bluuebunny/crossref_metadata_2025 huggingface dataset:
The Role of Farm Ownership in Off-Farm Work Participation
Authors: Tavernier Edmund M. , Temel Tugrul T. , Li Farong
Published: September 2016

A labor supply model is used to examine the relationship between farm ownership and operators’ participation in the off-farm labor market for the Northeast region. The results indicate that ownership significantly influences operators’ off-farm employment participation. In particular, part-owners significantly allocate labor services to off-farm activities. The results also show that the participation rate among part-owner operators is high partly because the availability of other income sources accelerates the process of acquiring assets to become full-owner operators.
Impact of Risk Preferences on Crop Rotation Choice
Authors: Maynard Leigh J. , Harper Jayson K. , Hoffman Lynn D.
Published: September 2016

Stochastic dominance analysis of five crop rotations using twenty-one years of experimental yield data returned results consistent with Pennsylvania cropping practices. The analysis incorporated yield risk, output price risk, and rotational yield effects. A rotation of two years corn and three years alfalfa hay dominated for approximately risk neutral and risk averse preferences, as did participation in government programs under the 1990 Farm Bill. Crop rotation selection appeared to impact net revenues more than the decision to participate in government programs.
Technology Adoption Decisions in Dairy Production and the Role of Herd Expansion
Authors: El-Osta Hisham S. , Morehart Mitchell J.
Published: September 2016

Technology adoption in dairy production allows for higher milk yield and lower per-unit costs. The importance of herd expansion and other factors to adoption was examined using a multinomial logit model and data from the USDA's 1993 Farm Costs and Returns Survey. Predicted probabilities of adoption were used to simulate the effect of herd expansion on milk production. Results identified age, size, and specialization in dairy production as important in increasing the likelihood of adopting a capital-intense technology. Education and size of operation positively impacted the decision to adopt a management-intense technology. Age, education, credit reserves, size, and increased usage of hired labor positively influenced the decision to adopt a combined capital- and management-intense technology.
A Model for the Economic Evaluation of Plantation Biomass Production for Co-firing with Coal in Electricity Production
Authors: Nienow Sara , McNamara Kevin T. , Gillespie Andrew R. , Preckel Paul V.
Published: September 2016

Public and private electric utilities are considering co-firing biomass with coal as a strategy to reduce the levels of CO2, SO2 and NOx in stack emissions, as well as a response to state legislative mandates requiring the use of renewable fuels. This analysis examines the conditions under which biomass co-firing is economically feasible for utilities and woody biomass producers and describes additional environmental and community benefits associated with biomass use. This paper presents a case study of woody biomass production and co-firing at the Northern Indiana Public Service Company (NIPSCO) Michigan City Unit No. 12 power plant. A Salix (willow) production budget was created to assess the feasibility of plantation tree production to supply biomass to the utility for fuel blending. A GAMS model was developed to examine the optimal co-firing blend of coal and biomass while minimizing variable cost, including the cost of ash disposal and material procurement costs. The model is constrained by the levels of pollution produced. This model is used to examine situations where coal is the primary fuel and waste wood, willow trees, or both are available for fuel blending. Capital costs for co-firing were estimated outside of the model and are incorporated into the total cost of co-firing. The results indicate that under certain circumstances it is cost-effective for the power plant to co-fire biomass. Sensitivity analysis is used to test biomass price sensitivity and explores the effects of potential public policies on co-firing.
Control of Nonpoint Source Pollution Through Voluntary Incentive-Based Policies: An Application to Nitrate Contamination in New York
Authors: Peterson Jeffrey M. , Boisvert Richard N.
Published: September 2016

A voluntary program is developed to achieve environmental goals through the self-interested choices of farmers under environmental risk and asymmetric information. Farmers behave to maximize expected net returns, and environmental quality standards are formulated through chance constraints. Because the government may not know each farmer's soil type, policy options must be self-selecting. The model is applied empirically to nitrate leaching and runoff from corn production in three New York regions. Asymmetric information between producers and the government would impose additional cost burdens on society, but these costs are modest in the context of other farm programs.
Predicting Willingness-to-Pay a Premium for Integrated Pest Management Produce: A Logistic Approach
Authors: Govindasamy Ramu , Italia John , Adelaja Adesoji
Published: September 2016

Pesticide residue has repeatedly been documented as a leading source of food safety concern among consumers. While many studies have presented aggregate, descriptive illustrations of consumer response to Integrated Pest Management (IPM), consumer willingness-to-pay a premium for IPM produce and the factors that determine such willingness have received relatively little research attention. Such information is critical in the marketing of IPM produce.

This study empirically evaluates the demographic characteristics that influence consumers to pay a premium for IPM grown produce. Results indicate that females, those with higher annual incomes, younger individuals, and those who frequently purchase organic produce are all more likely to pay a premium for IPM produce.
Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece
Authors: Karagiannis Giannis , Tzouvelekas Vangelis
Published: September 2016

This paper provides a decomposition of output growth among olive-growing farms in Greece during the period 1987–1993 by integrating Bauer's (1990) and Bravo-Ureta and Rieger's (1991) approaches. The proposed methodology is based on the use of self-dual production frontier functions. Output growth is attributed to the size effect, technical change, changes in technical and input allocative inefficiency, and the scale effect. Empirical results indicate that the scale and the input allocative inefficiency effects, which were not taken into account in previous studies on output growth decomposition analysis, have caused a 7.3% slowdown and a 11.0% increase in output growth, respectively. Technical change was found to be the main source of TFP growth while both technical and input allocative inefficiency decreased over time. Still though, a 56.5% of output growth is attributed to input growth.
A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy
Authors: McCluskey Jill J.
Published: September 2016

Demand for healthy, safe, and environmentally friendly food products has been increasing. In response, producers are marketing organic and other quality-differentiated foods, sometimes claiming to have followed sound environmental and animal welfare practices. These products frequently have unobservable quality attributes. If the profit-maximizing producer is able to deceive the consumer with a false claim, then he or she will enjoy a higher price with lower production costs (compared to the full disclosure outcome). The analysis described in this paper shows that repeat-purchase relationships and third-party monitoring are required for high-quality credence goods to be available. Policy implications of this analysis for national organic food standards are discussed.
Farmer Efficiency and Technology Use with Age
Authors: Lordkipanidze Nazibrola , Tauer Loren W.
Published: September 2016

Productivity of U.S. farmers by age is measured by non-parametric programming using 1992 Census data, decomposed into efficiency and technology Malmquist index components.

Productivity increases slightly with age and then decreases. In most states productivity variations are from technology use rather than efficiency differences.
The Economics of Two-Tier Tariff-Rate Import Quotas in Agriculture
Authors: Boughner Devry S. , de Gorter Harry , Sheldon Ian M.
Published: September 2016

This paper analyzes the economics of two-tier tariff import quotas (TRQs) and implications of alternative trade liberalization scenarios. The Uruguay Round Agreement on Agriculture had tariffs replace nontariff barriers as the protective mechanism while quotas ensured minimum trade flows. Our framework isolates the effects of changes either in the second-tier tariff, and first-tier tariff, or the quota. We show how market conditions or relative policy instrument levels determine which tariff or quota affects trade and domestic and world prices. Whether or not exporting countries have been allocated export quotas and the procedures for the distribution of the rights to export and import also influences the efficiency of TRQs.
Tariff Rate Quota Implementation and Administration by Developing Countries
Authors: Abbott Philip , Morse B. Adair
Published: September 2016

Tariff rate quota administration and implementation are empirically evaluated for the fourteen developing countries notifying the WTO of the use of TRQs. FAO trade data, UNCTAD data on applied tariffs and the WTO notifications permit us to assess underfill of quotas, discrimination among exporters, use of state trading as an implementation mechanism, and the extent of protection under these TRQs. Substantial liberalization was found, generally due to use of low MFN tariffs rather than through TRQs permitting greater market access. High tariff bindings and endogenous quotas allow these countries to pursue flexible trade regimes within their WTO commitments.
Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization
Authors: Johansson Robert C. , Cooper Joseph , Vasavada Utpal
Published: September 2016

This paper examines the elimination of all agricultural policy distortions in all trading countries and agricultural production decisions in the United States, as well as subsequent environmental quality in the presence and absence of nondegradation environmental standards. The results suggest that trade liberalization has the potential to increase domestic production and boost agricultural returns by as much as 8.5 percent. Consumer surplus would likely fall, and the discharge of nutrients, sediment, and pesticides would likely increase. However, environmental policies can limit these adverse environmental impacts and mute the potential decrease in consumer surplus, while leaving increased returns to agricultural production.
Effect of a Differentially Applied Environmental Regulation on Agricultural Trade Patterns and Production Location: The Case of Methyl Bromide
Authors: Lynch Lori , Malcolm Scott , Zilberman David
Published: September 2016

It has been hypothesized that differentially applied environmental regulations create pollution havens, as firms will choose to invest in countries with lax environmental standards. Using a theoretical model of pest control adoption and an empirical spatial equilibrium model, we examine one such environmental regulation, a U.S. ban on methyl bromide, to determine if an agricultural pollution haven will be created in Mexico. Alterations in agricultural production location, trade patterns, and methyl bromide use are determined. We find that, under the assumptions held, Mexico will not dramatically increase its use of methyl bromide following the ban. Sensitivity analysis to this result is conducted.
Effects of the Free Trade Area of the Americas on Forest Resources
Authors: Turner James A. , Buongiorno Joseph , Zhu Shushuai
Published: September 2016

The effects of the Free Trade Area of the Americas (FTAA) agreement on the forest sectors and resources of member countries are investigated. A model of wood supply within the spatial partial-equilibrium Global Forest Products Model is developed to link international trade and deforestation. The direct effects of tariff changes and the indirect effects of income changes induced by trade liberalization are considered. The FTAA has a small positive impact on the region's forest resources. Higher harvests of industrial roundwood in most countries are offset by increased afforestation due to the income effect of trade liberalization (captured by the environmental Kuznets curve).
Predicting Consumer Preferences for Fresh Salmon: The Influence of Safety Inspection and Production Method Attributes
Authors: Holland Daniel , Wessells Cathy R.
Published: September 2016

A rank-ordered logit model is estimated using data collected by a mail survey of consumers in the northeastern and mid-Atlantic United States. The methodology, based on conjoint analysis, determines the average relative importance and value of three product attributes for fresh salmon (seafood inspection, production method, and price), and estimates the relative attractiveness of particular products to consumers. When used in combination with demographic data and responses to questions on perceptions, the analysis suggests market segmentations and potential marketing strategies based on the heterogeneity in preferences among consumers.
Potential Economic Impacts of the Northeast Interstate Dairy Compact on Vermont Dairy Farms
Authors: Wackernagel Rick
Published: September 2016

The Northeast Interstate Dairy Compact has been established to regulate milk prices. Simulation models show impacts on Vermont farms of alternative milk prices and accelerated productivity growth. Enhancing prices (by $0.85/cwt) improves financial performance the most, while impacts of doubling growth in milk production/cow (to 2.6% per year) and setting a price floor (which reduces the standard deviation of the price by 19% and raises prices $0.12/cwt) are substantially smaller. These impacts are inversely related to farm profitability. However, impacts on larger farms are not proportionately larger than those on smaller farms. Reducing price variability has smaller impacts than the $0.12/cwt price increase.
Agricultural Conservation Policy at a Crossroads
Authors: Heimlich Ralph E. , Claassen Roger
Published: September 2016

U.S. agricultural conservation policy has focused on a range of potential policy instruments centered on voluntary approaches tied into Depression-era commodity programs. Entering the twenty-first century, conservation policy is at a crossroads between more coercive regulatory policies, more costly voluntary programs, and more facilitative market-oriented policies. What are the pitfalls, advantages, disadvantages, and tradeoffs along these paths?
Preference Heterogeneity in a Count Data Model of Demand for Off-Highway Vehicle Recreation
Authors: Holmes Thomas P. , Englin Jeffrey E.
Published: September 2016

This paper examines heterogeneity in the preferences for OHV recreation by applying the random parameters Poisson model to a data set of off-highway vehicle (OHV) users at four National Forest sites in North Carolina. The analysis develops estimates of individual consumer surplus and finds that estimates are systematically affected by the random parameter specification. There is also substantial evidence that accounting for individual heterogeneity improves the statistical fit of the models and provides a more informative description of OHV riders.
Meta-Functional Transfer of Hedonic Property Values: Application to Great Lakes Areas of Concern
Authors: Braden John B. , Feng Xia , Freitas Luiz , Won DooHwan
Published: September 2016

This paper explores the use of functional benefits transfer to forecast the effects of waste sites on property values. The results of a meta-analysis of hedonic studies of waste sites are coupled with spatial analysis techniques to produce estimates of the effects of toxic contamination in Areas of Concern (AOCs) in the U.S. Great Lakes. Based on U.S. Census data for median home values, the methods used here suggest that approximately S5.2 billion (2005 dollars) have been lost in residential property values surrounding twenty-three of the AOCs. This compares to estimates that place the cost of remediation of all U.S. AOCs at up to $4.5 billion (2005 dollars). The case study also identifies issues surrounding the use of a meta-analysis with hedonic property value studies to support functional transfer.
Extension Programs in Crop Insurance: A Maryland Case Study
Authors: Musser Wesley N.
Published: September 2016

Many states have crop insurance extension programs. This activity has been stimulated with the availability of funds to support extension from the Risk Management Agency (RMA) of the U.S. Department of Agriculture. Several new RMA programs were established under the Agricultural Risk Protection Act of 2000. The Targeted States Program is quite important for the Northeast. This program serves states that were traditionally underserved by crop insurance. It is available in all 12 northeastern states, plus Nevada, Utah, and Wyoming. The Targeted States Program funds one program in each state. A total of $4.5 million in funding is available each year. Amounts for state programs range from $157,000 in Rhode Island to $754,000 in Pennsylvania, which is a considerable amount of funding.
Identifying Risk Factors Affecting Weather- and Disease-Related Losses in the U.S. Farm-Raised Catfish Industry
Authors: Hanson Terrill R. , Shaik Saleem , Coble Keith H. , Edwards Seanicaa , Miller J. Corey
Published: September 2016

Two double-limit tobit models are used to identify significant risk factors that most affect farm-raised catfish losses from weather-related events and from disease outbreaks. Results of the weather loss model indicate that the variables for operator education level, number of ponds, pond water depth, production management strategy, past experience with severe losses from low oxygen levels from off-farm power outages, past experience with severe losses from diseases, and being in the South are statistically significant. Results of the disease loss model indicate that the variables for operator experience and pond water depth are significant. Development of models explaining weather and disease losses through observable variables provides a better understanding of the interrelation between the loss perils and explanatory variables so management strategies can be developed to mitigate losses from identified risk factors.
Reporting Response Rates for Telephone Surveys Used In Agricultural Economics Research
Authors: Gripp Sharon I. , Luloff A.E. , Yonkers Robert D.
Published: September 2016

Response rates are one indicator of a survey's data quality, as a great deal of importance has been placed on the mail survey's response rate. However, a telephone survey's response rate usually is not reported. Even if one is reported, the numbers used in the calculation are rarely defined making the response rate interpretation unclear. Using a recent telephone survey of Pennsylvania dairy managers, this paper demonstrates how telephone survey data should be reported. Essentially, every research report should include a discussion of how the survey was conducted, a disposition table, and well-defined formulas used to calculate response rates.
Estimation of the Nonmarket Benefits of Agricultural Land Retention in Eastern Canada
Authors: Bowker J.M. , Didychuk D.D.
Published: September 2016

We assess the nonmarket value for retention of farmland in the Moncton area of New Brunswick. We examine a number of factors explaining household external values for farmland preservation and expand on previous work by Beasley et al., Bergstrom et al., and Halstead. Our findings indicate that the marginal external benefit of preserving farmland in general in this region is small compared to the market price and that spatial embedding is not automatic in contingent valuation studies.
Land, Economic Change, and Agricultural Economics
Authors: Castle Emery N.
Published: September 2016

This paper analyzes in three contexts the effects of changing economic conditions and varying economic perspectives on the way land is considered in economic doctrine. The first considers agricultural land use where agriculture is connected to the rest of the economy exclusively through input and commodity markets, and when all other parts of the economy are assumed to remain constant. The second connects agriculture to the remainder of the economy by virtue of a shared natural environment, facilitating a discussion of natural resource and environmental economics in relation to agricultural, institutional, and land economics. The third context permits economic change in the entire economy with particular attention given to population density, space, and distance. Private and public decision making are discussed with attention to federal, state, and local division of powers.
Conservation Contracting in Heterogeneous Landscapes: An Application to Watershed Protection with Threshold Constraints
Authors: Ferraro Paul J.
Published: September 2016

A key issue in the design of land use policy is how to integrate information about spatially variable biophysical and economic conditions into a cost-effective conservation plan. Using common biophysical scoring methods, in combination with economic data and simple optimization methods, an illustration is provided for how to identify a set of priority land parcels for conservation investment. This study also demonstrates a way in which conservation agencies can incorporate concerns about biophysical thresholds in the identification of their priority land parcels. These methods are applied using Geographic Information System data from a New York conservation easement acquisition initiative for water quality protection.
Characterizing Land Use Change in Multidisciplinary Landscape-Level Analyses
Authors: Kline Jeffrey D.
Published: September 2016

Economists increasingly face opportunities to collaborate with ecologists on landscape-level analyses of socioeconomic and ecological processes. This often calls for developing empirical models to project land use change as input into ecological models. Providing ecologists with the land use information they desire can present many challenges regarding data, modeling, and econometrics. This paper provides an overview of the relatively recent adaptation of economics-based land use modeling methods toward greater spatial specificity desired in integrated research with ecologists. Practical issues presented by data, modeling, and econometrics are highlighted, followed by an example based on a multidisciplinary landscape-level analysis in Oregon's Coast Range mountains.
Is There Evidence of a Critical Mass in the Mid-Atlantic Agriculture Sector Between 1949 and 1997?
Authors: Lynch Lori , Carpenter Janet
Published: September 2016

Ongoing farmland loss has led county planners to ask “is there a critical mass of farmland needed?” to retain a viable agricultural sector. This study examines whether counties lost farmland at a faster rate if the number of agricultural acres fell below a critical threshold. Results from six Mid-Atlantic states over the period 1949 to 1997 indicate that counties with fewer agricultural acres lost farmland at a faster rate. However, after splitting the study period into two time segments (1949–1978 and 1978–1997) and modeling separately, this result was not found for the later time period, suggesting a uniform critical mass level may not exist. Population growth in a county accelerated farmland loss over all time periods.
The Relevance of Graduate Programs in Agricultural and Resource Economics
Authors: Lass Daniel A.
Published: September 2016

The relevance of graduate training in the Department of Resource Economics at the University of Massachusetts is investigated through a survey of graduates. The survey questionnaire and measures of relevancy are discussed. Results are presented for three cohorts: graduates currently in Ph.D. programs, M.S. graduates currently employed, and Ph.D. graduates currently employed. Results for all cohorts indicate that their graduate training is relevant to their jobs; however, all cohorts also favored increased application and reduced mathematics and theory. In addition, graduates suggested the need to bolster graduate training in economics with applied courses in business to improve competitiveness in private job markets.
Health Insurance Coverage for Pennsylvania Dairy Farm Managers
Authors: Gripp Sharon I. , Ford Stephen A.
Published: September 2016

A survey of more than 1200 Pennsylvania dairy farm managers showed that almost 20% of those managers do not have health insurance. Of those farm managers with health insurance, 67% had insurance acquired through the farm business. Farm characteristics and demographic information were used to determine indicators of health insurance coverage. Age, education, net farm income, off-farm income, milk marketing cooperative membership, and intensity of hired labor use all had significant effects on the likelihood of having health insurance and on whether such insurance was provided by the farm business.
To Contract or Not to Contract? A Decision Theory and Portfolio Analysis of Cattle Contract Grazing
Authors: Teegerstrom Trent , D’Souza Gerard , Osborne Phillip , Jones Kezelee
Published: September 2016

Contract grazing is compared with retained ownership of cattle using two frameworks—decision theory and portfolio analysis. The study area is West Virginia. Contracting is optimal under a wide range of price and weather scenarios and decision criteria. It also dominates other alternatives based on labor efficiency measures. The optimal portfolio consists of contract grazing and pasture rental, with the results insensitive to small changes in contract grazing returns. The decision theory and portfolio analyses are complementary; together, the two sets of results provide a comprehensive view of the optimal production alternative. Because different agents employ different decision criteria, this approach can increase the utility of results to decision makers and contribute to better decisions.
A Hybrid Land Conversion Model Incorporating Multiple End Uses
Authors: Kaza Nikhil , Towe Charles , Ye Xin
Published: September 2016

The need for models that forecast land use change spans many disciplines and encompasses many approaches. Pattern-based models were the first in which projections of change at specific locations in actual landscapes could be predicted. In contrast, recent economic models have modeled the underlying behavioral process that produces land use change. This paper combines attributes from each approach into a hybrid model using a multiple discrete continuous extreme value formulation that allows for multiple conversion types, while also estimating the intensity of each type of conversion, which is an important but often overlooked dimension. We demonstrate the simulation routine, which successfully predicts a majority of growth by type, time, and location at a disaggregated scale, for a three-county region in Maryland.
Spatially Delineated Public Goods and Spatially Located Public Bads: A Hedonic Approach to Measuring Urban Revitalization
Authors: Brown John , Geoghegan Jacqueline
Published: September 2016

A regression discontinuity approach is used to measure the impact of public-goods creating programs in a declining inner city neighborhood of Worcester Massachusetts. Using GIS data, we develop a hedonic model of residential sales, using a parcel-level GIS tax assessment and land use database linked to property sales data for the years 1988 through 2007, to test the effect of the creation of a new high-performing public school, as well as other locational amenities and disamenities on neighborhood housing prices, by comparing properties adjacent to either side of the school catchment area boundary.
Growth Management Policies for Exurban and Suburban Development: Theory and an Application to Sonoma County, California
Authors: Newburn David A. , Berck Peter
Published: September 2016

This study examines the effectiveness of growth management policies on influencing future patterns of exurban and suburban development. We initially estimate a spatially explicit model of residential development with parcel data in Sonoma County, California. This estimated model is then used to simulate the effect of urban growth boundaries (UGBs) versus allowing municipal sewer service expansion. The UGB policy decreases the amount of suburban development but is less effective in managing exurban development. The downzoning policy in agricultural and resource areas reduces the amount of exurban development, but only partially due to the prevalence of grandfathered lots in rural areas.
The Implications of Skewed Risk Perception for a Dutch Coastal Land Market: Insights from an Agent-Based Computational Economics Model
Authors: Filatova Tatiana , Parker Dawn C. , van der Veen Anne
Published: September 2016

Dutch coastal land markets are characterized by high amenity values but are threatened by potential coastal hazards, leading to high potential damage costs from flooding. Yet, Dutch residents generally perceive low or no flood risk. Using an agent-based land market model and Dutch survey data on risk perceptions and location preferences, this paper explores the patterns of land development and land rents produced by buyers with low, highly skewed risk perceptions. We find that, compared to representative agent and uniform risk perception models, the skewed risk perception distribution produces substantially more, high-valued development in risky coastal zones, potentially creating economically significant risks triggered by the current Dutch flood protection policy.
The Impact of Settlement Design on Tropical Deforestation Rates and Resulting Land Cover Patterns
Authors: Caviglia-Harris Jill , Harris Daniel
Published: September 2016

Policymakers in the Brazilian Amazon face the challenge of meeting environmental and developmental goals as cities and towns within these tropical forests continue to face migration pressure. Alternative government planning strategies have been implemented to address forest clearing in conjunction with meeting social agendas. This paper uses panel estimation methods to investigate the impact of settlement design on land use. Results indicate that new settlement designs developed to further social interaction have had a negative impact on land cover and land use transformation. Thus, while new settlement designs appear to positively impact stated social goals, including greater contact between families and access to water and services, these social advances have come at the expense of environmental goals.
Simulated Trading for Maryland's Nitrogen Loadings in the Chesapeake Bay
Authors: Hanson James C. , McConnell K. E.
Published: September 2016

We investigate nutrient trading for point and non-point sources for the Bay Restoration Fund in Maryland. We demonstrate how to use the proceeds from the tax revenue to mimic a market by trading high-cost upgrades of sewage treatment plants for low-cost winter cover crops. Under an optimistic assumption about costs for non-point sources and naïve assumptions about the lag from planting cover crops to changes in nitrogen load, we calculate that 100 percent of abatement could be achieved at 56 percent of total costs, while in a pessimistic scenario, 100 percent of abatement could be could be achieved at 83 percent of total costs.
Modeling Recreational Amenities in an Urban Setting: Location, Congestion, and Substitution Effects
Authors: Homans Frances R. , Marshall Elizabeth P.
Published: September 2016

In this article, we introduce a recreational amenity—a greenbelt park—into a simple urban economic model. For multiple possible park placements, we solve for the associated equilibrium urban structure, including the equilibrium rent gradient, city boundary, total number of park visits, the overall utility level, and total vehicle miles traveled. We examine how these change with alternative park placement sites. We then show how two modifications of the basic model—allowing congestion at the site to affect site quality, and introducing the possibility of a substitute site at the city's periphery—affect our conclusions about how greenbelt location influences urban structure.
What You Don't Know Can Hurt You: Micronutrient Content and Fungal Contamination of Foods in Developing Countries
Authors: Hoffmann Vivian
Published: September 2016

The negative effects of micronutrient deficiencies on human capital acquisition and economic productivity are well documented. A less well understood but potentially serious threat to human health in developing countries is the contamination of food crops by fungal toxins. This paper surveys what is known about the health and economic burdens attributable to insufficient micronutrients and toxic contamination of food in developing countries, discusses consumer demand for micronutrients and food safety, and describes some of the challenges to improving population nutrition, particularly in rural areas.
Exchange Rate Dynamics and the Bilateral Trade Balance: The Case of U.S. Agriculture
Authors: Baek Jungho , Koo Won W. , Mulik Kranti
Published: September 2016

This study examines the dynamic effects of changes in exchange rates on bilateral trade of agricultural products between the United States and its 15 major trading partners. Special attention is paid to investigate whether or not the J-curve hypothesis holds for U.S. agricultural trade. For this purpose, an autoregressive distributed lag (ARDL) approach to cointegration is applied to quarterly time-series data from 1989 and 2007. Results show that the exchange rate plays a crucial role in determining the short- and long-run behavior of U.S. agricultural trade. However, we find little evidence of the J-curve phenomenon for U.S. agricultural products with the United States’ major trading partners.
Internet Access and Internet Purchasing Patterns of Farm Households
Authors: Mishra Ashok K. , Williams Robert P. , Detre Joshua D.
Published: September 2016

The Internet is becoming an increasingly important management tool in production agriculture. Using data from the 2004 Agricultural Resource Management Survey (ARMS) and a double-hurdle estimation approach, we explore the adoption of computers with Internet access by and Internet purchasing patterns of farm households. Adoption of the Internet is positively related to age and education of the operator, off-farm work, presence of spouse, participation in government programs, farm size, and regional location of the farm. Internet purchasing patterns of farm households are positively related to the education of the operator and spouse, presence of teenagers, and regional location of the farm. Finally, farm businesses and their households are more likely to purchase a greater percentage of non-durable goods through the Internet as distances to markets increase.
Decoupled Direct Payments under Base Acreage and Yield Updating Uncertainty: An Investigation of Agricultural Chemical Use
Authors: Peckham Janet G. , Kropp Jaclyn D.
Published: September 2016

We analyze the impacts of agricultural subsidies on farm-level production decisions and input use under price, yield, and policy uncertainty for a risk-averse farmer. Using U.S. farm-level data and weighted ordinary least squares, we find that decoupled payments had little impact on agricultural chemical expenditures (our proxy for use) when the payments were first introduced in 1996. However, after 2004 there is a positive, significant relationship between decoupled payments and agricultural chemical expenditures. The results suggest that updating, introduced in 2002, and expectations of future updating caused decoupled payments to become coupled to current input use and, ultimately, production.
Factors Affecting Farmer Participation in Agritourism
Authors: Bagi Faqir Singh , Reeder Richard J.
Published: September 2016

Using a national farm survey, this study estimates a logit model to identify factors affecting U.S. farmers' participation in agritourism. Of the dummy variables, public access to the farm for recreation has the greatest positive impact, followed by farms near central cities, farms in Rocky Mountain and Southern Plains regions, farmers with college education, farmers paying for farm advice, farms organized as partnerships/corporations, farms enrolled in conservation programs, and farmers with access to the internet. Continuous variables affecting participation include acres of owned land, percent of land unsuitable for crops, operator age, and distance to cities. Targeting farms and farmers with these traits can increase the success of agritourism promotion efforts.
Modeling Pine as a Carbon-Sequestering Crop in Arkansas
Authors: Smith S. Aaron , Popp Michael P. , Nalley L. Lanier , Brye Kristofor R.
Published: September 2016

This study estimates the impact of carbon offset payments on land use choices, net producer returns, and carbon sequestration. Loblolly pine is added to traditional cropping choices as a designated carbon-sequestering crop. With a carbon offset price of $15 per ton, pine enters land use on 10 percent of pasture acres. At $30, loblolly pine significantly increases in acreage in areas traditionally planted in row crops. The analysis suggests that the addition of pine as a carbon-sequestering crop can affect land use, add to producer returns, and sequester additional carbon relative to producer choice sets that exclude pine.
Value of Beef Steak Branding: Hedonic Analysis of Retail Scanner Data
Authors: Schulz Lee L. , Schroeder Ted C. , White Katharine L.
Published: September 2016

Consumers rely on experience and credence attributes when purchasing beef from retailers. It is essential for all beef industry sectors to recognize the complexity of consumer buying behavior. A hedonic model is estimated to determine if there are incentives to brand beef steaks, the types of brands that entertain price premiums, and the level of existing premiums. Most branded steaks garnered premiums along with organic claims, religious processing claims, and premium cuts. Factors influencing brand value were new brands targeting emerging consumer trends, brands with regional prominence, and brands positioned as special label, program/breed specific production, and store labels.
The Role of Social Capital in the Industrialization of the Food System
Authors: Robison Lindon J. , Schmid A. Allan , Barry Peter J.
Published: September 2016

Selfishness of preferences alone will not support the coordination necessary for the industrialization of the food system. Social capital relationships of mutual sympathy (caring) yield socio-emotional goods that are important in the more personal business world of evolving incomplete contracts and alliances involving input suppliers, processors, and labor. Relationships are also critical when consumers are buying image as well as physical products. Management and policy alternatives constitute investment in social capital that can affect opportunism, risk, loyalty, and trust.
Dynamic Diffusion with Disadoption: The Case of Crop Biotechnology in the USA
Authors: Fernandez-Cornejo Jorge , Alexander Corinne , Goodhue Rachael E.
Published: September 2016

Controversy over the use of genetically engineered (GE) crops may have induced some farmers to disadopt these seeds, making a traditional diffusion model inappropriate. In this study, we develop and estimate a dynamic diffusion model, examine the diffusion paths of GE corn, soybeans, and cotton, predict the adoption of those crops over the next two years, and explore the main determinants of the diffusion rate. Our estimates indicate that future growth of Bt crops will be slower or negative, depending mainly on the infestation levels of the target pests. Adoption of herbicide-tolerant soybeans and cotton will continue to increase, unless consumer sentiment in the United States changes radically.
Technical Efficiency, Managerial Ability and Farmer Education in Guatemalan Corn Production: A Latent Variable Analysis
Authors: Kalaitzandonakes N.G. , Dunn E.G.
Published: September 2016

In this study it is argued that conflicting empirical results on the relationship between technical efficiency and education may be in part attributable to difficulties in the measurement of key variables. Calculation of technical efficiency with three alternative frontier methods for a sample of Guatemalan corn farms resulted in significant differences both in the average technical efficiency of the sample and the efficiency rankings of individual farms. Furthermore, following two-step procedures where technical efficiency is regressed against a set of explanatory variables, it is shown that the choice of efficiency measurement technique can alter the importance of education as a contributing factor to increased technical efficiency. An alternative approach is presented for investigating the relationship between education and efficiency while accounting for difficulties in the measurement of conceptual variables and measurement errors.
Recreational Swimming Benefits of New Hampshire Lake Water Quality Policies: An Application of a Repeated Discrete Choice Model
Authors: Needelman Michael S. , Kealy Mary Jo
Published: September 2016

Water pollution control policies generally direct sources (i.e., industry, agriculture) to reduce loadings of certain pollutants. Thus, evaluating the relative net recreation benefits of policies to improve water quality requires establishing a linkage between the sources, the resultant water quality degradation at the affected water bodies, and, ultimately, the effect on recreation behavior. This linkage is rarely present in the empirical literature which is, thus, deficient for water pollution control policy assessment purposes. In this paper, we estimate the relative recreational swimming benefits that may result from controlling point and nonpoint sources of pollution, respectively, in New Hampshire's lakes. We use a repeated discrete choice framework to model swimming behavior as a function of each lake's level of eutrophication, bacteria, and oil and grease. For each pollutant, at each affected lake, we identify which source is responsible for the pollution, and we conduct scenarios controlling each pollution source independently, and then, taken together. Seasonal benefit estimates are presented for each scenario. Coupled with information on the most cost effective means of generating the scenarios, these estimates provide a useful starting point for a quantitative assessment of the net recreation benefits of policies to improve the quality of New Hampshire lakes.
An Analysis of Consumer Preferences for Value-Added Seafood Products Derived from Crawfish
Authors: Harrison R. Wes , Stringer Timothy , Prinyawiwatkul Witoon
Published: September 2016

Conjoint analysis is used to evaluate consumer preferences for three consumer-ready products derived from crawfish. Utility functions are estimated using two-limit tobit and ordered probit models. The results show women prefer a baked nugget or popper type product, whereas 35- to 44-year-old men prefer a microwavable nugget or patty type product. The results also show little difference between part-worth estimates or predicted rankings for the tobit and ordered probit models, implying the results are not sensitive to assumptions regarding the ordinal and cardinal nature of respondent preferences.
Effect of Farm Income and Off-Farm Wage Variability on Off-Farm Labor Supply
Authors: Mishra Ashok K. , Holthausen Duncan M.
Published: September 2016

This study models the effects of variability in farm income and off-farm wages on farm operators' labor allocation decisions. A simple theoretical model is employed to develop hypotheses, which are then tested empirically. Variability in farm income and off-farm wages is predicted to have a positive and negative effect, respectively, on off-farm hours worked. The empirical results confirm these predictions.
The Evolution of Quantitative Food Marketing Policy: A Public Perspective
Authors: Cotterill Ronald W.
Published: September 2016

Quantitative analysis of food marketing policy has played a critical role in the evolution of empirical industrial organization and antitrust enforcement over the past 40 years. This article highlights the contributions of the author and other agricultural economists. The second half of this article explains why an economist might want to do, or perhaps avoid, public policy work. It gives several examples from antitrust cases where economic policy analysis is a front-line contact sport.
The Supplemental Nutrition Assistance Program, Financial Stress, and Childhood Obesity
Authors: Burgstahler Rebecca , Gundersen Craig , Garasky Steven
Published: September 2016

The Supplemental Nutrition Assistance Program (SNAP) is the largest nutritional assistance program addressing food insecurity in the United States. Due to the program's reach, SNAP has been called upon to address other nutrition-related challenges facing low-income Americans, including childhood obesity. This study considers the effect of SNAP participation on child weight outcomes after controlling for household financial stress, an important determinant of child overweight status that disproportionately affects low-income households. Using data from theSurvey of Household Finances and Childhood Obesityand instrumental variable methods, we find that SNAP participation is negatively associated with obesity among eligible children.
Social Meaning in Supermarkets as a Direct Route to Improve Parents' Fruit and Vegetable Purchases
Authors: Payne Collin R. , Niculescu Mihai
Published: September 2016

Direct and indirect attempts to increase parents' fruit and vegetable purchases have had little, if any, success. Most of the disappointing results are reported in the grocery environment. In this context, embedding messages with social meaning may have a significant impact on current campaigns. We use the focus theory of normative conduct as an alternative theoretical framework and suggest that social norms that are salient, easy to interpret, and easy to compare against individuals' behavior may improve current attempts to increase parents' fruit and vegetable purchases in retail environments.
Can Local Farms Survive Globalization?
Authors: Arita Shawn , Hemanchandra Dilini , Leung PingSun
Published: September 2016

Due to expanding trade and increasing concentration of production during the past few decades, small local farms have faced ever-growing competitive pressures. We investigate the impacts of this globalization on production of local food by examining Hawai‘i's open island economy and econometrically evaluating impacts of import competition on the growth and survival of individual fruit and vegetable farms. We find evidence that rising levels of imports significantly hinder farm growth in Hawai'i and have a smaller impact on farm survival. Increased foreign competition increases the likelihood of exit for commercial farms but has little effect on small noncommercial farms.
Factors Affecting Producer Participation in State-sponsored Marketing Programs: The Case of Fruit and Vegetable Growers in Tennessee
Authors: Velandia Margarita , Clark Christopher D. , Lambert Dayton M. , Davis James A. , Jensen Kimberly , Wszelaki Annette , Wilcox Michael D.
Published: September 2016

State programs promoting their agricultural products have proliferated in response to increased consumer interest in locally grown foods. Tennessee, for example, currently has two state-funded programs promoting its agricultural products. This study examines the factors associated with participation by Tennessee fruit and vegetable farmers in those programs. The results suggest that farmer participation is associated with farm income, use of extension resources, and fresh produce sales. These results should be of interest to anyone attempting to increase producer participation in such programs.