bluuebunny/crossref_metadata_2025 huggingface dataset:
A New Look at the Economic Evaluation of Wind Energy as an Alternative to Electric and Natural Gas-Powered Irrigation
Authors: Lima Dmitry , Colson Gregory , Karali Berna , Guerrero Bridget , Amosson Stephen , Wetzstein Michael
Published: July 2016

An extension of the Guerrero et al. (2010) net present value (NPV) analysis using real options analysis (ROA) is offered to improve machinery replacement decisions. Specifically, the feasibilities of replacing natural gas irrigation systems with either electric or hybrid (electric/wind) systems are evaluated. Results indicate NPV and ROA criteria can yield opposite decisions depending on the stochastic nature of the parameters, reversibility of the investment, and flexibility of investment timing. For policy, NPV results indicate that replacing natural gas with a hybrid is on the cusp of being optimal. However, ROA indicates this NPV implication may not hold.
Searching for the Heart of Agricultural Economics with 20/20 Vision
Authors: Park William M.
Published: July 2016

How relatively painless it was to agree 18 months ago to be nominated for the position of President-Elect of the Southern Agricultural Economics Association (SAEA). Preparing for this address, the most daunting task faced by holders of this office, has been anything but painless. At the same time I can say unequivocally that it has been a productive exercise for me. I hope that something I say will make your time spent listening worthwhile as well.
Exploring Options for a New Farm Bill
Authors: Adams Gary M. , Richardson James W.
Published: July 2016

Three farm programs to increase support by $6 billion per year are analyzed. Higher marketing loan (ML), higher AMTA payments, and Modified Supplemental Income (SIP) program are evaluated at the sector and farm levels. At the sector level impacts on supply, demand, and price are modest with acreage shifts of less than two million acres. At the farm level SIP was preferred by cotton farms and higher ML was preferred by farms producing soybeans. Higher AMTA payments were preferred by 3 of 11 farms. Overall, SIP was ranked first or second by 10 of 11 representative farms.
Globalization, Cropping Choices, and Profitability in American Agriculture
Authors: Blank Steven C.
Published: July 2016

The paper discusses the linkages between the “globalization” of agricultural markets over recent decades and the decisions being made by individual farmers and ranchers in the United States. It is noted that technological advances lead to globalization of agricultural commodity markets and profit pressures. The continuing profit squeeze in agricultural production is having a significant effect on the cropping choices of America's farmers. When possible, acreage is being shifted out of low-revenue-generating crops and into higher-revenue-generating crops. This shift makes crop portfolios more risky over time, thus encouraging farmers to consider diversifying out of agriculture.
Casting Bread Upon the Water: Comments on Technology, Globalization, and Agriculture
Authors: Duffy Patricia A.
Published: July 2016

The issues raised in this paper session—concerning technical change, globalization, and chronic low returns in agriculture—are of long-standing importance in our profession. The papers, like many policy discussions in our discipline, have focussed largely on the U.S. agricultural sector. In this comment I will make some remarks relative to the domestic situation, but would also like to branch out a bit to address the worldwide impact of changing technology and increasingly open markets.
Globalization, Technological Advances, and Other Threats to American Agriculture: Discussion
Authors: Barnett Barry J. , Lee John E.
Published: July 2016

Both Blank and Debertin start from the premise that technology increases agricultural productivity. As a result, supply increases faster than demand, driving down commodity prices and returns to factors used in agricultural production. Blank emphasizes how farmers respond to this situation by moving to higher risk, higher return commodities until eventually graduating out of agriculture entirely. These changes are accommodated by globalization which allows low-cost imports to substitute for abandoned agricultural production in the U.S. Debertin focuses on the contention that price depressing gains in productivity are due, in part, to publicly-supported agricultural research at Land Grant universities.
Evaluating Crop and Revenue Insurance Products as Risk Management Tools for Texas Cotton Producers
Authors: Field James E. , Misra Sukant K. , Ramirez Octavio
Published: July 2016

This paper develops and illustrates the application of a procedure to evaluate and compare the cost effectiveness of alternative crop insurance products for cotton in terms of their effect on expected producer net returns and the variation of net returns. Farm unit-level cotton yields and state-level price distributions are estimated by a multivariate nonnormal parametric modeling procedure and used to simulate the net returns to alternative crop insurance products over a 10-year planning horizon. The ranking of alternative insurance products using third-degree stochastic dominance is presented for Texas cotton producers.
Optimal Agricultural Credit Association Branch Office Locations
Authors: Scaletta Timi M. , Stokes Jeffrey R.
Published: July 2016

Since the farm financial crisis of the 1980s, Farm Credit System banks continue to merge and consolidate to enhance competitiveness. Two mixed-integer programming models of AgChoice Agricultural Credit Association (ACA), a recently merged ACA in Pennsylvania, were developed to determine the optimal number, location, and territory of branches. The approach suggests useful information can be determined regarding the reconfiguration process after bank mergers, especially given the fact that the current AgChoice ACA configuration is available for comparison purposes.
Market Impacts of Adopting Herbicide-Resistant Rice in the Southern United States
Authors: Fuller Frank H. , Annou Mamane M. , Wailes Eric J.
Published: July 2016

Herbicide-resistant (HR) rice varieties offer U.S. rice producers a powerful tool for control of red rice infestations. However, improved weed control can shorten crop rotations and boost yields, resulting in expanded rice production and lower domestic market prices. Declining market returns diminish the benefits of HR rice adoption and substantially reduce net returns for nonadopters. More competitive prices increase U.S. rice exports, causing a slight decline in world rice prices. The dependence of the rice marketing loan program on world prices prevents loan deficiency payments from adequately offsetting producers' market revenue losses. U.S. consumers gain from lower rice prices.
Integrated Farm Financial Statements (IFFS): A Farm Business Planning Tool
Authors: Doye Damona
Published: July 2016

Integrated Farm Financial Statements (IFFS) software was developed as an M.S. thesis project in the mid-1980s and was immediately put to use as a tool for business planning in one-on-one work with Oklahoma producers through the Intensive Financial Management and Planning Support project. An updated IFFS continues to be used with producers to project financial statements for 1–3 years. Strengths and weaknesses in the software and extension program are noted, along with components that might serve as a model for other programs. Links with research are discussed, as are prospects for future farm financial management programs.
Determinants of Consumers' Use of Nutritional Information on Food Packages
Authors: Nayga Rodolfo M.
Published: July 2016

This study examines how sociodemographic characteristics of a household's main meal planner affect use of nutritional information concerning ingredients, health benefits, calories, sodium, vitamins/minerals, fiber, fat, cholesterol, and sugar content on food packages. Results generally suggest that well-educated, female main meal planners are more likely to use various types of nutritional information than others. Main meal planners who place more importance on nutrition but less importance on taste and those who have a higher perception of the healthfulness of their diet are more likely to use nutritional information on packages than others. Household size, race, employment status, urbanization, region, age, and income are also significant factors.
Employment in Agribusiness and Purchases of Agricultural Products: The Effects of Monetization in Yugoslavia
Authors: Miljkovic Dragan , Garcia Roberto J.
Published: July 2016

Efforts to stabilize employment and output in the agricultural sector of Yugoslavia through monetization contributed to inflationary pressures. Granger causality tests suggest that increases in the rate of growth in the supply of money to subsidize state-owned agribusinesses were insufficient to maintain purchases of wheat and corn, but did cause purchases of cattle and swine. This result may be explained by producers having more flexibility in grain marketing (i.e., storage options and private buyers) and the perishability issues related to livestock marketing. The policy to maintain employment through monetization is shown to have been ineffective.
Decomposition Analysis of Factor Cost Shares: The Case of Greek Agriculture
Authors: Karagiannis Giannis , Katranidis Stelios , Velentzas Kostas
Published: July 2016

An alternative version of decomposition analysis, based on factor cost shares rather than input demand functions, is presented and applied to Greek agriculture. Decomposition analysis shows that most of the changes in factor cost shares during the period from 1973 to 1989 are attributed to technical change and factor substitution, while the role of the scale effect is small, except that of fertilizer. The decomposition analysis results are then used to analyze the implications of Greece's fertilizer and feed subsidy removal, which took place in 1990.
Effects of Reservoir Aquatic Plant Management on Recreational Expenditures and Regional Economic Activity
Authors: Bergstrom John C. , Jeff Teasley R. , Ken Cordell H. , Souter Ray , English Donald B. K.
Published: July 2016

Exotic aquatic plant management is a major concern for public reservoir management in many regions of the United States. A study was conducted to measure the effects of alternative aquatic plant management strategies on recreational expenditures and regional economic activity. The study area was Lake Guntersville, Alabama, and the local economy surrounding the lake. Lake Guntersville is one of the largest reservoirs in the Tennessee Valley Authority system. Results suggested that relatively moderate levels of aquatic plant control are associated with the highest levels of recreation-related economic effects on the economy surrounding Lake Guntersville.
The Potential for High-Value Agricultural Products Under the North American Free Trade Agreement: The Case of Beef in Mexico and Canada: Comment
Authors: Lee Jong-Ying , Brown Mark G.
Published: July 2016

In his recent article, Onianwa used the absolute price version of the Rotterdam demand model to estimate Mexican and Canadian import demands for U.S. beef products. The specification of the Rotterdam model allows straightforward testing of the basic theoretical properties of demand. Based on theory, a system of demand equations should obey adding up, homogeneity, symmetry, and negativity (Theil 1971, 1975; Deaton and Muellbauer). Adding up is guaranteed or automatically satisfied in the Rotterdam model and other similar demand models like the almost ideal demand system (AIDS). Hence, adding up cannot be tested. Negativity can be checked by calculating the eigenvalues of the Rotterdam Slutsky matrix (all eigenvalues should be nonpositive). The remaining two properties, homogeneity and symmetry, can be straightforwardly tested by using the likelihood ratio test, as in the present paper, or the Wald or Lagrange multiplier tests; homogeneity can also be tested separately for each demand equation using the F-test.
Politics and Markets in the Articulation of Preferences for Attributes of the Rapidly Changing Food and Agricultural Sectors: Framing the Issues
Authors: Abdalla Charles W. , Shaffer James D.
Published: July 2016

Industrialization of the food and agricultural sectors changes the pattern of external effects. Participants helped or harmed in the process attempt to influence outcomes through markets and politics. Decisions about property rights and boundaries determine benefits and burdens and the relative cost of animal agriculture in different jurisdictions. Prescriptions to redefine property rights are influenced by selective perception of rights to share in the benefits and be protected from costs. Political choices about the appropriate jurisdiction (state versus local) for addressing environmental and nuisance effects of animal agriculture affect whose preferences count and will influence the development of these sectors.
Textile Manufacturers' Market Valuation of Cotton Fiber Attributes
Authors: Chen Changping , Ethridge Don E. , Fletcher Stanley M.
Published: July 2016

This study provides an analysis of the price-quality relationships of U.S. cotton using primary data collected from textile manufacturers, the end users of fiber. Hedonic prices of fiber attributes are estimated for three production regions—West, South Central, and South—over the 1992–95 study period. Results indicate that cotton price is determined by quality attributes and nonquality factors in the end-use market. There are similarities and differences in valuation of fiber attributes based on region of origin of the cotton.
On the Estimation of Advertising Effects for Branded Products: An Application to Spaghetti Sauces
Authors: Capps Oral , Seo Seong-Cheon , Nichols John P.
Published: July 2016

Using IRI Infoscan data pertaining to six types of spaghetti sauces and employing an extension of the demand systems framework developed by Duffy, estimates are obtained of own-price, cross-price, and total expenditure elasticities as well as own- and crossproduct advertising elasticities. We augment the Duffy model through the use of a polynomial inverse lag mechanism to deal with the carryover effects of advertising. We also account for the impacts of features in newspaper fliers, in-store displays, and coupons. Advertising efforts by industry leaders in spaghetti sauce produce positive own-advertising elasticities (ranging from .000058 to .0168) and negative cross-advertising elasticities (ranging from –.000003 to –.0094). Own-price elasticities are in the elastic range, and nearly all compensated cross-price effects are positive, indicative of Hicksian substitutes.
Southern Farmers' Exposure to Income Risk Under the 1996 Farm Bill
Authors: Knutson Ronald D. , Smith Edward G. , Anderson David P. , Richardson James W.
Published: July 2016

This paper investigates the farm-level impacts of the 1996 farm bill on the South. Focus group perceptions of risk sources, observed acreage changes, and the farm-level impact of increased price risk are evaluated. Focus group respondents ranked price and yield as the two most important sources of risk, and diversification was ranked highly as a risk-management tool. Limited data suggest that acreage shifts among crops are occurring in the South, presumably aided by the 1996 farm bill. Higher probabilities of cash flow deficits are estimated for cotton and rice relative to feedgrain, wheat, and oilseed operations.
Import Prices and Hard Currency Constraints in Eastern Europe: Implications for Coarse Grain Imports and Production of Meat
Authors: Garcia Roberto J. , Miljkovic Dragan , Gómez Miguel I.
Published: July 2016

The objectives of this study were (a) to determine the degree to which hard currency earnings constrained overall imports and coarse grain imports in command economies; (b) to measure the importance of import prices on grain imports and to trace the link of grain availability to meat production; and (c) to determine how economic and political reforms in the selected countries may have affected the hard currency constraint, the importance of import prices, and grain imports and meat production. The results indicate that import demand was constrained by earnings of hard currency, but was not responsive to world prices, and meat production was affected by total grain availability, including imports.
Recycling, International Trade, and the Distribution of Pollution: The Effect of Increased U.S. Paper Recycling on U.S. Import Demand for Canadian Paper
Authors: Michael Jeffrey A.
Published: July 2016

The quantity of paper recycled in the U.S. has more than doubled since 1985. International trade theory predicts that this will lead to reduced imports of paper, and a shift in domestic production toward waste paper intensive outputs (e.g., newsprint) and away from higher grade products such as printing/writing paper. Import demand elasticities with respect to input prices were estimated for newsprint, printing/writing, and all paper utilizing 20 years of monthly data. The empirical results confirm the predictions of theory, and illustrate a channel through which recycling may be more beneficial for U.S. industry than the domestic environment.
An Examination of Trends in Geographic Concentration in U.S. Hog Production, 1974–96
Authors: Hubbell Bryan J. , Welsh Rick
Published: July 2016

Geographic concentration in U.S. hog production from 1974-96 is investigated using a measure based on Theil's entropy index. For the U.S. as a whole, geographic concentration is occurring at a slow rate, both for hog farms and hog numbers. However, for particular states, primarily in the new Southern Atlantic production region, concentration is high and increasing at a rapid pace. Concentration was increasing for the 23-year period for 16 out of the 20 states in the analysis. Results indicate that geographic concentration by augmentation is occurring to the greatest degree in Arkansas, Missouri, North Carolina, Oklahoma, and Pennsylvania.
Regional Economic Growth and Income Distribution: County-Level Evidence from the U.S. South
Authors: Ngarambé Octavian , Goetz Stephan J. , Debertin David L.
Published: July 2016

Changes in income distribution are estimated for the U.S. South over the 1970 and 1980 decades using Gini coefficients for county-level, real family income. To explicitly investigate causal relationships between economic growth and inequality, a two-stage least squares model was estimated. In the 1970s, more rapid increases in inequality were associated with a reduced income growth rate, ceteris paribus, while in the 1980s, the opposite was true. Faster rates of income growth were associated with more rapid increases in inequality during the 1980s, but rates of income growth had no effect on changes in inequality during the 1970s.
A Note on Fixing Misbehaving Mathematical Programs: Post-Optimality Procedures and GAMS-Related Software
Authors: McCarl Bruce A.
Published: July 2016

Mathematical programming formulations can yield faulty answers. Models can be unbounded, infeasible, or optimal with unrealistic answers. This article presents techniques for theory-based discovery of the cause of faulty models. The approaches are demonstrated in the context of linear programming. They have been computerized and interfaced using the General Algebraic Modeling System (GAMS), and are distributed free of charge through new GAMS versions and an online web page.
Does FCS Association Size Affect Credit Availability?
Authors: Dodson Charles , Duncan Marvin
Published: July 2016

An analysis of the characteristics of farm businesses by size of FCS direct lending association suggests that further consolidation of FCS lending should have limited negative impacts on credit availability. Commercial-sized farm businesses with FCS real estate debt appeared similar to those who obtained credit from competing lenders, but smaller associations and those with fewer stockholders per branch appeared to serve larger and more wealthy commercial-sized farms.
The Changing Political Environment for Tobacco—Implications for Southern Tobacco Farmers, Rural Economies, Taxpayers, and Consumers: Discussion
Authors: Sutton Russell W.
Published: July 2016

This paper is a discussion of the Brown, Snell, and Tiller article. The economic accuracy, conciseness, and organization is noteworthy with the major strength being the analysis of the tobacco system with the absence of a Federal program. The base paper discusses economic consequences of the U.S. tobacco program, within-industry structural differences, and recent/potential future changes such as the buy-out, industry uncertainty, and the possibility of program elimination.
The Economic Impact of the Mercedes Benz Investment on the State of Alabama
Authors: Kebede Ellene , Ngandu Mudiayi Sylvain
Published: July 2016

As part of its strategy to attract new businesses, in 1994 the State of Alabama won the Mercedes Benz bid to establish an automobile assembly plant in Vance, Tuscaloosa County, Alabama at the cost of $222 to $253 million worth of incentives. The study assessed the economic impact of the Mercedes Benz investment using IMPLAN. The IMPLAN industry code 49, industrial construction, and industry code 384, motor vehicle, were used to project the impact of the investment for the construction and production phases respectively. The results from four scenarios indicated that the investment would generate sizable direct and indirect employment, income, output, and tax revenue for the state economy. From the estimated revenue, the pay-out period for the cost of the incentive would be from four to seven years. The scenarios also indicated that the increase in the volume of locally purchased automobile parts will increase the multiplier effects for the state economy. Currently, the direct benefits from suppliers accrue to other states with established suppliers networks. The finding also suggested a heavy concentration of the impact of Mercedes Benz plant in the north and northeast part of the state. These counties were also the beneficiaries of past agglomeration economies in terms of critical physical infrastructure and human resource development.
Hedging with Futures and Options under a Truncated Cash Price Distribution
Authors: Hanson Steven D. , Myers Robert J. , Hilker James H.
Published: July 2016

Many agricultural producers face cash price distributions that are effectively truncated at a lower limit through participation in farm programs designed to support farm prices and incomes. For example, the 1996 Federal Agricultural Improvement Act (FAIR) makes many producers eligible to obtain marketing loans which truncate their cash price realization at the loan rate, while allowing market prices to freely equilibrate supply and demand. This paper studies the effects of truncated cash price distributions on the optimal use of futures and options. The results show that truncation in the cash price distribution facing an individual producer provides incentives to trade options as well as futures. We derive optimal futures and options trading rules under a range of different truncation scenarios. Empirical results highlight the impacts of basis risk and yield risk on the optimal futures and options portfolio.
The Supply of Storage under Heterogeneous Expectations
Authors: Frechette Darren L.
Published: July 2016

Expected prices for storable commodities often lie below spot prices plus interest and marginal storage charges. Recently this gap has been explained as the value of a call option held by a representative storer whenever a positive probability exists that stocks could dwindle to zero. However, the probability of an aggregate stock-out is effectively zero in most markets most of the time. This paper presents an alternative model that explains the gap as an equilibrium between fundamentals traders and noise traders. Applications of the model suggest that rational agents make up 84 percent of the U.S. copper market, and more than 95 percent of the corn and wheat markets.
Leading Indicators of Regional Cotton Acreage Response: Structural and Time Series Modeling Results
Authors: Houston Jack E. , McIntosh Christopher S. , Stavriotis Paul A. , Turner Steve C.
Published: July 2016

Resurgent cotton production compels better acreage forecasts for planning seed, chemical, and other input requirements. Structural models describe leading acreage response indicators, and forecasts are compared to time-series models. Cotton price, loan rate, deficiency payments, lagged corn acreage, the PIK program, and previous cotton yield significantly influence cotton acreage response.
An Analysis of Online Examinations in College Courses
Authors: Barkley Andrew P.
Published: July 2016

This research evaluates the use of online examinations in college courses from both instructor and student perspectives. Instructional software was developed at Kansas State University to administer online homework assignments and examinations. Survey data were collected from two classes to measure and evaluate the level of student preferences for online examinations. The statistical determinants of student preferences for online testing were identified and quantified using logistic regression analysis. Strategies for the effective use of online examinations are summarized for potential adopters of online examinations.
The Information Age University?
Authors: Reinschmiedt Lynn L.
Published: July 2016

As a preface to my comments today, I challenge you to consider the following questions. Do the information age technological changes now taking place have the potential to disrupt, or even destroy, the university as we know it? Do these changes have the potential to force restructuring of the land-grant system? My comments today will address these questions. In doing so, however, I will not address problems facing the land-grant system or the agricultural economics profession per se, other than those we face as a part of the overall system of higher education. Others are doing that or have addressed those more unique problems elsewhere. A major National Research Council (NRC) initiative is now examining the relevancy of the land-grant system in the context of today's society; the W. K. Kellogg Foundation has funded an initiative to facilitate positive change within the land-grant system (Warner); and Eidman, in his 1995 American Agricultural Economics Association presidential address, summarized key concerns and issues facing the agricultural economics profession and how we are responding to them. I contend that overlaying the NRC and Eidman concerns is a series of fundamental changes taking place that has the potential to drastically modify the higher education model as we presently know and understand it.
Economic Analysis and the Shaping of Public Policy: A 1995 Farm Bill Perspective
Authors: O'Brien Patrick
Published: July 2016

The 1995 Farm Bill debate proved different than many economists expected. It was overwhelmingly budget-driven. Few early concerns about the role of government, efficiency, equity, competitiveness, environment, rural development, and food were addressed. Economic analysis played a different role than anticipated. Models of who and how farm policy is made proved misleading; the debate circumvented the traditional process. Economic models were used more to perform budget accounting than substantive analysis. And their substantive analyses often failed to capture the attention of policymakers. Hence, while a reformist economist's dream, the bill leaves as many issues unanswered as it addresses.
Alternatives for Small Farm Survival: Government Policies Versus the Free Market: Discussion
Authors: Ahearn Mary C.
Published: July 2016

The topic of the relationship between sustainability and farm structure, including the role of government, is extremely timely. It is so timely, in fact, that economists have significantly more questions about these relationships than we do answers. Farm policy, with its emphasis on commodity production, is clearly at a turning point; perhaps this is the most critical time since the basic policies were established some 60 years ago. The Tweeten and Amponsah paper makes a contribution to our understanding of this sea of change in the policy arena and the likely impacts on small farms.
Environmental Regulatory Reform and the Unholy Trinity: Unfunded Mandates, Risk Assessment, and Property Rights
Authors: Infanger Craig L.
Published: July 2016

Major regulatory reform issues which involve environmental policy include issues of unfunded mandates, risk assessment, and property rights. Each of these proposed reforms involves major changes in environmental policies with impacts on different groups. Property rights is the core issue in Congress and state legislatures, with both regulatory takings and just compensation being the major parameters. Economists can participate effectively in this policy debate with successful research and education programs addressing the divisive issues.
Environmental Regulatory Reform: Discussion
Authors: Park William M.
Published: July 2016

Carriker, Infanger, and Shabman and Stephenson have provided a set of papers related to the current debate over environmental regulatory reform. Each paper stands alone as a distinct and valuable contribution to the literature on this subject. Yet as a set they complement one another and form a whole that is greater than the sum of its parts.

Carriker, in his comprehensive overview of federal environmental policy in the U.S., painstakingly describes the origins, evolution, and impacts of nine major pieces of environmental legislation, and thus sets the stage for discussion of current issues and professional perspectives in the other two papers. Carriker's paper is well documented and should also serve as a good primer for students taking natural resource and environmental economics courses or contemplating graduate research in this area.
Effect of Liberalized U.S.-Mexico Dry Onion Trade: A Spatial and Intertemporal Equilibrium Analysis
Authors: Fuller Stephen , Gillis Melanie , Ziari Houshmand A.
Published: July 2016

A spatial, intertemporal equilibrium model of the North American dry onion economy is constructed to analyze the impact of liberalized U.S.-Mexico trade. In a free-trade environment, exports of Mexican onions to the U.S. are projected to increase about 50%, while Mexico's share of the U.S. market increases from 8.7 to 12.8%. Farm-level prices in the U.S. are projected to decline 8.9%, while production declines 2.4%. The effect of free trade on U.S. producers is disproportional across regions. Northwest storage onion producers experience the greatest decline in production; however, analysis suggests that improved storage methods may offset a portion of the unfavorable impacts of liberalized trade on these producers. In spite of the unfavorable impact of free trade on U.S. dry onion producers, the industry would not be economically devastated.
Energy Supplementation Strategies for Wheat Pasture Stocker Cattle Under Uncertain Forage Availability
Authors: Coulibaly Nouhoun , Bernardo Daniel J. , Horn Gerald W.
Published: July 2016

Energy supplementation provides a means of reducing production risk of growing stocker cattle on winter wheat pasture. This study addresses the issue of risk aversion and energy supplement input use. Differences in supplementation practices induced by risk aversion and the effects of cattle and feed market conditions are examined. Results show that supplementation practices are likely to be similar across producers, irrespective of their risk attitudes. Cattle and feed market conditions, however, markedly affect supplementation practices. These findings provide information for assisting stockmen in identifying efficient supplementation strategies.
“Economic Correctness” and Agricultural Economics
Authors: Christy Ralph D.
Published: July 2016

This address is directed toward applied economists as they provide information to private and public decision makers. Central to this discussion is the role of markets as institutions in achieving society's desired ends. Current “economic correctness”–the view that unfettered markets are superior in achieving efficiency, growth, and welfare-has attempted to return a larger role to the private sector, but the relative roles of market-oriented versus government-oriented solutions to problems are often not well appraised. Views presented herein calls for agricultural economists to move simultaneously toward an understanding of the strategic behavior of firms in imperfectly competitive markets and toward an adoption of policy analysis consistent with a socially complex and globally integrated economy.
Structural Change in Higher Education: Implications for Research
Authors: Schweikhardt David B.
Published: July 2016

The political and economic environment in which agricultural research is conducted is changing. The methods of funding research are changing, food markets are international in scope, and the public is demanding greater accountability in higher education. These trends are creating new tensions within the agricultural research system, and the heightening of these tensions requires that a new equilibrium be established between the system's public mission and the competing public demands on the system (Danbom). This new equilibrium will determine the structure and performance of the agricultural research system in the coming decade.
On the Existence of Stable Equilibria in Agriculture
Authors: Goetz Stephan J.
Published: July 2016

Problems of instability and disequilibrium in U.S. agriculture are synthesized within a single conceptual framework. Agricultural and non-agricultural sector offer curves are used to illustrate why it may not be feasible to achieve and maintain equilibrium and price stability in U.S. agriculture. Empirical evidence on resource disequilibrium and instability in the ratio of prices paid and received by farmers is presented.
Output Change in U.S. Agriculture: An Input-Output Analysis
Authors: Holland D. W. , Martin R. P.
Published: July 2016

This paper analyzes output changes in the U.S. agricultural economy from 1972 to 1977 using a 477-sector input-output framework. The empirical model is based on benchmark input-output data from the U.S. Bureau of Economic Analysis for 1972 and 1977. Output changes were decomposed into components attributable to technical change, domestic final demand change, export demand change and import substitution. A major advantage of the decomposition is its ability to identify the output change in a given sector due to general equilibrium effects in all sectors.
Economic Incentives for PST Adoption by Midwest Hog Producers
Authors: Richardson James W. , Anderson David P. , Peel Derrell S. , Phillips Mike
Published: July 2016

A whole-farm simulation model is used to analyze the impacts of PST adoption on representative farms in Missouri and Indiana. Farmers who do not adopt experience lower average annual net cash farm incomes than adopters. Lower feed prices and/or an average PST/feed response decrease the incentive to adopt. Payment of a 5 percent carcass merit premium (CMP) and/or higher grain prices greatly increase the economic incentive to adopt.
Multidimensional Evaluation of Flexible Functional Forms for Production Analysis
Authors: Ornelas Fermin S. , Shumway C. Richard
Published: July 2016

Several common flexible functional forms are evaluated for Texas agricultural production utilizing three procedures. Nested hypothesis tests indicate that the normalized quadratic is the marginally-preferred functional form followed by the generalized Leontief. Predictive accuracy results are ambiguous between the generalized Leontief and the normalized quadratic. Statistical performance favors the normalized quadratic. These two functional forms consistently dominate the translog.
Measuring Use Value from Recreation Participation: Comment
Authors: English Donald B. K. , Bowker J. M.
Published: July 2016

In a recent article in this Journal, Whitehead (1992) presents a method for estimating annual economic surplus for recreation trips to a natural resource site based on whether an individual participates in recreation at that site. Whitehead proposes his method as an alternative to the traditional two-stage travel cost approach. We contend that Whitehead's method contains two serious problems. The first is theoretical, and results in an overstatement of the value of recreation trips. The second is empirical, and pertains to the likely misspecification of his model in failing to incorporate what we feel is important sample information. We address these issues in order.
Agribusiness Industry Expectations of Computer Skills of Agricultural Economics and Agribusiness Students
Authors: Litzenberg Kerry K.
Published: July 2016

The Agricultural Economics profession has been using computer technology in their research, extension and teaching program for over three decades. However, commonly accepted nomenclature for the types and levels of computer skills required of students by agribusiness employers has not been developed. This paper provides a framework for agricultural economics and agribusiness instructors to both plan and evaluate the type and levels of computer skills being taught to graduates of their program.
Price Incentives for Commercial Fresh Tomatoes
Authors: Bierlen Ralph , Grunewald Orlen
Published: July 2016

Hedonic price models are estimated to determine if there are incentives to supply higher quality tomatoes. Price premiums are associated with extra-large tomatoes originating from shipping points located closer to consumption points. Price differences between mature-green and vine-ripe tomatoes are not significant. Vine-ripe tomatoes are favored by consumers in the summer while mature-green tomatoes are favored the rest of the year. The U.S. Department of Agriculture should consider changing the present tomato grading system, which is based on shape and smoothness, to include a flavor indicator based on harvest maturity.
The U.S. Position in the Millennium Round of Multilateral Trade Negotiation
Authors: McKinnell Cathy S.
Published: July 2016

Soon after the implementation of the Uruguay Round, U.S. agricultural exports reached their highest level. Now many things, including exchange rates, factor into any rise in exports, but almost all economists agree that lowering trade barriers through trade agreements has been a critical factor. The vast majority— 96 percent—of potential customers for U.S. products, including agricultural products, live outside the United States. We must work to increase our opportunities to sell into these global markets.
The Impact of Promotion and Advertising: A Latent Class Approach
Authors: Richards Timothy J.
Published: July 2016

Typically, marketers define market segments by their demographic characteristics, assuming that these segments represent consumers with relatively homogeneous buying patterns. A more managerially useful definition, however, groups consumers of similar behavior directly and then seeks to find demographic commonalities among them. This study uses a latent class analysis technique to segment consumers based on their responsiveness to a set of marketing variables, finding that a multiple-segment model provides a better fit to the data, and that these segments differ significantly in their responsiveness. By targeting marketing activities to their most responsive segments, the efficiency of commodity promotion can be dramatically improved.
Social Capital and Economic Growth: A County-Level Analysis
Authors: Rupasingha Anil , Goetz Stephan J. , Freshwater David
Published: July 2016

The effect of social capital on economic growth is examined using linear regression analysis and U.S. county-level data. Results reveal that social capital has a statistically significant, independent positive effect on the rate of per-capita income growth.
Evaluating the Short- and Long-run Economic Impacts of the Virginia-Maryland Regional College of Veterinary Medicine
Authors: Liu Binzhang , Kshirsagar Shukla , Johnson Thomas , Thatcher Craig , Norton George W.
Published: July 2016

Colleges of veterinary medicine are often asked to provide evidence of the economic impacts of their activities. This paper presents methods for evaluating a veterinary college and applies them to the Virginia-Maryland Regional College of Veterinary Medicine. It assesses short-run impacts on income and employment using input-output analysis. Long-run benefits are estimated using a combination of economic surplus analysis, travel cost analysis and demand estimation, animal-owner willingness-to-pay based on a survey of practicing veterinarians, and earnings differentials.
Risk and Site Factors Affecting Potential Nitrogen Delivery in the Virginia Coastal Plain
Authors: Peng Wei , Bosch Darrell J.
Published: July 2016

The effects of cropland slope, distance to surface water, farmers' risk attitudes, and farmers' nitrogen (N) fertilizer applications on potential N delivery to streams and costs of reducing N delivery were evaluated for a representative Virginia peanut-cotton farm. Target MOTAD and generalized stochastic dominance were used to select preferred plans for different levels of risk aversion. Costs of reducing N delivery were lower on farms where fields were located close to surface water, where N was overapplied relative to extension fertilizer recommendations, and where the operator was risk averse. Cropland slope had less effect on cost of reducing N delivery relative to other factors.
Education and Socioeconomic Weil-Being in Racially Diverse Rural Counties
Authors: Mykerezi Elton , Mills Bradford , Gomes Sonya
Published: July 2016

This paper examines trends in the socioeconomic well-being in rural counties where Black residents represent one third or more of the population. These racially diverse rural counties (RDRCs) are located exclusively in the rural South and generally have low levels of economic well-being. On a positive note, college education levels in RDRCs are found to have increased rapidly between 1990 and 2000. Regression analysis suggests that these increases were in part due to the concentration of Historically Black Colleges and Universities in the region. Local investments in K-12 education are also found to be linked to county education levels.
A Path Dependency and Cluster Competitiveness Framework to Examine Regional Marketing Systems and Conflicts
Authors: Woods Timothy , Cook Roberta
Published: July 2016

This paper develops a framework for competitiveness that incorporates path dependency within production regions. Patterns of technological innovation, product development, institutions, and market orientation follow a certain local path. This evolution creates regional economies that emerge with unexpected competitive advantage. The model draws on previous work looking at, among other things, induced innovation. The framework is applied here to the major regional tomato producers in North America. The paper examines the role of various institutions (grower associations, governments, research institutions, and support industry) in influencing the path along which a regional sector evolves.
Impacts of Sample Size and Quality-Adjusted Imputed Prices on Own-Price Elasticities Estimated Using Cross-Sectional Data
Authors: Stockton Matthew C.
Published: July 2016

Cross-sectional data sets containing expenditure and quantity information are typically used to calculate quality-adjusted imputed prices. Do sample size and quality adjustment of price statistically alter estimates for own-price elasticities? This paper employs a data set pertaining to three food categories—pork, cheese, and food away from home—with four sample sizes for each food category. Twelve sample sizes were used for both adjusted and unadjusted prices to derive elasticities. No statistical differences were found between own-price elasticities among sample sizes. However, elasticities that were based on adjusted price imputations were significantly different from those that were based on unadjusted prices.
Factors Influencing Demand for a Producer-Owned Beef Retail Outlet
Authors: Lusk Jayson L. , Cevallos Edgar
Published: July 2016

As the farm-to-retail price spread continues to grow, some cattle producers are beginning to consider integrating into the retail sector. Such a venture would require large investments in capital with uncertain return. This study seeks to determine the potential success of a stand-alone retail outlet selling “all natural” beef in an affluent area of Jackson, MS. Using choice-based conjoint analysis, demand for the new retail outlet is modeled as a function of the beef price at the store, distance of the store from consumers' homes, distance of the store from consumers' typical grocery store, and price of beef at substitute grocery stores. Simulation results suggest the proposed outlet could be a profitable venture, depending upon location and beef price.
Market Valuation of Preconditioning Feeder Calves
Authors: Avent R. Keith , Ward Clement E. , Lalman David L.
Published: July 2016

Preconditioning calf programs, while not new, are becoming more prevalent. They provide benefits to cow-calf producers while adding value for feeder cattle buyers. However, questions remain regarding the economic costs and returns of such programs. A model was estimated with data from three consecutive-day sales, to determine the value that buyers place on preconditioning programs and related feeder cattle traits. Our results indicate that price premiums, although evident, appear to be insufficient by themselves to cover the marginal costs of preconditioning.
Consumers' Valuation of GMO Segregation Programs in Japan
Authors: Matsumoto Shigeru
Published: July 2016

The contingent valuation method was used to elicit Japanese consumers' willingness-to-pay for genetically modified organism (GMO) segregation programs. The results revealed that most consumers pay nonnegligible premiums for products produced under strict GMO-segregation programs. However, we found that the premium did not vary by the threshold level of GMO content in the product. We further found that a government certification did not increase the premium for GMO-segregation programs. Therefore, an additional mandatory regulation to reduce GMO contaminations would not be worthwhile because such a regulation would incur substantial enforcement costs.
Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act
Authors: Nadolnyak Denis A. , Fletcher Stanley M. , Hartarska Valentina M.
Published: July 2016

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.
West Virginia Farm Direct Marketing: A County Level Analysis
Authors: Brown Cheryl , Gandee Jesse E. , D'Souza Gerard
Published: July 2016

To understand the factors that influence farm direct marketing, a linear regression model is estimated to test the relationships between county-level direct market sales and socioeconomic, agricultural production, and location characteristics for West Virginia. The results show that higher median housing value, increased population density, a younger population, a greater number of direct market farms, more diversity of fruit and vegetable production and closer proximity to Washington, D.C., increase direct market sales. The results have implications for other states with a large proportion of small and part-time farmers, many of whom are located in close proximity to metropolitan areas.