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on Agricultural Economics |
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Issue of 2013‒02‒16
88 papers chosen by |
| By: | Mekonnen, Dawit Kelemework; Dorfman, Jeffrey; Fonsah, Esendugue Greg |
| Abstract: | We estimate a distance function of grains production using generalized method of moments that enables us to accommodate multiple outputs of farmers as well as address the endogeneity issues that are related with the use of distance functions for multi-output production. Using a panel data set of Ethiopian subsistence farmers, we find that the most important factors determining farmers' efficiency in Ethiopia are having access to the public extension system, participation in off-farm activities, participation in labor sharing arrangements, gender of the household head, and the extent to which farmers are forced to produce on marginal and steeply sloped plots. Average farmers in Ethiopia are producing less than 60% of the most efficient farmers. Annual technical change between 1999 and 2004 is about one percent while annual efficiency change during the same period is insignificant. |
| Keywords: | Distance Function, Productivity, Efficiency, GMM, Ethiopia, Agricultural and Food Policy, Crop Production/Industries, Farm Management, Food Security and Poverty, International Development, Production Economics, Productivity Analysis, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143038&r=agr |
| By: | Karov, Vuko; Wailes, Eric J.; Watkins, K. Bradley |
| Abstract: | Participation rates by southern irrigated crop producers in most important crop insurance programs have been relatively low. This paper empirically examines why this may be the case in Arkansas, and proposes a novel “gross margin” product specifically targeted at meeting the needs of these farmers. |
| Keywords: | crop insurance, Arkansas, irrigated crops, Agricultural and Food Policy, Risk and Uncertainty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142969&r=agr |
| By: | Wells, Patricia Bryn; Saghaian, Sayed H.; Osborne, William |
| Abstract: | This paper presents an empirical analysis of the relationship between the expansion of food retailing in developing countries and hunger index. Our analysis found mixed results between the expansion of food retailing and hunger index for four different countries. These results demonstrate possibilities for food retail expansion in developing countries. |
| Keywords: | Food Retail Expansion, Hunger Index, Developing Countries, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142630&r=agr |
| By: | Hao, Na; Colson, Gregory; Karali, Berna; Wetzstein, Michael E. |
| Abstract: | Biodiesel has recently drawn attention because of its potential to make an important contribution to national energy security and the environment. However, the rapid growth of biodiesel has raised concerns about biodiesel’s impact on the price level and volatility of agricultural commodities. To address these concerns this research investigates the short- and long-run relationships between agricultural commodity and fuel markets, and finds interdependencies between the two. The causal linkage between biodiesel and soybean prices is very weak, indicating little likelihood of biodiesel triggering another food crisis. In contrast, oil price shocks have major influence on both fuel and agricultural commodity prices. |
| Keywords: | Biodiesel, Corn, Soybean, Vector error correction model(VECM), Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143078&r=agr |
| By: | Kym Anderson |
| Abstract: | Historically, earnings from farming in many developing countries have been depressed by a pro-urban bias in own-country policies, as well as by governments of richer countries favouring their farmers with import barriers and subsidies. Both sets of policies reduced global economic welfare and agricultural trade, and added to global inequality and poverty. Over the past three decades, much progress has been made in reducing agricultural protection in high-income countries and agricultural disincentives in developing countries. However, plenty of price distortions remain. As well, the propensity of governments to insulate their domestic food market from fluctuations in international prices has not waned. Such insulation contributes to the amplification of international food price fluctuations, yet it does little to advance national food security when food-importing and food-exporting countries equally engage in insulating behaviour. Thus there is still much scope to improve global economic welfare via multilateral agreement not only to remove remaining trade distortions but also to desist from varying trade barriers when international food prices gyrate. This paper summarizes indicators of trends and fluctuations in farm trade barriers before examining unilateral or multilateral trade arrangements, together with complementary domestic measures, that could lead to better global food security outcomes. |
| Keywords: | Farmer protection, export taxation, food price spikes, trade policy history |
| JEL: | F13 F14 Q17 Q18 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2013-01&r=agr |
| By: | Wailes, Eric J.; Watkins, K. Bradley; Karov, Vuko; Chavez, Eddie C. |
| Abstract: | This study examines impacts of shallow loss safety net programs proposed in S. 3240 and H.R. 6083 for 2013‐2017 with focus on Arkansas rice and the U.S. rice sector. The results suggest that the Price Loss Coverage program provides a relatively strong safety net for long‐grain rice producers. |
| Keywords: | farm bill, rice, shallow loss, revenue, Agricultural and Food Policy, Farm Management, Production Economics, Q11, Q12, Q18, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142978&r=agr |
| By: | Magana-Lemus, David; Isdorj, Ariun; Rosson, C. Parr, III |
| Abstract: | This paper examines the impacts of rising food prices on welfare of Mexican households by using LA/EASI demand system. Estimated welfare effects from food price increases differ considerably for two reference households. Lower-income reference household’s welfare loss, from a tortilla price increase, is two-fold that on higher-income reference household. This fact may have implications on food poverty. |
| Keywords: | Food Prices, Welfare Analysis, EASI Demand System, Mexico., Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Security and Poverty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143057&r=agr |
| By: | Chavez, Eddie C.; Wailes, Eric J. |
| Abstract: | U.S. Drought Impacts on the U.S. and International Rice Economy |
| Keywords: | Drought, rice, relative prices, substitute crops, AGRM, Agricultural and Food Policy, Q11, Q13, Q17, Q54, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143015&r=agr |
| By: | Kleemann, Linda |
| Abstract: | As consumers' demand for organic products grows, selling organic products potentially opens up profitable market participation options for farmers in developing countries. This paper studies two aspects of profitability for the producers. It uses hedonic demand theory and empirical analysis to examine the relation between conventional and organic markets using the strongly growing pineapple market as an example. This analysis confirms a nonlinear dependence of the organic market on the conventional one and a non-declining premium. The author concludes that there is a larger potential of the organic market and hence the number of farmers in developing countries who can potentially benefit from growing organic products. -- |
| Keywords: | Price transmission,private voluntary standards,organic agriculture,organic markets |
| JEL: | Q17 O13 L11 Q13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201310&r=agr |
| By: | Pruitt, J. Ross; Tonsor, Glynn T.; Brooks, Kathleen R.; Johnson, Rachel J. |
| Abstract: | Buyers and sellers of agricultural commodities benefit from public provision of information in decision-making processes. The purpose of this study is to improve understanding of current preferences for public agricultural information. Results indicate preference for farm level reports by Extension agents and leading economic indicators by agribusiness or market analysts. |
| Keywords: | Best-Worst Scaling, Livestock, Public Information, Value of Information, Agribusiness, Agricultural and Food Policy, Livestock Production/Industries, Marketing, D82, G14, Q13, Q18, |
| Date: | 2013–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143007&r=agr |
| By: | Goeringer, L. Paul; Goodwin, Harold L., Jr.; Dixon, Bruce; Popp, Michael P. |
| Abstract: | U.S. agriculture has seen a decrease in of producers under the age of 35 entering agriculture for the past thirty years. This paper will explore the design and possible implementation of an innovative loan program designed give qualifying new young and beginning producers concessionary interest rates and loan fees for implementing of practices designed to improve on-farm profitability. |
| Keywords: | young and beginning farmers, loan program, best management practices, Agribusiness, Agricultural Finance, Farm Management, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143037&r=agr |
| By: | Gedikoglu, Haluk |
| Abstract: | The future of the US agriculture relies on sustainable resource use and income generation for farmers, and maintaining the environmental quality. Hence, farmers are expected to adopt various technologies and practices, such as energy crops, genetically modified crops, and conservation practices. The objective of this study is, by using a multivariate probit model, to conduct a comprehensive analysis of the impact of certain socio-economic factors on adoption of Miscanthus, Roundup Ready® soybean, and maintaining a 100 foot setback between water resources and manure application areas. The results of the current study show that different policies will be needed to promote adoption of technologies with different objectives. |
| Keywords: | Sustainable Agriculture, Technology Adoption, Multivariate Probit, Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2013–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142928&r=agr |
| By: | Hayes, Michelle; Kostandini, Genti; Jordan, Jeffrey L. |
| Keywords: | biopharming, tobacco, producers, Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143064&r=agr |
| By: | Lee, Young-Jae; Kennedy, P. Lynn |
| Abstract: | Following the completion of the implementation period for NAFTA, this market integration has influenced economic behavior in these markets. Given this assumption, this study identifies, ex-post, the effects of structural adjustment and tariff elimination on U.S. agriculture. |
| Keywords: | NAFTA, Ex-post analysis, Binary variable, Structural adjustment, Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade, Q11, Q17, Q18, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142132&r=agr |
| By: | Li, Xile; Saghaian, Sayed H. |
| Keywords: | Price Transmission, Vector Error Correction Model, Coffee, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Institutional and Behavioral Economics, International Development, Land Economics/Use, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143035&r=agr |
| By: | Debnath, Deepayan; Stoecker, Arthur L.; Epplin, Francis M. |
| Abstract: | This study estimates the farm-gate breakeven price of switchgrass relative to wheat in Oklahoma. The breakeven price of switchgrass is determined for two situations: when external consequences are ignored and when the environment costs of changes in soil erosion, fertilizer (nitrogen and phosphorous) runoff, and soil organic carbon are considered. Results suggest that the farm-gate breakeven price of switchgrass from the internal cost only perspective is higher than the cost if the value of the selected external consequences is considered. The potential environmental benefits are greater if highly erodible land is switched from annual cropping to switchgrass. |
| Keywords: | Agricultural Runoffs, Farm-gate Breakeven Price, Switchgrass, Soil Organic Carbon, Agribusiness, Environmental Economics and Policy, Land Economics/Use, Production Economics, Q24, Q42, Q51, |
| Date: | 2013–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142563&r=agr |
| By: | Thapa, Janani; Lyford, Conrad P.; Belasco, Eric; McCool, Barent; McCool, Audrey; Pence, Barbara; Carter, Tyra |
| Abstract: | While there is increasing interest in reducing obesity, relatively few of these efforts focus on rural communities. A multi-tiered model to reduce obesity risk factors was developed and implemented to change food behavior and health awareness in a rural West Texas community over a one year period. This paper evaluates the project outcomes based on mean comparison of self-reported health behavior and attitude response before and after the intervention. Findings show a significant increase in, a) obesity as cancer risk awareness and b) food nutrition awareness. Also, increased food nutrition awareness should lead to reduced obesity over time as suggested by a regression analysis of obesity risk factors on BMI. |
| Keywords: | Body Mass Index, Cancer risk, Food Behavior, Health education, Multi-tier approach, Obesity, Rural community, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Institutional and Behavioral Economics, Research Methods/ Statistical Methods, Teaching/Communication/Extension/Profession, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143052&r=agr |
| By: | Mendali, Rebati; Ames, Glenn C.W.; Gunter, Lewell F. |
| Abstract: | We measure Malmquist index of total factor productivity (TFP) changes in the agricultural sector of Brazil and Argentina during 1971-2002. The TFP change index is further decomposed into efficiency change and technical change. We then compare the cumulative TFP growth and its components in both countries. Results show that agricultural TFP change as well as efficiency and technical change accelerated in Brazilian agriculture, where as Argentinean agriculture experienced a negative trend in TFP growth over the sample period. Efficiency change in Argentina’s agriculture was found to be stagnant over time. The increasing productivity in Brazil is due to strong policy reform in 1980s. Argentina’s imbalanced economy, including biased reforms explains the negative TFP growth and technical regress during this period. |
| Keywords: | Total Factor Productivity, Data Envelopment Analysis, Agriculture in Brazil and Argentina, Policy Reform, Agricultural and Food Policy, International Development, Productivity Analysis, C61, O47, O57, Q16, Q18, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143036&r=agr |
| By: | Mitchell, Donna; Johnson, Phillip N.; Allen, Vivien; Zilverberg, Cody |
| Abstract: | This study uses a simulation approach to determine the economic viability of two different production systems in the Texas Southern High Plains. Results show that a traditional cotton monoculture system is more profitable, although integrated cotton/forage/livestock systems require less water. |
| Keywords: | simulation, integrated livestock, economic viability, Agricultural Finance, Farm Management, Land Economics/Use, Livestock Production/Industries, Production Economics, Q14, Q15, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143053&r=agr |
| By: | Zivkovic, Sanja; Hudson, Darren |
| Abstract: | Increased concentration of greenhouse gases in the atmosphere, especially of carbon dioxide, has led to attempts to implement carbon policies in order to limit and stabilize gases at acceptable levels. Agricultural activities increase greenhouse gases in the atmosphere, but they can also mitigate concentration of carbon dioxide by sequestering additional carbon. This study evaluated carbon emissions and carbon sequestration and examined the impacts of payments for sequestration and taxes on carbon emissions on cropping choices, profitability, and water consumption in the Texas High Plains. The results showed that reduction of total carbon emissions to 15% of a baseline and imposing a tax reduced the amount of water consumed for irrigation, by about 20% and 16%, respectively. However, payment for sequestration did not affect reduction of carbon emissions, water consumption nor the product mix. |
| Keywords: | agriculture, carbon emissions, carbon sequestration, profit, Texas High Plains, water consumption, Crop Production/Industries, Environmental Economics and Policy, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142991&r=agr |
| By: | Litina, Anastasia (University of Luxembourg) |
| Abstract: | This research advances the hypothesis that reversal of fortunes in the process of economic development can be traced to the effect of natural land productivity on the desirable level of cooperation in the agricultural sector. In early stages of development, unfavorable land endowment enhanced the economic incentive for cooperation in the creation of agricultural infrastructure that could mitigate the adverse effect of the natural environment. Nevertheless, despite the benefcial effects of cooperation on the intensive margin of agriculture, low land productivity countries lagged behind during the agricultural stage of development. However, as cooperation, and its persistent effect on social capital, have become increasingly important in the process of industrialization, the transition from agriculture to industry among unfavorable land endowment economies was expedited, permitting those economies that lagged behind in the agricultural stage of development, to overtake the high land productivity economies in the industrial stage of development. Exploiting exogenous sources of variations in land productivity across countries the research further explores the testable predictions of the theory. It establishes that: (i) reversal of fortunes in the process of development can be traced to variation in natural land productivity across countries. Economies characterized by favorable land endowment dominated the world economy in the agricultural stage of development but were overtaken in the process of industrialization; (ii) lower level of land productivity in the past is associated with higher levels of contemporary social capital; (iii) cooperation, as reflected by agricultural infrastructure, emerged primarily in places were land was not highly productive and collective action could have diminished the adverse effects of the environment and enhance agricultural output. |
| Keywords: | Land productivity, Cooperation, Social Capital, Trust, Economic development, Agriculture, Industrialization |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:113&r=agr |
| By: | Guerrero, Bridget L.; Amosson, Stephen H. |
| Abstract: | The Ogallala Aquifer is the primary source of water for irrigation in the Texas High Plains. Depletion of the aquifer concerns stakeholders as agriculture is a major driver in the regional economy. This study examines the contribution of irrigation to income, economic output, and employment in the region. |
| Keywords: | economic impacts, irrigation, Ogallala Aquifer, water policy, Agribusiness, Agricultural and Food Policy, Q18, Q32, Q38, |
| Date: | 2013–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143101&r=agr |
| By: | Osborne, William; Saghaian, Sayed H. |
| Abstract: | Mechanization and technological advancement has been the cornerstone of agricultural prosperity in the United States and has served as a flagship to the rest of the world. Farm machinery and equipment sales for the three largest manufactures in 2011 reached nearly $60 billion and higher sales are projected for the future. Many factors have been attributed to this increase in sales including high commodity prices, low interest rates, and favorable government policies toward agricultural producers. This study will seek to model producer production expenses on farm machinery and equipment and decipher which factors are significant for explaining demand for farm machinery. |
| Keywords: | Farm machinery, depreciation, crop insurance, farm expenditures, Agribusiness, Farm Management, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142547&r=agr |
| By: | Yang, Shang-Ho; Woods, Timothy A. |
| Abstract: | Farm market patron responses to food sampling indicate that this experience created significant purchasing impacts at the point of sale. After food sampling, over half respondents made a purchase that hadn’t planned to that day. Sampling response is further examined by market setting and within various consumer segments. |
| Keywords: | consumer behavior, farm market, food sampling, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Q13, Q18, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143100&r=agr |
| By: | Meng, Ting; Florkowski, Wojciech J.; Sarpong, Daniel Bruce; Resurreccion, Anna V.A.; Chinnan, Manjeet S. |
| Abstract: | The study applies quantile regression to identify determinants of the entire distribution of food expenditure, and quantify their effects amongGhana’s urban household subgroups. The results indicate that among the significant factors the largest effect in descending order havelocation, marital status, education, household composition, age, and income. |
| Keywords: | Food Expenditure, Ghana, Quantile Regression, Urban Households., Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143033&r=agr |
| By: | Li, Sheng; Nadolnyak, Denis A. |
| Abstract: | Farmland in Florida has undergone extensive conversion into residential and commercial uses. A censored survival model is applied to examine the timing of land use change using parcel-level data from Lee County, 1988-2008. Results suggest that flood and hurricane risks affect conversion timing while controlling for economic and demographic factors. |
| Keywords: | Land use change, flood risk, agricultural land, economic development, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2013–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143087&r=agr |
| By: | Tran, Trang; Coble, Keith H.; Harri, Ardian; Barnett, Barry J.; Riley, John Michael |
| Abstract: | Revenue insurance with shallow loss protection for farmers has been introduced recently. A common attribute of most shallow loss proposals is that they would be area-revenue triggered. The impact on optimal hedge ratios of combining these shallow loss insurance proposals with deep loss farm-level insurance is examined. Since crop insurance, commodity programs and forward pricing are commonly used concurrently to manage crop revenue risk, the optimal combinations of these tools are explored. Numerical analysis in the presence of yield, basis and futures price variability is used to find the futures hedge ratio which maximizes the certainty equivalent of a risk averse producer. The results generally reveal a lower optimal hedge ratio with area-insurance than with individual insurance and show that STAX and ARC tend to slightly increase optimal hedge ratios. |
| Keywords: | crop insurance, simulation, hedging, Agricultural Finance, Farm Management, Risk and Uncertainty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143050&r=agr |
| By: | Lee, Young-Jae; Kennedy, P. Lynn |
| Abstract: | This study seeks to determine the workings of a system of acreage allocation given price and yield uncertainty so as to identify the role that uncertainty in market output has in acreage allocation decisions. |
| Keywords: | Acreage decision, Uncertainty, Risk Preference, Crop Production/Industries, Demand and Price Analysis, Land Economics/Use, Production Economics, Risk and Uncertainty, Q11, Q12, Q15, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142130&r=agr |
| By: | Jacobs, Austin Pace; Mark, Tyler B. |
| Abstract: | Agricultural producers across Kentucky are going to have to change farming practices to meet 21st Century needs. By 2025, Kentucky’s goal is to derive 12% of its motor fuels demand of 775 million gallons per year, from biofuels. One area targeted for expansion is the Appalachian region of Kentucky. Biomass has numerous potential uses in the bioenergy area such as the production of ethanol or burn for heat. The primary focus is assessing the potential producers understanding of biomass production, processing, and willingness to produce. To ascertain the willingness of Kentucky farmers to diversify their operation and include biomass feedstocks in their rotations a survey is used. This research is supported by the Center for Regional Engagement. |
| Keywords: | Farm Management, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143065&r=agr |
| By: | Shen, Xuan; Hartarska, Valentina M. |
| Abstract: | This paper is prepared for SAEA 2013 conference |
| Keywords: | Risk management, agricultural bank, community bank, financial derivatives, Agricultural Finance, Risk and Uncertainty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143092&r=agr |
| By: | Garcia Suarez, Federico |
| Abstract: | The objective of the paper is to provide an estimate of the use value of the High Plains aquifer in agriculture. A region-wide production function for the crop sector is estimated. Using the production response to irrigation we estimate the value of groundwater for agriculture in $231/acre at 2007 prices. |
| Keywords: | Production function, water, use value., Production Economics, Q15, Q25, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142696&r=agr |
| By: | Holcomb, Rodney B.; Flynn, Kyle; Kenkel, Philip L. |
| Abstract: | Fewer small meat processing plants combined with increased demand for locally-grown and process-verified meat products in recent years have spurred interest in the construction of producer-owned processing facilities. To help producers and Extension specialists develop preliminary feasibility assessments of processing plant operations, the Small Meat Processing Plant Model was created. |
| Keywords: | feasibility template, meat processing, financial analysis, Agribusiness, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, Teaching/Communication/Extension/Profession, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142650&r=agr |
| By: | Kotsiri, Sofia; Rejesus, Roderick M.; Larkin, Sherry L.; Marra, Michele; Lambert, Dayton M.; English, Burton C.; Larson, James A.; Velandia, Margarita M.; Roberts, Roland K.; Mishra, Ashok K.; Paudel, Krishna P. |
| Abstract: | This article examines what differentiates "socially responsible" farmers (i.e., those who rank environmental benefits higher than profit, based on a Likert style ranking) from farmers who make decisions based solely on financial criteria. A proportional odds model (POM) is proposed to estimate the factors affecting the degree of social responsibility on the technology adoption. The marginal effects indicate that the participation in agricultural easement programs, the perceived importance of precision farming (PF) in the future, as well as the perceived improvement in environmental quality following the precision technologies’ use, all positively influence the decision to adopt for environmental reasons. In contrast, educational attainment and use of University Publications to acquire information about precision agriculture have a positive impact on adoption based on profit motives. These results suggest that there may be a need for further technical advice and information from Extension focusing on environmental benefits of precision agriculture. |
| Keywords: | socially conscious, profit oriented, Likert style ranking, precision farming, ordered logit, rare events logit, Agribusiness, Farm Management, Q13, Q15, Q16, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142565&r=agr |
| By: | Maples, McKenzie; Morgan, Kimberly L.; Interis, Matthew G.; Harri, Ardian |
| Abstract: | In order to capitalize on potential opportunities to meet market demand for locally-grown foods, farmers need insight into significant motivations and behavioral characteristics of those consumers who have purchased local foods. Furthermore, it is evident that some consumers buy directly from producers based on their desire for “local” food (Thilmany, Bond, and Bond 2008). Local food consumer preferences and motivations potentially differ across regions of the United States and across varying definitions of “local” food. Little research has been done on the local foods sector for the Southeastern United States. Most studies concentrate on the Eastern coast or the Western region of the United States (e.g. Giruad et al, 2005; Hardesty, 2008; Thilmanny et al, 2008) or would benefit from updated analyses (Eastwood et al, 1987). There are 12,549 community supported agriculture programs in the US, of which 4,015 (32%) are located in the Southeastern region (U.S. Department of Agriculture, 2007), an indication of consumer support for producer-sourced food and food products. This paper aims to fill this gap in the literature by evaluating the characteristics of Southeastern urban consumers who purchased food directly from producers. The results of our study are based on an online survey of 1,023 primary household food shoppers who reside in five major cities in the southeast US (Atlanta GA, Nashville TN, Birmingham AL, and Houston and Austin TX). Novel study findings include the impact of disease incidences among respondent and related family members, a more accurate respondent understanding of the agriculture industry, and higher physical activity levels, all of which are significantly linked to increased likelihood to purchase direct from producers. Significant differences in respondent purchasing behavior were exhibited between cities, as well as relatively higher levels of respondent concern about the safety of U.S. grown food and food products. Female respondents with some college education who prepare more meals at home each week were statistically more likely to have purchased direct-from-producers within the previous six months (January through June, 2012), findings that are consistent with the existing literature. The results of this study are expected to assist growers located in the Southeast who are interested in securing and nurturing sustainable, producer-to-consumer relationships. Extension specialists can share survey findings by delivering producer educational programs built on informed, targeted marketing strategies that effectively meet the needs of the locally grown consumer base. |
| Keywords: | Locally grown, Southeast, direct marketing, logit, consumer survey research, healthy eating habits, disease, Agribusiness, Food Consumption/Nutrition/Food Safety, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142929&r=agr |
| By: | Lange, Kelly Y.; Johnson, Jeffrey W.; Johnson, Phillip N.; Hudson, Darren; Wang, Chenggang; Gustafson, Bill |
| Abstract: | Family farm management is often transferred separately from farm ownership. This article determines the impact of variables affecting management transfer decisions. Agricultural Resource Management Survey data are used to investigate variable impacts. Results indicate operator demographics, business planning practices, and value of farm and non-farm assets impact management transfer decisions. |
| Keywords: | family farm succession, intergenerational transfer, ARMS, Agribusiness, Farm Management, Q10, Q12, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142731&r=agr |
| By: | Awondo, Sebastain N.; Datta, Gauri S.; Ramirez, Octavio A.; Fonsah, Esendugue Greg |
| Abstract: | The magnitude of basis risk between Actual Production History (APH) and Group Risk Plan (GRP) contracts across corn farms in Illinois counties is estimated using pseudo-simulated yields with farm specific geospatial climate data. A two-step hierarchical Bayes small area estimator was used to address problems related to lack of representative sample, aggrega- tion bias, properly accounting for spatial and temporal heterogeneity and uncertainty in parameter estimates. We found wide variation in expected basis risk across farms within and between counties. Expected basis risk was found to sharply increase under APH plans with higher coverage levels. |
| Keywords: | Crop Insurance, Basis risk, Small area estimation, Hierarchical Bayes, Agricultural Finance, Research Methods/ Statistical Methods, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143109&r=agr |
| By: | Dharmasena, Senarath; Capps, Oral, Jr. |
| Keywords: | Organic beverages, non-organic beverages, non-alcoholic beverages, Nielsen data, censored demand system, semiparametric estimation, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D11, D12, |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142932&r=agr |
| By: | Madhavan-Nambiar, Padmanand; Florkowski, Wojciech J. |
| Abstract: | Peanut paste/butter consumption frequency in the Republic of Uganda is analyzed using a household survey data. Estimation results from Zero-inflated Binomial regression conclude that education, household location, color of peanut paste, etc. are important. The ordinal logistic results conclude that peanut paste/butter consumption with vegetables is the most preferred option. |
| Keywords: | Peanut-paste/butter, consumption frequency, Republic of Uganda, Zero-inflated Negative Binomial, Socioeconomic, Vitamin A fortification, household survey, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, International Development, Public Economics, Research Methods/ Statistical Methods, Q12, Q13, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143051&r=agr |
| By: | Vorotnikova, Ekaterina; Asci, Serhat; Seale, James L., Jr. |
| Keywords: | Land Allocation, Differential Model, Price Analysis, Demand and Price Analysis, Land Economics/Use, Production Economics, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143099&r=agr |
| By: | De Silva, Nirodha; Malaga, Jaime E.; Johnson, Jeffrey W. |
| Abstract: | Trade Liberalization effects on Agricultural Production Growth: The Case of Sri Lanka This paper examines the trade policy impacts on agricultural productivity in Sri Lanka based on the national data from 1960 to 2010. The empirical results suggest that the trade liberalization improved agricultural productivity and confirm that Free Trade Agreement is not a significant determinant on agricultural productivity in Sri Lanka. |
| Keywords: | International Relations/Trade, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143106&r=agr |
| By: | Khanal, Aditya R.; Mishra, Ashok K. |
| Abstract: | With increased focus on survival strategies for small farm businesses, we investigate the impact of Internet access on income and farm expenses of small farm business and households. Using a nation-wide farm-level data in the U.S. and non-parametric matching estimators, the study finds a significant positive impact of Internet access on total household and off-farm income. |
| Keywords: | Small farms, household income, financial performance, average treatment effect, Internet, Agricultural Finance, Community/Rural/Urban Development, Consumer/Household Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143019&r=agr |
| By: | King, Stephen A.; Howell, Nathan; Stone, Martin; Willian, Todd |
| Abstract: | The local foods movement and alternatives to traditional agriculture are gaining considerable interest, not only in Kentucky, but throughout the country. This research provides information that may aid farmers in the decision to invest or not in the alternative agricultural enterprise of viticulture. The primary objective of the research was to determine the expected profitability for a 1-acre table grape vineyard in Kentucky. Data on production relationships, costs, and returns came from the Western Kentucky University demonstration vineyard, published enterprise budgets, and market observations. Annual pro-forma budgets were estimated for a 20-year planning horizon. It was assumed that the vineyard would not yield until the third year and that full production would begin in the fourth year and continues through the 20th year. It was further assumed that the farmer would market production via local farmers’ markets, school districts, and wholesale markets. Two pre-tax net present values were estimated using a 5% discount rate. The first assumed no compensation to family labor, which indicated a break-even point in the 4th year, a benefit-cost ratio of 2.39, and net present value of $91,059. The second analysis assumed compensation for family labor and indicated a break-even point in the 6th year, a benefit-cost ratio of 1.54, and a net present value of $54,724. Excluding taxation, the results indicate that table grape production in Kentucky is potentially economically viable. |
| Keywords: | Viticulture, Table Grapes, Kentucky, Economic Feasibility, Agricultural Finance, Farm Management, Production Economics, Q1, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143084&r=agr |
| By: | Herath, Janaranjana; Bashir, Saima; Gebremedhin, Tesfa G. |
| Abstract: | Agriculture is an important sector in economic growth of North Carolina that contributes 19 percent of the state’s income and employs over 20 percent of the work force. Of the total population, 30 percent are living in rural North Carolina where income earnings, education level, and employment opportunities are low while poverty and unemployment rates are considerably high. Of 100 counties 85 are rural and agriculture is one of the significant employment sectors. The objective of this study is to examine the potential use of agricultural sector in the economic growth of North Carolina. County level data gathered from U.S. Bureau of Labor Statistics, USDA, and U.S. Census Bureau for the period of 2000 to 2010 are used for the study. A system of simultaneous equations is used for analysis. The results summarize that increasing income increases agricultural activities and vise versa. Thus, counties with high income levels are more capable of improving agriculture and counties with high gains through agriculture are more competent of improving income levels. Results highlight the importance of secured satisfactory level of income through agriculture to enhance economic growth. |
| Keywords: | Agriculture, Simultaneous Analysis, North Carolina, Community/Rural/Urban Development, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143083&r=agr |
| By: | Falconer, Lawrence L.; Richardson, James W. |
| Abstract: | This paper reports SERF analysis to help rice landlords in the Upper Coastal Bend of Texas evaluate alternative crop insurance combinations of yield loss and prevented planting coverage levels given uncertainty related to surface irrigation water curtailment. For baseline and high curtailment probability scenarios, prevented planting buy up is preferred. |
| Keywords: | irrigation curtailment, rice production, crop insurance, Production Economics, Risk and Uncertainty, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142990&r=agr |
| By: | Arthur, Bruno; Katchova, Ani L. |
| Abstract: | We test the efficiency of the financial market for the stocks of publicly traded firms related to the largely subsidized U.S. agriculture industry. We study how the anomalous value premium appears in the stocks of participating firms. Our study of the value and growth anomalies of these stocks utilizes the sorting and the beta-premium regressions methods. The firm level data are obtained from merging the Center for Research in Security Prices (CRSP) data from NYSE, Amex, NASDAQ exchanges with the financial statements data from the Compustat database of Standard & Poor’s. The results show that the beta of the lower deciles of the agriculture industry related firms are in the same volatility direction as the market but at a lesser degree. The "cash-flow-to-price trading" strategy in agriculture-related stocks appears to be profitable as a riskless hedge portfolio that longs high CF/P agriculture-related stocks and short low CF/P agriculture-related stocks generates, on average and all else equal, a positive and statistically significant abnormal return of 0.23% per year. Perhaps, these U.S. agriculture industry firms benefit some spill-over from farm Bills subsidies. |
| Keywords: | Agricultural Finance, Asset Pricing, Information and Market Efficiency, Agricultural Finance, Financial Economics, Q14, G12, G14, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143198&r=agr |
| By: | Kamila Ruzickova (Department of Economics, Faculty of Business and Economics, Mendel University in Brno) |
| Abstract: | This paper closely examines theoretical and practical aspects for the initial stage for the application of the income valuation methods on the agricultural companies within the member countries of the Visegrad Group. Firstly, the applicability of the income valuation methods is verified via the value spread, as a difference between the return on equity and costs of equity and secondly, the conclusions are drawn properly. This paper finds that only a part of the sample is suitable for income valuation, for the majority of companies the income valuation methods are rather non-applicable, due the fact that some of the basic requirements are not met. Based on empirical tests, it was proved that there is a slightly positive dependence between the value spread and the country of origin of the agricultural company. |
| Keywords: | agricultural company, company value, net income, value spread. |
| JEL: | G32 Q13 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:men:wpaper:33_2013&r=agr |
| By: | Sujarwo; Saghaian, Sayed H. |
| Abstract: | This study attempts to contribute to poverty alleviation through increasing efficiency of input allocation which can raise profit of the small scale farmers without changing the technology they use. Accordingly, this study addresses the problem of allocative inefficiency and profit gap of the farmer’s shallot production. Double-log production function and polynomial cost function are applied to measure the profit gap analysis. The empirical results from double-log production function confirm that land, labor, fertilizer, and pesticide are allocated by farmers inefficiently. Furthermore, three simulations for efficient inputs allocation and profit gap analysis are taken into account based on the costs level spent by the farmers. The result shows that profit gaps are 4.72 percent, 13.96 percent and 17.92 percent for low, middle, and high input costs level, respectively. |
| Keywords: | Shallot production, double-log production, polynomial cost function, efficient input allocation, profit gap, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142550&r=agr |
| By: | Hristovska, Tatjana; Watkins, K. Bradley; Mazzanti, Ralph; Wilson, Charles E., Jr. |
| Abstract: | Arkansas is the top domestic rice producer, representing nearly half of total U.S. rice production. Rice is a high-cost crop relative to other field crops in Arkansas, and production costs for rice have increased significantly since the mid 2000s due to rapidly increasing fuel and fertilizer prices. More efficient rice production management is pertinent to maintaining long term profitability. This study assesses the important factors leading to higher technical, allocative, and economic (cost) efficiency in rice production using a Tobit model. The data is obtained from the 2005-2011 Rice Research and Verification Program (RRVP). Using a Clearfield hybrid seed was found to have positive statistically significant effect, as well as relatively large marginal effect on all three efficiencies. |
| Keywords: | Efficiency, rice, factors, clearfield, multiple inlet, Arkansas, Farm Management, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143042&r=agr |
| By: | Ping-Yu Chen; Chia-Lin Chang; Chi-Chung Chen; Michael McAleer (University of Canterbury) |
| Abstract: | The main purpose of this paper is to evaluate the effect of crude oil price on global fertilizer prices in both the mean and volatility. The endogenous structural breakpoint unit root test, ARDL model, and alternative volatility models, including GARCH, EGARCH, and GJR models, are used to investigate the relationship between crude oil price and six global fertilizer prices. The empirical results from ARDL show that most fertilizer prices are significantly affected by the crude oil price while the volatility of global fertilizer prices and crude oil price from March to December 2008 are higher than in other periods. |
| Keywords: | Fertilizer Price; Oil Price; Volatility |
| JEL: | Q14 C22 C58 |
| Date: | 2013–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:13/07&r=agr |
| By: | Kenkel, Philip L.; Parrish, Robert |
| Abstract: | Grain/fertilizer volumes are major risks for grain/supply cooperatives followed by fertilizer and fuel margins. Operating losses force stock write downs (22% probability) and negative cashflow (15% probability). Decisions on cash and stock patronage, infrastructure investment, and equity retirement improve member returns but increase stock write downs and negative cashflow probability |
| Keywords: | cooperatives, risk, enterprise risk management, simmulation, Agribusiness, Agricultural Finance, Q1, |
| Date: | 2013–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143026&r=agr |
| By: | Stephenson, Kurt; Shabman, Leonard A. |
| Abstract: | This paper reviews water quality investments that can increase the environment’s capacity to remove nutrients. The nutrient removal effectiveness, uncertainty, and cost of removing nutrients directly from ambient waters is compared to agricultural nonpoint source reductions in the context of water quality credit trading and payment for environmental services programs. |
| Keywords: | Nutrient assimilation, trading, ecosystem services, Environmental Economics and Policy, Q57, |
| Date: | 2013–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143093&r=agr |
| By: | Amosson, Stephen H.; Anderson, David P.; Bevers, Stanley J.; Hogan, Robert J., Jr.; McCorkle, Dean A.; Robinson, John R.C.; Smith, Jackie; Waller, Mark L.; Welch, Mark; Williams, Emmy |
| Abstract: | Agricultural producers have used futures markets to manage price risk, confident that 1) cash and futures prices move together over time, 2) cash and futures prices converge as the contract approaches expiration, and 3) funds held in margin accounts as a performance bond were secure in segregated accounts at the brokerage firm. However, recent price and basis volatility, coupled with the financial events surrounding MF Global and Peregrine may have shaken some growers’ perceptions of the risks of hedging with futures and options. In order to assess the degree to which these circumstances in the futures markets have impacted the risk management strategies of agricultural producers, we surveyed the 1,015 graduates of the Texas A&M AgriLife Master Marketer program. This group represents a sample of farmers and ranchers, merchandisers, and lenders with training and experience in using futures and options for hedging. Besides collecting information on their current risk management practices, we measured respondent views on the importance of key new sources of risk. On a 1 to 7 Likert scale with 1=disagree, 7=agree, and 4=neutral, respondents indicated some agreement (4.87) that futures price volatility and margins are a serious impediment to using futures and options. Respondents were neutral (4.06) on margin account security as a serious impediment to futures and options. The questions touched a nerve with some farmers, as noted in the comments. |
| Keywords: | hedging, marketing, risk management education, price volatility, counter party risk, futures markets, margin account security, segregated funds, cash/futures market convergence, Marketing, G1, |
| Date: | 2013–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142998&r=agr |
| By: | Brown, Lisa N.; Kenkel, Philip L.; Holcomb, Rodney B.; Naile, Traci J. |
| Abstract: | In 2011, communicating the cooperative value package to member-owners was identified as the most critical challenge among U.S. agricultural cooperatives. Rural cooperatives in three states were surveyed to identify current communications methods and to elicit the effectiveness of communicating key messages through those efforts by conducting a simple regression analysis. |
| Keywords: | cooperative, member-owner communications, effective communications, marketing communications, communications plans, Teaching/Communication/Extension/Profession, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143027&r=agr |
| By: | Taylor, Mykel R.; Brix, Marcus |
| Keywords: | Crop Production/Industries, Demand and Price Analysis, Risk and Uncertainty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143071&r=agr |
| By: | Tewari, Rachna; Johnson, Jeffrey W.; Malaga, Jaime E.; Mitchell, Donna |
| Abstract: | This study analyzes the impact of climatic variability on ethanol trade between the Brazil and the U.S over a study period of 30 years, from 1980-2009. An econometric model was set up to estimate a net export supply function for Brazil, and a net import demand function for the U.S, as impacted by market and climatic variables. The climatic variables for the model were derived from prior literature, linking them to the yields of corn and sugarcane, which are feedstock for ethanol production in the U.S and Brazil respectively. The results suggest that climatic factors play an important role in the feedstock production for ethanol in these two countries, thereby influencing the direction of exports and imports. In South East Brazil, both low temperature and increased precipitation during winter show a positive relation with the net export supply. With regard to the net import demand in the U.S, it shows a negative relation with both increased summer precipitation and higher summer temperatures, while the relation with the average annual minimum temperature is positive. The outcome of this study provides an initial framework for conducting international trade policy studies for bio-fuels like ethanol, by incorporating climate change variables. |
| Keywords: | Ethanol trade, Brazil, U.S, climatic variability, market variables, Agribusiness, International Relations/Trade, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143028&r=agr |
| By: | Hoque, Mohammad Mainul; Artz, Georgeanne M.; Martens, Bobby J.; Jarboe, Darren H. |
| Abstract: | Using data from a survey of Iowa farmers we examine producers’ willingness to supply corn stover, corn cobs and energy grasses for biomass markets. We identify factors that affect producers’ interest in growing biomass crops as well critical barriers to participation. Choices among biomass types are found to be correlated. |
| Keywords: | biomass crops, biomass supply chain, Agribusiness, Crop Production/Industries, Resource /Energy Economics and Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142747&r=agr |
| By: | Lyman, Nathaniel; Nalley, Lawton Lanier |
| Abstract: | Despite the rapid producer adoption of hybrid rice (Oryza sativa L.) in recent years, the economic advantage of hybrid rice in the mid-Southern United States remains disputed. This study compares the economic risk and return of three popularly sown hybrid rice varieties: XL723, Clearfield® (CL) XL729, and CL XL745; and eight conventional rice varieties: Cheniere, CL 142-AR, CL 151, Francis, Roy J, Taggart, Templeton, and Wells; using University of Arkansas experimental test plot data from 2006 – 2010. Paddy and milling yield data on each variety are used to estimate a Just-Pope production function, allowing comparison of mean yields and mean yield variances across varieties. A Monte Carlo simulation is used to compare net returns and net return variance (risk) across hybrid and conventional varieties. Just-Pope estimation results indicate that hybrid varieties exhibit mean paddy yield premiums of 1.1 to 1.8 Mg ha-1 relative to the best performing conventional variety (Francis), furthermore the hybrid yield advantage is not associated with increased yield risk. Among hybrid-CL® and conventional-CL®, varieties, hybrid milling quality is not statistically different than conventional varieties. Among non-CL varieties, the hybrid XL723 exhibits a mean head rice yield (HRY) premium relative to conventional alternatives. Monte Carlo simulation results suggest that the net revenue advantage of hybrid-CL and conventional-CL® varieties makes them preferable to and non-CL conventional alternatives, respectively, across the entire range of producer risk preferences considered in this study. |
| Keywords: | rice, hybrid, serf, production economics, Crop Production/Industries, Farm Management, Production Economics, Risk and Uncertainty, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142505&r=agr |
| By: | Elisa Cavatorta (Centre for Development, Environment and Policy, SOAS, University of London, UK); Luca Pieroni (Department of Economics, University of Perugia, Italy) |
| Abstract: | This paper explores behavioural changes resulting from the presence of a background risk. Due to markets incompleteness, not all risks are insurable. The literature suggests that, according to the structure of preferences, agents bearing a background uninsurable risk are less willing to bear other insurable risks and increase their demand for insurance. The empirical evidence of this effect is limited and, despite the relevance of this question, unexplored in developing countries. This paper fills this gap. It explores the effect of a background risk on the decision to buy health insurance using household data from the Palestinian Territories. We consider the risk of food insecurity as a background uninsurable risk. Using a bivariate probit model, we find that the propensity to buy health insurance is positively affected by the presence of a background risk of food insecurity. When allowing the background risk to vary in intensity, we find that the propensity to insure is higher as the background risk becomes more intense. These results are robust to alternative indicators of background risk. The study shows that, in presence of background risks, there might be incentive changes towards the desirability of insurance that have implications for policy design. |
| Keywords: | Background Risk, Food Insecurity, Health Insurance, Bivariate Probit |
| JEL: | I11 O15 C35 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:06_13&r=agr |
| By: | Yi, Jing; Duffy, Patricia A.; Han, David; Fields, Deacue; Guertal, Elizabeth A. |
| Abstract: | In the South, turfgrass-sod has been a profitable alternative to row crops for many years. With depressed housing markets and higher crop prices, the current economic competitiveness of turfgrass-sod depends critically on the ability to harvest the crop as soon as it matures, and on input and output prices. |
| Keywords: | sod, profitability, Crop Production/Industries, Farm Management, Q12, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142958&r=agr |
| By: | Traboulsi, Mohamad Rafic |
| Abstract: | A supply response model for the highest valued citrus commodities in Florida is specified to analyze the impact of climate change on acreage and yield responses. Preliminary results suggest that temperature has an impact on the acreage and yield responses whereas precipitation did not have any impact. |
| Keywords: | acreage response, climate change, error-correction model, supply response, yield, Demand and Price Analysis, Environmental Economics and Policy, Q11, Q54, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143063&r=agr |
| By: | Yu, Tun-Hsiang (Edward); Hart, Chad E.; Du, Xiaodong |
| Abstract: | Preliminary draft, please do not cite without permission of the author |
| Keywords: | semi truck, grain hauling, Iowa, negative Binomial, Agribusiness, Farm Management, Q12, R41, |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143102&r=agr |
| By: | Menefee, Seth; Doye, Damona G. |
| Abstract: | This research examines challenges for a young and beginning cow-calf producer in Oklahoma. Scenarios were developed for native and introduced forage bases with different terms for financing the operation. The returns generated from a cow-calf operation in Oklahoma make purchasing land difficult, particularly for a young and beginning producer. |
| Keywords: | beginning, farmer, rancher, cow, calf, Oklahoma, Farm Management, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143048&r=agr |
| By: | Yang, Shang-Ho; Woods, Timothy A. |
| Abstract: | According to the USDA National Nutrient Database for bison, the bison nutrient benefits include higher protein level, lower calories, lower fat, and lower cholesterol compared to various commercial meats, like skinless-chicken, beef, pork, lamb, and salmon. This study investigates how consumers evaluate fresh ground bison in terms of their willingness to pay. Results show that the variation of consumer knowledge on bison nutrition contributes to different levels of willingness to pay. Implications from this study suggest enhancing consumers’ knowledge of bison products would increase the sale of bison products. |
| Keywords: | bison, nutrition, WTP, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Q13, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143079&r=agr |
| By: | Smith, Craig M.; Williams, Jeffery R.; Nejadhashemi, Amirpouyan; Woznicki, Sean A.; Leatherman, John C. |
| Abstract: | Emphasis on finding the most cost-effective ways to reduce reservoir sedimentation is increasing. Biophysical and economic models for a large agricultural watershed are integrated to estimate the average and marginal costs of reducing sedimentation with an optimal combination of land management strategies compared to the cost of dredging. |
| Keywords: | Land Economics/Use, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142346&r=agr |
| By: | Qushim, Berdikul; Gillespie, Jeffrey M.; Nehring, Richard F. |
| Abstract: | The objective of this study is to assess the scale and technical efficiencies and other economic performance measures of southeastern U.S. cow-calf farms. We describe and compare cow-calf operations by size and farm resource region and measure their relative competitiveness. We estimate an input distance function using stochastic production frontier techniques (SPF). |
| Keywords: | Cow-calf, performance measures, scale efficiency, technical efficiency, Farm Management, Livestock Production/Industries, Production Economics, Productivity Analysis, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143009&r=agr |
| By: | Kamila Ruzickova (Department of Economics, Faculty of Business and Economics, Mendel University in Brno); Petr Koráb (Department of Finance, Faculty of Business and Economics, Mendel University in Brno) |
| Abstract: | In the context of current competitive environment the companies in agriculture are forced to find a path towards the improvement of their business competitiveness. One of illuminating examples may be the horizontal cooperation in the form of cooperative entity. Naturally, as the economic performance of the group rises, the economic performance of members should rise, too. However, the crucial point is whether these members create a value for the owners, as this is the primary company objective. In this paper, we provide unique comparison of application of a residual income valuation method to empirically verify the assumptions which lead to grouping agricultural enterprises in cooperative entity. There are two objects of research: firstly, the alliance of winemakers, their individual members cooperating in marketing and sales management with the aim of boosting their economic performance, and secondly, their business rivals, who decided not to enter the alliance and cooperate. Alliance V8 is a newly-established NGO grouping top Moravian winemakers, the only of its kind in the Czech Republic. Contrasting the results of the case study research of both objects of research reveals whether joining the alliance altered the value of their members and also examines the applicability of the valuation method. Classification-JEL: G32, Q13 |
| Keywords: | company value, co-operative entity, horizontal cooperation, residual income. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:men:wpaper:32_2013&r=agr |
| By: | Asci, Serhat; VanSickle, John J.; Cantliffe, Dan |
| Abstract: | The U.S. fresh winter tomato industry and Mexican tomato production have been engaged in a trade conflict since the early1970s. Given that tomato is the highest valued fresh vegetable item, the fresh tomato market in the U.S. is open for rent seeking actions of importers and domestic producers. While importers try to increase their shares by lowering the prices, domestic producers attempt to keep tomato as a high-valued item and at the same time avoid any costly investment in production practices (such as greenhouse production). However, the competition with Mexican greenhouse tomato producers push winter tomato producers (particularly, in Florida) to search for new investment opportunities. This paper utilizes net present value and real option analysis to investigate whether it is beneficial for Florida tomato producers to invest in greenhouse production methods to stay competitive in the tomato market during the winter season. |
| Keywords: | Risk in investment decision, greenhouse tomato, net present value, real option approach, Agribusiness, Agricultural Finance, Crop Production/Industries, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143095&r=agr |
| By: | Zapata, Samuel D.; Carpio, Carlos E.; Isengildina-Massa, Olga; Lamie, R. David |
| Abstract: | This study assesses the economic impact of the Electronic Trade Platform MarketMaker on agricultural producers. Results obtained using contingent valuation techniques indicate that producers are willing to pay $47.02 annually for the services they receive from the platform. Producers’ characteristics such as registration type and annual sales have a significant effect on producers’ willingness to pay. |
| Keywords: | e-commerce, contingent valuation, Agribusiness, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143070&r=agr |
| By: | Jones, Kelly J.; Lust, David G.; Brooks, Kathleen R.; Vestal, Mallory K. |
| Abstract: | During extreme drought, grazing is unavailable and hay is expensive. Feed and labor costs in confinement cow-calf systems using concentrate diets are not well established. Cows were wintered in semi-confinement and costs determined. Results indicate that high concentrate confinement systems diets may provide alternatives to forage based cow-calf systems. |
| Keywords: | Confinement cow-calf systems, cow cost, drought management, Farm Management, Livestock Production/Industries, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143089&r=agr |
| By: | Vorotnikova, Ekaterina; VanSickle, John J.; Borisova, Tatiana |
| Keywords: | Crop Production/Industries, Land Economics/Use, Production Economics, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143108&r=agr |
| By: | Langemeier, Michael R.; Yeager, Elizabeth A.; O'Brien, Daniel M. |
| Abstract: | This paper examined the relationship between cost efficiency and feed grain production in Kansas. Using data from 2002 to 2011, corn production was significantly and positively related to cost efficiency in eastern and western Kansas, while grain sorghum production was significant and positively related to cost efficiency in central Kansas. |
| Keywords: | efficiency, corn, grain sorghum, Farm Management, Production Economics, Productivity Analysis, D24, Q12, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142394&r=agr |
| By: | Yu, Tun-Hsiang (Edward); Larson, James A.; English, Burton C. |
| Keywords: | switchgrass, sorghum, cost, land use change, Land Economics/Use, Production Economics, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143049&r=agr |
| By: | Blare, Trent; Haro-Carrion, Xavier |
| Abstract: | This paper examines the impact of carbon payments on reforestation in coastal Ecuador. The model estimates that landowners would need to be paid between 13.59 US dollars to 41.81 US dollars per metric ton of carbon in order to be no worse off from reforesting a hectare of her land. |
| Keywords: | Carbon, Sequestration, Ecuador, Tropical, Forest, Environmental Economics and Policy, International Development, Land Economics/Use, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143088&r=agr |
| By: | Parcell, Joseph L.; Cain, Jewelwayne |
| Abstract: | Constant research efforts have been undertaken to create and adopt soybean varieties and farming practices that would lead to more drought-tolerant crops. Given that drought-tolerant crops are more stable in terms of price and supply, private genetic companies invest in those genetic materials with the biggest market opportunities. This begs the question: has there been any indication of improvements in drought-tolerance of crops? In this study, we focus on analyzing three soybean distinct relative maturity zones in the state of Missouri and determine if and in what direction is the drought tolerance of these crops changing over time. |
| Keywords: | soybeans, drought tolerance, Missouri, Crop Production/Industries, Environmental Economics and Policy, Production Economics, Research Methods/ Statistical Methods, C23, C43, Q51, Q54, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142507&r=agr |
| By: | Vassalos, Michael; Hu, Wuyang; Woods, Timothy A.; Schieffer, Jack; Dillon, Carl R. |
| Abstract: | Growers’ preferences for a number of marketing contract attributes as well as the effect of growers’ risk perception and risk preferences on the choice of marketing contracts were examined with the use of a choice experiment. The main data source for the study is a mail survey administrated to 315 wholesale tomato growers. The findings validate the transaction cost hypothesis and indicate heterogeneity in preferences. Risk perception and risk preferences had limited impact on contract choice. |
| Keywords: | Marketing Contracts, transaction costs, choice of contracts, choice experiment, Agribusiness, Farm Management, Marketing, Q12, Q13, |
| Date: | 2013–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142506&r=agr |
| By: | Yeboah, Anthony K.; Owens, John Paul; Bynum, Jarvetta S.; Gray, Benjamin |
| Keywords: | Farm Management, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143056&r=agr |
| By: | Cahill, Nathanial; Popp, Michael P.; West, Chuck; Rocateli, Alexandre; Ashworth, Amanda; Farris, Rodney |
| Abstract: | Switchgrass (panicum virgatum L.), a viable option for second-generation renewable fuels, has an extended harvest window with optimal harvest affected by yield, storage losses and nutrient uptake. This research shows that optimal harvest occurs later than maximum yield for Haskell, OK and Fayetteville, AR with different fertilizer and switchgrass prices. |
| Keywords: | swtichgrass, nutrient uptake, two-factor profit maximization, Crop Production/Industries, Environmental Economics and Policy, Farm Management, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142698&r=agr |
| By: | Brorsen, B. Wade |
| Abstract: | Improved software now makes Bayesian estimation a strong alternative to nonlinear maximum likelihood. Bayesian methods were used to estimate a linear response stochastic plateau for cotton and were shown to provide estimates similar to maximum likelihood. Optimal levels of nitrogen were lower than recommended levels. |
| Keywords: | Bayesian, cotton, lint yield, nitrogen, Oklahoma, stochastic plateau, Crop Production/Industries, Farm Management, Production Economics, Research Methods/ Statistical Methods, C11, Q12, |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142951&r=agr |
| By: | Gouzaye, Amadou; Vitale, Jeffrey D.; Epplin, Francis M.; Adam, Brian D.; Stoecker, Arthur L. |
| Abstract: | Economic returns to Burkina Faso cotton producers from selling to the government parastatal are compared to those that could be obtained by selling on the international spot market. Based on historical prices, for certain levels of risk aversion, the parastatal price would be preferred to the international spot price. |
| Keywords: | Marketing, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142882&r=agr |
| By: | Su, Biwei (Korea University); Heshmati, Almas (Korea University) |
| Abstract: | This paper studies on the determinants of income and urban-rural income gap to shed light on the problem of urban-rural income inequality in China. OLS, conditional quantile regression and Blinder-Oaxaca decomposition methods are used to analyze four waves of the China Health and Nutrition Survey (CHNS) household data. Results show that education and occupation are essential determinants of households' income level. These two factors exert heterogeneous effects at different percentiles of the income distribution. In urban areas, education is more valued for high income earners, while for rural areas, specialized or tertiary education are more beneficial for the poorer households. Among all occupational types, farm activities show much lower returns than other types; and this is more evident for individuals at the left tail of the income distribution. We also find that for the sampled provinces, urban-rural income gap increases from the year of 2000 to 2004 but the gap decreases from 2004 to 2009. The income gap can be largely explained by the individuals' attributes, especially by level of education and type of occupation. |
| Keywords: | urban-rural income gap, Oaxaca-Blinder decomposition, quantile regression, CHNS household data, China |
| JEL: | O15 O18 D31 D63 C31 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7162&r=agr |
| By: | Boyer, Christopher N.; Larson, James A.; Roberts, Roland K.; McClure, Angela T.; Tyler, Donald D. |
| Abstract: | Irrigation is expensive in Tennessee because of small, irregular fields. We calculated the breakeven corn prices for irrigated corn in Tennessee. Breakeven prices were $4.02-$7.94/bu depending on field size, energy source, and energy price. At current prices, irrigated corn is profitable, but prices are much higher than the historic average. |
| Keywords: | Farm Management, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2013–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142745&r=agr |
| By: | Hanabuchi, Tatsuya |
| Abstract: | The relative price of various combinations of a stock index to a commodity-related index is filtered using a Christiano-Fitzgerald (CF) filter. We find that the market is still bull for commodity-related stocks as of June 2012. The business cycles obtained from the CF filters and the NBER do not coincide. |
| Keywords: | Agricultural Finance, G10, Q13, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143041&r=agr |
| By: | Nehring, Richard F.; Gillespie, Jeffrey M.; Harris, Michael; Hallahan, Charles B.; Erickson, Kenneth W.; Leibold, Kelvin |
| Abstract: | US swine production has undergone significant structural change in the last two decades, reflecting increasing size and specialization (Key and McBride; Key). In particular, the widespread use of contracting has enabled individual producers to grow by specializing in a single phase of production. Once dominated by small operations that practiced crop and hog farming along with other livestock enterprises, the industry has increasingly concentrated among large operations in most regions that produce hogs on several different sites (especially in North Carolina). Survey results for 2008-2011 indicate that some independent hog producers remain competitive, suggesting the rate of sharp decline in independent hog production that took place between 1992 and 2004 may have slowed. In future research we will sort on DuPont results more thoroughly to account for differences in organizational arrangement—whether farrowing or not---as production contracts tend to be much more prevalent on finish operations. |
| Keywords: | hogs, contract, DuPont, Farm Management, Financial Economics, Productivity Analysis, |
| Date: | 2013–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142982&r=agr |
| By: | Mukherjee, Sacchidananda (National Institute of Public Finance and Policy); Chakraborty, Debashis (Indian Institute of Foreign Trade) |
| Abstract: | It has been observed that a number of developed as well as developing countries provide subsidies to their resource-intensive sectors like agriculture, fisheries, manufacturing etc. However, overproduction and consequent pollution as well as overexploitation of natural resources resulting from the provision of input and output subsidies have been a serious threat to environmental sustainability. An area of concern is that subsidies with potentially harmful environmental impacts are not declining in the recent period, despite the ongoing negotiations through the WTO framework and the UN forums. The present analysis attempts to understand the role of government budgetary subsidies on the overall environmental performance through panel data model estimation for a set of seventy four countries over an eleven year period (2000-2010). The empirical findings confirm that a positive relationship between subsidies and environmental degradation exists in a cross-country framework. The analysis notes that the failure to contain provision of subsidies through timely conclusion of the Doha Round negotiations is also posing a serious threat to the global climate change related concerns. |
| Keywords: | Budgetary subsidy ; Environmental performance index ; Environmental sustainability ; Per capita CO2 emission ; Human development ; Urbanization ; Government policy |
| JEL: | H23 Q53 Q56 Q58 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:13/117&r=agr |
| By: | Borisova, Tatiana; Useche, Pilar |
| Keywords: | Environmental Economics and Policy, Teaching/Communication/Extension/Profession, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143792&r=agr |
| By: | Ceyhun Elgin; Oguz Oztunali |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:bou:wpaper:2013/05&r=agr |
| By: | Chen, Xuqi; Gao, Zhifeng |
| Abstract: | Surveys were conducted in four cities in China to study Chinese consumers’ knowledge, perception and willingness to pay for different type of orange juice products. Results show that consumers were willing to pay for healthier orange juice produce with high percentage of juice contents. |
| Keywords: | China, Consumer, Orange juice, Preference, Willingness to pay, Agribusiness, Marketing, |
| Date: | 2013–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143104&r=agr |
| By: | John C. Whitehead; O. Ashton Morgan; William L. Huth; Gregory S. Martin; Richard Sjolander |
| Abstract: | The combination and joint estimation of revealed and stated preference (RP/SP) data approach to examining consumer preferences to relevant policy-based measures typically fail to account for heterogeneity in the data by considering behavior of the average individual. However, in policy-based analyses, where the research is often driven by understanding how different individuals react to different or similar scenarios, a preferred approach would be to analyze preferences of homogenous population subgroups. We accomplish this by developing a split-sample RP/SP analysis that examines whether homogenous subgroups of the population, based on individual health and behavioral characteristics, respond differently to health-risk information and new food safety technology. The ongoing efforts by the U.S. Food and Drug Administration (FDA) to reduce illness and death associated with consuming raw Gulf of Mexico oysters provide an ideal platform for the analysis as the health risks only relate to a very specific consumer subgroup. Results from split-sample demand models indicate that educational information treatments cause vulnerable at-risk consumers to reduce their oyster demand, implying that a more structured approach to disseminating the brochures to the at-risk population could have the desired result of reducing annual illness levels. Also, findings across all subgroups provide strong empirical evidence that the new FDA policy requiring processing technology to be used in oyster production will have a detrimental effect on the oyster industry. Key Words: Food safety technology; health-risk information; homogenous subgroups; revealed preference; stated preference |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:13-06&r=agr |