irrigators within these sectors mean that actual impacts or responses will vary significantly between sectors/individuals. Hence while governments may try to predict the potential consequences/impacts of changes to water policy, the resulting outcomes may be far from what was intended. |
| Keywords: | Crop Deaths, Irrigator Behaviour, Economic Asssessment, Water Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47613&r=agr |
| By: | Thang, Tran Cong; Burton, Michael; Brennan, Donna |
| Abstract: | This paper identifies the optimal cutting and replanting rule for coffee farmers in Vietnam. Some previous studies examined the optimal price at which to cut trees for coffee farmers in Vietnam but they have not investigated the relationship between the age of tree and the cutting point. Fixed-form optimization is applied to analyze a rule that links market coffee prices and age of tree with the cutting decision. Keywords: Coffee in Vietnam, fixed-form optimization, optimal cutting and replanting, price fluctuation, crop replacement. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47638&r=agr |
| By: | Pluske, Jo; Burton, Michael; Rigby, Dan; Vercoe, Phil |
| Abstract: | In Australia, Bos taurus cattle breeds produce high quality meat, superior in taste and tenderness characteristics. Nevertheless, these breeds do not thrive in the Northern Australian environment. Stem cell transplant techniques could improve northern beef cattle breeding programs by facilitating crossbreeding via natural service. Focus groups were used in this study to explore consumer reaction to reproduction technologies and the implications for buying intentions. Findings suggested that consumers may react negatively to unconventional breeding technologies but the degree of this aversion is contingent upon how the technology is described. These findings are relevant for preparation of choice modeling surveys. |
| Keywords: | Non-market valuation, consumers, focus groups, new technologies, beef, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:48167&r=agr |
| By: | Franco-Dixon, Mary-Ann |
| Abstract: | The $2.1 million invested for the sweet corn research breeding program resulted in the release of Hybrix5 in 1995 which is a new sweet corn variety with improved insect and disease resistance. Based on the ex-post evaluation of this research program, it was estimated that the net benefits of the program up to 2006 (in 2006 dollars) is around $3 million. The producer benefits are 4.5 times the costs of R&D. Extending the period up to 2012 (20 years) resulted in estimated net benefits of around $6 million in 2006 dollars. The producer benefits are 7.2 times the costs of the R&D. |
| Keywords: | Hybrid5, Sweet corn, Ex-post evaluation, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare09:47637&r=agr |