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on Agricultural Economics |
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Issue of 2017‒02‒05
73 papers chosen by |
| By: | Spencer, Daniel S.; Barnes, James N.; Coatney, Kalyn T.; Parman, Bryon J.; Coble, Keith H. |
| Abstract: | Several recent studies have examined how excess nutrient runoff from nitrogen and phosphorous have caused environmental damage in the United States. Perhaps the most significant is the hypoxia zone in the Gulf of Mexico. As a result, regulation of these nutrient levels has emerged as an important step toward environmental stewardship, yet this has been an uneven process. Some states have developed strict regulations to decrease nutrient runoff, but the majority of states have favored broader goals of reducing nutrient runoff using best management practices (BMPs) instead of strict regulations. Nevertheless, regulations that restrict the use of nutrients in production agriculture also restricts the property rights of input usability over said nutrients in the agricultural supply chain and its production processes, including at the farm-level. This paper reviews the economic literature on non-point source water regulations to reduce nutrient runoff in agricultural production in the United States. A new methodological approach is outlined that uses the Agricultural Policy and Environmental eXtender (APEX) biophysical simulation model to understand alternative production practices and nutrient management strategy economics from a farm level perspective. Some empirical examples are presented to demonstrate the usefulness of this approach. |
| Keywords: | Water Quality, Water Regulations, Property Rights, Hypoxia Gulf of Mexico, Nutrient Management, Environmental Economics, Agribusiness, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252835&r=agr |
| By: | Davidson, Kelly A.; Kropp, Jaclyn D. |
| Abstract: | The persistence of malnutrition resulting from micronutrient deficiencies in developing countries has led to a recent movement for better linkages between agriculture extension and nutrition education in development work. Few empirical studies have examined this link, and previous studies in the agricultural development literature have primarily focused on the link between nutrition and farm diversity, productivity and profitability. Smallholder farmers are often faced with the decision to consume or sell farm products. These joint production and consumption decisions impact household nutrition and dietary diversity. Furthermore, the farmer’s decision may be driven by access to markets for selling products produced by the household or for purchasing food for home consumption. Using primary data from a household-level survey in Bangladesh, this study investigates the effect of agricultural production and market participation on food group consumption. The data was collected from over 1,000 households from two districts in Bangladesh from August to November. The empirical analysis models consumption of various food groups as a function of farm production diversity, access to markets, household income and household characteristics such as age, gender and education of the household head. |
| Keywords: | Food Security, Nutrition, Agriculture, Bangladesh, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, International Development, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252854&r=agr |
| By: | Legesse, Befikadu; Yeboah, Osei |
| Abstract: | Watersheds are tremendously degraded worldwide, largely in developing countries especially in the Blue Nile Basin in Ethiopia. The degradation is due to several factors including pressure from land use and economic development. The degradation might be characterized by poor water quality, irregularity in water quantity, heavy floods that destroy life and property, sediment deposition in streams and irrigation canals; and sediment deposition on dams etc. Several researchers have suggested different watershed management interventions to end these problems, especially in developing countries. They include reforestation; construction of stone terrace; soil bunds; water harvesting technologies; and crop residue management. However, most landholders are not adopting these recommended technologies mainly due to socio-economic, institutional and policy-related issues. This paper empirically examines existing factors that are perceived to affect landholders’ decisions for adopting improved watershed management intervention technologies in the Blue Nile Basin in Ethiopia. A multi-stage probability sampling techniques was used to sample 300 respondents and a binary Logit model was applied to the data. Results indicate that education, farm size, fertilizer, tropical livestock unit, traditional local institutions, land security and distance to nearest market are found to be significant factors that influence downstream landholders’ decision to adopt improved watershed management technologies. |
| Keywords: | Adoption behavior, improved watershed management, Blue Nile basin, downstream landholders, binary logit model, Environmental Economics and Policy, Institutional and Behavioral Economics, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252691&r=agr |
| By: | Ofori, Eric; Tack, Jesse; Li, Xiaofei; Harri, Ardian |
| Abstract: | In this study, we utilize a panel of subnational district-level yields for corn matched to weather data that is spatially interpolated from observed weather station data to identify whether warming impacts exhibit spatial heterogeneities for both the mean and variance of corn yields in Ghana. Results are expected to demonstrate that there exist pertinent regional differences in climate change impacts. Some of these differences will likely be attributed to the localized change in climate, while others will likely be associated with particular agronomic characteristics (e.g. soil type) that can partially mitigate (or exacerbate) the effects of warming temperatures. Climate change impacts on agriculture have been widely researched in recent years. In Sub-Saharan Africa (SSA), many of these studies have focused on spatially aggregate impacts at the country or higher level, and typically do not discuss the heterogeneity of within-region impacts. Thus, there is a growing interest in more localized climate change impacts that could help inform regional adaptation within a country. Globally, climate change is estimated to have adverse effects on crop yields. With agriculture being the mainstay of many economies in SSA, it is expected that these economies are especially vulnerable to climate change. Ghana is one of the fastest growing economies in SSA (World Bank Report, 2015). Over 20 percent of gross domestic product (GDP) and two-thirds of agricultural GDP in Ghana are staple crops and livestock production (OECD Report, 2010). It is therefore important to quantify the effect of climate change on crop yields in Ghana. In addition, we explore the extent to which impacts might vary across different agronomic regions of the country as this can aid producers and policy makers in defining potential adaptation mechanisms. |
| Keywords: | corn, yields, climate, change, Ghana, Food Security and Poverty, Production Economics, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252801&r=agr |
| By: | Nakelse, Tebila; Dalton, Timothy; Hendricks, Nathan; Kabore, Moussa |
| Abstract: | We use unique panel data to estimate the effect of an increase in the price of food commodities on household welfare in Burkina Faso. Our analysis includes the negative impacts on households as food consumers, as well as the positive impacts as food producers to estimate their net welfare change. The data were collected each year by the Burkina Faso Ministry of Agriculture and Food Security, which covered periods of food price crises. To evaluate the welfare effect of the price shocks, we first estimate demand and supply responses and then derive the net welfare change at the household and country level. Overall, the price shocks are associated with a gain in the rural household welfare because the producer’s effect outweighed the consumer’s effect. |
| Keywords: | Welfare Economics, Microeconomics, Demand Elasticities, Supply Elasticities, Burkina Faso, Consumer/Household Economics, Demand and Price Analysis, International Development, Marketing, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252774&r=agr |
| By: | Adusumilli, Naveen; Hendrix, James; Girouard, Ernest; Carpenter, Josh |
| Abstract: | Runoff from agricultural fields in Lake St. Joseph watershed caused sediment inflow into the lake resulting in the lake not meeting one of its designated uses, propagation of fish and wildlife. As a result, the lake was added to the state's year 2002 list of impaired waters for turbidity. Conservation agencies worked with local farmers to promote the implementation of Best Management Practices (BMPs) to decrease sediment runoff from crop fields within the watershed. In 2016, it was proposed that Lake St. Joseph be removed from the list of impaired waters. Such delisting is believed to provide a variety of benefits to people, often referred as ecosystem services. We measured the value of the ecosystem services provided by recreational activities, mainly fishing, using a meta-analysis based function transfer approach. The preliminary results show significant benefit in terms of fishing as a result of an increase in fish populations. Although ecosystem services are not exactly bought and sold in the market, their contribution to the local economy is significant, especially in Louisiana. |
| Keywords: | Watershed, Best Management Practices, Turbidity, Valuation, Benefits Transfer, Environmental Economics and Policy, Q51, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252681&r=agr |
| By: | Hannah Ameye |
| Abstract: | It is increasingly recognized that urbanization is accompanied by profound changes in African diets. Some studies hold the hope that urbanization will help eradicate hunger and undernourishment, both still prominent issues in the region. Others have warned that urbanization may actually shift the problem from the left to the right tail of the food consumption distribution, with urban diets being dominated by high-calorie processed foods and an excessive intake of oil and sugar. Throughout the literature, most datasets simply provide aggregated nutritional information and lack the necessary level of granularity hampering investigation into these issues. Most studies also aggregate everything from small towns to megacities into a single ‘urban’ category, potentially missing important heterogeneity with respect to dietary change. This paper overcomes these problems by using a dataset of 1,498 households from Tanzania, each of whom completed a 2-week consumption diary that records detailed information on the quantity and characteristics of all food consumed. This allows us to calculate the macro- and micronutrient content of these diets. Dietary differences across urban and rural households are documented using OLS regressions and the doubly robust estimation method. These analyses are split into separate income groups to account for income heterogeneity. Our results caution against generalizations about urban diets as “right tail” theories have done. Firstly, we observe that the average urban household has a more wholesome diet indicating that micronutrient deficiencies are less prominent. This thus contradicts theories stating that urban diets are unhealthy. On the one hand, low and middle income urban households from our sample area meet the daily recommended values of most nutrients, making their diet more fulfilling compared to that of rural households. On the other hand, rich urban and rural households are found to overconsume, yet urban households tend to be less extreme. Secondly, when disaggregating urban areas into various categories, it is found that secondary towns present favourable diets and although larger cities such as Dodoma and Dar Es Salaam show higher levels of consumption, sufficient micronutrients are taken in and unhealthy substances do not reach alarmingly high levels. |
| Keywords: | Micronutrient Intake, Malnutrition, Urbanization, Secondary Towns, Tanzania |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ete:licosp:568637&r=agr |
| By: | O'Hara, Jeffrey K.; Benson, Matthew |
| Abstract: | While use of local foods in U.S. school meal programs has increased dramatically since the 1990s, supply constraints are often cited as an impediment. We use responses from the nationally administered 2015 Farm to School Census to estimate a double hurdle model exploring how local food purchases by schools are influenced by local agricultural conditions. We find that direct to consumer agricultural production and milk production had a positive impact on local non-milk and local milk purchases, respectively. We find this result is robust to endogeneity and sample selection tests. |
| Keywords: | Child nutrition, farm to school, local food, school meals, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Marketing, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252669&r=agr |
| By: | Agyeman, Domena; Williams, Brian; Coble, Keith; Parman, Bryon; Love-Target, Mary |
| Abstract: | Though irrigation can offer producers many advantages such as reducing potential losses due to uncertain rainfall, in some areas of the Southeast irrigation options for agricultural crops are limited. For example, in East Mississippi access to groundwater resources is impractical, with well depths often exceeding 1,000 feet and prohibitively high drilling costs. As a result, producers are gradually resorting to the use of on-farm water storage systems (OFWS) to recapture irrigation runoff and rainfall for later use for irrigation. Previous research has confirmed reduced groundwater withdrawal and downstream flow of nutrients are some advantages that come with OFWS, but few studies have focused on the economic profitability of this system. This article employs a stochastic benefit-cost analysis to analyze the net returns of irrigating from an OFWS using a center pivot irrigation system (CPIS) compared to a rain fed production system for corn and soybean in the Southeast while also incorporating risk in the form of stochastic prices and yields. Preliminary findings indicate that investing in an OFWS for irrigating purposes can increase producers returns significantly compared to depending on rainfall. As expected increase in interest rates reduces the net present value of making such an irrigation investment and this is more evident when interest are above 7%. The use of OFWS becomes more attractive when revenue generated is protected under crop insurance. As coverage levels increases the net present value of investing in an OFWS increases well above that rain-fed production at lower interest rates, however there’s over 60% chance of rain-fed production been more profitable than irrigating at 70%, 75%, 80% and 85% coverage levels when discount rates are over 9%. |
| Keywords: | On-Farm Water Storage, Prices, Yield, Risk, Risk and Uncertainty, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252834&r=agr |
| By: | Legesse, Befikadu; Yeboah, Osei |
| Abstract: | The livestock sector plays an important role for livelihoods and economic security of farmers and rural communities in Sub-Saharan Africa. The sector contributes about 25 percent of total agricultural GDP and about 11 percent of national GDP of Ethiopia. However, much has not been done to improve performance of the sector, especially indigenous genetic resources that are at risk. The paper develops a Policy Analysis Matrix to examine the profitability and competitiveness of indigenous Horo cattle production in the Western Showa in Ethiopia. We employ multi-stage probability sampling techniques in selecting 150 farmers for interview. We then employ partial sensitivity analyses with various scenarios to assess the impacts of each policy strategy. The results show that both private and social profits from indigenous cattle production are positive; implying that indigenous Horo cattle production is profitable and competitive for livestock keepers in particular for the country at large. The domestic resource cost coefficient, private cost ratio, effective protection coefficient and profitability coefficient values also indicate a comparative advantage of indigenous Horo cattle production in the country. Policy recommendations for improved conservation, management and sustainable use of indigenous animal genetic resources are provided. |
| Keywords: | Livestock, indigenous animal genetic resources, profitability and competitiveness, Policy Analysis Matrix, economic efficiency, Agribusiness, Agricultural and Food Policy, Farm Management, International Relations/Trade, Livestock Production/Industries, Marketing, Production Economics, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252697&r=agr |
| By: | Fisher, Monica (University of Idaho); Holden , Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Katengeza, Samson P. (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | This paper assesses the adoption potential of conservation agriculture (CA) technologies in Malawi, where CA appears highly appropriate. Estimation of CA adoption rates and their determinants is complicated by the relatively recent introduction of these technologies and limited awareness of CA among the general population of smallholder farmers. We propose a lead farmer promoter-adopter approach and use it to assess the adoption potential of CA among smallholder farmers in Malawi. This approach relies on the promoters being potential adopters themselves, having had sufficient exposure and access to the technologies, and their incentives not having been distorted by excessive incentives. These conditions are reasonably satisfied in our application with a sample of 181 lead farmers from central and southern Malawi. We find adoption rates for the lead farmers of 56% for organic manure and crop rotation, 26% for minimum tillage, 30% for mulching, and 12% for herbicide application. Lead farmers recommend CA to their followers at rates of 66% for organic manure, about 50% for crop rotation and minimum tillage, 28% for mulching, and less than 10% for herbicide application. Assuming the validity of the promoter-adopter approach, these findings together suggest that, in central and southern Malawi, organic manure and crop rotation have the highest adoption potential, mulching and minimum tillage come next, and herbicide application has the lowest potential. With the farmer-to-farmer extension approach gaining popularity in many countries, we expect that our promoter-adopter approach to assessing adoption potential of new technologies will be of broad interest. |
| Keywords: | Africa; conservation agriculture; farmer-to-farmer extension; Malawi; promoter-adopter approach; technology adoption |
| JEL: | O33 Q16 |
| Date: | 2017–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2017_001&r=agr |
| By: | Sinha, D.K.; Ahmad, Nasim; Singh, K.M. |
| Abstract: | Land is vital natural resource for any developmental activity. The judicious use of land is an earnest demand of time as the increasing demand for food and shelter is rapidly increasing with the burgeoning population. Bihar shares about 8.63% of the total population in the country while the share in total land area of India is only 2.86%. There are about 1.61 crore farm holdings of which 91% is marginal still about 68 percent of population earns their livelihood from agriculture and allied sector. Agriculture holds a vital role in food and nutrition security of the state in addition to overall development. Land is an important input for the agriculture sector. Hence, any change or changes in land use pattern has significant implication in food security for the state in particular and nation in general. This paper is based on secondary data published by Government of Bihar. An attempt has been made to investigate agro-climatic zone wise land use of the state and state as a whole. The study reveals that the net sown area has declined both on zonal level and also at state level. Decline in net sown area in agro-climatic zone-III is more pronounced than that of zone-I & zone-II. Being centre of the state, urbanization has taken place in faster way in the zone-III. The other reasons for changes undergoing in land use pattern may be increasing population, fragmentation of land holdings and declining water table in this region. Zone-I & zone-II come under flood prone area, farmers put their land as current fallow due to devastating flood threat causing damage to their crops. Land under trees and groves have also witnessed positive percentage change over the decade and also in growth rate, this may be the other reason for decline in net sown area in the state. Shrinking of net sown area is of great concern to feed the up warding growth of population. Motivating farmers to increase productivity to protect growing population and serving their demand for food and nutritional security, we have to make such kind of strategies which may lead to enhance the income of the cultivators as well as fulfill the food demand of growing population, keeping in mind the fast changing climatic conditions all over the world and protecting wasteful and careless use of natural resources for betterment of coming generation. |
| Keywords: | Land use pattern, Net sown area, Agro-climatic zone, nutritional security Compound Growth Rate (CGR) |
| JEL: | O13 Q15 Q18 |
| Date: | 2016–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76460&r=agr |
| By: | Li, Xiaofei; Coble, Keith H. |
| Abstract: | It is widely observed that the crop yields vary significantly within the field, primarily because of the intra-field variations in soil, landscape, water, and nutrient conditions. That variability forms the foundation for site-specific management in precision agriculture. However, thus far the studies about the within-field yield variability are mostly based on one or several sample fields, while the variability distribution for a real world farm or a larger region have received less investigations. In addition, due to the small number of sample fields, the determining factors of yield variability have not been fully examined. This study fill this research gap by collecting and analyzing high resolution yield monitor data of over a hundred fields from a large size farm in the Mississippi Delta. It quantitatively describes the extent of the within-field yield variability over a large scale area, and empirically examines the relationship between the yield variability and factors such as soil types, landscapes, weather conditions, management inputs, etc. A spatial econometric model is utilized to account for other unobserved but spatially correlated yield-impacting soil properties. This study contributes to exploring the method of analyzing GIS data from farming and turning the data into site-specific management decisions. |
| Keywords: | Crop yield variability, within-field, precision agriculture, spatial model, Big Data, Crop Production/Industries, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Q16, Q12, C81, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252824&r=agr |
| By: | Corsi, Alessandro (University of Turin) |
| Abstract: | This paper presents a review of the literature on family farm succession in developed countries. It starts with a presentation of the different, and conflicting, theoretical models of succession, then analyzes the empirical work on the determinants of family succession, of its timing, and on the effects of succession on farm performances. The policies affecting family farm succession are presented, with an emphasis on inheritance rules and on agricultural policies. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201615&r=agr |
| By: | Dharmasena, Senarath; Yang, Tingyi; Capps, Oral Jr. |
| Abstract: | Consumption of dairy alternative beverages in the United States has been growing in the light of decreasing consumption of dairy milk. Although almond milk and soymilk are the fastest growing categories in the U.S. dairy alternative marketplace, there exist numerous other products such as coconut milk, rice milk, cashew nut milk, and hazelnut milk. These plant-based products claim to have more protein and calcium, and less in fat and calories compared to conventional dairy milk, hence perceived growth in consumer preference. Using market level weekly purchase data from 2015 Nielsen scanner panel and attribute space distance and hedonic matric approaches within Barten synthetic model, own-price, cross-price and expenditure elasticities for aforementioned beverage products were estimated. Distance and hedonic variables with regards to product attributes such as calorie, fat, protein, calcium and other nutrients (vitamins and minerals such as iron, vitamin B) are used to estimate, first an n-dimensional distance (hedonic) space based on above qualitative information available to consumers and then this information is allocated to Barten synthetic model to generate demand elasticities using qualitative factor distances. Preliminary analysis revealed following own-price demand elasticities: Soymilk -1.13, almond milk -0.5, and coconut milk -0.46. |
| Keywords: | Dairy alternative beverages, Nielsen data, Distance matric, Hedonic matric, product attributes, Barten synthetic model, Consumer/Household Economics, Demand and Price Analysis, Research Methods/ Statistical Methods, G11, G12, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252742&r=agr |
| By: | Thomas J. Venus; Dusan Drabik; Justus Wesseler |
| Abstract: | We analyze the market and welfare effects of regulating crops derived by New Plant Breeding Techniques (NPBTs) as genetically modified (GM) or conventional products. We consider the EU mandatory scheme for labeling GM products and a voluntary non-GM scheme for labeling livestock products derived from non-GM feed. We develop a partial equilbrium model that explicitly takes into account both the coexistence costs at farm-level and the segregation and identity preservation costs at downstream level. By applying the model to EU rapeseed, we find that regulating NPBTs as GM (as compared to non-GM) in combination with mandatory and voluntary labeling increases prices and makes consumers overall worse off and producers better off. We also show that higher coexistence costs make the price increasing effect even stronger. Voluntary non-GM labeling applied to feed makes consumers in this sector overall worse off but benefits farmers and rapeseed oil consumers overall as long as segregation costs are low. Consumers of biodiesel and industrial products such as lubricants produced from GM rapeseed benefit from high segregation costs. We show that the effects of farm-level coexistence costs largely differ from the effects of downstream market segregation costs. |
| Keywords: | New Plant Breeding Techniques, GMO, labeling, coexistence, identity preservation,, regulation, vertical product differentiation |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ete:licosp:569361&r=agr |
| By: | Stephenson, Kurt; Shabman, Leonard |
| Abstract: | Governmental agencies and agricultural organizations promote water quality trading programs as an innovative policy to engage agricultural producers in conservation activities. Cost analyses suggest regulated sources can reduce compliance costs by purchasing agricultural nonpoint source credits. Yet, such “point-nonpoint” trades are rare. This paper assesses the demand for agricultural nonpoint sources in well-developed nutrient trading programs in Virginia for industrial and municipal wastewater treatment plants, municipal stormwater programs, and land developers. Evidence suggests nutrient trading programs in Virginia will not stimulate investments in pollutant reduction practices on working agricultural lands. The lack of demand for agricultural nonpoint source credits can be attributed to a substantial degree to the design features and incentives present in multiple overlapping regulatory programs. |
| Keywords: | water quality trading, nutrients, nonpoint, Environmental Economics and Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252701&r=agr |
| By: | Alvarez, Sergio; Solis, Daniel; Hwang, Joonghyun |
| Abstract: | Among causative agents of food-borne illness associated with shellfish consumption, Vibrio vulnificus has been identified as a special concern due to the high mortality it can induce, particularly to individuals with poor health and immune disorders. Food-borne V. vulnificus infections increase during the summer months due to higher densities of the bacteria in warmer water and increased risks associated with inappropriate handling of shellfish. To prevent the incidence of V. vulnificus infections, the FDA requires shellfish producing states to develop a Vibrio control plan and conduct an annual risk evaluation. In Florida the daily harvest period is regulated to minimize the length of time between shellfish harvest and processing, and this harvest period has been recently reduced for summer harvest to prevent food borne illness. The adoption of these public health regulations could affect the profitability and sustainability of oyster harvesting in Florida, especially among resource-dependent coastal communities. This study combines bioeconomic modeling and cost benefit analysis to assess the impact of this regulation on fishers’ harvest and revenues, and weighs that impact against the regulation’s potential public health benefits. Our results show that fishers will experience reduced harvests early in the season due to the shorter length of the harvest days, but this initial loss will be recouped later in the season as harvests remain high for longer than they would have if the harvest time regulations were not in place. The new regulations may yield significant net benefits even if only a small number of cases of V. vulnificus can be prevented. |
| Keywords: | bioeconomic model, shellfish, food safety, regulation, Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Resource /Energy Economics and Policy, Q22, Q57, I18, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252721&r=agr |
| By: | Wilhelms, Steven C.; Coatney, Kalyn T.; Chaudhry, Anita M.; Barnes, James N. |
| Abstract: | Sustainability of the Mississippi River Valley Alluvial Aquifer (MRVAA) is a growing concern for regulators and farmers alike. Currently, non-binding and unmonitored regulatory policies have not decelerated the rapid depletion of the MRVAA. As such, the State of Mississippi is facing significant challenges in developing, if necessary, future regulations to maintain water sustainability. The primary goal of this study is to investigate the potential impacts on voluntary water use restrictions and welfare resulting from credible and binding future use-limit regulations. To maintain relevance to MRVAA, we develop a novel commons extraction game accounting for heterogeneously endowed producers in regards to recharge rates and the potential for localized complete depletion. Credibility in the game is established once the majority of producers have ran out of water and are assumed to support regulation. Predictions of the game without regulation, under various strategic assumptions, are subsequently tested in laboratory experiments across various regulatory treatment policies. Treatment policies include: no regulation, limited-use, and moratorium. Preliminary results indicate, that without the extreme credible threat of moratorium, users do not significantly volunteer to reduce extraction rates. Planned replication of experiments should provide robust insights into future water levels if regulation or volunteering is not instituted. |
| Keywords: | natural resource, experimental economics, commons, aquifer, Environmental Economics and Policy, Resource /Energy Economics and Policy, C72, C91, Q25, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252855&r=agr |
| By: | Davis, Todd; Mark, Tyler; Shepherd, Jonathan |
| Abstract: | A stochastic simulation model is used to evaluate the profitability and liquidity of a low cost / low debt and high cost / high debt Western Kentucky corn-soybean farm over a five-year period. The model evaluates the effectiveness of crop insurance, government programs, and cash-forward contracts risk management tools and the impact on liquidity and profitability. |
| Keywords: | simulation, grain, insurance, farm policy, price risk, Agricultural Finance, Farm Management, Risk and Uncertainty, Q, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252745&r=agr |
| By: | Chen, Bo; Saghaian, Sayed |
| Abstract: | The U.S. organic food sector is rapidly increasing in the past decades and the organic food marketing has thus draw substantial research interests. However, the retailing sector, despite its key role in organic food marketing, is largely left out of current discussion. In this article, we aim to bring the retailing context back in organic food marketing research by examining whether consumer preference for organic food can affect choice of retailing format with Nielsen Homescan data in California. Our main findings are that regular organic user households are more likely to patronage organic specialty store and discount store whereas less likely to shop in warehouse club and the residual formats comprised of convenience store, dollar store and drugstore. Price, consumer loyalty and household shopping behavior also have the expected effects on household retail format choice. This finding has strong managerial implication for retailers and farmers. The current USDA programs in promoting organic agriculture can also be improved by accounting for organic retailing. |
| Keywords: | organic, preference, retailing, store format, scanner data, Agribusiness, Consumer/Household Economics, Demand and Price Analysis, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252827&r=agr |
| By: | Kibet Rono, Patrick; Rahman, Shaikh; Benaissa, Chidmi |
| Abstract: | This article examines Kenya’s household demand for major roots and tubers using data obtained from Kenya Integrated Household Survey of 2005-2006. The normalized data is analyzed using the Linear Approximation Almost Ideal Demand System (LA-AIDS) model with symmetry and homogeneity restrictions imposed. Estimated own-price elasticities indicate that the demand for potato, sweet potato, arrow roots, and cooking bananas are elastic while the demand for cassava is price inelastic. Estimated cross-price elasticities suggest that potato and sweet potato, potato and arrow roots, and potato and cooking bananas are substitutes while potato and cassava are compliments. Estimated income elasticities for potatoes and cassava are positive but less than one, thus these are necessity food items in Kenya’s roots and tubers demand system. However, estimated income elasticities for sweet potato, arrow roots, and cooking bananas are all positive and greater than one implying that these are luxury food items for the Kenyan households. Keywords Root and tubers, Linear Approximate Almost Ideal Demand System (LA-AIDS), Marshallian Elasticity, Hickisian Elasticity. |
| Keywords: | Root and tubers, Linear Approximate Almost Ideal Demand System (LA-AIDS), Marshallian Elasticity, Hickisian Elasticity, Consumer/Household Economics, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252786&r=agr |
| By: | Jacks, David S. (Simon Fraser University); Stuermer, Martin (Federal Reserve Bank of Dallas) |
| Abstract: | What drives commodity price booms and busts? We provide evidence on the dynamic effects of commodity demand shocks, commodity supply shocks, and inventory demand shocks on real commodity prices. In particular, we analyze a new data set of price and production levels for 12 agricultural, metal, and soft commodities from 1870 to 2013. We identify differences in the type of shock driving prices of the various types of commodities and relate these differences to commodity types which reflect differences in long-run elasticities of supply and demand. Our results show that demand shocks strongly dominate supply shocks. |
| Keywords: | Commodity prices; natural resources; structual VAR |
| JEL: | E30 N50 Q31 Q33 |
| Date: | 2016–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:1614&r=agr |
| By: | Benavidez, Justin; Hardin, Erin |
| Abstract: | Stability in the farming sector provides stability in rural economies, with a varying but large portion of employment in rural communities across the nation directly related to agriculture or to the agricultural services and processing industries. Instability in the agricultural sector can send ripple effects throughout the economy through increased food and fiber prices. Additionally, there has been a movement towards land investment by equity firms. As rent i s the primary source of revenue, understanding movements in rent is useful for mitigating risk and understanding the market. The purpose of the following research is to address the deficit in recent forecast literature pertaining to land and cash rent prices and to identify the best methodology for forecasting. Tested methods include a Holt-Winters naive forecast, a structural model with lagged rent, farmland prices and crop prices as explanatory variables, an error correction model (ECM), an autoregressive integrated moving average (ARIMA) forecast model, and a composite forecast. Each model is evaluated using mean absolute percent error (MAPE) and root mean squared error (RMSE). |
| Keywords: | Rent, Land Value, Forecasting, Agribusiness, Agricultural Finance, Farm Management, Land Economics/Use, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252771&r=agr |
| By: | Anand, Mohit; Duffy, Patricia; Bransby, David |
| Abstract: | Adoption of bio-crops has been suggested as a possible solution to reduce dependence on fossil fuels. Although switchgrass is a potential bio-crop, it is still not adopted by the farmers commercially for energy use. In this study, first an in-depth literature review has been done to analyze some of the important decisive factors which should be considered by farmers before adopting switchgrass as a bio-crop. Then an economic analysis has been done on the risks and returns to the farmers for including switchgrass in the farm mix. This study uses 21 years of experimental yield data for switchgrass, from a long term experiment in Alabama. For economic analysis, two hypothetical sample farms of 400 acres each, with and without switchgrass are compared. The yield and price data are simulated with 1000 iterations and return on investments for different cases are compared for final results. The results show that adoption of switchgrass as a bio-crop can be a viable addition to the farm mix which can both improve profitability as well as reducing profits variability in addition to other benefits. |
| Keywords: | biofuels, producers, returns, risks, switchgrass, Agribusiness, Crop Production/Industries, Land Economics/Use, Production Economics, Q1, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252724&r=agr |
| By: | McLeod, Elizabeth; Jensen, Kimberly; Griffith, Andrew; Lewis, Karen |
| Abstract: | Growing interest in producing locally produced beef to capture more value-added has been expressed by the Tennessee beef industry. This study measures Tennessee cattle producer willingness to supply beef to a Tennessee branded beef (TBB) program. Data from a 2016 survey of Tennessee beef cattle producers were used to estimate a probit for interest in TBB participation and a Tobit for cattle live weight that interested producers would supply. Over 70 percent were interested in participating, with age, income, production practices used, and risk attitudes influencing interest. Liveweight supply was influenced by producer age, animal units, production practices, and perceived barriers. |
| Keywords: | Branded Beef, Producer Willingness to Supply, Probit, Tobit, Agribusiness, Livestock Production/Industries, Marketing, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252649&r=agr |
| By: | Bolotova, Yuliya V. |
| Abstract: | In 2008 and 2009 dairy farmers in the U.S. Southeast and Northeast regions filed class action antitrust lawsuits, in which they alleged that Dean Foods, the largest fluid milk processor in the country, and Dairy Farmers of America, the largest dairy cooperative in the country, engaged in anticompetitive conduct, which restricted competition in the fluid milk market in these regions. This research analyzes the performance of fluid milk channel during the period affected by the alleged anticompetitive conduct and the period of antitrust actions in eight cities located in the affected regions. The empirical analysis reveals differences in the behavior of retail fluid whole milk prices, farm milk prices (Class I milk prices) and farm-to-retail margins during the two analyzed periods. There is empirical evidence indicating that increases in farm milk prices (Class I milk prices) are much higher in magnitude than increases in retail fluid whole milk prices, and farm-to-retail margins are lower in the antitrust action period. Furthermore, the vertical price transmission process (cost pass-through) and retail fluid milk pricing practices are different in the two analyzed periods in seven out of eight cities. |
| Keywords: | antitrust, fluid milk, cartels, cost pass-through, regulated pricing., Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Industrial Organization, Marketing, L1, L2, L4, L5, Q1, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252744&r=agr |
| By: | Adams, Kerr; Kovacs, Kent; West, Grant |
| Abstract: | Concerns about groundwater depletion from conventional agricultural irrigation in the Mississippi Delta have led to the technological innovation of more-efficient irrigation practices. With Arkansas being the largest producer of rice and the tenth largest producer of soybeans in the United States, the irrigation demand of these crops has put pressure on producers to find ways to irrigate more efficiently. Research into water conserving irrigation techniques has helped preserve water resources, maintain yields, and maximize farm profits. As groundwater levels in the Delta continue to decrease, the price of pumping water increases, making the prospect of investment in new technologies more attractive. The paper will address potential returns on investment in efficient irrigation practices for furrow irrigated soybeans and flood irrigated rice. The depletion of the aquifer and the return on investment from efficient irrigation practices depends on the well-pumping decision of farms across the landscape. More farms adopting the efficiency-enhancing practices will increase the return on investment in those practices because these methods stabilize groundwater levels across the landscape. We explore how the rate of adoption of efficient irrigation practices on the landscape ultimately influence the return on investment. |
| Keywords: | Irrigation, Groundwater conservation, Surface water delivery, Environmental Economics and Policy, Farm Management, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Q15, Q24, Q25, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252734&r=agr |
| By: | Shibia, Mumina; Rahman, Shaikh; Chidmi, Benaissa |
| Abstract: | Per capita consumption of meat products has been rapidly increasing in Sub-Saharan African countries including Kenya. This paper examines a household demand system for five meat products in Kenya: beef with bones, boneless beef, mutton, chicken, and pork. The Linear Approximate Almost Ideal Demand System (LA/AIDS) model is used because of its flexibility and ease of application with household expenditure data. The LA/AIDS model is estimated using household consumption data obtained from Kenya Integrated Household Budget Survey of 2013. Expectedly, the estimates of uncompensated and compensated own price elasticities of demand for all five meat products are negative but larger than –1. Although the estimates of uncompensated cross price elasticities are negative implying that these meat products are gross complements, the estimates of compensated cross price elasticities are found to be positive indicating a quite strong substitution between these meat products. Expenditure elasticities of demand for the meat products are positive implying normal goods. Mutton/goat is a necessity good (elasticity <1) among the Kenyan households. |
| Keywords: | LA-AIDS, Meat demand, Elasticities, Kenya, Consumer/Household Economics, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252789&r=agr |
| By: | Senia, Mark; Dharmasena, Senarath |
| Abstract: | The consideration of theoretical regularity restrictions is an important factor in demand analysis that is often ignored in empirical demand studies. Empirical studies tend to ignore this factor as regularity conditions are often violated. Also important is the need to account for pre-committed demand. If pre-committed demand is present, then models that do not account for this are incorrectly specified. The objective of this research is to examine the affect that ignoring pre-determined demand and theoretical regularity conditions will have on consumer food demand. To accomplish this we use the AIDS because of its wide use. We pay additional attention to regularity by testing for and imposing local curvature conditions. This research also will check for the presence and levels of pre-committed food demand. We use the Nielsen Homescan data to create monthly household level purchases of nine per-capita fiber rich food categories (bread, pasta, tortilla, fresh fruit, fresh vegetables, frozen fruit, frozen vegetables, canned fruit, and canned vegetables) for 2004-2014 in the United States. Then the paper discusses the differences in the intake of fiber rich foods that the estimation procedures have due to a proposed government policy change, such as a subsidy on fruit and vegetables. |
| Keywords: | AIDS, Regularity Conditions, Pre-Determined Demand, Nielsen Homescan Panel, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, D12, Q18, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252740&r=agr |
| By: | Kamer, Mary Catherine; Gumirakiza, Dominique |
| Abstract: | Farm Financial Standards Council (FFSC) developed accounting procedures that are specific to agricultural producers; commonly referred to as the “Guidelines". This paper determines the extent to which agriculture producers in Kentucky are using the Guidelines and analyzes the effect the use has on farm profitability. Data were collected through a mailed survey sent to 650 small and medium farms during early summer 2016. Results indicate that the majority of producers have either not heard of the Guidelines, or that they may have heard of them but are unsure of how to use them. We also found that those who keep records of financial activities following the Guidelines have higher profits and are confident in making financial decisions to expend their farm. The fact that following the Guidelines is associated with greater profitability is a motivating factor to those who did not adopt them yet. Results suggest that extension specialists need to improve their efforts towards providing technical assistance to the producers. Likewise, offering agricultural accounting classes that teach the use of the Guidelines among current and future agriculture producers improve farm profitability and economic sustainability in future. This study is useful for future studies regarding the use of the Guidelines. |
| Keywords: | Guidelines, Agricultural finance, Education, Agribusiness, Agricultural Finance, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252731&r=agr |
| By: | Zheng, Yuqing; Bar, Talia |
| Abstract: | Retailers increasingly require suppliers to certify for food safety standards. Third party certification bodies audit manufacturing sites to determine compliance with a standard. We use panel data on U.S. manufacturing sites certified for the British Retail Consortium global standard food safety program to identify determinants of certification audit grades. We find that firms with more resources obtain higher grades. Also grades increase with experience which likely indicates that the certification process improves food safety practices. Investigating the relationship between audit grades and the degree of competition between third party certification bodies in the vicinity of a manufacturing site, we find that higher competition is associated with higher audit grades. |
| Keywords: | Agribusiness, Food Consumption/Nutrition/Food Safety, Industrial Organization, Certifiers, certification bodies, food safety, standard, audit grade, British Retail Consortium, voluntary provision., |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252714&r=agr |
| By: | Evan Borkum; Irina Cheban; Jane Fortson; Alexander Johann; Seth B. Morgan |
| Abstract: | This report describes the findings from an end-of-compact analysis of the Access to Agricultural Finance Credit Program in Moldova. |
| Keywords: | agriculture, finance, Moldova |
| JEL: | F Z |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:97024c6e371e479ea2c27f8d076c1049&r=agr |
| By: | Li, Wenxuan; Marshall, Maria I. |
| Abstract: | This paper examines the relationship between role satisfaction of farm family business owners and gender. Specifically, this paper investigates how role satisfaction is different for male and female farm family business owners. Previous literature has suggested that male and female owners might have a different level of satisfaction when faced with similar profits. The hypothesis is that female owners will have higher levels of role satisfaction than male owners. The sustainable family business model is adapted to form the theoretical framework. It helps identify family and business resources and constraints, processes, and transactions that are most likely to lead to business and family achievement. Gender and profit are two important factors in the model. The data used for the empirical analysis come from the 2012 Intergenerational Farm and Non-Farm Family Business Survey, which was a 30-minutes telephone survey of rural family businesses in Illinois, Indiana, Michigan, and Ohio. The sample consists of 736 small and medium size farms from the four states. Preliminary results indicate that gender has significant impact on the perceived role satisfaction of owners when they face the same profits. |
| Keywords: | Satisfaction, gender, family business, profit, Agribusiness, Consumer/Household Economics, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252702&r=agr |
| By: | Iyigun, Murat (University of Colorado, Boulder); Nunn, Nathan (Harvard University); Qian, Nancy (Northwestern University) |
| Abstract: | This paper investigates the long-run effects of climate change on conflict by examining cooling from 1400-1900 CE, a period that includes most of the Little Ice Age. We construct a geo-referenced and digitized database of conflicts in Europe, North Africa, and the Near East from 1400-1900, which we merge with historical temperature data. We first show that during this time, cooling is associated with increased conflict. Then, turning to the dynamics of cooling, we allow the effects of cooling over a fifty-year period to depend on the extent of cooling during the preceding fifty-year period. We find that the effect of cooling on conflict is significantly larger if the same location experienced cooling during the preceding period. We interpret this as evidence that the adverse effect of climate change intensifies with its duration. |
| Keywords: | environment, development, political economy |
| JEL: | D74 Q34 P16 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10475&r=agr |
| By: | McKendree, Melissa G.S.; Tonsor, Glynn T.; Schroder, Ted C.; Hendricks, Nathan P. |
| Abstract: | Economists have long recognized changes in consumer demand directly impact stakeholders throughout corresponding supply chains. However, empirical applications quantifying how demand signals are transmitted through vertically connected industries are limited. One study which provided empirical linkages between changes in retail level U.S. beef demand and economic welfare of beef producers was provided by Marsh (2003). However, given the changing landscape of the beef industry, changing consumer preferences, and globalization this paper is outdated. Our analysis aims to provide an improved quantification of how changes in retail and export beef demand are transmitted to different members of the beef industry. |
| Keywords: | Beef, Cattle, Demand, Economic Impacts, Exports, Producer Welfare, Transmission Elasticities, Demand and Price Analysis, Livestock Production/Industries, Marketing, Production Economics, Q10, Q11, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252730&r=agr |
| By: | Fatima, Hina; Almas, Lal K; Yasmin, Bushra |
| Abstract: | Technological change is one of the most effective ways to make improvements in crop yields. However, lack of ability or willingness of the producers to adopt technology and other institutional barriers cause slow adoption. Technological adoption for value added crop production in Pakistan is making progress with the introduction of tunnel technology. The present study investigated the technical efficiency and productivity of capsicum crop (Bell Pepper) grown under the tunnels in Punjab, Pakistan. The farm data were collected from 150 farmers through an interview questionnaire. The stochastic frontier analysis was used to measure the productivity and technical efficiency of capsicum crop grown under tunnels. The results of the study revealed that the average technical efficiency of sampled capsicum farms under tunnels was around 83%. The farmers can optimize the production frontier of the capsicum cropping system by overcoming the existing level of technical inefficiencies. The number of irrigations, pesticides, labor hour, land preparation and seed have been important inputs for capsicum cropping system production and technical efficiency among farmers in the study area. The access to credit and farmer’s education have the positive relationship with technical efficiencies. Lack of credit and education cause significant production inefficiency. |
| Keywords: | Technical Efficiency, Capsicum (Bell Pepper), Production Tunnels, Stochastic Frontier Analysis, Punjab, Pakistan, Crop Production/Industries, Farm Management, Production Economics, Productivity Analysis, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252736&r=agr |
| By: | Liu, Yizao; Rabinowitz, Adam; Xuan, Chen |
| Abstract: | The asymmetric farm-retail transmission has been well documented in the general fluid milk market. However, little attention has been given to the possible heterogeneous cost pass-through process of private labels. Given the leading role of private labels in the fluid milk market, it is of special interest to focus on its possible different effect on farm-retail price transmission. In this paper, we examine the heterogeneous effects of private label and branded products on price transmission in the fluid milk market. We incorporate and extend the Error Correction Model (ECM) approach to specify and estimate the farm-retail pass-through using panel data. To capture the heterogeneous effects of brand types on price transmission, we include interaction terms of brand type dummies with increasing and decreasing phases of farm price and then test the asymmetry in farm-retail pass-through for different brand types. Our results indicate that private label and branded milk all show asymmetry in price transmission. However, brand types affect the magnitudes of the asymmetry and private label milk presents the lowest asymmetry in price transmission, compared with national and regional branded milk. One possible explanation is that retail chains have a greater ability to affect prices of their own private label products through integrated distribution channels and thus impose a strong lessening power of the asymmetry in farm-retail price transmission. |
| Keywords: | price transmission, cost pass-through, retail pricing, private label, Agribusiness, Demand and Price Analysis, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252725&r=agr |
| By: | Quaye, Archibold; Elliott, Matthew |
| Abstract: | The loss of nitrogen fertilizer into the atmosphere and waterways is of increasing concern for policy makers. This study conducts a cost-effective analysis (CEA) to determine the best strategies, and areas, to reduce nitrogen losses in South Dakota. This form of analysis is done by spatially comparing the amount of reductions per acre across the state, assuming alternative mitigation strategies and adoption rates. Using environmental factors, (Climate type, soil texture, soil organic carbon, soil drainage, soil pH and crop type), and management decisions (no till, conventional till, reduced till, crop rotations, and application timing), we assess the best areas and methods in South Dakota that can be targeted with management changes to gain the most cost effective continuous improvement in nitrogen losses. The Environmental Policy Integrated Climate (EPIC) model was used to simulate the homogeneous response units to changes in nitrogen management practices and assess nitrogen losses. Simetar was then used to derive certainty equivalence values for changes in nitrogen loss and producer returns from changes in nitrogen management. |
| Keywords: | Cost Effective Analysis, Nitrogen losses, Management decisions, Agribusiness, Environmental Economics and Policy, Q5, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252794&r=agr |
| By: | Diego Restuccia; Raul Santaeulalia-Llopis |
| Abstract: | Using detailed household-level data from Malawi on physical quantities of outputs and inputs in agricultural production, we measure total factor productivity (TFP) for farms controlling for land quality, rain, and other transitory shocks. We find that operated land size and capital are essentially unrelated to farm TFP implying substantial factor misallocation. The aggregate agricultural output gain from a reallocation of factors to their efficient use among existing farmers is a factor of 3.6-fold. We directly link factor misallocation to severely restricted land markets as the vast majority of land is allocated by village chiefs and not marketed. In particular, the output gain from reallocation are 2.6 times larger for farms with no marketed land than for farms that only operate marketed land. |
| Keywords: | misallocation, land, productivity, agriculture, Malawi, micro data. |
| JEL: | O1 O4 |
| Date: | 2017–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-575&r=agr |
| By: | Hardin, Erin M; Penson, John B. |
| Abstract: | The recent reduction in commodity prices and farmland values following the substantial growth in the agriculture sector has called into question the risk profile of agricultural enterprises. Following the boom witnessed in the 1970’s, the sector witnessed a contraction in prices, demand for goods, and asset values that led many farm enterprises and commercial, agricultural banks to bankruptcy. Many factors of the current evolution of the sector have proven different than those of previous sector cycles yet understanding the reoccurring timeline of events and considering possible causal relationships between major drivers of stability prove pertinent to the continued operation of the most vulnerable farm operations and agricultural lenders. Substantial debt accumulation and repayment capacity have been a precursor and likely catalyst of the previous so called “busts” of farm sector cycles. The analysis performed will address drivers of debt accumulation and the ability of the agriculture sector to service debt. Specifically, the leverage ratio, debt relative to assets, and the debt-burden ratio, debt relative to income, are analyzed. These ratios signal vulnerability to changes in performance of a sector or a specific enterprise’s ability to endure a downturn in the market. |
| Keywords: | Land values, finance, risk, credit risk, liquidity measures, Agribusiness, Agricultural Finance, Financial Economics, Land Economics/Use, Risk and Uncertainty, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252829&r=agr |
| By: | Stefano Carattini; Simon Levin; Alessandro Tavoni |
| Abstract: | This paper surveys the existing empirical evidence on the scope for cooperation in the climate commons and on the effectiveness of possible interventions to spur it. Given the global public good properties of climate change mitigation, mitigation efforts have to rely on the willingness of individuals to contribute voluntarily to this public good, by reducing the demand on the environmental commons either in the form of ‘green’ consumer behaviour or through the acceptance of costly climate policy. Both are likely to be necessary. The authors survey evidence that suggests a central role for local social norms in the provision of global public goods. They discuss the importance of the visibility of norms and the role of beliefs when such visibility is lacking, concluding that some actors may behave as conditional cooperators when confronted with global dilemmas, similarly to what takes place in the local commons. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp259&r=agr |
| By: | Kassas, Bachir; Palma, Marco; Ness, Meghan; Anderson, David |
| Abstract: | It is well documented that people overbid in second price auctions (SPAs). Yet, this fact is conveniently ignored when eliciting willingness-to-pay (WTP) for market goods. We propose a simple design that not only tests the external validity of SPA bids, but also suggests a more accurate method of eliciting WTP in SPAs. Following the SPA, participants were offered a randomly chosen price, from the range of retail prices in actual markets, at which they can purchase any amount of the good in an onsite secondary market. The design links overbidding and underbidding behavior to violations of the weak axiom of revealed preferences (WARP). We find robust evidence that the dominance of overbidding over underbidding in SPAs leads to an upward bias in the WTP estimates. While this can compromise market good valuations by inflating the perceived value of products, our design enables utilization of Kotlarski’s identity to recover the distribution of the unobserved true valuations. |
| Keywords: | Overbidding, WARP, WTP, Kotlarski’s identity, non-parametric estimation, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Institutional and Behavioral Economics, D44, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252793&r=agr |
| By: | Sébastien Desbureaux (CERDI, Université d'Auvergne & CIRAD) |
| Abstract: | A sufficient level of collective action between community members is often presented as a strong pre-requisite to sustainably governing local common property resources(CPR). What if in some contexts instead, strong collective action led to short-term depletion of CPR instead of their sustainable use? This paper brings to light causal evidence on the environmental impact of establishing community-managed forests in Madagascar and highlights the complexities underlying collective action in their sustainable management. I compile fine-scale deforestation data over 15 years, use a unique spatial census of locally managed CPR and mobilize firsthand field data from four case studies to show that transferring management rights to local communities has failed to decrease deforestation. Instead, the policy has led to an increase in deforestation in some areas, often when collective action was strong, not when it was weak. This is what I call the possible "dark side" of collective action. |
| Keywords: | Commons, Collective Action, Impact Evaluation, Experimental Economics, Forests, Madagascar |
| JEL: | Q15 Q23 D02 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2016.30&r=agr |
| By: | Dharmasena, Senarath; Capps, Oral Jr |
| Abstract: | The United States is a dominant player in the world tree nut production with the value of nuts produced exceeded $10 billion by 2015. Annual per capita consumption of nuts in the United States has been growing during past 25 years due to increase in nutrition and health benefits of nuts. Few studies that looked at the economics of nuts in the United States come short in examining demand interrelationships between various tree nut products and peanuts to uncover complex substitutability/complementarity patterns through derivation of own-price, cross-price and income/expenditure elasticities. Demographic factors affecting the consumer demand for nut products is yet to be investigated as well. Quantity, expenditure and household demographic characteristics with respect to purchase of almonds, pecans, walnuts, pistachios, cashew nuts and peanuts obtained from 2014 Nielsen Homescan scanner panel for 65,000 U.S. households was used in estimating censored quadratic almost ideal demand system using semiparametric estimation procedure suggested by Sam and Zheng (2010). Preliminary results show that the own-price elasticity of demand for almonds, pecans, walnuts, pistachios, cashew nuts and peanuts is -0.75, -0.98, -1.05, -0.53, -0.56, and -0.17. Income, age, region and presence of children are significant drivers of demand for these nut products. |
| Keywords: | Consumer demand, nut products, censored demand, semi-parametric estimation, Consumer/Household Economics, Demand and Price Analysis, D11, D12, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252682&r=agr |
| By: | Sharp, Misti; Suter, Jordan; Hoag, Dana |
| Abstract: | Uncertainty remains problematic for pollution control in water resources due to difficulties in tracing pollution flows and uncertainty regarding future regulation. This study uses experimental techniques to evaluate how farmers in a water quality trading (WQT) market behave when they are able to resolve two issues of uncertainty: uncertainty regarding the benefits of WQT participation and uncertainty over future regulation. Experiments were conducted in the summer of 2016 with participants assigned the role of “farmer” (seller) or “wastewater treatment plant manager” (buyer) in a WQT market. In the base treatment, all farm credit generation required two units of clean-up for one pollution credit and voluntary practice implementation by farmers. In a second treatment, farmers had an opportunity to verify their true trading ratio. Preliminary results suggest that farmers will invest in verification and market outcomes typically improve. A third treatment asked farmers to implement practices voluntarily to reach a threshold to avoid regulation. Results indicate that farmers are unlikely to meet voluntary thresholds; moreover, market outcomes are worse as voluntarily abatement comes at an opportunity cost in the trading market. These results suggest an opportunity for regulators to increase participation and improve social outcomes by resolving uncertainty in WQT markets. |
| Keywords: | Water quality, behavioral economics, experiments, pollution markets, Environmental Economics and Policy, Institutional and Behavioral Economics, Resource /Energy Economics and Policy, Risk and Uncertainty, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252743&r=agr |
| By: | Almas, Lal K; Guerrero, Bridget L; Lust, David G; Fatima, Hina; Mensah, Emmanuel |
| Abstract: | Agriculture production plays an integral role in the regional economy. However, the Ogallala Aquifer that supports the intensive irrigated agriculture and livestock operations is waning rapidly, which raises alarm for future sustainability of agriculture in the area. The main objective of the present study is to evaluate the effect of forage quality of corn and sorghum silage on milk yield per ton of silage dry matter. The traditional quantitative analysis and the Data Envelopment Analysis (DEA) are used. The DEA approach takes into account the comparative production efficiency analysis of corn and sorghum silage. The results revealed that there is a 16% more milk yield from corn silage due to better forage quality than sorghum silage. However, it is economically more profitable to feed dairy the sorghum silage. Improvement in crude protein, in-vitro true digestibility and starch content of sorghum silage will increase milk production per ton of forage dry matter. Considering both global and local concerns on water scarcity coupled with unpredictable climate changes, it is economically prudent to consider sorghum silage. Education on the true value of sorghum silage to the dairy industry can reduce silage production cost and save more water for future use in the Texas High Plains. |
| Keywords: | Silage Forage Quality, Milk Production, Ogallala Aquifer, Texas High Plains, Data Envelopment Analysis, Farm Management, Livestock Production/Industries, Production Economics, Productivity Analysis, Resource /Energy Economics and Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252737&r=agr |
| By: | Carson, Nathaniel; Langemeier, Michael |
| Abstract: | This paper examined the relationship between cash rent and net crop returns for Indiana. As expected, there was a significant and positive relationship between net crop returns and cash rent values. The relatively low coefficients on lagged net crop returns in the cash rent equations reinforces the existing literature that asserts that cash rent values are sticky. As a result, the recent decline in net crop returns in Indiana will not be fully realized for several years. |
| Keywords: | Cash rent, net crop returns, farmland markets, Agribusiness, Agricultural Finance, Financial Economics, Land Economics/Use, D24, G12, Q14, Q15, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252768&r=agr |
| By: | Richard, Jessica; Mark, Tyler; Burdine, Kenneth |
| Abstract: | This study examines the impacts of the Margin Protection Program for Dairy Producers (MPP-Dairy) on the effective margins realized by dairy producers in various regions. The effects are examined for each selected margin ($4.00-$8.00 in $0.50 increments), and each percentage of production history (25%-90% in 5% increments). The “effective margins” are the regions’ actual margins as a function of their milk and feed prices having been added to the national net at each respective coverage level. The analysis simulated couplet margins for fifteen regions from 2017-2020. The results show that more than half of the regions have higher probabilities of triggering indemnities at every coverage level compared to the national. This means that if a regional policy of similar construction were available to producers, it might pay out more frequently. This study did find that the margin volatility was reduced over the whole period when the policy effects were accounted for. |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252811&r=agr |
| By: | Adhikari, Suraj; Illukpitiya, Prabodh; Fisseha, Tegegne; Enefiok, Ekanem |
| Abstract: | Soybean and sunflower are the major oilseeds crops that can be used as feedstock to produce biodiesel. This study investigates the comparative economic analysis of producing biodiesel from selected oilseed crops. The objective of this study is to advance research to provide knowledge needed for the feasible way of adaptation of oilseed crops for small scale on-farm production of biodiesel. The equipment, capital, acreage, and production costs needed for feedstock production, harvesting, and processing of these oilseed crops were identified and considered for the analysis. The annualized net revenue from the biodiesel production was calculated considering 15 years time period. After considering a price of seed meal and current selling price of biodiesel, the estimated range of net return of producing biodiesel from soybean and sunflower ranges from -$0.47 to $1.08/gallon and -$1 to $0.95/gallon respectively. The break-even price for the soybean biodiesel was $2.74/gallon and $2.71/gallon for sunflower. According to Monti Carlo simulation, the average profit generated across random samples for biodiesel production from sunflower and soybean was $21 and 11 /acre yr-1 respectively. The production of on-farm biodiesel from summer oilseed crops can be feasible however there need to be a government subsidy for small farmers. |
| Keywords: | oilseed crops, bio-diesel, benefit:cost analysis, Monti Carlo simulation, Agribusiness, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252766&r=agr |
| By: | Torben G. Andersen (Kellogg School of Management, Northwestern University); Oleg Bondarenko (Department of Finance (MC 168), University of Illinois at Chicago); Albert S. Kyle (Robert H. Smith School of Business, University of Maryland); Anna Obizhaeva (New Economic School) |
| Abstract: | The intraday trading patterns in the E-mini S&P 500 futures contract between January 2008 and November 2011 are consistent with the following invariance relationship: The return variation per transaction is log-linearly related to trade size, with a slope coefficient of -2. This association applies both across the pronounced intraday diurnal pattern and across days in the time series. The documented factor of proportionality deviates sharply from prior hypotheses relating volatility to transactions count or trading volume. Intraday trading invariance is motivated a priori by the intuition that market microstructure invariance, introduced by Kyle and Obizhaeva (2016c) to explain bets at low frequencies, also applies to transactions over high intraday frequencies. |
| Keywords: | market microstructure, invariance, bets, high-frequency trading, liquidity, volatility, volume, business time, time series, intraday patterns |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:cfr:cefirw:w0229&r=agr |
| By: | Stijn van Weezel (School of Economics, University College Dublin) |
| Abstract: | This study exploits a shift in Spring precipitation patterns in the Horn of Africa following the 1998 El Niño to examine the effect of climate change on conflict. Using data for Ethiopia and Kenya and focusing on communal conflict the regression analysis links districts that have experienced drier conditions since 1999 relative to 1981-1998 with higher conflict levels. However, the magnitude of the estimated effect is low and the direction of the effect is as likely to be positive as negative. Moreover the results are sensitive to model specification, not robust to using another outcome variable, and do not generalise well to out-of-sample data. The cross-validation illustrates that the model linking droughts with conflict has a relatively poor predictive performance. The results also show that districts with substantial shares of pastoralism experience higher levels of communal violence, something that is well documented in the qualitative literature, but don’t face higher risks following decreases in precipitation levels. |
| Keywords: | Horn of Africa, climate change, rainfall, communal violence |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:hic:wpaper:241&r=agr |
| By: | Aborisade, Olumide; Carpio, Carlos |
| Abstract: | This study was an application of the Linear Approximate Almost Ideal Demand System (LA-AIDS) model on household aggregate meat demand in Nigeria. The data used was obtained from the World Bank’s Living Standards Measurement Study (LSMS) on households in Nigeria. Previous research had studied demand only at a regional level but this study estimates meat demand at a national level. The results showed that beef was a necessity while goat, chicken and mutton were luxuries. The results further revealed that all the meat products considered were normal goods with own-prices that were negative and consistent with demand theory except mutton. Goat meat and mutton were price elastic and as such, price changes for these products will affect their consumers more than consumers of other meat products that were less elastic. |
| Keywords: | Linear Approximate Almost Ideal Demand System (LA-AIDS), meat, demand, elasticity, own-price, cross-price., Agricultural and Food Policy, Consumer/Household Economics, D11, D12, P4, Q11, R22, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252839&r=agr |
| By: | Yang, Ruoye; Raper, Kellie Curry; Lusk, Jayson L. |
| Abstract: | Consumers see retail beef products labeled as produced with no added hormones (NAH), but also see similar labels on pork and chicken products on market shelves despite the fact that added hormones are not used in production. This may mislead consumers to think hormones are used in meat production as a whole. This research examines the impact of hormone use perception on consumer preference for meat products. Specifically, we assess consumer perception of hormone use in different livestock species as compared to actual use in production. We then assess whether hormone use perception affects consumer choice for unlabeled meat products. Finally, we identify whether consumer perception of hormone use affects willingness to pay (WTP) premiums for meat products labeled as produced with NAH. Choice experiment data was collected using Oklahoma State University monthly Food Demand Survey. Results indicate that consumers underestimate the rate of hormone use in cattle production, but overestimate the rate of hormone use in pork and chicken production. Results from a conditional logit model suggest that consumer perception of hormone use can affect food preferences for unlabeled meat products. Using a Tobit model, we also found WTP premiums for the NAH label are affected by consumer perception of hormone use and by demographic characteristics. |
| Keywords: | meat demand, hormone use, choice experiment, Agribusiness, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, Q13, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252772&r=agr |
| By: | Willis, David B.; Privette, Charles |
| Abstract: | Water runoff from residential developments is the third leading source of water pollution in the United States. A linear programming model is developed using nutrient runoff loadings for nitrogen and phosphorous generated by the Reedy River Model Simulation Program to estimate the potential cost savings of using a basin wide targeted approach for the location of best management control practices relative to a uniform control practice that requires each sub-basin within a rapidly grown urban watershed to decrease nitrogen and phosphorous runoff by the same percentage to achieve a downstream water quality target. In one policy scenario the targeted approach reduced control cost at the basin outlet by 42% relative to instituting a uniform control standard in each sub-basin within the watershed. |
| Keywords: | Water Quality, Best Management Practices, Cost Effectiveness, Environmental Economics and Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252820&r=agr |
| By: | Luo, Tianyuan |
| Keywords: | This paper studies the impact government provided public health insurance on the labor decisions to agricultural sector in China and applies Difference-in-Differences as well as Triple-difference model with the Heckman selection model on dataset obtained from China Health and Nutrition Survey. Findings suggest that public health insurance would decrease people’s probability of working in farm sector but increase the weekly hours devoted to farm works for those who choose to work on farms., Community/Rural/Urban Development, Health Economics and Policy, Labor and Human Capital, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252796&r=agr |
| By: | Qushim, Berdikul; Bhandari, Basu; Gillespie, Jeffrey; Scaglia, Guillermo |
| Abstract: | We determine technical and scale efficiencies, scope economies, marginal productive contributions for inputs and outputs, and efficiency drivers for U.S. grass-fed beef enterprises. Average technical efficiency was 0.82. Increasing returns to scale and scope economies were found. Results suggest grass-fed beef enterprises can be scale efficient at >100 grass-fed beef animals. |
| Keywords: | grass-fed beef, input distance function, return to scale, scope economies, stochastic production frontier, technical and scale efficiencies, Livestock Production/Industries, Production Economics, Productivity Analysis, L25, Q10, Q12, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252735&r=agr |
| By: | Nikolay NENOVSKY; Tsvetelina MARINOVA |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2459&r=agr |
| By: | Buck, Steven; Nemati, Mehdi |
| Abstract: | The purpose of this paper is to calculate the expected reliability benefits of alternative water supplies that are less vulnerable to disruption than the current composition of supplies, especially those regions which rely on imported surface water. Expected reliability benefits are measured using estimates of welfare losses under various levels of supply disruption, the probability of each level disruption, and on consumption forecasts over the life of proposed alternative supplies. TO consider uncertainty in reliability benefits, we run sensitivity analyses to value reliability under different discount rates, the elasticities of demand, water supply disruption levels, and corresponding probability distributions of disruption. |
| Keywords: | urban water, economics of infrastructure, reliability, Community/Rural/Urban Development, Environmental Economics and Policy, Public Economics, Resource /Energy Economics and Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252826&r=agr |
| By: | Eoin McGuirk (Yale University); Marshall Burke (Stanford University and NBER) |
| Abstract: | We study the impact of plausibly exogenous global food price shocks on local violence across the African continent. In food-producing areas, higher food prices reduce conflict over the control of territory (what we call “factor conflict”) and increase conflict over the appropriation of surplus (“output conflict”). We argue that this difference arises because higher prices raise the opportunity cost of soldiering for producers, while simultaneously inducing net consumers to appropriate increasingly valuable surplus as their real wages fall. In regions without crop agriculture, higher food prices increase both factor conflict and output conflict, as poor consumers turn to soldiering and appropriation in order to maintain a minimum consumption target. We validate local-level findings on output conflict using geocoded survey data on interpersonal theft and violence against commercial farmers and traders. Ignoring the distinction between producer and consumer effects leads to attenuated estimates. Our findings help reconcile a growing but ambiguous literature on the economic roots of conflict. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:hic:wpaper:242&r=agr |
| By: | Garcia-Fuentes, Pablo; Kennedy, P. Lynn; Ferreira, Gustavo |
| Abstract: | The current research develops a model of pricing in imperfectly competitive markets based on the Stackelberg price leadership behavior model to explain pricing strategies in the high fructose corn syrup (HFCS) and sugar industries in the United States. The model assumes that demanders of HFCS are represented by soft drinks and processed food manufactures that use HFCS as an input. It derives a reaction function for the price of HFCS and a conjectural variations function. The conjectural variations function suggests that the price of sugar is higher than the price of HFCS. The results show that the price of sugar plays an important role in the pricing strategy of the HFCS industry and that a unit increase in the price of sugar increases the price of HFCS by less than the unit increase in the price of sugar. |
| Keywords: | High fructose corn syrup, price reaction function, sugar, Unites States, Demand and Price Analysis, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252722&r=agr |
| By: | Oh, Saera; Lee, Sang Hyeon |
| Abstract: | The linkage between trade and poverty reduction is one of the controversial debate topics. Many studies were conducted and focused on national level poverty but this paper aims to investigate how the effect of trade differs in regional level (rural and urban) in developing countries. The result indicates that 1) an increase of export share contributes to national and urban poverty reduction in Asia and Central and South America but not the rural poverty; 2) an increase of import share is found to be beneficial for poverty reduction especially in Central and South America |
| Keywords: | Trade, poverty reduction, rural poverty, urban poverty, Developing country, International Development, International Relations/Trade, I32, F69, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252849&r=agr |
| By: | Martinez, Charles; Anderson, David; Park, John |
| Abstract: | The Livestock Mandatory Reporting Act (LMR) passed by Congress in 1999, and reauthorized in 2015, was developed to, “facilitate open, transparent price discovery and provide all market participants, both large and small, with comparable levels of market information for slaughter cattle, swine, sheep, boxed beef, lamb meat, and wholesale pork” (USDA). USDA-AMS is responsible for implementing mandatory price reporting (MPR) and reauthorization required AMS to conduct a comprehensive MPR review. A recent baseline study of livestock and meat marketing providing the base for AMS’ review highlights dynamic and changing livestock markets. In this market and policy environment unexpected occurrences with unintended consequences do and have occurred. Producer owned cooperative meat packer’s transactions are termed “intra-company transactions”, and outside of the normal marketplace structure by AMS. In this case, producer owned cooperative production is interpreted as “packer owned” and therefore prices paid by a cooperative are not reported. AMS’s interpretation has resulted in slaughter lamb prices reported only 7 out of 36 weeks this year. The result is a reduction in transparent price discovery, opposite of what LMR intended. This paper examines cooperative meat packer structure, consequences of current AMS interpretation, and potential solutions contributing to improved transparency in price discovery. |
| Keywords: | MPR, Cooperative, Packer, Agribusiness, Agricultural and Food Policy, Industrial Organization, B, H, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252798&r=agr |
| By: | Aguilar Candelas, Oscar J.; Arana Coronado, Jaime; Trejo-Pech, Carlos O.; Martínez Damián, Miguel Ángel |
| Abstract: | By combining data from multiple sources, we model supply and demand of strawberry in Mexico for the 1970-2013 period. The main purpose of the study is to measure transmission of prices in this sector. Producer prices, wholesaler prices, exporter prices, and consumer prices are components of the model. Our three-stage least squares regression results show, consistent with the literature, that the pass-through of price changes is imperfect; that is, a price change at the producer level is not fully transmitted to domestic consumers and exporters. (Dickey-Fuller Augmented and Ljung-Box tests were performed to ensure efficiency of estimators.) Furthermore, a change in producer prices has a higher impact on the domestic market than in the exports market, in percentage basis. However, higher price mark-ups in the export market compared to domestic market’s make exporting more attractive to Mexican strawberry producers. Results of this study may have important implications as both supply and exports of strawberry from Mexico have experienced high growth in the last decade, with more than 90% of strawberry being exported to the U.S. According the Mexican Department of Agriculture, volume harvested of strawberry grew 2.14 times from 2003 to 2014 while exports did 2.88 times. |
| Keywords: | Strawberry, price transmission, simultaneous equations, Agribusiness, Demand and Price Analysis, L11, D12, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252680&r=agr |
| By: | Conley, Amanda; Mark, Tyler; Burdine, Kenneth |
| Abstract: | Selecting replacement females for the cowherd is a challenging economic decision. Producers have two options for replacing cull cows: purchasing or raising the replacement heifers. Both approaches require a long-run planning horizon and are complicated by calf price volatility and uncertainty. The current situation is unique in that calf prices are extremely low compared to the record-setting prices received in 2014 and 2015, when beef cow numbers were at historically low levels. So producers are not only considering heifer investments from a replacement perspective, but also from an expansion perspective. By utilizing a stochastic capital investment model, the analysis will determine the conditions under which the expected return on bred heifers purchased (or raised) will be economical if purchased in a declining price environment. The data includes numerous variables such as genetics, the number of marketable calves, annual maintenance costs, and discount rate. The net present value approach implemented in this paper will analyze the heifer investment that producers undertake when considering the present value of a replacement heifer over the production lifespan. The results of the study support producers retaining replacement heifers in the lower price environment. |
| Keywords: | net present value, cattle cycle, retain heifers, purchase heifers, Agricultural Finance, Farm Management, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252810&r=agr |
| By: | De Matteis, Maria; Yu, Edward; Boyer, Christopher; Lewis, Karen |
| Abstract: | The production and utilization of distillers dried grains with solubles (DDGS), a co-product of corn ethanol, have surged since the Energy Policy Act of 2005 in the United States. The exports of U.S. DDGS have also rapidly grown more than five folds over the last decade. The objective of this study was to identify the determinants of U.S. DDGS exports and project the growth of DDGS exports to major international buyers. A commodity-specific gravity model was applied to U.S. DDGS exports to 29 countries from 2000 through 2013. Results suggest that importing country meat production, technical barriers to trade, tariffs, and U.S. ethanol production influence U.S. DDGS export quantities. |
| Keywords: | DDGS, Biofuels, Livestock Feed, Gravity Model, Agricultural and Food Policy, International Relations/Trade, Q13, Q17, F13, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252668&r=agr |
| By: | Ahmadiani, Mona; Landry, Craig E. |
| Abstract: | Expanding the National Flood Insurance Program to allow policyholders to purchase optional erosion coverage eliminate coverage disputes when erosion and flood both contribute to a loss, and provide affordable national erosion coverage. We examine the household welfare effect of multi-peril hazard insurance coverage by coupling information on NFIP policy in force with a survey data for a sample of coastal households in the US southeast. Our results indicate that the value of multi-peril hazard insurance is substantially higher for households who live in the coastal zone. We also test effect of risk perception (subjective risk assessment) on individuals’ decision to purchase multi-peril hazard insurance and find that higher risk perception lead to higher probability of purchasing multi-peril insurance coverage and increases the mean willingness to pay for insurance. |
| Keywords: | Environmental Economics and Policy, Risk and Uncertainty, Q54, D81, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252817&r=agr |
| By: | Biel, K.; Glock, C. H. |
| Date: | 2016–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:83071&r=agr |
| By: | Asare, Eric; Segarra, Eduardo |
| Abstract: | This study investigates the producer/farm characteristics that influence the adoption and extent of adoption of georeferenced grid soil sampling technology, using the two-part model, among cotton producers in the southern US. The extent of adoption is defined as the number of acres managed with the technology. Soil sampling is seen as the foundation of precision agriculture. The study uses a 2013 survey data on active cotton producers in 14 southern US states conducted by Cotton Incorporated. The study identified producers’ awareness of a cost-share reimbursement program, percentage of income from cotton production, the use of yield map, ownership of livestock, land acreage devoted to other crops, and cotton productions in Mississippi and Tennessee as important variables that influence the adoption and the extent of adoption of georeferenced soil sampling technology. |
| Keywords: | Precision Agriculture, Soil Sampling, Two-part Model, Cotton., Crop Production/Industries, Land Economics/Use, Production Economics, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Q55, D22, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252773&r=agr |
| By: | Miller, Noah J.; Griffin, Terry; Bergtold, Jason; Sharda, Ajay; Ciampitti, Ignacio |
| Abstract: | The Kansas Farm Management Association (KFMA) is an organization affiliated with Kansas State University that maintains a database of annual production and financial data on Kansas farms stretching back to 1973. The KFMA surveyed farms, beginning in fall of 2015, on the adoption, utilization, and abandonment of ten precision agriculture technologies. The technologies examined in the survey included yield monitor (with and without GPS), lightbar guidance, automated guidance system, automated section control, variable rate application (fertilizer and seed), and precision soil sampling. Given the advancements in precision agriculture technology it is important to identify how older, obsolete technologies have been abandoned and/or replaced by newer ones. This study uses a sample of 348 farm-level observations to identify patterns of adoption, upgrading, and abandonment of precision agriculture technology on Kansas farms. This study identifies a farm’s conditional probability of adopting technology given previous adoption of other technologies. Additionally, sequential probabilities were estimated to provide insight on the order, or sequence, of adoption. |
| Keywords: | Adoption, Transition Probabilities, Markov Process, Precision Agriculture, Production Economics, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252832&r=agr |
| By: | Guan, Xue; Ahrendsen, Bruce L.; Liu, Yumei |
| Abstract: | The study investigates whether vegetable price index insurance could be applied to the Beijing-Tianjin-Hebei (BTH) region of China and identifies farmers’ interest in the insurance. Vegetable price index insurance is growing rapidly in China and was recently introduced in the Shanghai region. Although the BTH region is an important region for vegetable production and consumption, no such insurance is currently available in the region. Survey data from 450 farmers in the BTH region were collected during July-August 2016. Factors influencing farmer demand for vegetable price index insurance in the region are identified by estimating a probit model. Four categories of factors are considered: location, demographics (gender, age, education, and experience), farm characteristics (size, organization membership, yield, and net income), and risk cognition (market price sensitivity, other insurance purchased, price risk type and recent loss experience from low price). The results should assist the Chinese government structure and promote a vegetable price insurance that will be an effective method to maintain vegetable prices in the region and promote vegetable production by farmers. |
| Keywords: | insurance demand, price index insurance, vegetable price, probit model, Agricultural and Food Policy, Agricultural Finance, Demand and Price Analysis, G22, Q14, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252846&r=agr |
| By: | Jones, Michael S.; Rejesus, Roderick M.; Brown, Zachary S.; Yorobe, Jose M. |
| Abstract: | For genetically-modified (GM) maize with genes for insecticidal Bacillus thuringiensis (Bt) toxin expression and glyphosate tolerance, there is ample developing world evidence demonstrating general increases in farmer average yields. However, little work carefully examines farmer profiles to explain mechanisms for heterogeneity in yield effects. In this article, we view Bt and stacked traits as simplifying input components, removing much complexity in farmer pest control needs. With panel data from the Philippines, we test whether these traits serve as substitutes or complements to human capital. We thus examine an oft-discussed but previously unexplored facet of Bt technology impacts. Results indicate GM traits are substitutes with proxies for human capital and pest control knowledge. For every year decrease in formal education and maize farming experience, farmers realize significantly higher yield gains from planting GM maize. This evidence provides additional insights about ‘pro-poor’ claims of many GM proponents, given small-scale, poor farmers tend to have lower levels of education. |
| Keywords: | genetically modified crops, Bt maize, education, Philippines, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252822&r=agr |
| By: | Martin, Ben; Dillon, Carl; Mark, Tyler; Davis, Todd |
| Abstract: | A whole farm economic analysis was performed to maximize net returns utilizing variable maturity groups of corn and soybeans over different soil types. Demand for drying and storage equipment throughout harvest was generated based on profit-maximizing combinations of grain types, their respective maturity groups, and yield potential over different topsoil depths. Two marketing strategies were considered: cash and futures contract sales. It was found that drying and storage equipment became a limiting factor in the proposed system, but at different times during harvest. This bottleneck prevented additional grain from capturing value in the futures market and increasing net returns. |
| Keywords: | farm management, maturity group, harvest logistics, specialty grains, Farm Management, Production Economics, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252764&r=agr |