bluuebunny/crossref_metadata_2025 huggingface dataset:
Measuring and Assessing Vertical Ties in the Agro‐food System
Authors: Henderson Dennis R.
Published: July 2005

This paper examines the extent to which the concept of vertical coordination in the agro‐food sector lends itself to specification or measurement in a manner that is analytically useful. Based on a combination of theory and empirical evidence, it is suggested that vertical organization can be specified as a parameter, variable in degree of control by principal over agent. Such a specification has potential application in analytical models concerned with what gives rise to vertical ties and/or their economic consequences. Drawing principally on the concepts of transactions costs, factor price distortion, and vertical restraint, analytical attention is directed to the economic incentives for, and performance implications of the use of linkages other than spot market transactions for coordinating vertically interdependent stages in the food chain. Research challenges are identified.
Domestic Processing of Supply‐managed Products Under Tariffication: Is the Rate of Protection Positive?
Authors: Papillon Benoit Mario
Published: July 2005

Following the Uruguay round import quotas under former article XI have been replaced by tariff equivalents. For some products like cheese, the tariff equivalents put in place reach the astounding level of 300% and go even beyond. The first section of the paper provides a short description of the nature of tariffication and its implementation in the case of cheese. The second section of the paper searches in the literature a basis for the 300% level and provides a criticism of the method proposed at GATT to compute tariff equivalents. Based on some earlier work, an alternative estimate of the tariff equivalent of cheese import quotas is presented in the third section of the paper. An effective rate of protection provided to cheese making is computed in the next section. The paper concludes with some observations on trade policy strategy and the adjustment of supply management in the case of dairy.
Establishing a Framework for an Information System
Authors: Bonnen James T. , Harsh Stephen B.
Published: July 2005

Many decision errors arise out of a failure to understand the nature and structure of the information system that supports policy decisions, public or private. For a information system to be reliable and accurate three subsystems, data collection, inquiry (or analysis) and policy decision, must share the same base of concepts, measurable proxies porn the real world to represent those concepts, and compatible measurement techniques and processing designs in the data used. All information systems must be closely adapted to the specific context of the decisions they are intended to support.

Rapid globalization of markets and the parallel revolution in information technologies and supporting information infrastructure, institutions and human capital are transforming the agri‐food sector. The food system is moving away from mass markets driven by the production of standardized commodities toward many smaller, diverse, and customized niche markets driven by consumer preferences for specific food characteristics. Concentration, vertical coordination and integration are growing, particularly in the livestock sector, and especially hogs. Information technologies now permit firms to discover and track consumer preferences while the new biotechnologies make it possible to create the characteristics in products that consumers desire in niche markets. Information has itself become an important commodity.
Risk Preferences of Dairy and Hog Producer in Quebec
Authors: Gunjal Kisan , Legault Benoit
Published: July 2005

The objective of this study is to investigate the nature of risk preferences of Quebec dairy and hog producers. The direct elicitation of utility method is employed to determine producers'degree of risk aversion. The Delphi process is used to obtain more refined and realistic responses. The results reveal that the risk preferences of the randomly selected Quebec farmers are highly diverse. The percentage of risk‐taking farmers ranges from 8% to 23% depending upon the level of investment and the nature of the enterprise. On average, the majority of farmers in both groups are found to be risk averse. Based on the differences between the means as well as distributions, although not significant in all cases, hog producers are found to be consistently more risk averse than dairy producers. Moreover, the gap between the two groups widens as the level of investment increases. The implications of this result are that the stability of farm income due to supply management in dairy sector may facilitate investments of a given risk (for example, adoption of a new technology) more so than it would in the hog sector.
Efficacitè technique et coûts de production dans les secteurs laitiers du Québec et de l'Ontario
Authors: Romain Robert , Lambert Rémy
Published: July 2005

Cet article vise à estimer le niveau d'eficacité technique des entreprises laitières et h analyser la relation entre les coûts de production, le niveau d'eflcacité technique et la taille des entreprises. Il wise de plus a déterminer les variables socio‐économiques qui caractérisent les enterprises techniquement efficaces ainsi que celles des entreprises qui produisent auxplus bas coûts. Les résultats montrent qu'au Québec, le niveau d'efficacité technique des entreprises est plus élevé pour les entreprises de grande taille. Cependant, la différence est relativement faible. En Ontario, l'impact de la taille du troupeau n'est pas statistiquement significatif. Le niveau d‘éducation, la participation au contrôle officiel, les dépenses par vache pour les soins vétérinaires et l'insémination artificielle, la qualité du fourrage et l'année d adhésion au syndicat de gestion sont toutes des variables qui caractérisent les entreprises efficaces.
The Impact of Government Programs and Land Characteristics on Cropping Patterns
Authors: Wu Junjie , Brorsen B. Wade
Published: July 2005

Acreage response equations for nine major crops of Wisconsin are estimated to determine the impacts of government programs and site characteristics (e.g., soil types, slope and rainfall) on cropping patterns. Site characteristics account for more than twice as much acreage variation as the economic and policy variables. Three policy simulations are conducted:

• a 10% reduction in the target price for corn;

• an increase in the Acreage Reduction Program (ARP) rate for corn from 10% to 20%; and

• a 10% increase in chemical price, due, for example, to a tax.

Reducing the target price for com would result in both a land reallocation among the nine crops and a reduction in total acreage. However, adjusting the ARP rate for corn would affect mainly the land allocation, and a tax on chemical use would generally reduce the total acreage of the nine crops. The results suggest that all three policies would be effective overall in reducing the total acreage of the chemical‐intensive crops and thus would reduce the potential for groundwater pollution. This article also develops and uses a method to correct heteroscedasticity, autocorrelation, and contemporaneous correlation that may arise in a set of seemingly unrelated equations.

Des équations d'évolution prévisible des surfaces affectées aux cultures de neuf principaux vivriers de Wisconsin sont estimées afin de déterminer l'impact des programmes gouvemementaux et des types de terre (par exemple, types de sols, pente et pluviométrie) sur les modèles de cultures vivrières. Comparés aux variables économiques etpolitiques, les types de terre comptent pour plus du double dans la variation des surfaces affectées aux cultures. Trois plans de simulation sont conduits:

• une réduction de 10% du prix objectif du maïs;

• une augmentation du taux ARP (Programme de réduction des surfaces affectées aux cultures) de 10%à 20% pour le maïs;

• et une augmentation de 10% du prix des produits chimiques, due, par exemple, à une taxe. La réduction du prix objectif du maïs entraînerait la redistribution des surfaces affectéees aux cultures des neuf vivriers, et la réduction des surfaces totales cultivées. Cependant, un réglage du taux ARP pour le maïs affecterait principalement la distribution des surfaces affectées aux cultures, et une taxe sur l'utilisation des produits chimiques en général réduirait les surfaces totales affectées aux cultures des neuf vivriers considérés. Les résultats suggèrent que les trois plans réduiront effectivement les surfaces totales cultivées pour les vivriers dont la production nécessite une utilisation intensive de produits chimiques. Ce qui par conséquent, réduirait le danger potentiel de pollution des eaux souterraines. De plus, cet article développe et utilise une méthode de correction des problèmes d'hétéroscédasticité, d'autocorrélation, et de corrélation contemporaine qui peuvent provenir de groupe d'équations apparemment non liées.
An Economic Analysis of Targeting Soil Conservation Measures with Respect to Off‐site Water Quality
Authors: Fox Glenn , Umali Gloria , Dickinson Trevor
Published: July 2005

This paper analyses the advantages and disadvantages of targeting soil conservation measures on the basis of off‐site water quality goals. The Stratford Avon watershed in Perth County and the Big Creek watershed in Middlesex County, both located in southwestern Ontario, are used as case studies. Targeting criteria, used as proxies for measuring the contribution to off‐farm damage from particular parcels of crop land, are based on the physical characteristics of the parcels. Alternative conservation tillage practices include fall chisel ploughing, ridge planting, no tillage and buffer strips.

At each level of the targeting criteria, the reduction in off‐farm damage is estimated using the Guelph Model for Evaluating the Effects of Agricultural Management Systems on Erosion and Sedimentation (GAMES). Economic targeting criteria are based on the value of improved water quality under a conservation practice minus the on‐farm costs of adoption of that practice.

Targeting conservation policies on the basis of reduction of off‐farm damages can result in greater efficiency in public policy. The authors conclude that further efforts in targeting conservation policies have the potential to improve the cost effectiveness of soil conservation programs if technical and administrative problems can be overcome.

L'article analyse le pour et le contre du ciblage des mesures de conservation des sols sous l'angle de la qualité de l'eau à l'aval. Le bassin versant Stratford Avon dans le comité de Perth et celui de Big Creek dans le comté de Middlesex, tous deux situés dans le sud‐ouest de l'Ontario, sont utilisés comme études de cas. Les critères de ciblage utilisés comme valeurs d'approximation dans la détermination de la part des dégâts causés à l'aval qui est attribuable à des parcelles agricoles données, sont basés sur les caractères physiques des parcelles. Les diverses pratiques de travail de conservation comparées sont la labour au chisel, la culture sur billons, la culture sans labour et l'établissement de bandes riveraines. A chaque niveau des critères de ciblage, la réduction des dégâts infligés à l'aval des exploitations est estimée selon le Modèle d'évaluation des effets des systèmes d'exploitation agricole sur l'érosion et la sédimentation de l'Université de Guelph (GAMES). Les critères de ciblage économiques reposent sur la valeur attribuée à l'amélioration de la qualité de l'eau par une pratique de conservation donnée, moins les coûts réels d'adoption de l'exploitant à cette pratique. Le ciblage des politiques de conservation en fonction de la réduction des dégâts causés à l'aval de l'exploitation peut rendre plus efficientes les politiques du secteur public. Il ressort de ces études que les politiques de ciblage des mesures de conservation offrent la possibilité d'améliorer la rentabilité des programmes de conservation du sol, pour autant parvienne à surmonter les problèmes techniques et administratifs.
Product Differentiation and Representative Agent Import Demand Systems: A Reconsideration and Reconciliation
Authors: Davis George C.
Published: July 2005

Product differentiation is the fundamental assumption employed to supposedly generate the import demand systems found in the literature. This paper shows that the assumption of product differentiation does not generate the import demand systems found in the literature, unless two additional assumptions are made. A procedure is demonstrated for testing these assumptions. By showing and exploiting the formal relationship between the “old” theory of demand and the “new” (Lancaster) theory of demand, the results are applicable to any demand system.

La différentiation des produits est l'hypotèse fondamentale qui sous‐tendrait les nombreux systèmes de demande à l'importation qu'on retrouve dans la bibliographie économétrique des vingt dernières années. Or dans le présent article, il est démontré que cette hypothèse n'est vraiment valable que si on la complète de deux suppositions auxiliaires. Une démarche est proposée pour tester ces deux propositions. En dégageant et en exploitant le rapport formel qui existe entre l'«ancienne» théorie et la «nouvelle» théorie (Lancaster) de la demande, on montre que les résultats peuvent s'appliquer à n'importe quel système de demande.
Impacts of the U.S.‐Canadian Potash Dispute on the Costs of U.S. Crop Production
Authors: Vroomen Harry , Canning Patrick N.
Published: July 2005

The 1987 U.S. antidumping case against Canadian potash producers has had a significant impact on the production costs of major potash‐using crops in the United States. This paper examines these impacts for selected U. S. crops by way of a counterfactual analysis. A transfer function is used to model retail potash prices and the change in the series resulting from the case. Results indicate that expenditures on potash by U. S. farmers increased by an average US $ 0.08 per acre for wheat to US $ 1.78 for potatoes during 1988–92 (July‐June). Overall, total U.S. potash expenditures increased by an estimated US $ 629.1 million over this period as a result of the antidumping case.

Le cas américain « anti‐dumping » 1987 contre les producteurs canadiens depotasse aeuun effet majeur sur le coût de production des produits agricoles utilisant intensivement de la potasse awe États‐Unis. Cet article évalue ces effets pour certains cultures américaines avec une analyse contrefactuel. Un fonction à transfert est développé pour analyser les prix de vente au détail de la potasse et le changement des prix résultant. Les résultats indiquent que les frais d'achats depotasse par les producteurs américains augmentaient d'une moyenne de 0,08 $ E‐U par acre pour le bléà une moyenne de 1,78 $ E‐Upour les pommes de terres pendant 1988–1992 (juillet‐juin). En somme, l'augmentation des dépenses américains totales pour la potasse est estiméà 629,1 millions de $ E‐U durant cette période en conséquence de l'affaire » antidumping «.
Single Desk Selling by the Canadian Wheat Board: Does It Have an Impact?
Authors: Clark J. Stephen
Published: July 2005

The Canadian Wheat Board justifies its monopoly control over the marketing of barley on the basis of single desk selling. It argues that single desk selling raises the pooled price that farmers receive for their barley over a situation where the Canadian Wheat Board does not have monopoly control over the marketing of prairie barley. Carter (1993b) argues that the Canadian Wheat Board's pricing strategies are suboptimal and the Canadian Board cannot act prices farmers receive. This paper tests the implications of the Canadian Wheat Board's conclusions and Carters conclusions using feed grain prices. The results indicate that Canadian Wheat Board single desk selling has no impact on prices. These results indicate that Carter's analysis is more consistent with the data than is the Canadian Wheat Board's analysis.
The Impact of Price Stabilizing Policies on the Risk Efficient Crop/Fallow Decisions of Wheat Farmers in the Brown Soil Zone of Saskatchewan
Authors: Schoney R. A.
Published: July 2005

The micro‐linkages between the crop/fallow decision and price‐induced risk are examined for wheat producers located on the brown soils of Saskatchewan. Three generic price stabilization policies are defined. Based on a bio‐economic simulation model, the risk‐efficient FLEXCROP decision rules are selected, and their corresponding cropping patterns are assessed for each generic price stabilization policy. Assuming no subsidy component within the mandatory price stabilization program:

• risk lovers reduce cropped acreages by 0% to 4%, depending upon both the risk‐aversion level and the stabilizing program and

• risk‐averse producers increase cropped acreage from 10% to 35% over no price stabilization.
Dynamic Relationships in the Market for Ocean Grain Freighting Services
Authors: Hsu Jane L. , Goodwin Barry K.
Published: July 2005

A vector autoregressive model containing ocean grain freight rates, grain shipments, idled tonnage, new carrier deliveries and fuel prices is used to evaluate dynamic linkages in the ocean grain transport market. Dynamic relationships are of particular importance in ocean freighting months because freighting services are often contracted several months before shipment. In addition, such markets may be slow to adjust to shocks because of significant short‐run fixities in shipping services. Ocean grain freight rates are found to be responsive to fuel prices and new ship deliveries, but are not affected by demand shocks. Ship idling rates are found to be sensitive to fuel prices, grain shipments and freight rates. Significant adjustment lags are revealed.
Total Response Measures in Systems of Nonlinear Equations: An Application to a Model of the U.S. Dairy Sector
Authors: Halt Matthew T. , Aradhyula Satheesh V.
Published: July 2005

This paper develops total elasticity and flexibility results for general nonlinear, dynamic systems of equations. Unlike procedures for obtaining total response measures in linear systems, analytical procedures are difficult to obtain for nonlinear models; comparable results, however, may be obtained by using numerical simulations. The potential for obtaining total elasticity measures in nonlinear dynamic models is illustrated with an annual model of the U.S. dairy sector. Results show substantial evidence of asymmetric price and quantity adjustments, as well as limit cycles. Such complexities could not be uncovered by using linear models or a partial‐equilibrium framework.
NORTH AMERICAN MALTING BARLEY TRADE Differences in Quality and Marketing Costs
Authors: Wilson William W. , Johnson D. Demcey
Published: July 2005

Differences between U.S. and Canadian marketing policies in malting barley have been identified as potential sources of trade distortions. Most important are issues related to quality control, yield differentials between feed and malting varieties, and differences in handling costs. This study analyzes effects of changes in selected marketing policies on trade flows and prices in the North American malting barley sector using a mathematical programming model. Simulation results illustrate impacts of relaxed variety release requirements, increased selection rates for malting barley, reduced Canadian handling costs and the effect of increased Canadian exports of malting barley to offshore markets. The results quantify effects of these strategic issues on both the United States and Canadian barley sectors.
Price Asymmetry in the International Wheat Market
Authors: Mohanty Samarendu , Peterson E. Wesley F. , Kruse Nancy Cottrell
Published: July 2005

Most wheat exports are accounted for by a limited number of countries with different policy regimes and specializing, for the most part, in particular classes of wheat. Under these circumstances, there is likely to be considerable interaction among the major exporting countries in the determination of wheat prices. In this paper, price linkages between the U.S. and other exporting countries (Canada, the European Union, Argentina and Australia) in the world wheat market are investigated. After determining that the direction of causality is from U. S. prices to the prices of other exporting countries, the nature of the price linkages is studied. The results suggest that the major exporting countries respond asymmetrically to U.S. price changes. The degree of asymmetry differs from one exporting country to another, Argentina and the European Union show greater response to falling prices than to rising prices, while the opposite is true for Canada and Australia.
Comparison of Costs of Wheat Production in Saskatchewan and the U.S. Northern Plains
Authors: Glaze Dargan , Schoney Richard
Published: July 2005

This paper compares I989 average variable costs for U.S. northern plains and Saskatchewan spring wheat producers. Producers are divided into three cost groups. There are more statistically significant differences between cost groups within a country than between the two countries. Relative to other producers within the same country, low‐cost producers in both countries had higher yields per bushel, most bud lower variable inputs both per acre and per bushel, and most had lower debt loads. In terms of intercountry comparisons, low‐cost producers in Saskatchewan and the U.S. northern plains had nearly identical average variable cash costs. While mid‐ and high‐cost Saskatchewan producers had significantly lower average variable cash costs, they were almost entirely offset by higher fixed costs.
An Empirical Analysis of the Relative Efficiency of Policy Instruments to Reduce Nitrate Water Pollution in the U.S. Southern High Plains
Authors: Wu JunJie , Teague Mark L. , Mapp Harry P. , Bernardo Daniel J.
Published: July 2005

This paper develops a modeling framework for evaluating alternative water quality protection policies. The framework integrates the EPIC‐PST crop growth/chemical transport model and a mathematical programming model. The framework is applied to the evaluation of four water quality policies in the southern high plains of the United States:

• restrictions on per‐acre nitrogen use,

• taxes on nitrogen use,

• taxes on irrigation water use, and

• incentives to convert conventional irrigation systems to modem irrigation technology. The results indicate that producers would make a variety of adjustments in responding to these policies. Important responses might include reductions in nitrogen and water use, crop substitution, removal of land from crop production and conversion from irrigated to dryland production. These four policies are evaluated based on changes in farm income and social welfare. The irrigation system conversion incentive clearly outperforms other policies from both society's and producers points of view. Producers would prefer nitrogen use restrictions to nitrogen or water use taxes because farm income would be reduced less under the restrictions than under the taxes. Nitrogen use taxes, however, are more desirable than nitrogen use restrictions from society's point of view.
Les producteurs brésiliens et l'instabilité des prix : Différences de comportement entre le Nord et le Sud
Authors: Araujo Claudio
Published: July 2005

Cet article présente une analyse des décisions des agriculteurs brésiliens en situation d'incertitude. Après avoir souligné les problèmes liés au calcul de l'instabilité des prix en série temporelle, une équation d'offere est développée à partir d'un modèle « de sécurité» selon lequel le producteur est supposé maximiser son profit espéré, sous des contraintes de liquidité et de sécurité. Le modèle est testé sur données de panel, pour trois produits — le coton, le riz et le maïs – de façon à mettre en évidence des différences de comportement vis‐à‐vis du risque de prix entre les agriculteurs du Nord‐Est et du Centre‐Sud du Brésil.
Neural Networks for Forecasting: An Introduction
Authors: Kohzadi Nowrouz , Boyd Milton S. , Kaastra Iebeling , Kermanshahi Bahman S. , Scuse David
Published: July 2005

Neural networks are nonlinear mapping structures based on the study of the human brain. They have been shown to be universal and highly flexible junction approximators to any data‐generating process. Therefore, they are powerful models for forecasting purposes, especially when the underlying data‐generating processes are unknown. However, the appropriate design of the network's architecture and learning rules are crucial for obtaining satisfactory results. This study discusses the scope and limitations of neural networks for forecasting problems and provides an example by designing a neural network for forecasting. It is argued that statistical theory can offer some suggestions for designing an optimal network architecture. An example comparing a neural network and ARIM model for forecasting weekly corn prices 1974 through 1993 is provided. Results show the neural network model to be more accurate than the ARIMA.
Firm‐level Intermediate Demand for Pacific Whiting Products: A Multi‐attribute, Multi‐sector Analysis
Authors: Sylvia Gilbert , Larkin Sherry L.
Published: July 2005

Variation in seafood prices resulting from differences in product characteristics are often obscured by highly aggregated data or data representing only upstream sectors. This can lead to myopic commodity‐based analysis that fails to identify how changes in public and private fisheries management may impact product characteristics, market development, and long‐run social benefits. Given these problems, alternative methods are needed to complement traditional demand, supply and cost‐benefit analysis. Mail and personal surveys of seafood wholesalers were conducted to determine preferences for Pacific whiting products. The relative importance of fillet and headed and gutted product characteristics are determined using conjoint analyses and factorial‐based market experiments. Estimation of relative profitability, probability of purchase and short‐run “conditional” demand models reveal the importance of wholesaler characteristics, physical product characteristics and contractural arrangements. Marketing margins and demands for improved products are also estimated. Implications for private and public resource management are discussed.
The Crow Rate Issue: A Retrospective on the Contributions of the Agricultural Economics Profession in Canada
Authors: Klein K. K. , Kerr W. A.
Published: July 2005

The Crow rate policy issue is finally being put to rest. It has been a major agricultural policy issue in Canada over the past 20 years, and agricultural economists should have had a great deal to contribute to the policy debate. The contribution of the profession is critically assessed. While much of the research undertaken was of high quality, the profession's aggregate contribution was much less than what might have been possible. A number of shortcomings of the research system are identified, and some lessons for researchers and those who fund research are provided.
The North American Free Trade Agreement and the Canadian Agri‐Food Sector
Authors: Meilke Karl , van Duren Erna
Published: July 2005

In the past five years, Canada has negotiated and ratified three trade agreements: the Canada‐United States Free Trade Agreement (FTA), the North American Free Trade Agreement (NAFTA) and the multilateral free trade agreement now administered by the World Trade Organization (WTO). This paper focuses on the implications for agri‐food trade of the NAFTA and its interface with the other two agreements. The provisions of the NAFTA are described and evaluated as they relate to market access, domestic support, export assistance, technical regulations and dispute settlement. Observations are presented on the NAFTA's potential effects on trade in red meats, grains and oilseeds, supply‐managed commodities and horticulture. In addition, some of the shortcomings of the NAFTA are highlighted.
Agricultural Credit Subsidies and Farmland Values in Canada
Authors: Gunjal Kisan , Williams Sarah , Romain Robert
Published: July 2005

The objective of this study is to determine the impact of farm credit subsidies on the value of farmland in Canada. The price‐components model based on the capitalization principle is developed and estimated using the pooled data from four selected provinces (Quebec, New Brunswick, Manitoba and Saskatchewan) from 1972 to 1991. The results show that increases (decreases) in interest subsidies are expected to increase (decrease) farmland and building values. However, the short‐term impact is estimated to be small. The regional analysis shows that the abolition of interest subsidies across the country is likely to have a relatively higher impact on land and building values in Quebec than in the prairie provinces.
Credit Allocation Decisions of Wheat Exporting Countries
Authors: Yang Seung‐Ryong , Wilson William W.
Published: July 2005

Decision processes and factors determining allocations of credit guarantees for wheat purchases by major exporting countries are analyzed in this study. Results show that, in cases of the United States and Canada, discrete decisions are made first, followed by decisions on how much to guarantee, including zero guarantees. The European Community (EC) makes these two decisions concurrently. Important factors explaining credit decisions are market share, the recipient country's market size and the existence of credit by competitor exporting countries. All exporting countries’decisions are affected by the existence of the competitor countries’credit programs in particular import markets. U.S. decisions are most sensitive to market share and Canadian decisions to other exporting countries’provision of credit. The EC's decisions are affected primarily by market share and the existence of competitor programs.
Food Expenditures Away From Home by Type of Meal
Authors: Jensen Helen H. , Yen Steven T.
Published: July 2005

A nonnormal and heteroscedastic double‐hurdle model is used to study household expenditures on breakfast, lunch and dinner away from home in the United States. In the 1992–93 period, nearly 40% of households purchased breakfast, and about three quarters of households purchased lunch or dinner in a two‐week period. Wife's employment has a positive effect on the probability and level of lunch and dinner expenditures but not on breakfast expenditures. Income effects are all statistically significant and positive. The role of household composition. other demographics and region are also important.
A Case Study Approach to Comparing Weed Management Strategies under Alternative Farming Systems in Ontario
Authors: Stonehouse D. Peter , Weise S. F. , Sheardown T. , Gill R. S. , Swanton C. J.
Published: July 2005

When research was initiated into comparing alternative method's of managing weeds in Ontario's major field cash crops, no field trial data existed. Twenty‐five farmers were therefore surveyed for their production data on corn, beans and fall‐seeded cereal grains, including weed management practices, input costs and wage rates, yields and product prices. Nine farmers were classified “conventional” because of their heavy dependence on synthetic herbicides, which were routinely broadcast on the three focus crops. Nine farmers were classified as “reduced input” if they placed reduce dependence on herbicides for at least one of the focus crops. Seven organic farmers placed zero reliance on herbicides, using instead substitutes such as crop rotations, smother crops, soil tillage and timeliness of field operations. Although organic farmers spent the most time and money on weed control, their overall direct costs of production were lowest for all three focus crops. Crop gross margins were highest on organic farms, partly because of lower production costs, but also because of higher product prices along with comparable crop yields. Linear programming model results for whole‐farm analyses revealed highest net farm incomes on organic farms and lowest on conventional farms, in part due to lower overhead costs on organic farms, and in part due to greater enterprise diversification and to greater self‐sufficiency in material inputs. These case study results need broader‐scale testing to verify the conclusion that organic or reduced‐input methods of weed management offer viable alternatives to conventional approaches.
Economic Returns to Yield‐increasing Research on Wheat in Western Canada
Authors: Klein K. K. , Freeze B. , Walburger Allan M.
Published: July 2005

A multi‐sector mathematical programming model of Canadian agriculture (CRAM) is employed to determine the rate of return to yield‐increasing research on wheat conducted during 1962–91. The estimated internal rate of return to yield‐increasing research ranged between 27% and 31% for the low wheat price scenarios. It was higher at 34–39% for the high wheat price scenarios. Producers captured 80–90% of the benefits. The results support the magnitude of estimated economic benefits reported in previous studies.
Establishing Indices of Genetic Merit Using Hedonic Pricing: An Application to Dairy Bulls in Alberta
Authors: Richards Timothy J. , Jeffrey Scott R.
Published: July 2005

This study investigates the use of hedonic pricing to identify the value of relevant production and type traits for dairy bulls in Alberta. A hedonic pricing model is estimated that considers semen price as a function of individual production and longevily characteristics for a sample of Holstein bulls. The results suggest that the most important characteristics used by Alberta daity producers in valuing dairy bulls are milk volume, protein and fat content, general conformation, body capacity and the popularity of the bull. For a given set of such characteristics, the probability that the bull's semen may be in short supply does not significantly affect the value. This methodology may be used to establish a method of forecasting semen prices for newly proven bulls. The valuation procedure may be easily updated and adjusted as producers'breeding objectives change over time because of the changing economic environment. The results of this analysis suggest that hedonic pricing may be a better method of placing a value on production and type characteristics for dairy bulls than the Lifetime Profit Index currently being used by the Canadian dairy industry.
Relationships between U.S. and Canadian Wheat Prices: Cointegration and Error Correction Approach
Authors: Mohanty Samarendu , Peterson E. Wesley F. , Smith Damell B.
Published: July 2005

This paper examines relationships between U.S. and Canadian wheat prices using the cointegration and error correction approach. The use of the error correction model is appropriate because U.S. and Canadian wheat prices are first‐differenced stationary and cointegrated. The results suggest that both U.S. durum and hard spring wheat prices respond to restore equilibrium relationships with the corresponding Canadian price, while the Canadian prices do not. That is, the structure of the respective policies is such that the Canadian markets are largely insulated from influences flowing directly from the U.S., while U.S. markets are not insulated from Canadian influences. These results could be interpreted to support the contention that Canadian production subsidies and the implicit export subsidies would tend to undermine the U.S. price support program. The results also support the price leadership role for Canada in the durum and hard spring wheat markets. The implication is that with respect to durum and spring wheats, U.S. policies to artificially support domestic prices are not effective over the long run.

Les rapports entre les prix de blé canadiens et américains sont étudiés á partir des analyses basées sur la cointégration et la méthode de correction des erreurs. L'emploi de la méthode de correction des erreurs est approprié car les prix de blé canadiens et américains sont cointegres et stationnaires quand Us sont exprimes en changements (first differences). Les résultats montrent que les prix du blé dur (durum) et du blé panifiable du printemps (hard spring) aux États‐ Unis reagissent à l'évolution des prix canadiens pour retablir le rapport d'équilibre tandis que ceux du Canada ne sont pas influencés par les désequilibres. Ce résultat est explique par les differences entre les structures des politiques agri‐coles quifont que les marches canadiens sont largement isoles des influences en provenance des États‐Unis, ce qui n'estpas le cas pour les marches américains. Ces résultats pourraient vouloir dire que des subventions canadiennes à la production et à l'exportation ont mine les programmes américains de sou‐tien des prix. Us sont également compatible avec l'idée que le Canada établit les prix sur ces marchés.
A Metamodeling Approach to Evaluate Agricultural Policy Impact on Soil Degradation in Western Canada
Authors: Lakshminarayan P. G. , Gassman P W. , Bouzaher A. , Izaurralde R. C.
Published: July 2005

A novel approach for integrating economic and environmental models is described in the context of evaluating soil degradation impacts of agricultural policy in western Canada. The key element of this approach is the development of metamodels, which are statistical summary functions of simulation data obtained from carefully designed experiments with physical process models. The metamodels are in turn used to predict the soil degradation impacts of farmers'land management responses to policy options. The metamodels provide flexibility to perform repeated policy scenarios without having to rerun the time‐and resource‐consuming physical process simulation models. The estimated wind and water erosion metamodels are very robust, with the majority possessing R‐square values in the range of 0·80 to 0·97. The efficiency of the metamodels in facilitating the integration of a policy modeling system is described and applied to a scenario of increased crop residue management. Using regional aggregates of net farm income, total economic, surplus (consumer plus producer surplus) and total soil loss the economic and environmental tradeoff between the status quo and a no‐till policy scenario is evaluated. The model‐predicted economic welfare and environmental quality interaction suggests a clear win‐win situation for society under this alternative policy scenario.
Reducing Investment Risk in Tractors and Combines with Improved Terminal Asset Value Forecasts
Authors: Unterschultz James , Mumey Glen
Published: July 2005

Secondary asset market data for combines and tractors are used to estimate and separate out historical economic depreciation, embodied technological change and time value change. Combines and tractors generally exhibit constant geometric economic depreciation on a year‐to‐year basis. Depreciation rates vary by manufacturer. Farm investors can use these manufacturer‐specific depreciation rates reported here to estimate terminal asset values. The study finds significant seasonal differences in machinery depreciation rates. A major source of error in forecasting terminal asset values comes from changes related to time. There is a predictable time component to the constant quality asset index that has not been investigated in previous studies. Unanticipated shocks to demand should be followed by price reversion to long‐run average manufacturing costs as industry capacity adjusts to demand. This reversion component is predicable. Investment risk over longer planning horizons may be lower when both depreciation coefficients and time component estimates are employed.
Prévoir les effets de la réforme de la politique agricole commune sur deux régions agricoles françaises : application d'un mòdèle bio‐économique
Authors: Boussemart J. Ph. , Flichman G. , Jacquet F. , Lefer Et H. B.
Published: July 2005

Pour prévoir les changements dans les techniques de production engenderées par une modification de la structure de prix, la démarche micro‐économique usuelle repose sur la construction de fonctions de production et leur estimation économétrique. Nous proposons une autre méthode d analyse de ces changements, basée sur un modèle économique coupléà un simulateur agronomique de croissance des plantes, EPIC (Erosion Productivity Impact Calculator). Cet outil nous permet de simuler le comportement d‘optimisation du producteur dans son univers agronomique, et de déduire les conséquences des choix techniques sur certain. Paramètres d'environnement. Une application illustre les eff ets de la réforme de la Politique Agricole Commune (PAC) dans deux régions céréalières, françaises : la région de Toulouse (Midi‐Pyrénées) et la Beauce (Centre). Pour les deux premières années de la reforme, les prévisions établies sont proches des évolutions réelles. Dans les deux régions, la réforme aurait un impact sign‐cattfsur le développement des principales cultures etfavoriserait l’emploi de technique. moins intensives.
Short‐run Dynamics of Machinery Demand in Canadian Agriculture
Authors: Vasavada Utpal , Cook Kristy
Published: July 2005

Based on the hypothesis of intertemporal cost minimization, this paper develops an error correction model to explain short‐run dynamics of machinery demand in aggregate Canadian agricultural production. The estimated model is subjected to a rigorous sequence of hypothesis tests to check for its statistical validity. In addition, various versions of the model that are nested within the most general model are also tested. Structural parameters of the intertemporal cost minimization problem are recovered from the parameter estimates.
Estimating the Induced Price Increase for Canadian Pacific Halibut with the Introduction of the Individual Vessel Quota Program
Authors: Herrmann Mark
Published: July 2005

British Columbia's Individual Vessel Quota (IVQ) system for Pacific halibut was implemented in 1991. Part of the anticipated benefits of an IVQ program for a formerly derby‐style fishery are derived from additional revenues generated from an increased season length, which allows for more of the product to be marketed fresh and for new market niches to be developed. This paper is one of the first to empirically examine the ex vessel price effects and the resulting revenue effects of an IVQ system for a derby fishery in which IVQs are imposed. It is found that the price received for B.C. Pacific halibut has increased substantially over what it would have been is there were no IVQ program, and that the price increase grew during the four years during which the program was implemented. The total revenue benefit from the IVQ system to the B.C. fishers over the four years examined totaled C$23·22 million.
To Tell the Truth about Interpreting the Morishima Elasticity of Substitution
Authors: Davis George C. , Shumway C. Richard
Published: July 2005

The Morishima Elasticity of Substitution (MES) is often used to measure the change in relative factors for a change in price. This paper develops a generalized factor ratio elasticity of substitution (FRES) that nests the MES as a special case. By comparing the FRES with the MES under cost minimization, output or utility maximization, and profit maximization, this paper shows the narrow conditions under which the MES can be correctly interpreted as a measure of the percentage change in relative factors for a percentage change in price. An empirical example demonstrates how misleading the MES can be for this purpose.
Wilderness Canoeing in Ontario: Using Cumulative Results to Update Dichotomous Choice Contingent Valuation Offer Amounts
Authors: Rollins Kimberly
Published: July 2005

This study used cumulative results to update the distributions from which offer amounts were drawn in a dichotomous choice contingent valuation of user benefits from wilderness canoeing in Ontario's wilderness parks. An empirical model demonstrates the efficiency gains from using this procedure. Results allow comparison of variation in average daily willingness to pay (WTP) by trip length, indicating decreasing average benefits per trip‐day. Two payment vehicles were used. Canoeists indicated ranges of WTPs which conformed to expected hypotheses when the payment vehicle was an increase in general trip costs. However, the same respondents indicated an upper bound on WTP when the payment vehicle was an increase in the provincial park backcountry permit price.
Divergent Environmental Regulations and Trade Liberalization
Authors: Bohman Mary , Lindsey Patricia J.
Published: July 2005

The market and nonmarket consequences of environmental regulations and of trade liberalization under different regulatory regimes are explored in the context of the NAFTA through simulation modeling of the North American sheep and lamb markets. Producers are able to shift much of the cost of regulation to domestic and foreign consumers and thus gain from regulation. In the cases investigated, nonmarket effects are unlikely to reverse the sign of market gains or losses, and “level playing field” regulations may or may not be preferred.
Comparaisons de divers types de programmes de stabilisation des revenus agricoles du Québec
Authors: Calkins Peter , Romain Robert , Maïga Attaher , Lambert Et Rémy
Published: July 2005

Deux modèles de programmation mathématique (MOTAD–cible statique et MOTAD‐cible dynamique) ont été utilisés pour analyser l'impact de trois différents programmes d'intervention gouvernementale sur l'allocation optimale des ressources et sur les revenus totaux d'une ferme représentative au Québec. Les résultats montrent que sous les scénarios ASRA/ASREC et RARB, les revenus espérés sont supérieurs pour le RARB comparativement à ASRA/ASREC à un bas niveau de risque, mais ils sont du même ordre lorsqu'on considère les niveaux de risque plus élevés. L'allocation des ressources et la taille de la ferme sont quelque peu différentes. Afin de comparer ces deux programmes d'intervention, deux ratios ont été calculés : les dépenses nettes des gouvernements par rapport au revenu brut et au revenu net de l'entreprise. Les résultats montrent qu'un programme de type RARB est supérieur à un programme de type ASRA/ASREC, et ce, même si les transferts par unité assurée sont les mêmes. Sous le scénario CSRN, les résultats indiquent que les fermes ont des tailles de deux à quatre fois plus petites que dans les scénarios ASRA/ASREC ou RARB et que la stratégie financière des dépôts et des retraits dans le compte CSRN est déterminante dans l'augmentation du revenu espéré de la ferme.
Determinants of Co‐operative Patronage in Alberta
Authors: Klein Kurt K. , Richards Timothy J. , Walburger Allan
Published: July 2005

Co‐operative managers face an increasingly heterogeneous pool of potential members. Because these members bring a variety of economic and noneconomic demands to their co‐operative, managers must know how different member characteristics and performance perceptions influence their decision to patronize a co‐operative. This study applies three models of co‐operative patronage to survey data from rural Alberta. A Poisson regression is used to determine the factors that explain the number of co‐operatives used, while an index of co‐operative patronage measures the relative intensity of co‐operative versus proprietary firm usage. A third model contucts a Tobit analysis of the amount of business conducted with each of several different types of co‐operatives. The results show that older farmers tend to partonize more co‐operatives, and larger farms do a greater share of their business with co‐operatives than do smaller fiarms. Farmers who believe co‐operatives offer innovative products and services are more likely to patronize them, while a belief that co‐operatives should play an active role in noneconomic matters is not important.
Tariffication and the Canadian Chicken Industry in the Uruguay Round Agreement
Authors: Ker Alan
Published: July 2005

To date, the literature has considered the conversion of nontariff barriers into bound tariff schemes by matching either the first moments of the marginal domestic price densities under both states, or the first moments of the marginal import quantity densities under both states. This article outlines the necessary conditions that must be satisfied by any tariff scheme, such that, given a stable demand relation, the joint price and supply densities are equivalent under both states of nature. These necessary conditions are invariant to uncertainty, market structure and imperfect information. Tariffication in the Uruguay Round agreement for the Canadian chicken industry is the considered application.