bluuebunny/crossref_metadata_2025 huggingface dataset:
Drivers of Resident Support for Animal Care Oriented Ballot Initiatives
Authors: Tonsor Glynn T. , Wolf Christopher A.
Published: July 2016

Recent high profile incidents and public debates in the United States have highlighted the increasing interest residents have regarding animal rearing and handling practices. This paper examines resident support for national legislation that mirrors Proposition 2, which in November 2008 passed in California. Results suggest perceptions regarding animal welfare information accuracy of livestock industry and consumer groups are particularly influential determinants of voting behavior and demand. The analysis also suggests residents may not fully appreciate price or tax implications when supporting additional animal welfare legislation. Implications for livestock industry and policy makers are provided along with suggestions for additional research.
Discussion: Revisiting Macroeconomic Linkages to Agriculture: The Impact of Macroeconomic Variables and the Oil Sector on Farm Prices and Income
Authors: Penson John B.
Published: July 2016

Periodically, events occur in the domestic and global economies that remind agricultural economists that macroeconomics matter. This was evident in the early 1980s when the Federal Reserve responded to double-digit inflation by driving interest rates to post-World War II period highs. The Asian financial crisis in the late 1990s, rising oil prices this past decade, and current stress in domestic and overseas financial markets serve to remind us again that externalities can have an effect on the economic performance and financial strength of U.S. agriculture. These effects are transmitted through interest rates, inflation, unemployment, real gross domestic product, and exchange rates.
The Mexican Animal Identification System: Current Situation, Problems, and Potential
Authors: Ortega Carlos , Peel Derrell S.
Published: July 2016

Mexico initiated a federal animal identification (ID) system (SINIIGA) in 2003. The program is administered by an agency of the federal Department of Agriculture (SAGARPA) and has been used primarily to support a federal subsidy program for livestock producers. The program is conceptually well designed, but implementation thus far falls short of the potential and needs, most importantly in animal disease management. Although substantial numbers of animals have been tagged, relatively little progress has been made in developing a usable animal ID information system. Animal health officials currently are not actively involved in the development and use of the system.
Development and Implementation of a Mandatory Animal Identification System: The Canadian Experience
Authors: Carlberg Jared G.
Published: July 2016

This article provides a brief history of the animal identification (ID) system that previously existed in Canada along with details on efforts to “reidentify” the country's cattle herd. The current state of ID for various species is summarized, and the state of regulations federally and for major agricultural province are outlined. A short background on the economics of animal ID is provided. Particular attention is paid to the operation of the Canadian Cattle Identification Agency, an industry-government initiative charged with identifying the national cattle herd. The animal ID system in Canada is found to have performed well when called on in times of animal health crises, although there have been notable deficiencies in its performance on occasion. Canada's animal ID system will continue to evolve as new technologies for tagging and database management (among others) are developed. It is expected the system will play an important role in future attempts to exploit traceability for value-added initiatives.
Contributions of U.S. Crop Subsidies to Biofuel and Related Markets
Authors: Devadoss Stephen , Bayham Jude
Published: July 2016

The U.S. crop subsidies provide incentives for farmers to expand feedstock production, which benefits the biofuel producers by lowering input costs. This study develops a general equilibrium model to analyze the effects of a reduction in the U.S. crop subsidy on biofuel industries and social welfare. The impacts of feedstock policies on the biofuel market are marginal. In contrast, the biofuel mandate has a larger impact and counteracts the effects of the crop subsidy reduction. The mandate increases the demand for feedstock and causes not only grain ethanol, but also cellulosic ethanol production to rise. The mandate exacerbates the distortion, and government spending increases significantly, leading to greater welfare loss.
A Return of the Threshing Ring? A Case Study of Machinery and Labor-Sharing in Midwestern Farms
Authors: Artz Georgeanne , Colson Gregory , Ginder Roger
Published: July 2016

Machinery-sharing provides an alternative for smaller producers to obtain the efficiencies of large farming operations and remain competitive in an increasingly concentrated agricultural industry. This research uses a multiple case study design to examine the motivations for sharing equipment and labor among farms and to better understand how group members handle the transaction costs of sharing. Our case evidence finds that in addition to cost savings, access to reliable labor is an important motivation for participating in a sharing arrangement. Trust and frequent communication among group members helps to minimize the transaction costs incurred from sharing.
Panel Data Estimation Methods on Supply and Demand Elasticities: The Case of Cotton in Greece
Authors: Kotakou Christina
Published: July 2016

This article examines the effects of the application of panel data estimation methods on a system of equations with unbalanced panel data. We apply pooled, random-effects, and fixed-effects estimation in three data sets: small, medium, and large farms to examine the relationship between farm size and the elasticity of cotton supply with respect to cotton price. Our results indicate that the adoption of various estimation methods entails different estimated parameters both in terms of their absolute value and in terms of their statistical significance. Additionally, the elasticity of cotton supply with respect to price varies according to farm size.
The Genetic and Economic Impact of the University of Arkansas's Rice Breeding Program: 1983-2007
Authors: Nalley L. Lanier , Moldenhauer Karen A. , Lyman Nate
Published: July 2016

This study estimates the proportion of rice yield increase in University of Arkansas Division of Agriculture's (UofA) released rice cultivars that are attributable to genetic improvements through the University's breeding program. Test plot data from eight UofA experiment stations were used to quantify the yield increases and potential yield growth decreases over time. In addition to quantifying the yield and yield variance evolution at the UofA, this study also calculates the economic benefits of the UofA rice breeding program. Results indicated that by releasing modern rice cultivars, the UofA rice breeding program increased average producer yield by 0.68 bu/ac annually. During the last decade, 1997-2007, the average annual economic benefits were 34.3 million (2007) dollars. When accounting for the spillover of UofA rice varieties to neighboring states the average annual economic benefit of the breeding program increases to 46.7 million (2007) dollars.
Disentangling Access and View Amenities in Access-Restricted Coastal Residential Communities
Authors: Morgan O. Ashton , Hamilton Stuart E.
Published: July 2016

In coastal communities with uniform flood risk, amenity value is comprised of two components – view and access. Having controlled for view, it is assumed that any residual amenity value represents the benefit derived from accessing the beach for leisure/recreational purposes. However, as properties closer to the beach typically have improved viewsheds, the two amenities are highly correlated, and disentangling view and access is problematical. A spatial autoregressive hedonic model captures ease of beach access via a network distance parameter that varies independently from property viewshed, collinearity effects are mitigated, and access and view can be disentangled.
Spatial Approaches to Panel Data in Agricultural Economics: A Climate Change Application
Authors: Baylis Kathy , Paulson Nicholas D. , Piras Gianfranco
Published: July 2016

Panel data are used in almost all subfields of the agricultural economics profession. Furthermore, many research areas have an important spatial dimension. This article discusses some of the recent contributions made in the evolving theoretical and empirical literature on spatial econometric methods for panel data. We then illustrate some of these tools within a climate change application using a hedonic model of farmland values and panel data. Estimates for the model are provided across a range of nonspatial and spatial estimators, including spatial error and spatial lag models with fixed and random effects extensions. Given the importance of location and extensive use of panel data in many subfields of agricultural economics, these recently developed spatial panel methods hold great potential for applied researchers.
Policies to Facilitate Conversion of Millions of Acres to the Production of Biofuel Feedstock
Authors: Epplin Francis M. , Haque Mohua
Published: July 2016

First-generation grain ethanol biofuel has affected the historical excess capacity problem in U.S. agriculture. Second-generation cellulosic ethanol biofuel has had difficulty achieving cost-competitiveness. Third-generation drop-in biofuels are under development. If lignocellulosic biomass from perennial grasses becomes the feedstock of choice for second- and third-generation biorefineries, an integrated system could evolve in which a biorefinery directly manages feedstock production, harvest, storage, and delivery. Modeling was conducted to determine the potential economic benefits from an integrated system. Relatively low-cost public policies that could be implemented to facilitate economic efficiency are proposed.
Modeling Interactions of a Carbon Offset Policy and Biomass Markets on Crop Allocations
Authors: Popp Michael , Nalley Lawton Lanier
Published: July 2016

Arkansas cropping pattern changes at the county level were estimated under various scenarios involving a likely decline in water availability, the development of a biomass market for renewable energy production, and the potential of a widely used carbon offset market. These scenarios are analyzed separately and jointly to determine which of the three scenarios is expected to have the largest impact on net (emissions - sequestration) greenhouse gas (GHG) emissions, renewable fuels feedstock supply, and producer net returns. Land use choices included conventional crops of rice, cotton, soybean, corn, grain sorghum, pasture, and hay. Specialty crops of loblolly pine and switchgrass were modeled for their respective potential to sequester carbon and provide feedstock for renewable fuels. GHG emissions were measured across an array of production methods for each crop. Soil and lumber carbon sequestration was based on yield, soil texture, and tillage. Using the concept of additionality in which net GHG emissions reductions compared with a baseline level were rewarded at a carbon price of $15 per ton along with $40 per dry ton of switchgrass, baled at field side, revealed that irrigation restrictions had the largest negative impact on producer net returns while also lowering net GHG emissions. Introducing the higher carbon price led to minor positive income ramifications and greatly reduced net GHG emissions. Biomass production returns were higher than the returns from the carbon offset market, however, at the cost of greater net GHG emissions. The combination of all factors led to a significant increase in switchgrass and pine production. In this scenario, approximately 16% of the total income losses with lower nonirrigated yields were offset with returns from biomass and carbon markets. Lowest statewide net GHG emissions were achieved given least irrigation fuel use and a greater than 15% increase in carbon sequestration with pine and switchgrass.
Marketing Promotion of Texas Agricultural Products: The Rural Dimension of the GO TEXAN Program
Authors: Malaga Jaime , Xu Bin , Martinez-Mejia Pablo
Published: July 2016

The Texas Department of Agriculture launched the GO TEXAN marketing promotion program in 1999 to support Texas agricultural and food production. The underlying assumption is that if successful, the program would support directly or indirectly the demand for Texas agricultural production and the well-being of the state's rural population. This research analyzes responses to an official 2008 survey sent to the GO TEXAN program beneficiaries. Overall, this study suggests that not all activities in the program have a clearly positive impact. Participation in trade shows, retail promotion and media events, and reverse trade missions seem to have a significant effect on sales increase as well as the use of the program logo on promotional items and web sites. The study also suggests that the relative impacts of event participation and uses of the program logo differ according to the group of member's belonging, particularly when comparing the “mostly rural” vs. “mostly urban” categories. Consequently, if a state's agricultural marketing program specifically attempts to reach producers from its “mainly rural” areas, an analysis may be needed to identify what specific types of promotion seem to generate the best results in those areas.
National, Regional, and State-Level Estimates of Returns to Scale in the Expanded Food and Nutrition Education Program
Authors: Baral Ranju , Davis George C. , You Wen
Published: July 2016

The effectiveness of the Expanded Food and Nutrition Education Program in achieving its goals at the national, regional, and state level is unknown. Using US Department of Agriculture (USDA) data from all states and territories for the years 2000-2006, the impact of program and participant characteristics and returns to scale on the three outcome indicators used by the USDA are estimated. Program and participant characteristics do not seem to be as important as the amount of money spent on the program. Generally speaking, there are constant and increasing returns to scale for two of the three federal outcome indices for most states but not all.
The Price of Disclosure in the Thoroughbred Yearling Market
Authors: Plant Emily J. , Stowe C. Jill
Published: July 2016

In this article, we examine disclosure as a tool to mitigate the effects of asymmetric information in a Thoroughbred yearling market. If disclosures influence market price, information contained therein must be valuable to buyers and hence diminish asymmetric information. Using public auction data, we find that disclosures do not influence price in a segment of the auction in which an implicit quality certification is available. However, in the other segment, we find evidence that some disclosures may provide valuable information to buyers.
Accounting for Externalities in Benefit-Cost Measures: An Analysis of a Land Buyout and Associated Projects to Save the Everglades
Authors: Schmitz Andrew , Kennedy P. Lynn , Hill-Gabriel Julie
Published: July 2016

As part of efforts to restore the Everglades, in 2008, Governor Crist of Florida proposed the acquisition of 187,000 acres of land from the U.S. Sugar Corporation (U.S. Sugar) for this purpose, but the final purchase in August 2010 totaled only 26,800 acres. This article presents the history behind the alternatives, including the buyout of U.S. Sugar land, to improve Florida's water quality and the health of the Everglades. To determine the benefits and costs of several of the U.S. Sugar land buyout proposals, a spatial price equilibrium model of the U.S. sugar market is developed. Within this framework, all the benefit-cost ratios calculated show that the benefits are less than the costs. Our analysis uses the concept of an Environmental Equivalent, which is the dollar amount of environmental benefits needed from the Everglades restoration or water quality projects to generate benefits that are as great as or greater than its costs. Also, we consider, within the context of ex ante vs. ex post benefit-cost analysis, the developments to clean up the Everglades since the U.S. Sugar land purchase.
Bridging the Information Gap with Cost-Effective Dissemination Strategies: The Case of Integrated Pest Management in Bangladesh
Authors: Harris Leah M. , Norton George W. , Karim A.N.M. Rezaul , Alwang Jeffrey , Taylor Daniel B.
Published: July 2016

Cost-effective extension strategies are needed to promote widespread adoption of agricultural technologies in developing countries. Integrated pest management (IPM) practices, for example, can offer economic, health, and environmental benefits but remain largely underused. This study evaluates the current IPM dissemination program implemented by the Bangladesh Department of Agricultural Extension and uses a linear programming model to examine alternative strategies to improve IPM adoption. Results suggest that technology transfer programs may increase their impact by reallocating funding from intensive but costly interpersonal communication methods (i.e., farmer field schools) to less intensive methods (i.e., mass media and field days) that reach broader audiences.
Impacts of Microbial Inoculants as Integrated Pest Management Tools in Apple Production
Authors: Chavez Holcer , Nadolnyak Denis , Kloepper Joseph W.
Published: July 2016

This article analyzes the impacts of microbial inoculant (MI) technology, which is a part of integrated pest management, on the U.S. apple production using farm-level data. To test the likely production impacts suggested by agronomic literature, we estimate a pesticide use function and stochastic production functions with damage control input specification. The results show that although adoption of the MI technology does not reduce the use of pesticides, the technology has a significant positive impact on yields and is associated with higher technical production efficiency rates.
Using a Climate Index to Measure Crop Yield Response
Authors: Cai Ruohong , Mullen Jeffrey D. , Bergstrom John C. , Shurley W. Donald , Wetzstein Michael E.
Published: July 2016

Using principal component analysis, a climate index is developed to estimate the linkage between climate and crop yields. The indices based on three climate projections are then applied to forecast future crop yield responses. We identify spatial heterogeneity of crop yield responses to future climate change across a number of U.S. northern and southern states. The results indicate that future hotter/drier weather conditions will likely have significant negative impacts on southern states, whereas only mild impacts are expected in most northern states.
Are American Farmers Better Off as a Result of Technology Gains?
Authors: Debertin David L.
Published: July 2016

Commercial farmers remain a primary political force in support of publicly-supported research and educational programs to create productivity gains in crop and livestock production. Have the technical productivity gains brought about by both public and private sector research and educational efforts improved the well being of American farmers? A great number of agricultural scientists believe that they have. Studies have attempted to provide estimates of the internal rate of return and benefit/cost ratios for agricultural research and education. The vast majority of these studies estimate a quite favorable internal rate of return and a high productivity for public-sector agricultural research (Huffman and Just, p. 828). But these studies have focused on rates of return to agricultural research and education for society as a whole, without attempting to determine if these gains accrued to farmers, consumers, or perhaps the agribusiness firms who purchase raw farm commodities from farmers or sell them inputs.
An Analysis of the Effects of Feed Ingredient Price Risk on the Selection of Minimum Cost Backgrounding Feed Rations
Authors: Coffey Brian K.
Published: July 2016

The traditional minimum cost feed ration linear programming model is expanded to permit risk management responses to price variability associated with feeding a particular ration across time. The cost minimizing objective function also considers feed costs in a mean-variance (E-V) framework. The model is specified using NRC nutrient requirements and an historic Feedstuffs price series. A decision-maker can choose his/her optimal ration by making tradeoffs between price risk and net income. The results should provide a basis for decision tools that allow livestock producers to manage the net income risk involved in the selection of a feed ration.
Economic Hysteresis in Variety Selection
Authors: Richards Timothy J. , Green Gareth P.
Published: July 2016

Investing in a new perennial crop variety involves an irreversible commitment of capital and generates an uncertain return stream. As a result, the decision to adopt a new variety includes a significant real option value. Waiting for returns to rise above this real option causes a delay in adoption because of economic hysteresis. This study tests for hysteresis in the adoption of wine grape varieties using a sample of district-level data from the state of California. The empirical results show a significant hysteretic effect in wine grape investment, which might be reduced by activities that smooth earnings over time.
Location of Production and Consolidation in the Processing Industry: The Case of Poultry
Authors: Goodwin H.L.
Published: July 2016

The poultry industry is the most vertically integrated of U.S. agriculture and food production and is rapidly progressing toward being one of the most concentrated. In 2002, the top 15 broiler states accounted for 94.4% of U.S. production. From 1982–2002, the top four broiler firms had a fivefold increase in Ready-to-Cook (R-T-C) pounds, a tripling of plants and four- and eight-firm concentration ratio increases of 27.9% to 48.2% and 44.1% to 66.6%. In a broad sense, chicken became more affordable, appealing, and available; total R-T-C pounds increased from 234 to 663 million pounds between 1982 and 2002.
Assessment of Biotechnology Policies and International Trade in Key Markets for U.S. Agriculture
Authors: Marchant Mary A. , Song Baohui
Published: July 2016

The United States leads the world in agricultural biotechnology research, adoption, commercialization, and exports. Our biotech commodities are highly dependent on international markets. Thus, any biotech policy changes by key importing countries may affect U.S. agricultural biotech product exports. This article identifies key markets for U.S. agricultural exports including biotech commodities and discusses current and proposed biotech policies in key markets for U.S. agricultural exports focusing on Canada, Mexico, Japan, the European Union (EU), and China. Among these markets, labeling of biotech products is voluntary in Canada and Mexico but is mandatory in Japan, the EU, and, most recently, in China. For the EU, U.S. corn exports were almost completely shut out, while U.S. soybean exports also declined because of the EU's biotech policies. The World Trade Organization dispute filed by the United States has yet to be finalized. China's biotech regulations raised concern by U.S. agricultural exporters. However, through U.S. Department of Agriculture education programs, U.S.–China negotiations, and China's domestic soybean shortage, China's biotech regulations do not appear to have had long-run impacts on U.S. soybean exports to China.
Financial and Risk Management Assistance: Decision Support for Agriculture
Authors: Klose Steven L. , Outlaw Joe L.
Published: July 2016

The Financial and Risk Management (FARM) Assistance program created by Texas Cooperative Extension is a strategic analysis service offered to farmers and ranchers in Texas. The program serves as an example of large-scale, focused programming by extension agencies, as well as the implementation of technical stochastic simulation methods for use on the farm.
An Exploration of Factors Influencing Ethical and Unethical Behavior in Negotiations
Authors: Perry Gregory M. , Duffy Patricia A. , Nixon Clair J. , Robison Lindon J.
Published: July 2016

The issue of ethics has received little notice in agricultural economics journals. This study utilized a survey technique to reveal the ethical attitudes among some 500 students at four Land Grant Universities. The data were analyzed using multiple regression techniques. Individuals negotiating with strangers were more willing to use questionable ethical tactics. Women, individuals who were cooperative rather than competitive in negotiation situations, and those who regularly attended religious services were consistently less willing to use questionable ethics in negotiation. The size of the individual's hometown and family income had no clear impact on ethical attitudes in negotiations.
Farm Household Income and On- and Off-Farm Diversification
Authors: McNamara Kevin T. , Weiss Christoph
Published: July 2016

The paper analyzes the relationship between off-farm labor allocation and on-farm enterprise diversification as farm household income stabilization strategies with census data from the federal state of Upper Austria, Austria. The results suggest that both on-farm diversification and off-farm labor allocation are related to farm and household characteristics. Larger farms tend to be more diversified. Younger farmers are more likely to work off-farm. Larger farm households tend to allocate more labor to off-farm income activities.
Assessing Consumer Preferences for Country-of-Origin Labeling
Authors: Loureiro Maria L. , Umberger Wendy J.
Published: July 2016

In this paper, we assess consumer willingness to pay for a mandatory country-of-origin labeling (COOL) program applied to beef ribeye steaks, chicken breasts, and pork chops, all labeled as “Certified U.S.” products. A consumer survey was mailed in spring and early summer 2003 to households in the continental United States. Results indicate that consumers are in general very concerned about food safety issues, viewing U.S. meat as the safest among the selection of countries considered. Nevertheless, consumer willingness to pay for Certified U.S. products is relatively small, although above the expected implementation costs associated with a mandatory labeling program. This finding coincides with the fact that only 36% of the sample favored consumers paying directly for the costs related to a mandatory COOL program.
Estimating the Cost of Preserving Private Lands in Florida: An Hedonic Analysis
Authors: Larkin Sherry L. , Alavalapati Janaki R. , Shrestha Ram K.
Published: July 2016

Florida's open-space land-acquisition program is one of most aggressive in the country, with $3.7 billion paid for 3.8 million acres since 1972. Using data from the Conservation and Recreational Lands (CARL) program, hedonic analyses found that acquiring private lands with valuable natural resources, habitat for rare species, and important historical sites for public preservation is more costly. Development potential and pressure also increased acquisition costs. The presence of additional endangered natural elements and needing to contract with additional landowners, however, were found to decrease the cost. Results provide a basis for landowners and land-acquisition agencies to negotiate.
Economic Impacts of EPA's Manure Application Regulations on Dairy Farms with Lagoon Liquid Systems in the Southwest Region
Authors: Huang Wen-yuan , Magleby Richard , Christensen Lee
Published: July 2016

EPA's new restrictions on land application of manure nutrients by concentrated animal feeding operations (CAFOs) could decrease the net return of 6–17% of the medium and large dairy farms with lagoon systems in the southwestern United States. Many of the other dairy CAFOs in the region could achieve higher net income under the restrictions if they reduce feed costs by better utilizing manure and expanding homegrown feed production.
Program Participation Behavior of Nonindustrial Forest Landowners: A Probit Analysis
Authors: Nagubadi Venkatarao , McNamara Kevin T. , Hoover William L. , Mills Walter L.
Published: July 2016

This study provides an analysis of nonindustrial private forest (NIPF) landowners' participation in forestry assistance programs. A probit model was used for data collected from a random sample of 329 Indiana landowners. The analysis revealed that total land owned, commercial reasons for ownership, government sources of information, and membership in forestry organizations influenced NIPF landowners' program participation. Age, fear of loss of property rights, and duration since the first wooded tract was acquired also influenced program participation. Location of landowners' residence on their wooded land and landowners' knowledge of and willingness to participate in a conservation easement influenced the participation in cost-share programs.
Rural-Urban Economic Linkages for Agriculture and Food Processing in the Monroe, Louisiana, Functional Economic Area
Authors: Hughes David W. , Litz Vaneska N.
Published: July 2016

An interregional input-output model of the Monroe, Louisiana, Functional Economic Area constructed with IMPLAN is used to assess economic linkages between a small urban core and a surrounding rural periphery. The contribution of agriculture, especially in the rural periphery, to the urban core (Ouachita Parish) economy is demonstrated. Also assessed is the possibility of using the core's food processing sector to facilitate periphery economic growth. While results demonstrated stronger rural-urban linkages than have been found in other regions, growth in the urban food processing industry, as currently structured, did not imply rapid growth in the periphery.
Sustaining Animal Agriculture and Environmental Quality in the South: What Happened and Why? Discussion
Authors: Thompson Paul B.
Published: July 2016

German social theorist Ulrich Beck has suggested that the political economy of post-industrial society has shifted away from the competition among relatively well-defined social groups for control of benefit streams resulting from technological and organizational innovations that characterized the roughly 200-year period of industrialization. In its place, we find constantly changing aggregates of individuals engaged in temporary or limited alliances competing to affect the distribution of social, environmental, and economic risks. Beck argues that a complex set of forces has brought about this shift. He mentions many oft noted changes in gender and family roles, in employment patterns, and global interdependencies, but two points are especially relevant to me collection of issues that have been discussed in these four papers.
The Potential for Revenue Insurance Policies in the South
Authors: Skees Jerry R. , Harwood Joy , Somwaru Agapi , Perry Janet
Published: July 2016

The 1996 Farm Act and the 1994 Crop Insurance Reform Act are recent examples of policy changes that have increased risks for U.S. farmers. New products are emerging to help farmers manage risks. This article examines some of the policy changes, farmer responses, and new risk-sharing products. The focus turns to the new revenue insurance products and their potential in the South. While there are reasons to believe revenue insurance should be attractive in the South, any revenue products that use existing crop insurance rates will face difficulties since poor actuarial performance in the South has resulted in relatively high rates.
China's Rural Household Demand for Fruit and Vegetables
Authors: Han Tong , Wahl Thomas I.
Published: July 2016

A two-stage budgeting LES-LA/AIDS system is used to estimate rural household demand in China with special emphasis on changes in demand for fruit and vegetable commodities across different income groups. The own-price elasticity for food was found to be more elastic than that for clothing, housing, durable goods, and other items. Within the food group, price elasticities range from –1.042 to –0.019. Grain, with an expenditure elasticity of almost unity, is an important staple food for the average rural household. Vegetables are important nonstaple foods relative to fruits. Lower value vegetables are the most price elastic in the vegetable group. Fruits are more price elastic than vegetables, with grapes being the most price elastic. Different income groups share a common demand function.
Fractional Cointegration and the False Rejection of the Law of One Price in International Commodity Markets
Authors: Mohanty Samarendu , Peterson E. Wesley F. , Smith Darnell B.
Published: July 2016

This study examines the Law of One Price (LOP) in international commodity markets using fractional cointegration analysis. For proper evaluation of the LOP, fractional cointegration analysis seems to be appropriate because of its flexibility in capturing a wider range of mean reversion behavior than standard cointegration analysis. Out of nine pairs of price series examined, fractional cointegration supports the existence of the LOP in eight cases, as compared to three cases using standard cointegration procedures. Overall, these results suggest that there is a long-run tendency for the LOP to hold for commodity prices.
Production Practice Alternatives for Income and Suitable Field Day Risk Management
Authors: Dillon Carl R.
Published: July 2016

Production risk includes yield and days suitable for fieldwork variability. Both were modeled using biophysical simulation and a mean-variance, chance-constrained mathematical programming formulation representing a Kentucky corn, soybean, and wheat producer. While crop diversification, planting date, and maturity group can be used to reduce the types of risk considered, interaction between the two influences how production practices are used to manage risk. For the conditions studied, plant population alterations were less effective for risk reduction of either component. The study provides evidence of the importance of the consideration of both elements of production risk in whole farm planning.
Educational Programs to Address the Economic Adjustments Facing Tobacco Farmers and Rural Communities
Authors: Woods Timothy , Isaacs Steve , Mundy S. Darrell , Givan William
Published: July 2016

This paper discusses the context within which educational programs tailored to tobacco producers and related rural communities have developed. Discussion is expanded by examining current program approaches employed by various organizations. Many of these organizations have a mutual stake in helping producers in tobacco communities develop their management capacity. A range of initiatives aimed at facilitating economic adjustment is compared, including the major issues addressed and expected outcomes. Many of the initiatives have made useful contributions; however, gaps and limitations remain. These are considered as future educational efforts and issues are discussed.
Actuarial Effects of Unit Structure in the U.S. Actual Production History Crop Insurance Program
Authors: Knight Thomas O. , Coble Keith H.
Published: July 2016

This paper examines the effects of optional subdivision on APHP losses for wheat, corn, and soybeans. Thirty-seven state/crop programs are analyzed and the implications of the results are discussed in relation to newly developed crop and revenue insurance programs. The results illustrate the importance of incorporating actuarial experience into the premium rate structure and contract provisions of an insurance program.
Impacts of Globalization on Agricultural Competitiveness: The Case of NAFTA
Authors: Kennedy P. Lynn , Rosson C. Parr
Published: July 2016

Major components of agricultural competitiveness, including definitions, factors, and indicators of competitiveness, are discussed. The case of the North American Free Trade Agreement (NAFTA) is used to illustrate how factors have influenced the competitive position of the NAFTA countries. Traditional neoclassical trade theory is used to evaluate the impact of currency exchange rate fluctuations and trade preferences on agricultural competitiveness. Pre- and post-NAFTA market shares are evaluated for five agricultural commodities of importance to the southern United States. The results of these evaluations are compared with theoretical expectations and discussed with special emphasis on implications for future trade negotiations.
International Trade and Foreign Direct Investment: Substitutes or Complements?
Authors: Marchant Mary A. , Cornell Dyana N. , Koo Won
Published: July 2016

International agricultural trade has evolved over time. Processed foods and developing countries have become major growth markets for U.S. agricultural exports, and foreign direct investment (FDI) has become even more important than exports as a means of accessing foreign markets. The critical question is whether FDI is a substitute for or a complement of exports. This research builds upon an existing theoretical FDI model and contributes to the literature through the development of a simultaneous equation system for FDI and exports, which is estimated using two-stage least squares. Empirical analyses were used to examine the relationship between U.S. FDI and exports of processed foods into East Asian countries-China, Japan, Singapore, South Korea, and Taiwan-from 1989 to 1998. The results indicated a complementary relationship between FDI and exports. Additionally, these results indicated that interest rates, exchange rates, gross domestic product (GDP), and compensation rates are important variables that influence U.S. FDI in East Asian countries, while GDP, exchange rates, and export prices are important export determinants.
The Production Theory Approach to Import Demand Analysis: A Comparison of the Rotterdam Model and the Differential Production Approach
Authors: Washington Andrew A. , Kilmer Richard L.
Published: July 2016

Results indicate that, when comparing the unconditional derived-demand elasticities to the unconditional consumer demand elasticities, significant differences emerge due to the differences in the first-stage estimation procedure between the differential production approach and the Rotterdam model. In comparing the consumer demand price/cross-price elasticities to the derived-demand price/cross-price elasticities, it is clear that use of the Rotterdam model when a production approach should be used can lead to overestimation, underestimation, and incorrect signs in deriving unconditional price effects.
Economic Impacts of Banning Subtherapeutic Use of Antibiotics in Swine Production
Authors: Brorsen B. Wade , Lehenbauer Terry , Ji Dasheng , Connor Joe
Published: July 2016

Public health officials and physicians are concerned about possible development of bacterial resistance and potential effects on human health that may be related to the use of antimicrobial agents in livestock feed. The focus of this research is aimed at determining the economic effects that subtherapeutic bans of antimicrobials would have on both swine producers and consumers. The results show that a ban on growth promotants for swine would be costly, totaling $242.5 million annually, with swine producers sharing the larger portion in the short run and consumers sharing the larger portion in the long run.
Small Farms and Sustainable Development: Is Small More Sustainable?
Authors: D'Souza Gerard , Ikerd John
Published: July 2016

A new, post-industrial, paradigm for agriculture is emerging under the concept of sustainable agriculture. The sustainability paradigm has emerged to solve problems created by the industrial model, primarily environmental pollution and resource base degradation. The role of farm size in this transformation to a more sustainable agriculture is the issue addressed. Using a descriptive approach, and relying on a survey of the literature including emerging paradigms and observations, we conclude that, from a sustainability perspective, the smallest effective size will be the most competitive size for farms, as for other knowledge-based enterprises of the future.
Alternatives for Small Farm Survival: Government Policies Versus the Free Market
Authors: Tweeten Luther G. , Amponsah William A.
Published: July 2016

This paper briefly outlines a topology of small farms and then considers the role of the government versus the market in key public policies such as commodity income support, environment, stability, research, and rural development. A number of options are explored for public policy to better serve small farms, including drastic alternatives such as graduated property taxes on farmland, with exemptions or lower rates for small farms. These and other alternatives are not necessarily recommended. Improved extension education and human resource development offer some of the most promising public policy opportunities to help small farmers.
A Comparative Static Analysis of Oklahoma's Vegetable Industry
Authors: Henneberry Shida Rastegari , Schatzer Raymond Joe , Beheisi Yousif El
Published: July 2016

The impact of hypothetical changes in yields, costs, and demand that might result from the organization of Oklahoma vegetable growers into cooperatives or other multifarmer marketing associations is estimated using a sector programming model. A comparative static analysis is used to evaluate the impact of these changes on planted acreage, growers' revenues, and consumers' and producers' surplus. The results of this analysis indicate that changes in demand are most effective in increasing revenues for Oklahoma growers.
Nonconstant Price Expectations and Acreage Response: The Case of Cotton Production in Georgia
Authors: Parrott Scott D. , McIntosh Christopher S.
Published: July 2016

An adaptive regression model is used to examine the relative importance of cash and government support prices in determining cotton production over time. The results show that the cash price is more important as a source of price information for cotton producers than the government program price. The cash price was shown to have a greater influence on acreage response in every year, including periods thought to be dominated by government commodity programs.
The Impact Of Sales Changes On Agribusiness Payrolls
Authors: Gunter Lewell F. , Wise James O.
Published: July 2016

Agribusiness firms face substantial market risk associated with variations in farm production, output and input prices, exchange rates, and other factors. Some of the risk faced by agribusiness is passed through to the employees of the firm and to the communities where the firms are located, as employment levels are changed in response to these variations. An econometric analysis of the transmission of sales changes into payroll changes was performed for a sample of Georgia agribusiness firms. Transmission elasticities were found to be affected by firm type, size, age, and by the degree of use of part-time employees.
How Sensitive are Crop Yields to Price Changes and Farm Programs?
Authors: Choi Jung-Sup , Helmberger Peter G.
Published: July 2016

A two-stage approach is used to estimate sensitivity of corn, wheat, and soybean yields to changes in prices and land idled. Estimated elasticity of demand for fertilizer per acre with respect to expected output price equals 0.47, 0.10, and 0.82 for corn, wheat, and soybeans. Upper estimates of the elasticity of yield with respect to fertilizer equals +0.58, +0.29, and +0.16 for corn, wheat, and soybeans. Yields are found to be quite insensitive to price changes. Fertilizer demands and yields are insensitive to land idled under farm programs.
Estimating the Variance of Food Price Inflation
Authors: Blisard Noel , Blaylock James R.
Published: July 2016

Stochastic index theory views each commodity price change as an independent observation on the rate of inflation that can be estimated by averaging over all prices. Our methodology estimates both the overall rate of inflation and relative price changes along with standard errors.
Relevance of Policy Analysis: Needs for Design, Implementation and Packaging
Authors: Skees Jerry R.
Published: July 2016

This article challenges the traditional model of the economist as a humble technocrat who simply provides analysis given the preferences of policy decision-makers. Since decision-makers rarely reveal their preferences, it is important that the would-be policy research/analyst know the political economy and be willing to identify potential performance goals for society. Researchers who are willing to incur the transaction cost associated with becoming involved in useful policy research must learn to work within the imperfect policy process. Policy research that considers the importance of implementation and that acknowledges the institutions and the history will have the highest chance of being useful to policy-makers.
Pesticide Regulation Issues: Living with the Delaney Clause
Authors: Osteen Craig
Published: July 2016

Pesticide use is regulated within a complex legal framework that includes the Federal Insecticide, Fungicide, and Rodenticide Act; the Federal Food, Drug, and Cosmetic Act; and other environmental laws. The framework includes risk-benefit rules for some decisions that permit full consideration of comparative performance, cost, and risks of a pesticide and its alternatives before decisions to permit or ban uses. The framework also includes risk-only standards, such as the Delaney Clause, that prohibit such comparisons and can have unintended and undesirable consequences by increasing health or environmental risks while increasing the cost of producing agricultural commodities.
Wetlands and Environmental Legislation Issues
Authors: Carriker Roy R.
Published: July 2016

The federal government program for wetlands regulation is administered by the United States Army Corps of Engineers pursuant to Section 404 of the Clean Water Act. Proposals for amending and/or reforming the Section 404 program are included in Congressional deliberations regarding Clean Water Act reauthorization. Specific issues of public policy include the definition of “waters of the United States”, criteria for delineation of jurisdictional wetlands, definition of activities exempt from regulation, mitigation and classification of wetlands, and issues of property rights.
Trade Agreements, Competition, and the Environment: Gridlock at the Crossroads
Authors: Seale James L. , Fairchild Gary F.
Published: July 2016

In the 1980s, few agricultural economists, particularly from the Southern Region, published works on international trade or the globalization of the world economy. The initiation of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1986 stimulated such writings as theSouthern Agriculture in a World Economyseries by the Southern Region Extension International Trade Task Force (Rosson et al.). An even smaller number of agricultural economists were writing on policy linkages between trade and the environment. An early effort to remedy this situation was the Workshop on Linkages between Natural Resources and International Trade in Agricultural Commodities (Sutton).
The Trade and Environment Debate: Relevant for Southern Agriculture?
Authors: Marchant Mary A. , Ballenger Nicole
Published: July 2016

This paper introduces and briefly discusses the economics of two important trade and environment policy issues--international harmonization of environmental standards and the use of trade measures for environmental purposes. Both issues are likely to generate lively international debate among environmentalists, industry representatives, and trade negotiators over the next few years. As the international community seeks new multilateral rules in these areas, agricultural producers will want to know how they will be affected. Thus, this paper also examines the potential impacts of environmental policy on the competitiveness of commodities unique to the Southern region of the United States.