bluuebunny/crossref_metadata_2025 huggingface dataset:
A Classroom Experiment on Oligopolies
Authors: Nelson Robert G. , Beil Richard O.
Published: July 2016

This experiment demonstrates principles of decision-making in dynamic oligopolies, especially the difficulties in forming and maintaining cartels. As an illustration of firm behavior under imperfect competition, the game distinguishes between procedurally rational choices and substantively rational decisions in the context of collusive, Cournot, and competitive equilibria. The paper discusses results from an actual classroom exercise and suggests some additional variations in institutional details. Instructions for students and a spreadsheet program for producing payoff tables are provided in the appendices.
Trade-Off Analysis of Herbicide Withdrawals on Agricultural Production and Groundwater Quality
Authors: Liu Shiping , Carlson Gerald A. , Hoag Dana L.
Published: July 2016

This study examines the trade-off between agricultural production and groundwater contamination potential for ten potential herbicide cancellations. Theoretical and empirical models are developed for estimating losses in consumer and producer benefits in the agricultural commodity market and changes in groundwater quality. Using com and soybean production in the southeastern Coastal Plain as a study area, the analysis concludes that (1) effects of herbicide cancellations on groundwater quality can be very significant; (2) a cancellation does not guarantee groundwater quality improvement; (3) effects of a multiple cancellation are different from the summation of the effects of independent cancellations; and (4) weed density has a very strong effect on losses to farmers and consumers from cancellations, but output demand and supply elasticities do not.
A Principal-Agent Model for Regional Pest Control Adoption
Authors: Ahouissoussi Nicolas B. C.
Published: July 2016

Investigating the underlying producer characteristics associated with regional pest control adoption revealed an interesting proposition. Early adopting producers of firm-specific techniques with characteristics including higher education, more specialized operations, and larger sized business units are dissatisfied with a regional pest control technique. This study provides an explanation of the proposition based on a principal-agent model. Empirical support for the proposition is also presented by developing a multinomial logit model for predicting producers' dissatisfaction with boll weevil eradication.
Agricultural Economics in the New Millennium: Lessons from the Old Millennium
Authors: Harris Hal
Published: July 2016

It is appropriate as we enter a new century that we reflect on the past one since our profession is nearly 100 years old: the American Association of Farm Economics was formally created in 1910. “Savvy through one hundred years of progress and experience” is one description that comes to mind. “Geriatric” is another word that might fit. I intend to highlight some broad topics that have occupied agricultural economists' teaching and research over the past 100 years, to reflect in a little more detail about our thoughts over the past 12 years as revealed in the presidential addresses at AAEA and SAEA annual meetings, to make some rather terse comments about current important issues as they relate to the issues of the past, and to conclude with some advice for the younger members of our profession and our association that may be of value in the new century. I emphasize the word may, because I am much less certain about the wisdom of my beliefs today than if I had been given the opportunity to give this talk 18 or even 11 years ago.
Agriculture in the WTO: A European Union Perspective
Authors: Haniotis Tassos
Published: July 2016

The failure of the Seattle Ministerial to launch a new Round of Multilateral Trade Negotiations raised a series of essential questions concerning the future of the World Trade Organization (WTO). This is only natural, considering the expectations that were raised before the Ministerial, the unprecedented extent of public discontent (albeit of various, often opposing tendencies), and the at-this-stage uncertain follow-up.
Will Southern Agriculture Play a Role in a Carbon Market?
Authors: Zeuli Kimberly A. , Skees Jerry R.
Published: July 2016

While a carbon market offers substantial opportunities for US agriculture, regional differences in such a market are often ignored. This paper focuses on the advantages and challenges for agriculture in the South. The potential of two promising options are analyzed: conversion from cropland to forests and greater use of conservation tillage. It is argued that the right institutional arrangements can overcome three fundamental challenges to an efficient carbon market: transaction costs, risk, and perverse incentives. Some examples are given, such as the use of a farmer-owned organization and the provision of land use and carbon information by the government.
Parametric Modeling and Simulation of Joint Price-Production Distributions under Non-Normality, Autocorrelation and Heteroscedasticity: A Tool for Assessing Risk in Agriculture
Authors: Ramirez Octavio A.
Published: July 2016

This study presents a way to parametrically model and simulate multivariate distributions under potential non-normality, autocorrelation and heteroscedasticity and illustrates its application to agricultural risk analysis. Specifically, the joint probability distribution (pdf) for West Texas irrigated cotton, corn, sorghum, and wheat production and prices is estimated and applied to evaluate the changes in the risk and returns of agricultural production in the region resulting from observed and predicted price and production trends. The estimated pdf allows for time trends on the mean and the variance and varying degrees of autocorrelation and non-normality (kurtosis and right- or left-skewness) in each of the price and production variables. It also allows for any possible price-price, production-production, or price-production correlation.
Modeling and Simulating Price, Yield, and Production Distributions for Risk Analysis in Agriculture: Discussion
Authors: Zacharias Thomas P.
Published: July 2016

The purpose of this session is to discuss various procedures for modeling agricultural price and yield distributions. The model results are then used to provide improved analyses for agricultural risk management with the focus primarily upon the agricultural production sector. Each of the papers presented here contributes to that end. The discussion of these papers will be organized as follows: First, comments on each paper beginning with Richardson, Klose and Gray (RKG), then some general observations and concerns, along with a suggestion of issues for further discussion.
Estimates of Public Sector Transaction Costs in NRCS Programs
Authors: McCann Laura , Easter K. William
Published: July 2016

When evaluating the economic efficiency of policies to reduce nonpoint source pollution, administrative or transaction costs are usually not taken into account. While the importance of transaction costs has been recognized in the theoretical literature, the fact that they are not incorporated in empirical analyses means that, in effect, these costs are given a zero value. This issue is examined quantitatively using data collected by the National Resource Conservation Service (NRCS). Transaction costs are found to be a significant portion (38 percent) of overall conservation costs. This provides strong support for including these costs in economic evaluations of alternative policy instruments.
Issues of Demand Specification and Industry Structure in Turkeys and Broiler Chickens
Authors: Cheney Laura M. , Brown A. Blake , Yamano Takashi , Masterovsky Michael
Published: July 2016

Factors unique to the turkey industry suggest that conclusions concerning market structure and demand specification drawn from aggregate poultry data cannot necessarily be extrapolated to the turkey industry. The Wu-Hausman endogeneity test is used to examine demand specifications and industry structure specifically for turkey meat. In contrast to general poultry, quantity—not price—is found to be predetermined in demand models that use annual turkey data. Quarterly demand analysis suggests this result stems from biological cycles that limit a producer's ability to react to price change and the use of a weighted average for determining price and quantity.
Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece
Authors: Tzouvelekas Vangelis , Pantzios Christos J. , Fotopoulos Christos
Published: July 2016

Using recent advances in the stochastic production frontier framework, this paper presents an empirical analysis of technical, allocative and economic efficiency of a sample of organic and conventional cotton farms located in Greece. The results suggest that both farm types in the sample examined are technically, allocatively and economically inefficient. Farmer's age and education and farm size are important factors in explaining differentials in efficiency estimates. In comparative terms, organic farms exhibit lower efficiency scores vis-à-vis their conventional counterparts in terms of technical and economic efficiency; regarding allocative efficiency both farm types are almost equally inefficient. Low efficiency scores in both types of farming may be attributed to the respective intervention policies of the last 20 years.
Willingness to Pay for Agricultural Research and Extension Programs
Authors: Whitehead John C. , Hoban Thomas J. , Clifford William B.
Published: July 2016

The North Carolina Agriculture Survey was designed to estimate the willingness to pay for agricultural research and extension programs. We find that North Carolina households are willing to pay between $218 and $401 million for food production programs and between $251 and $698 million for water quality programs annually. We find evidence of divergent validity and differences in the willingness to pay estimates from the single-bound and multiple-bound data.
Fiscal Trends: Implications for the Rural South
Authors: Henry Mark S. , Barkley David L. , Li Haizhen
Published: July 2016

Key demographic trends in the rural South over the next decade—the aging of the population as baby boomers enter retirement, continued migration to the South, and rapid increases in shares of Hispanic residents—may have profound consequences for the financing of rural community public services. In this paper, we provide an overview of demographic and economic trends that are expected to influence the ability of rural communities to provide essential public services. In addition, we provide econometric evidence on the impacts that these trends are likely to have on the financing of K-12 education in South Carolina.
Rural Roads and Bridges, 1994–2000: How Did the South Fare?
Authors: Stommes Eileen S.
Published: July 2016

In 1991, the Intermodal Surface Transportation Efficiency Act (ISTEA) changed the federal-state transportation relationship by devolving decision making to the states. In turn, states were required to work with local officials on transportation improvements. ISTEA was authorized for 1992–1997, and the Transportation Equity Act for the 21st Century continued ISTEA policies through 2003. Changes in road and bridge conditions in the rural south are examined under these new transportation policies. Federal funding trends are detailed with state funding. Overall condition of roads and bridges eligible for federal funding improved, traffic increased on all roads, but condition disparities between local roads and federally funded roads grew.
Tomato Wars: A Discussion of How International Trade, Structural Changes, and Competitiveness Affect the North American Produce Industry
Authors: Estes Edmund A.
Published: July 2016

The demand for a variety of fresh fruits and vegetables, including fresh market tomatoes, has increased significantly over the past decade because of greater convenience in use, improved selection, and rising health and diet concerns. As U.S. demand for tomatoes and other horticultural crops strengthens, inexperienced domestic and international suppliers believe they can compete effectively within U.S. markets. Free trade agreements have reduced monetary barriers to trade, but remaining impediments, such as institutional and competitive market constraints, represent significant challenges for southern U.S. growers. This paper discusses points addressed by VanSickle, Eastwood, and Woods concerning trade and horticultural market development.
“It's for Teaching, not Believing”: Comments on Teaching, Learning, and Problem Solving Through Economic Experiments
Authors: Nelson Robert G. , Wilson Norbert L.W.
Published: July 2016

This series of papers is an excellent opportunity to reacquaint agricultural economists in the Southern region with the exciting field of experimental economics and is indeed opportune in light of the recent awarding of the Nobel Prize in Economics to Vernon Smith, considered by many to be the father of experimental economics. Rather than try to share the limelight with the authors on their far-reaching and comprehensive topics, we plan to take this opportunity to share some of our views of the role of experimental economics in the research laboratory and classroom.
The Effects of Mad Cow Disease on U.S. Live Cattle Futures Price
Authors: Paiva Newton N.
Published: July 2016

Due to red meat consumption, bovine spongiform encephalopathy (BSE) disease has been a major human health concern since its discovery in 1986. An event study approach was applied to determine the impact of BSE official events that occurred in the United Kingdom on U.S. live cattle futures prices. When abnormal returns were aggregated during the course of the events, the price series were adversely affected, mainly after the event day. This suggests that market reaction was dissipated quickly and that no leakage of information occurred prior to the event.
Cost-Effectiveness of Nutrient Management and Buffers: Comparisons of Two Spatial Scenarios
Authors: Bonham John G. , Bosch Darrell J. , Pease James W.
Published: July 2016

Farmers and taxpayers would benefit from more cost-effective agricultural nutrient pollution control measures. The objectives of our study are (1) to assess compliance costs and reductions in phosphorus loadings from implementation of nutrient management and riparian buffers; and (2) to estimate how the spatial scenario, which is the method of representing farms within the watershed, affects estimated compliance costs and reductions in phosphorus deliveries. Estimated compliance costs are quite sensitive to the spatial scenario. Buffers are more cost-effective than nutrient management under one of the two spatial scenarios, whereas nutrient management is more cost-effective under the other scenario. Shifts to more erosive crops reduce the effectiveness of both pollution control measures.
Credit Risk Assessment and Racial Minority Lending at the Farm Service Agency
Authors: Escalante Cesar L. , Brooks Rodney L. , Epperson James E. , Stegelin Forrest E.
Published: July 2016

The nature of credit risk assessment and basis of loan approval decisions of the Farm Service Agency are analyzed in the aftermath of the black farmers' 1997 class action suit against the U.S. Department of Agriculture. This study did not uncover convincing evidence of racial discrimination against nonwhite borrowers under a binomial logistic framework based on the probability of a loan application's approval. Moreover, the collective use of more stringent and objective credit-scoring measures usually employed by commercial lenders is less evident in the Farm Service Agency's evaluation of loan applications.
Valuing State-Level Funding for Research: Results for Florida
Authors: Moss Charles B.
Published: July 2016

This study analyzes the value of agricultural research to Florida by examining the effect of research spending on agricultural productivity, as measured by a total factor productivity index, and profitability, as measured by net farm income. Results suggest that research expenditures do increase agricultural productivity in the state. However, agricultural productivity does not affect net cash income. Further, the economic rents to the productivity gains do not accrue to land values. Instead, the economic value of research innovations accrues more to consumers than to producers. Thus, consumers are the ultimate beneficiaries of agricultural research in Florida, thereby justifying public funding for agricultural research.
Regulatory Takings and the Diminution of Value: An Empirical Analysis of Takings and Givings
Authors: Truesdell Marie K. , Bergstrom John C. , Dorfman Jeffrey H.
Published: July 2016

A hedonic model is used to measure the change in value of residential lots in Rockport, Texas, resulting from Section 404 of the U.S. Clean Water Act. Results show that average lot values initially decreased, went through a six-year adjustment period, and then stabilized on a higher price path resulting in a positive net effect on average lot values throughout the Rockport area (with the exception of a particular subdivision). The results indicate that Section 404 generated both regulatory “takings” and “givings,” suggesting that both effects should be considered when assessing the benefits and costs of regulatory events and compensation claims.
Characteristics of Organic Food Shoppers
Authors: Zepeda Lydia , Li Jinghan
Published: July 2016

Data from a national survey of food shoppers are analyzed by probit and ordered probit models that incorporate elements of Lancaster's product attribute model and Weinstein's precaution adoption process. The models are used to investigate the characteristics of organic and nonorganic food shoppers. Where one shops, food beliefs, and food knowledge have the largest significant impact on the probability that shoppers buy organic food. Among the demographic characteristics, only the lack of religious affiliation, higher education, and youth are significant explanatory variables.
Factor Price Disparity and Retained Ownership of Feeder Cattle: An Application of Feedlot and Carcass Performance Data to Farm-Level Decision Making
Authors: White Brad J. , Anderson John D. , McKinley W. Blair , Parish Jane
Published: July 2016

In this study, we used farm-level data from a university feed-out program to evaluate how the value of feeder cattle ultimately realized through finishing and grid pricing differs from their market value at public auction. Consistent with the theory of factor price disparity, results indicate that significant risk premiums exist in the feeder cattle market. Producers of cattle with known feedlot performance, carcass potential, or both might be better off retaining ownership of their calves or marketing them in a way that communicates the information that is known about their potential performance directly to the buyer.
Determinants of Return on Equity in U.S. Local Farm Supply and Grain Marketing Cooperatives
Authors: Boyd Scott , Boland Michael , Dhuyvetter Kevin , Barton David
Published: July 2016

Farm supply cooperatives are an important component of the retail agribusiness industry in the United States. The objective of this research is to identify financial variables that are determinants of return on equity in these cooperatives. Firm effects are important and their effect is the result of managerial decision making and director policy. The estimated coefficient on asset size was not statistically significant, suggesting that return on equity is invariant to size over this time period.
The Economic Impacts of Avian Influenza on World Poultry Trade and the U.S. Poultry Industry: A Spatial Equilibrium Analysis
Authors: Djunaidi Harjanto , Djunaidi Andrew C.M.
Published: July 2016

Simulation results showed that simultaneous outbreaks of highly pathogenic avian influenza (HPAI) in Asia, the United States, Brazil, and selected European countries will have significant impacts on world poultry trade. Assuming demand for chicken meat is constant, the global export price is simulated to increase by 9.63%. HPAI outbreaks in the United States, Economic Union, and Brazil will have a greater impact on export price than in any other possible three-region case. Outbreaks in the United States and Brazil would still lead to major impacts on world poultry trade, confirming large country effects.
Economic Parameters for Corn Ethanol and Biodiesel Production
Authors: Eidman Vernon R.
Published: July 2016

This article presents current investment and operating costs of ethanol and biodiesel plants for alternative prices of feedstock. The price of these two fuels is estimated for alternative prices of crude oil with the existing renewable fuels policy. The excise tax credit, currently $0.51 per gallon of ethanol and $1.00 per gallon of biodiesel, is a major contributor to the fuel price and profitability of these industries. The analysis demonstrates how the crude oil price, feedstock price, and excise tax credits interact to impact profitability of these industries.
Dynamic Interrelationships between the U.S. Agricultural Trade Balance and the Macroeconomy
Authors: Baek Jungho , Koo Won W.
Published: July 2016

The effects of the exchange rate and the income and money supply of the United States and its major trading partners on the U.S. agricultural trade balance are examined using an autoregressive distributed lag (ARDL) model. Results suggest that the exchange rate is the key determinant of the short- and long-run behavior of the trade balance. It is also found that the income and money supply in both the United States and the trading partners have significant impacts on U.S. agricultural trade in both the short and long run.
Impact of Program Payments on Time Allocation and Farm Household Income
Authors: Dewbre Joe , Mishra Ashok K.
Published: July 2016

Using a model of farm household resource allocation and data from the USDA-ERS Agricultural Resource Management Survey (ARMS), this study compares the effects of various categories of farm program payments on time allocation by farm operators and spouses. Results suggest that agricultural market transition payments (AMTA) increase leisure hours of both farm operators and spouses. Loan deficiency payments (LDP) and payments that combine market loan assistance (MLA) and disaster payments are shown to reduce leisure. The study also finds that AMTA payments exhibit a much higher degree of income transfer efficiency than the LDP and MLA payments.
Does On-Farm Quality Assurance Pay? A Cost-Benefit Analysis of the Grainsafe Program
Authors: Karaca Umit , Alexander Corinne , Maier Dirk
Published: July 2016

Since the introduction of genetically modified (GM) crops, the commodity grain system has been under pressure to segregate GM and non-GM crops. Starting at the level of the grain handler, members of the grain supply chain have successfully used quality assurance and identity preservation programs to segregate non GM crops. Producers delivering high-value, identity-preserved crops have become interested in implementing these quality management systems at the farm level. We conduct a cost-benefit analysis that shows that quality assurance program may be profitable for producers, depending on their farm size and equipment management strategy.
Hog Producers' Risk Management Attitudes and Desire for Additional Risk Management Education
Authors: Patrick George F. , Peiter Amy J. , Knight Thomas O. , Coble Keith H. , Baquet Alan E.
Published: July 2016

Hog producers in Indiana and Nebraska were surveyed about sources of risk, effectiveness of risk management strategies, and prior participation in and desire for additional risk management education. Ownership of hogs by the producer, size of the operation, and age did have significant effects on ratings of both sources of risk and effectiveness of risk management strategies. Probit analysis found age, prior attendance, knowledge and prior use of the tool, level of integration, and concern about price and performance risk have significant effects on interest in further education about production contracts, futures and options, packer marketing contracts, and financial management.
The Ethanolization of Agriculture and the Roles of Agricultural Economists
Authors: Herndon Cary W. “Bill”
Published: July 2016

First, please permit me the latitude to use a bit of poetic license in coining the term, “ethanolization,” which attempts to describe the upheaval and chaos witnessed across the agricultural sector attributed to the booming corn-based ethanol industry. Ethanolization has focused its impact on agriculture and, in particular, the U.S. agricultural sector as a combination of market-induced and policy-induced factors have created a “perfect storm” that is causing dramatic shocks to virtually every crop and livestock producer and agribusiness. Coining the term ethanolization also borrows from past eras in agriculture described as the “mechanization” of agriculture in the 1940s and 1950s and the “industrialization” of agriculture in the 1990s. Mechanization described a period when widespread adoption of farm machinery occurred across the United States. Then, industrialization, accredited to a body of writings by Draben-stott and Barkema, portrayed a “quiet revolution” of ever-increasing size and specialization of U.S. farms, ranches, and agribusinesses. Now, ethanolization attempts to characterize a similar revolution that is affecting essentially every facet of American agriculture.
Implications of Integrated Commodity Programs and Crop Insurance
Authors: Coble Keith H. , Barnett Barry J.
Published: July 2016

Moving from price-triggered to area revenue–triggered programs was perhaps the most common theme among 2007 farm bill proposals. Area revenue–triggered commodity programs may make farm-level revenue insurance products seem redundant, raising questions about why the federal government should continue both programs. Area revenue–triggered programs would remove much of the systemic risk faced by producers. As a result, private sector insurers may be able to insure the residual risk without federal involvement. This paper examines the effects of moving to area revenue–triggered commodity programs with a focus on public policy issues that would likely arise.
Integrating Stakeholder Input into Water Policy Development and Analysis
Authors: Guerrero Bridget , Amosson Steve , Almas Lal
Published: July 2016

Agricultural water use is becoming an issue in much of the South due to population growth. Results of projects evaluating the impacts of conservation strategies aimed at reallocating or extending the life of water supplies are being met with great skepticism by stakeholder groups. In order to gain acceptance of results, it is essential that stakeholder groups be involved from the beginning in the identification of potential water conservation strategies and be kept informed throughout the project. The objective of this paper is to review previous attempts at involving stakeholders and the methodology currently being employed in the Ogallala Aquifer Project.
Discussion: Evaluating Water Conservation Strategies and Policies
Authors: Jordan Jeffrey L.
Published: July 2016

The four papers presented at this invited session examine various ways that economic analysis can be used to examine issues of water conservation strategies and policies. Three of the four are focused on water issues in Texas, and one examines a private insurance contract scheme for irrigation scheduling using Georgia weather and water data. All four papers are well written and interesting, but all four illustrated the limits of conventional economic analysis in its ability to shed light on public policy. This is particularly the case in the heavy reliance on economic efficiency analysis that is employed in the papers.
Conservation Programs: Will Grain Production Reclaim Acres in the South?
Authors: Petrolia Daniel R. , Ibendahl Gregory A.
Published: July 2016

A state-level analysis of the Re-enrollment and Extension (REX) program on southern states indicates a positive relationship between percentage of tree acreage and Conservation Reserve Program (CRP) re-enrollment for states in which conservation acreage is dominated by trees. However, the relationship depends on crop mix where CRP acreage is dominated by grass. County-level analysis suggests that states will differ in how quickly they opt out of CRP. Of the states examined, Arkansas is the most likely to move land to corn, with Mississippi the least likely. Arkansas and Kentucky will switch to soybean first, followed by Mississippi and Georgia.
Residential Land Values in Urbanizing Areas
Authors: Kaltsas Ioannis K. , Bosch Darrell J. , McGuirk Anya
Published: July 2016

Zoning decisions related to residential lot size and density affect residential land value. Effects of size on residential parcel value in Roanoke County, VA, are estimated with fixed effects hedonic models. Parcel size; elevation; soil permeability; proximity to urban areas, malls, and roads; and location influence parcel value, but the effects vary by value of construction and development status. Parcel value per square meter declines with increasing parcel size. The estimated relationships could be used to evaluate zoning decisions in terms of land values and tax revenues if model estimation uncertainties and responses by developers to zoning strategies are considered.
Population Growth and Land Use Dynamics along Urban–Rural Gradient
Authors: Polyakov Maksym , Zhang Daowei
Published: July 2016

In this study we apply a spatial conditional logit model to determine factors influencing land cover change in three contiguous counties in West Georgia between 1992 and 2001 using point (pixel) based observations of land characteristics. We found that accessibility to population and population growth affect not only development of rural lands and transition between agricultural and forestry uses, but also influence changes between forest types. The model could be used to project land use–land cover change at watershed or subwatershed level and thus serve as a valuable tool for county and city planners.
Testing Nonlinear Logit Models of Performance Effectiveness Ratings: Cooperative Extension and Organic Farmers
Authors: Lohr Luanne , Park Timothy A.
Published: July 2016

Survey evidence from U.S. organic farmers is evaluated to identify the factors influencing effectiveness ratings of cooperative extension advisors by organic farmers. A nonlinear logit model is specified for the ratings provided by organic producers, and critical demographic and management factors that influence the ratings are identified. The impact of the organic farmers' status in transitioning to organic production is highlighted. The results indicate that part-time, newer adopters of organic farming methods are more likely to rate extension service providers as effective providers of information. Scenarios to predict extension effectiveness when interacting with specific groups of organic farmers are developed.
Willingness-to-Pay for Beef Quality Attributes: A Latent Segmentation Analysis of Korean Grocery Shoppers
Authors: Chung Chanjin , Briggeman Brian C. , Han Sungill
Published: July 2016

A latent segmentation modeling is used in this study to identify the heterogeneity of willingness-to-pay estimates for quality attributes and country-of-origin in the Korean beef market. Three distinctive groups of grocery shoppers are identified based on their level of concern (very, moderately, and not too concerned) about the use of antibiotics and genetically modified organism feed ingredients in beef production. Results indicate that the very concerned group values such attributes as antibiotics-free, genetically modified organism-free, and domestic production the most among the three groups. Results also suggest that the most important factor in determining grocery shoppers' willingness-to-pay is country-of-origin for all three groups.
The Effect of Distance and Cost on Fruit and Vegetable Consumption in Rural Texas
Authors: Dunn Richard A. , Dean Wesley R. , Johnson Cassandra M. , Leidner Andrew , Sharkey Joseph R.
Published: July 2016

Fruit and vegetable consumption is associated with improved health outcomes, yet there is limited understanding of the impact of cost and accessibility on fruit and vegetable intake in rural settings. This study examines the relationship between the consumption of fruits and vegetables and their cost and accessibility among blacks and non-Hispanic whites in a rural area. Individual characteristics from a 2006 mail survey (n = 1,510) were combined with store locations and price information from a 2006 ground-truthed census of retail outlets. The mail survey covered seven counties in central Texas with 38 supermarkets/grocery stores. Blacks tended to live closer to a supermarket or grocery store, but they were only slightly more likely than whites to consume two or more servings of fruit daily and much less likely to consume three or more servings of vegetables. Multivariate probit regression analysis revealed that neither access nor cost was related to fruit or vegetable consumption among white respondents. Among blacks, cost was also not associated with consumption. In contrast to whites, however, each additional mile was associated with a three percentage point decline in the probability of consuming two or more servings of fruit daily and a 1.8 percentage point decline in the probability of consuming three or more vegetable servings.
Export Demand Elasticity Estimation for Major U.S. Crops
Authors: Reimer Jeffrey J. , Zheng Xiaojuan , Gehlhar Mark J.
Published: July 2016

Elevated prices for major U.S. commodities have renewed interest in the price sensitivity of foreign demand facing the United States. Although the elasticity of foreign demand plays an important role in discussions of U.S. farm policy, it is also a parameter that is much debated with the majority of studies in this area published over 20 years ago. We provide new estimates of the elasticity of export demand for U.S. corn, soybeans, and wheat using updated data and empirical techniques. Our estimates are useful for practical policy analysis as well as for researchers seeking to parameterize large-scale simulation models.
From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica
Authors: Ferreira Gustavo F.C. , Harrison R. Wes
Published: July 2016

In the wake of a severe economic crisis in the 1980s Costa Rica abandoned an import substitution model of development adopted in the 1960s and implemented policies supporting foreign investment and the diversification of its exports. This study presents an application of the model proposed by Herzer and Nowak-Lehnmann to test the hypothesis that export diversification has contributed to economic growth in Costa Rica via externalities of learning-by-doing and learning-by-exporting over the period of 1965–2006. After using the autoregressive distributed lags and dynamic ordinary least squares models no long-run relationship was found between export diversification and growth.
Financing Constraints and Access to Credit in a Postcrisis Environment: Evidence from New Farmers in Alabama
Authors: Hartarska Valentina , Nadolnyak Dennis
Published: July 2016

We use survey data to study the degree to which new farming operations in Alabama were financially constrained after the 2008 financial crisis. Next, we control for farmers' self-selection out of the credit market and identify which farmers were able to secure loans during the period of 2009–2010. The results show that new farmers that started any part of their operation after 2005 were financially constrained but no evidence that their financing constraints were affected by the crisis. As expected, we find that lending was collateral-driven, although lenders also considered farmers' profitability and cash flows.
Factors Influencing Farmers’ Selection of a Milk Handler
Authors: Kilmer Richard L. , Lee Jonq-Ying , Carley Dale
Published: July 2016

A structural probit model is estimated to determine the change in the probability of selecting a milk handler. Cooperatives are thought to have lower prices and higher deductions than independent milk handlers and these factors reduce the probability that a farmer will select a cooperative by 0.39 and 0.32. Cooperatives are thought to have better services and an assured market and payment than independent milk handlers and these factors increase the probability that a farmer will select a cooperative by 0.20 and 0.26. This indicates that many cooperative members value monetary characteristics over non-monetary characteristics.
Amenity Benefits and Public Policy: An Application to the Connecticut Dairy Sector
Authors: Lopez Rigoberto A. , Altobello Marilyn A. , Shah Farhed A.
Published: July 2016

This article develops a conceptual framework for analyzing the role of state-level policies towards the dairy sector in the presence of farmland amenity benefits, and applies it to Connecticut. Milk supply, demand and amenity benefit functions are estimated, and three exogenously determined milk prices are considered. The empirical findings show, under each price scenario, the extent to which land is underallocated to the dairy sector if amenity benefits are ignored. Analysis of policy options reveals that a partial production cost subsidy represents the least-cost alternative for attaining the socially optimal solution for the region.
An Analysis of farmers' Policy Attitudes and Preferences for Free Trade
Authors: Kastens Terry L. , Goodwin Barry K.
Published: July 2016

This study evaluates the attitudes of U.S. (Kansas) farmers regarding “free-trade” and “free-market” policy environments. In contrast to earlier studies, non-specific policy attitudes are evaluated. A direct measure of farm program benefits is also included. Attitudes vary significantly with farm and operator characteristics. Support for free trade was shown to decrease with education and experience, to increase for farms with relatively more rented land, and to increase as total farm wealth increased. Support for free-trade was also higher for crop farms. Farms receiving more government payments are less likely to favor a free-trade policy environment.
School Choice In Rural Georgia: An Empirical Analysis
Authors: Keeler Andrew , Kriesel Warren
Published: July 2016

Previous empirical studies of school choice have been at the national level, or have focussed on northeastern states. We estimate the demand for private education in rural Georgia, using proportion of private school attendance as an indicator variable. We find that income, tuition, race and school quality are important choice determinants. The results provide useful information for rural school administrators, and suggest that a tuition tax credit would have to be substantial to cause a significant exodus from public schools.
Buyback Programs: Goals, Objectives, and Industry Restructuring in Fisheries
Authors: Kirkley James E. , Walden John , Waters James
Published: July 2016

National Oceanic and Atmospheric Administration Fisheries has conducted several buyback programs to reduce harvesting capacity in fisheries. These programs have attempted to maximize capacity reduction given a fixed budget. However, restructuring issues have not been considered. We explore the possibility of satisfying three different buyback objectives. We examine the black sea bass trap fishery and determine the number of vessels given different allowable catch levels and objectives of maximizing technical efficiency, capacity utilization, and vessels in the fishery. We find considerable variation in the number of vessels allowed to remain in the fishery given the different objectives.
Economic Comparison of Commodity and Conservation Program Benefits: An Example from the Mississippi Delta
Authors: Anderson John D. , Parkhurst Gregory M.
Published: July 2016

Changes to commodity programs in the 2002 Farm Bill increased the value of crop base acreages on which decoupled payments are received. The bill also expanded the availability of key conservation programs. This paper compares the value of payments from commodity programs (along with continued crop production) to the easement payment (and recreational lease revenue) available under the Wetland Reserve Program. A net present value model using risk-adjusted returns is employed in the analysis for Mississippi delta cropland containing rice, cotton, and soybean base. Sensitivity analysis is conducted on some of the key variables affecting the decision.
Patterns of Collusion in the U.S. Crop Insurance Program: An Empirical Analysis
Authors: Rejesus Roderick M. , Little Bertis B. , Lovell Ashley C. , Cross Mike , Shucking Michael
Published: July 2016

This article analyzes anomalous patterns of agent, adjuster, and producer claim outcomes and determines the most likely pattern of collusion that is suggestive of fraud, waste, and abuse in the federal crop insurance program. Log–linear analysis of Poisson-distributed counts of anomalous entities is used to examine potential patterns of collusion. The most likely pattern of collusion present in the crop insurance program is where agents, adjusters, and producers nonrecursively interact with each other to coordinate their behavior. However, if a priori an intermediary is known to initiate and coordinate the collusion, a pattern where the producer acts as the intermediary is the most likely pattern of collusion evidenced in the data. These results have important implications for insurance program design and compliance.
Improving Environmental Quality in South Florida through Silvopasture: An Economic Approach
Authors: Stainback G. Andrew , Alavalapati Janaki R.R. , Shrestha Ram K. , Larkin Sherry , Wong Grace
Published: July 2016

A dynamic optimization model is used to compare the profitability of silvopasture with traditional cattle ranching in south Florida. Silvopasture can reduce phosphorus runoff from cattle ranching—a major environmental concern for Lake Okeechobee and the Everglades. Silvopasture can also sequester carbon, thereby offsetting global climate change. The effectiveness of phosphorus runoff taxes and carbon sequestration payments for inducing landowners to adopt silvopasture is investigated. We find that phosphorus taxes alone would not induce landowners to adopt silvopasture. However, payments to landowners to sequester carbon, alone or in conjunction with phosphorus runoff taxes, can make silvopasture financially competitive with traditional ranching.
Measurement and Political Economy of Disputed Technical Regulations
Authors: Thornsbury Suzanne , Roberts Donna , Orden David
Published: July 2016

Technical regulations are increasingly visible in agricultural trade, yet their idiosyncratic nature has limited prior aggregate analysis. This article draws on a unique data source for systematic enumeration of the technical regulations questioned by one exporter among all of its trading partners in mid-1996. Political economy analysis indicates that barriers decrease when the relative contribution of agriculture to an economy increases, when the anticipated future level of protection through other forms of government intervention increases, and when economies are more open. Despite increased scrutiny and discipline by the World Trade Organization, technical barriers remain a significant impediment in world agricultural markets.
Rigidity in Packer-Feedlot Relationships
Authors: Hunnicutt Lynn , Bailey Dee Von , Crook Michelle
Published: July 2016

Concentration in beef packing has risen dramatically in the past 25 years. We develop measures used to describe feedlot-packer relations: (1) a statistic based on the proportion of its sales a feedlot makes to a given packer, and (2) a measure of the switching behavior of feedlots. The measures are calculated using a confidential data set from the USDA Grain Inspection, Packers, and Stockyards Administration. Relationships are found to be both exclusive and stable. Causes for this rigidity are then examined using regression analysis. Transaction costs are shown to help explain why this market differs from a perfectly competitive one.
Do Antibiotics Reduce Production Risk for U.S. Pork Producers?
Authors: Liu Xuanli , Miller Gay Y. , McNamara Paul E.
Published: July 2016

We combine econometric and financial analyses of the NAHMS 2000 Swine Survey data to examine whether evidence exists for reducing risk by using antibiotics for growth promotion (AGP) in the U.S. swine industry. A stochastic dominance analysis of alternative lengths of time (days) of AGP application reveals that AGP used in the range of 65–75 days is preferred by risk-averse producers. Risk is reduced and profits are increased from use of AGP. The combined impacts of increased average daily gain and decreased variability in pig live weight increase producer profits by $2.99 per pig marketed.
Evidence on the Amenity Value of Wetlands in a Rural Setting
Authors: Bin Okmyung , Polasky Stephen
Published: July 2016

This study uses a hedonic property price method to estimate how wetlands affect residential property values in a rural area. The study utilizes wetland inventory data coupled with extensive property sales records between January 2000 and September 2004 from Carteret County, NC. Our results indicate that i) a higher wetland percentage within a quarter mile of a property, ii) closer proximity to the nearest wetland, and iii) larger size of the nearest wetland are associated with lower residential property values. These results contrast with previous hedonic studies that use data from urban areas, which found positive associations between wetlands and property values. The amenity value of wetlands appears to depend at least as much on the characteristics of the area being considered as it does on the characteristics of the wetlands.
Income Distributional Impacts of Trade Policies in a Multi-Market Framework: A Case in Pakistan
Authors: Hudson Darren , Ethridge Don
Published: July 2016

The impacts of using export taxes as a price control in a multi-market framework are explored using the cotton and yarn sectors in Pakistan as examples. Results show that the export tax on cotton increased domestic consumption and decreased exports of cotton in Pakistan, transferring income from cotton producers to yarn spinners and the government. There was a social loss to Pakistan in the cotton sector. The export tax on cotton increased domestic yarn production, consumption, exports, and incomes of yarn spinners, but resulted in a large transfer (social loss) out of the yarn sector.
The Distributional Behavior of Futures Price Spreads
Authors: Kim Min-Kyoung , Leuthold Raymond M.
Published: July 2016

The distributional behavior of futures price spreads is examined for four commodities: corn, live cattle, gold and T-bonds. Remarkably different results are found over commodities, time period, and sample size. Actual spread changes for the smaller sample size of gold and T-bonds and for corn produce more normal distributions for weekly than for daily differencing intervals, while all live cattle spreads for actual changes are normally distributed. However, the larger sample size of both gold and T-bonds and the relative spread changes for corn and live cattle do not become more normally distributed under temporal aggregation of the data.
Which Broiler Part is the Best Part?
Authors: Goodwin H.L. , McKenzie Andrew M. , Djunaidi Harjanto
Published: July 2016

Predominance of production and marketing contracts in the broiler industry suggests a traditional analysis of price relationships might no longer be appropriate. In this study, markets for broiler cuts are defined as spatial. Results of a vector autoregressive regression analysis of monthly USDA data from 1987 to 2000 verify the price relationship between white meat and whole broiler prices. Price shocks in the boneless skinless breast market have a greater effect than dark meat shocks, suggesting this market is most important in price transmission. These results will assist industry participants to form more effective marketing and pricing strategies, thus adding efficiency to the market.