bluuebunny/crossref_metadata_2025 huggingface dataset:
The Value of Planting Flexibility Provisions in the 1990 Farm Bill to Three Representative Texas Farms
Authors: Chien Ming-Che , Leatham David J.
Published: July 2016

The 1990 Farm Bill reduces deficiency payments but also provides more planting flexibility for program participants. In this study, a mean-standard deviation analysis is used to analyze the impacts of planting flexibility provisions on crop selection decisions, farm returns, and farm risk. Results show that gains from the added planting flexibility do not offset the mandatory loss in the deficiency payments for program participants. Planting flexibility will lead to an increase in corn and wheat planted in the Northern Plains and an increase in cotton planted in the Rolling Plains and Coastal Bend, Texas.
Interfiber Competition in Textile Mills Over Time
Authors: Zhang Ping , Fletcher Stanley M. , Ethridge Don E.
Published: July 2016

Cotton and synthetic fiber competition in textile mills between 1961-1990 was examined using a time-varying parameter regression model. Results indicate that the structure of demand for cotton is not stable and cotton's share responses to changes in the prices of cotton and synthetic fiber vary over time. Cotton and synthetic fiber competition in textile mill use is essentially between cotton and noncellulosic fiber. Cellulosic fiber is not a cotton competitor.
Subsidies, Endogenous Technical Efficiency and the Measurement of Productivity Growth
Authors: Lachaal Lassaad
Published: July 2016

The impacts of program subsidy on productivity growth is investigated in this study. Mundlak's concept of endogeneity is applied to technical efficiency and generalized within a dual framework. Technology is described by an aggregate cost function while technical efficiency is conditional on a vector of state variables. Empirical evidence from the U.S. dairy sector supports the hypothesis that protectionism, in the form of program subsidy, is the source of considerable technical inefficiencies.
Discussion on Social Capital
Authors: Delworth Gardner B.
Published: July 2016

At a time when economists have been accused of being imperialistic for attempting to infiltrate other social sciences, we should not be too surprised by attempts to incorporate other social sciences into economics. The Lynne paper is clearly an effort in this direction. The other two attempt to reform or broaden the mainstream neoclassical model.
Experimental Examination of a Thin Market: Price Behavior in a Declining Terminal Market Revisited
Authors: Nelson Robert G. , Turner Steven C.
Published: July 2016

Perceived characteristics of thin markets are described and approaches to furthering their study are suggested. Design features of a laboratory thin market, patterned after a typical livestock marketing situation, are described. Price bias and variation from a “thick” private negotiation market with 22 traders is compared to that from a “thin” auction market with 8 traders. No systematic price bias was found in any of the markets. Price variation was actually lower in the thin auction market.
Examination of Alternative Heteroscedastic Error Structures Using Experimental Data
Authors: Mjelde James W. , Capps Oral , Griffin Ronald C.
Published: July 2016

Impacts of alternative specifications for heteroscedastic error structures are examined by estimating various production functions for corn in Central Texas. Production- and profit-maximizing levels of inputs and the shape of the profit equation obtained from models not corrected for heteroscedasticity differed from those obtained from models corrected for heteroscedasticity. Using the profit-maximizing input levels for each production function gave essentially the same estimated yield and profit, regardless of the specification for heteroscedasticity employed. Differences of up to one-quarter to one-third are noted, however, in the amount of profit-maximizing levels of inputs used, depending on the heteroscedasticity correction.
The Structure of Farmers’ Perceptions of Ground Water Pollution
Authors: Elnagheeb A. H. , Jordan J. L. , Humphrey Vonda
Published: July 2016

Data from a 1992 Georgia Farm Practices survey are used to examine the structure of farmers' perceptions of ground water pollution and their support of regulations to protect ground water. Estimates of the influence of farm and farmer characteristics on pollution perceptions and support for pollution control were computed using a multiple-indicator model. Results show that the willingness to change farm practices to protect ground water is positively related to how an operator perceives the seriousness of the pollution problem. Regulatory policies that negatively affect farmers' income are likely to be opposed by farmers.
Pesticide Productivity: What are the Trends?
Authors: Teague Mark L. , Wade Brorsen B.
Published: July 2016

Obtaining estimates of pesticide productivity is an economic response to the growing public concern about the steady increase of pesticide use in the United States. This type of research indicates the cost of limiting pesticide use in terms of foregone output. Previous empirical studies give a “snap-shot”, or “average”, look at pesticide productivity. This research effort employs a random coefficient model to determine the trend of the marginal value product of pesticides in agriculture in the United States. Results show a distinct downward trend in two states, Iowa and Texas. California, however, shows no evidence of a downward trend.
Tradable Permits for Controlling Nitrates in Groundwater at the Farm Level: A Conceptual Model
Authors: Morgan Cynthia L. , Coggins Jay S. , Eidman Vernon R.
Published: July 2016

Nitrate contamination of municipal and domestic well water supplies is becoming an increasing problem in many rural and urban areas, raising the cost of providing safe drinking water. The objective of this paper is to describe a marketable permit scheme that can effectively manage nitrate pollution of groundwater supplies for communities in rural areas without hindering agricultural production in watersheds. The key to implementing this scheme is being able to link nitrate leaching from nitrogen fertilizer applied to crops at a farm to nitrate levels measured at a drinking water well.
Market-Based Solutions to Environmental Problems: Discussion
Authors: Woodward Richard T.
Published: July 2016

There is rapidly growing interest in the use of market-based (MB) instruments in environmental policy. The papers in this session discuss three relatively new areas for such policies: groundwater contamination, nonpoint source surface-water pollution and carbon sequestration. The papers point out the potential for MB policies in these areas, but significant challenges remain. This comment highlights challenges related to five issues: monitoring and enforcement, trading ratios, baselines, transaction costs, and risk and uncertainty. All these issues must be addressed before MB policies can take the full step from economic theory to regulatory reality.
An Applied Procedure for Estimating and Simulating Multivariate Empirical (MVE) Probability Distributions In Farm-Level Risk Assessment and Policy Analysis
Authors: Richardson James W. , Klose Steven L. , Gray Allan W.
Published: July 2016

Simulation as an analytical tool continues to gain popularity in industry, government, and academics. For agricultural economists, the popularity is driven by an increased interest in risk management tools and decision aids on the part of farmers, agribusinesses, and policy makers. Much of the recent interest in risk analysis in agriculture comes from changes in the farm program that ushered in an era of increased uncertainty. With increased planting flexibility and an abundance of insurance and marketing alternatives farmers face the daunting task of sorting out many options in managing the increased risk they face. Like farmers, decision makers throughout the food and fiber industry are seeking ways to understand and manage the increasingly uncertain environment in which they operate. The unique abilities of simulation as a tool in evaluating and presenting risky alternatives together with an expected increase in commodity price risk, as projected by Ray, et al., will likely accelerate the interest in simulation for years to come.
America's Forgotten People and Places: Ending the Legacy of Poverty in the Rural South
Authors: Allen-Smith Joyce E. , Wimberley Ronald C. , Morris Libby V.
Published: July 2016

This study focuses on the longstanding impoverishment of the rural South and three of its subregions-Appalachia, the Mississippi Delta, and the Black Belt. The poor quality of life in rural Appalachia and along the Mississippi Delta has been publically acknowledged by programs and commissions for improving conditions. However, the more comprehensive Black Belt subregion that links parts of Southern Appalachia and the Southern Delta has not received such regional policy attention. While the South as a whole is more rural and impoverished than other U.S. regions, this is largely due to the poor conditions in the Black Belt. In addition to region and rurality, a third feature of the pattern is race. It is in the Black Belt that the South's poor socioeconomic conditions are most concentrated. Policy and program attention are needed for regional solutions that take rurality and race into account along with demographic and other subregional characteristics.
A Microenterprise-Centered Economic Development Strategy for the Rural South: Sustaining Growth with Economic Opportunity
Authors: Christy Ralph D. , Wenner Mark D. , Dassie Wylin
Published: July 2016

Microenterprise programs (MEPs) have become an important research concern and rural development strategy in international development circles. The basic premise of this approach is that microenterprises , that is firms with fewer than 10 employees, can be provided with a series of small loans that allow them to start or expand productive activities and thereby increase incomes and escape poverty. Governments and donor agencies have expanded funding for microfinance programs in low-income countries and more articles appear in the Western media about the success of this new approach in assisting the poor.
America's Forgotten People and Places: Ending the Legacy of Poverty in the Rural South: Discussion
Authors: Baharanyi Ntam , Zabawa Robert , Boateng Evelyn
Published: July 2016

These comments discuss the presentations by Christy, Wenner, and Dassie (“A Microenterprise-Centered Economic Development Strategy for the Rural South: Sustaining Growth with Economic Opportunity”) and Freshwater (“What Can Social Scientists Contribute to the Challenges of Rural Economic Development?”) in three sections. These are (1) a brief overview of the Southern Black Belt and its rural development needs, (2) an assessment of the microenterprise-Centered economic development strategy for the rural South, and (3) a quick review of what social scientists can contribute to the challenges of rural economic development. This approach also emphasizes the authors’ background at a historically black land-grant university, and the belief that as goes the Black Belt, so goes the rural South.
The Law of One Price: Developed and Developing Country Market Integration
Authors: Yang Jian , Bessler David A. , Leatham David J.
Published: July 2016

The Law of One Price (LOP) is important to models of international trade and exchange rate determination. This study investigates a variant of the LOP applied to developed and developing countries. The competing hypotheses are (1) that one price prevails in both developed and developing countries and (2) that one price prevails in developed countries and another single price in developing countries. Using data from an internationally competitive commodity (soybean meal), we found evidence favors the first hypothesis, although two large developing countries under study are active participants in regional trade integration, which may bias them against the first hypothesis.
Factors Affecting Wholesale Poultry Prices
Authors: Parceli Joe L. , Pierce Vern
Published: July 2016

Changes in consumer demand for poultry meats can be characterized as evolving over time and following seasonal patterns. The focus of this study is on understanding factors affecting wholesale poultry prices. This information is needed so that poultry processors and poultry producers may better understand how consumer purchasing patterns affect price changes. Results suggest that seasonal differences between the price of cuts exist. Furthermore, own-cut and cross-cut flexibilities were unique to individual cuts.
U.S. Kiwifruit Industry Model: Annual Supply and Monthly Demand
Authors: Peterson Hikaru Hanawa , Willett Lois Schertz
Published: July 2016

A dynamic econometric model of the U.S. kiwifruit industry provides a framework for empirical analysis of small-scale commodities, particularly those used by producers for diversification. Production and marketing processes are explained by annual and monthly components, respectively. Results confirm that plantings were speculative and that economic feasibility critically impacts acreage retention as the industry matures. Prices at alternative outlets and fruit quality in storage affect monthly shipments. Flexibilities of monthly f.o.b. prices imply elastic kiwifruit demand, and imports are found to be substitutes. The industry could increase its average annual gross revenue by marketing the crop earlier in the season.
The Dynamics of Feeder Cattle Market Responses to Corn Price Change
Authors: Anderson John D. , Trapp James N.
Published: July 2016

A feeder-calf price model is estimated which incorporates elements of break-even budget analysis, including estimates of placement weights, slaughter weights, ration cost, and feed-conversion rates. From this model, a corn price multiplier is calculated which quantifies the corn/feeder-calf price relationship. Because the multiplier includes information on cattle weight, feed conversion, and ration cost, it also provides insight into how feeding programs are altered in response to corn price changes. Changes in feeding programs which occur in response to corn price changes are illustrated with dynamic simulation based on weight, ration cost, and price models presented here.
Marketing of Cotton Fiber in the Presence of Yield and Price Risk
Authors: Wojciechowski Jan , Ames Glenn C. W. , Turner Steven C. , Miller Bill R.
Published: July 2016

An expected-utility model and a chance-constrained linear programming model were used to analyze four marketing strategies and seven crop insurance alternatives for cotton marketing in Georgia. The results suggest that existing marketing tools and insurance alternatives can be used to reduce cotton producers' revenue risk. The optimal level of yield and price insurance coverage depends on an individual producer's risk aversion.
Factors Affecting Live Cattle Basis
Authors: Parcell Joe L. , Schroeder Ted C. , Dhuyvetter Kevin C.
Published: July 2016

Cattle producers and beef packers need to understand basis determinants as they develop price expectations and make pricing, hedging, and forward contracting decisions. This study empirically estimated factors explaining variability in monthly fed cattle basis. The five main results regarding live cattle basis are 1) corn price is an important determinant, 2) a change in the value of the Choice-to-Select spread positively affects basis, 3) changes in the levels of captive supplies have no significant statistical or economic impact on basis, 4) the June 1995 live cattle futures contract did not impact basis, and 5) both market fundamentals and seasonal components are important basis determinants.
Implications of Lawn Care and Landscape Maintenance Firm Profiles for Adoption of Pest-Management Practices
Authors: Hubbell B. J. , Florkowski W. J. , Oetting R. , Braman S. K. , Robacker C. D.
Published: July 2016

Firm characteristics and managers' attitudes and opinions about pesticide safety were used to classify lawn care and landscape management firms into four categories and compare them using the logit procedure. Survey data obtained from 223 firms was used in the empirical investigation of the adoption of the IPM techniques. Results showed the need for continued transfer of new technology to independently owned firms, multidisciplinary assessment of IPM methods before their transfer to ascertain the economic viability of proposed methods, public investment in programs training workers in knowledge-based pesticide applications, possible assistance in obtaining capital, and investment in consumer education.
Agricultural Economics: A Profession in Transition
Authors: Myers Lester H.
Published: July 2016

The premise of this paper is that agricultural economics, as a distinct subdiscipline of economics, faces perhaps the most serious challenges since struggling for a separate identity nearly a century ago. I fully appreciate the fact that nearly all professional presidential addresses key on the theme of change to one extent or another. However, the environment within which we practice our profession is undergoing such significant transition that I believe radical changes are needed in how we frame and implement our instructional, research, and outreach programs. In his 1986 American Agricultural Economics Association presidential address, Joe Havlicek identified five megatrends affecting agriculture that he believed would have profound implications for our profession: (1) food consumption changes, (2) internationalism and macroeconomic forces, (3) technological change, (4) structural change, and (5) environmentalism.
Factors Influencing the Adoption of Breeding Technologies in U.S. Hog Production
Authors: Gillespie Jeffrey M. , Davis Christopher G. , Rahelizatovo Noro C.
Published: July 2016

An important aspect of structural change in the U.S. hog industry has been the adoption of breeding technology. The adoption of each of four breeding technologies, weekly farrowing, intensive breeding, terminal crossbreeding, and artificial insemination, in U.S. hog production is analyzed using multivariate probit analysis. Results suggest that diversification, whether the producer raised breeding stock, debt and asset levels, and producer's education influence adoption rate. Larger, more risk-averse producers were more likely to adopt technology. Producers who rated the quality of labor available as higher were more likely to adopt management-intensive technologies.
Risk Valuation in the Presence of Risky Substitutes: An Application to Demand for Seafood
Authors: Huang Ju-Chin , Haab Timothy C. , Whitehead John C.
Published: July 2016

We attempt to value health risks by combining traditional demand impact analysis with direct elicitation of individuals' risk perceptions of food safety. We examine the impact of multiple risks of related goods on consumption of a risky good. We argue that the consumption of a risky good depends on both its absolute risk level and its relative risks to other risky goods. Seafood consumption in eastern North Carolina was studied. We elicited, in a survey, individual perceived risks as reference points to derive the economic value of reducing health risk in seafood consumption. Revealed and stated data were combined to trace out demand changes in response to absolute and relative risk reductions. Our results show that seafood consumption is affected by the perceived absolute risk and by the relative risk to poultry and that individuals react to the multiple risks in a nonlinear way, as was suggested by our analytical model.
An Analysis of Latin American Peanut Trade
Authors: Lee Dae-Seob , Kennedy P. Lynn , Fletcher Stanley M.
Published: July 2016

The U.S. export share in the world peanut market has decreased due to heavy competition. In this paper, the Latin American peanut industry is modeled using seemingly unrelated regression (SUR). Based on these estimations, a scenario analysis was conducted. The results show that the Latin American demand is not affected dramatically by either domestic or world price shocks. The effects of price changes on net trade are noticeable. However, the world price does not significantly affect the Latin American peanut supply. The results imply that Latin American peanut farmers are more sensitive to changes in domestic prices than world price changes.
What Determines Productivity Growth of Agricultural Cooperatives?
Authors: Ariyaratne Chatura B. , Featherstone Allen M. , Langemeier Michael R.
Published: July 2016

This paper examines productivity of a sample of grain marketing and farm supply cooperatives from 1990 to 1998. The cooperative industry's productivity or growth was mainly due to improvement in technology rather than improvement in pure efficiency or scale. The cooperative industry's productivity was primarily associated with the grain, fertilizer, and agrochemical product lines. Policies that raise fertilizer prices would encourage a cooperative to be technically more productive. In general, policies that raise prices of grain, fertilizer, and agrochemicals would encourage a cooperative to be more productive overall.
Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri
Authors: Wu Shunxiang , Prato Tony
Published: July 2016

This study investigates productive efficiency for a sample of Missouri crop-only (specialized) and integrated crop-livestock (diversified) farms using a cost frontier approach. Results suggest that significant cost inefficiency exists among sample farms. Lower cost efficiency in both types of farms was attributed to improper scale of operations and misallocation of inputs. On average, diversified farms were as technically and scale efficient as specialized farms. Lower allocative efficiency diluted gains in technical efficiency and resulted in greater cost inefficiency for diversified farms than for specialized farms. Technical efficiency was independent of farm size, whereas allocative, scale, and scope efficiencies were not.
The Capitalization of Wildlife Recreation Income into Farmland Values
Authors: Henderson Jason , Moore Sean
Published: July 2016

Wildlife recreation—hunting, fishing, and wildlife watching—appears to be an increasingly important pastime for many Americans. From 1991 to 2001, U.S. wildlife recreation expenditures surged from $77 billion to $108 billion in 2001 dollars. Land lease and ownership expenditures by wildlife recreation participants are also rising and appear to be capitalized into farmland values. This paper analyzes the impact of hunting lease rates on farmland values in Texas. The results indicate that counties with higher wildlife recreation income streams have higher land values.
Simultaneous Adoption of Herbicide-Resistant and Conservation-Tillage Cotton Technologies
Authors: Roberts Roland K. , English Burton C. , Gao Qi , Larson James A.
Published: July 2016

If adoption of herbicide-resistant seed and adoption of conservation-tillage practices are determined simultaneously, adoption of herbicide-resistant seed could indirectly reduce soil erosion and adoption of conservation-tillage practices could indirectly reduce residual herbicide use and increase farm profits. Our objective was to evaluate the relationship between these two technologies for Tennessee cotton production. Evidence from Bayes' theorem and a two-equation logit model suggested a simultaneous relationship. Mean elasticities for acres in herbicide-resistant seed with respect to the probability of adopting conservation-tillage practices and acres in conservation-tillage practices with respect to the probability of adopting herbicide-resistant seed were 1.74 and 0.24, respectively.
Do Incentives for Quality Matter?
Authors: Alexander Corinne , Goodhue Rachael E. , Rausser Gordon C.
Published: July 2016

We use an unusual dataset involving 14 tomato growers over 4 years to analyze the effect of incentive contracts on behavior in a fixed effects econometric model. We find that growers respond to incentive contracts by improving tomato quality, as predicted by economic theory. The comparison is not confounded by the usual contract endogeneity and simultaneity problems because of characteristics of the processing tomato industry and our dataset. We discuss the implications of our findings for the design of agricultural contracts.
Rationality of U.S. Department of Agriculture Livestock Price Forecasts: A Unified Approach
Authors: Sanders Dwight R. , Manfredo Mark R.
Published: July 2016

This research presents a systematic and unified approach to evaluating forecast rationality that considers the potential of nonstationarity in forecasts and realized values. The approach is applied to one-quarter ahead U.S. Department of Agriculture livestock price forecasts from 1982 through 2004. Results show that forecasts and realized prices are integrated of the same order, and those that are nonstationary are cointegrated. However, the stationary price forecasts for hogs, turkeys, eggs, and milk are biased and improperly scaled, and forecast errors tend to be repeated. Similarly, nonstationary forecasts for cattle and broilers are also biased and irrational in the long run, but short-run dynamics are rational.
Using Distance Education in Extension Programming
Authors: Jones Rodney , Goheen Alicia , Dhuyvetter Kevin , Kastens Terry , Amanor-Boadu Vincent
Published: July 2016

This paper provides an overview of the development of the Management Analysis and Strategic Thinking (MAST) program conducted by Kansas State University. This intensive management training course for progressive farm and agribusiness operators is being delivered successfully using a combination of face-to-face and distance extension delivery techniques. We find that some parts of the program are best delivered face to face and other parts are best delivered via distance. Of participants surveyed, 94% would recommend the MAST program to their peers, and 100% believe the program will have a positive impact on their businesses' bottom line.
Economics of Sugar-Based Ethanol Production and Related Policy Issues
Authors: Outlaw Joe L. , Ribera Luis A. , Richardson James W. , Silva Jorge da , Bryant Henry , Klose Steven L.
Published: July 2016

The feasibility of integrating ethanol production into an existing sugar mill was analyzed by a stochastic spreadsheet model. As the price of corn continues to rise, ethanol producers will eventually need to look at other feedstock alternatives. Sugarcane has been proven to work well in the production of ethanol in Brazil. The results indicated existing U.S. sugar mills could economically switch to ethanol production. As imports into the United States threaten to undermine the U.S. sugar program, sugarcane producers have a viable alternative. At the very least, the alternative exists to diversify their income streams with ethanol production.
Agricultural Impacts of Biofuels Production
Authors: Walsh Marie E. , Ugarte Daniel G. De La Torre , English Burton C. , Jensen Kimberly , Hellwinckel Chad , Menard R. Jamey , Nelson Richard G.
Published: July 2016

Analysis of the potential to supply 25% of projected 2025 U.S. transportation fuels indicates sufficient biomass resources are available to meet increased demand while simultaneously meeting food, feed, and export needs. Corn and soybeans continue to be important feedstocks for ethanol and biodiesel production, but cellulose feedstocks (agricultural crop residues, energy crops such as switchgrass, and forestry residues) will play a major role. Farm income increases, mostly because of higher crop prices. Increased crop prices increase the cost of producing biofuels.
Assessment of Alternative Fuel Production from Switchgrass: An Example from Arkansas
Authors: Popp Michael P.
Published: July 2016

As the hunt for renewable energy sources from agriculture intensifies, many agricultural producers are contemplating what crops to grow in the foreseeable future. On the one hand, there are traditional food crops, such as soybean, corn, and wheat, which have recently enjoyed a spike in prices, primarily because of the seemingly ever-growing demands of the corn to ethanol industry. On the other hand, there are the lesser-known perennial energy crops, such as switchgrass. Although much information on various aspects of switchgrass production exists, this paper discusses the adaptation of existing production and processing information to Arkansas conditions as a potential alternative to crop production.
Key Issues Affecting the Feasibility of Producer-Owned, Value-Added Ventures in the South
Authors: Wolfe Kent , Barefield Alan
Published: July 2016

The transition from agricultural producer to agribusiness entrepreneur is littered with obstacles not associated with traditional farming operations. Producers are typically faced with an established market for their products as well as defined production practices and budgets. These familiar industry institutions are not available for use in the agribusiness environment. As a result, entrepreneurs are faced with new, unfamiliar situations that can significantly affect the success of their proposed or fledgling business.
Adoption of Environmental Management Systems by Farmers: An Empirical Application to ISO 14001
Authors: Grolleau Gilles , Thomas Alban
Published: July 2016

This article undertakes an empirical investigation of the determinants of voluntary adoption of the ISO 14001 environmental management system by French farmers. The adoption model incorporates the expected profitability of implementing the standard and investigates the impact of prior knowledge on the probability of adopting. Two information measures are considered: a “reported information” indicator and an “estimated knowledge” score. The probit parameter estimates reveal that, while the expected profitability of implementing the standard is a significant determinant of adoption, real and perceived prior knowledge measures play a significant but potentially counterintuitive role.
Consumer Likelihood to Purchase Chickens with Novel Production Attributes
Authors: Bernard John C. , Pesek John D. , Pan Xiqian
Published: July 2016

Typical supermarket chickens are produced with novel or controversial attributes. This continues despite contrasting growth in consumer interest in organic and natural foods. This study surveyed Delaware consumers' likelihood to purchase chicken given different attributes: free range, given antibiotics, irradiated, fed genetically modified (GM) feed, GM chicken, and price. Examining conjoint analysis data with a heteroskedastic two-limit tobit model, GM chicken and other novel attributes were found to lower purchase likelihood significantly. Understanding these results should help the industry meet consumer preferences while aiding its continued expansion to benefit workers and growers across the South.
The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions
Authors: Bulut Harun , Lawrence John D.
Published: July 2016

After controlling a variety of feeder cattle characteristics and market and sale conditions in Iowa feeder auctions, the price premiums for preconditioning claims (vaccinations and minimum 30 days of weaning) with and without third-party certification (TPC) are estimated as $6.12/cwt and $3.35/cwt, respectively. These premiums differ statistically (p < 0.0001), and their difference exceeds the average participation cost of TPC ($l/cwt). This indicates that TPC is valued in the market to credibly signal preconditioning investment under asymmetric information.
Technical Efficiency of the Dual-Purpose Cattle System in Venezuela
Authors: Ortega Leonardo E. , Ward Ronald W. , Andrew Chris O.
Published: July 2016

A stochastic production frontier model was estimated to provide standard measurement of technical efficiency of the dual-purpose cattle system located in Zulia State, Venezuela. This system is based on local and low-cost inputs, but has been considered to be inefficient because of its low partial productivity indices when compared with those used in developed countries. Results indicate that the efficiency of this system is reasonably high, downplaying the general idea of inefficiency. Likewise, the efficiency of this system has the potential for improvement through public policies and managerial decisions based on the determinants of technical efficiency.
Discussion: The 2007 Farm Bill and Crop Insurance: Implications for Crop Producers in the South
Authors: Worth Thomas
Published: July 2016

The crop insurance program has grown significantly since passage of the 2002 Farm Bill. Total premiums more than doubled from $2.9 billion in 2002 to $6.6 billion in 2007. This growth in the crop insurance program is due to a combination of greater participation by growers at higher levels of coverage, an increased number of crops with coverage available, and a general rise in commodity prices. Not unexpectedly, there has been a corresponding increase in the cost of program delivery. The total amount of expense subsidy and underwriting gains paid to crop insurance companies increased from around $1 billion in 2001 to over $2.5 billion in 2007.
Impact of the Ethanol Boom on Livestock and Dairy Industries: What Are They Going to Eat?
Authors: Anderson David , Anderson John D. , Sawyer Jason
Published: July 2016

Increased demand for corn for ethanol production has helped push grain prices to record levels. This has increased livestock production costs, and producers have responded with changes to production systems. This paper explores the degree to which costs can be mitigated with alternative feeds, the effect this might have on physical performance, and the impact of alternative feeds on the competitive position of different species.
Impacts of Expanded Ethanol Production on Southern Agriculture
Authors: Susanto Dwi , Rosson C. Parr , Hudson Darren
Published: July 2016

This study analyzes the potential impacts of expanded ethanol production on southern agriculture. Results of regression analysis suggest that acreage planted for field crops (corn, cotton, soybeans, and wheat) is inelastic with respect to relative prices. The results provide statistical evidence of potential significant acreage shifts favoring corn over cotton, soybeans, and wheat. Simulations indicate that higher corn prices will increase corn acreage, but the South continues to be a deficit corn region. U.S. corn production is capable of supplying domestic demand for ethanol, feed for livestock and poultry, and other uses, while maintaining exports at more than 2 billion bushels annually.
Impact of Income on Price and Income Responses in the Differential Demand System
Authors: Brown Mark G.
Published: July 2016

An extension of the Rotterdam model is developed that makes the model's income flexibility and marginal propensities to consume varying coefficients. Frisch's duality relationships that the second partial derivatives of demand with respect to income and prices are independent of the order of differentiation are imposed with the marginal propensities to consume specified as functions of income and price, and the Slutsky coefficients specified as functions of income only. A uniform substitute specification is used to analyze the conditional demands for a group of beverages.
Agency Theory Issues in the Food Processing Industry
Authors: Boland Michael A. , Golden Bill B. , Tsoodle Leah J.
Published: July 2016

The objective is to identify significant determinants of performance for food processing firms over the 1992 to 2003 time period, focusing particularly on the issue of family control. Variables measuring firm effects such as asset size, governance, income distribution, and risk are used to explain return on equity. This study builds upon previous research by including a measure of income distribution in the food processing industry. Governance variables are found to be significant determinants of return on equity. The results found no evidence of agency problems in family-controlled firms during this time period.
Correction of Measurement Error in Monthly USDA Pig Crop: Generating Alternative Data Series
Authors: Kim In-Seck , Plain Ronald L. , Bullock J. Bruce , Jei Sang Young
Published: July 2016

The imputed pig death loss contained in the reported monthly U.S. Department of Agriculture (USDA) pig crop data over the December 1995-June 2006 period ranged from —4.93% to 12.75%. Clearly, there are substantial measurement errors in the USDA monthly pig crop data. In this paper, we present alternative monthly U.S. pig crop data using the biological production process, which is compatible with prior knowledge of the U.S. hog industry. Alternative pig crop data are applied to a slaughter hog model and tested comparatively to USDA pig crop. Test results reject the validity of USDA pig crop data in favor of the alternative data.
Evaluation of Market Thinness for Hogs and Pork
Authors: Franken Jason R.V. , Parcell Joe L.
Published: July 2016

We investigate thinness of hog and pork markets in terms of quantity and representativeness of negotiated transactions. Transactional volume imparts marginally greater confidence in pricing precision for Iowa-Southern Minnesota negotiated hogs than for the national carcass cut-out, suggesting that contracts tying prices to the former rather than the latter may be more representative of industry conditions. Extending mandatory price reporting to pork may remedy this discrepancy. Despite declining volume, terminal hog markets may price accurately off of Iowa-Southern Minnesota prices. Hog quality differentials across procurement methods are documented, and quality of negotiated hogs is shown to decline with declining volume.
Are Consumers Willing to Pay More for Low-Input Turfgrasses on Residential Lawns? Evidence from Choice Experiments
Authors: Yue Chengyan , Hugie Kari , Watkins Eric
Published: July 2016

A choice experiment with real products was used to investigate consumer willingness to pay (WTP) for several low-input attributes of turfgrasses. The choice scenarios consisted of turfgrass plots, which varied in aesthetic quality characteristics and were labeled with differing levels of maintenance requirements (irrigation, fertilizer, etc.), shade adaptation, origin, and price. A mixed logit model was used to analyze the choice data and estimate consumer WTP. Our results suggest that low-input maintenance attributes significantly influence consumer choice behavior and identify a strong consumer preference for reduced irrigation and mowing requirements. The introduction of low-input turfgrasses could be a viable strategy for reducing the maintenance inputs and costs for residential lawn care.
Risk Analysis of Tillage and Crop Rotation Alternatives with Winter Wheat
Authors: Williams Jeffery R. , Pachta Matthew J. , Roozeboom Kraig L. , Llewelyn Richard V. , Claassen Mark M. , Bergtold Jason S.
Published: July 2016

The economic feasibility of soybeans, grain sorghum, and corn in annual rotation with winter wheat using reduced tillage and no-tillage systems in the Central Great Plains was evaluated, with continuous wheat and grain sorghum also analyzed. Net returns were calculated using simulated yield and price distributions based on historical yields, two historical annual price series, and 2011 costs. Stochastic Efficiency with Respect to a Function was used to determine the preferred strategies under various risk preferences. The no-till wheat-soybean and reduced-till wheat-soybean systems are the first and second most preferred, regardless of the level of risk aversion.
Forage Response to Swine Effluent: A Cox Nonnested Test of Alternative Functional Forms Using a Fast Double Bootstrap
Authors: Park Seong C. , Brorsen B. Wade , Stoecker Arthur L. , Hattey Jeffory A.
Published: July 2016

A Cox nonnested test is conducted using a fast double bootstrap (FDB) method to select among three competing functional forms (linear response plateau, quadratic, and Mitscherlich-Baule) to model forage yield response to nitrogen applied with swine effluent. The quadratic is rejected in favor of one of the other functional forms in all cases. The FDBpvalues differed slightly from the single bootstrappvalues. Buffalograss was slightly more profitable than bermudagrass and has the ability to use almost as much nitrogen as bermudagrass.
Growth in Agricultural Loan Market Share for Arkansas Commercial Banks
Authors: Ahrendsen Bruce L. , Dixon Bruce L. , Priyanti Atien
Published: July 2016

Changes in commercial bank market shares of farm debt are decomposed into portfolio decisions, loanable funds availability and loan market size for 64 counties in Arkansas from 1986 through 1990. A seemingly unrelated regression model is hypothesized to identify county characteristics that are related to changes in commercial bank market shares. Regression results indicate that county differences in economic activity, the relative risk associated with agriculture, farm structure and regional location contributed to changes in commercial bank market shares. The results imply a market niche for rural commercial banks emphasizing agricultural loans in the presence of unlimited branch banking.
Environmental and Economic Impacts of Agricultural Policy Reform: An Interregional Comparison
Authors: Painter Kathleen M. , Young Douglas L.
Published: July 2016

Mathematical programming results revealed that moving toward more flexible agricultural policies would generate substantial economic and environmental gains in a North Carolina diversified cropping region. But in a Washington-Idaho dryland grains region, only the use of relatively new and sometimes problematic alternative cropping systems permitted environmental and economic gains under policy reform. In both regions, a recoupling policy, which links government payments to resource-conserving farming practices, was needed to protect environmental quality when market prices for program crops were high.
A Dynamic Analysis of the Impact of Water Quality Policies on Irrigation Investment and Crop Choice Decisions
Authors: Wu JunJie , Mapp Harry P. , Bernardo Daniel J.
Published: July 2016

A dynamic model is developed to analyze farmers' irrigation investment and crop choice decisions under alternative water quality protection policies. The model is applied to an empirical example in the Oklahoma High Plains. The choices of crops and irrigation systems and the resulting levels of irrigation, income, and nitrogen runoff and percolation are simulated over a ten-year period. An effluent tax on nitrogen runoff and percolation is shown to be effective in reducing nitrate pollution. The efficacy of cost sharing in adopting modern irrigation technologies and restrictions on irrigation water use depends on soil type. A tax on nitrogen use is shown to be the least effective policy.
Private Decisions and Public Goods: Trade-Offs in the Conservation Programs in the New Farm Bill: Discussion
Authors: Davis Todd D.
Published: July 2016

The 2002 Farm Bill creates several opportunities for landowners to adopt management practices that protect and improve soil and water quality. Landowners considering enrollment in conservation programs must compare the monetary and nonmonetary costs and benefits from removing land from production agriculture. The overall purpose of this invited paper session was to improve the understanding of the factors affecting a landowner's decision to enroll in conservation programs. Papers addressed the environmental benefits of conservation programs and compared the returns to enrolling in conservation programs to the returns from production agriculture.
Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers
Authors: Vergara Oscar , Coble Keith H. , Patrick George F. , Knight Thomas O. , Baquet Alan E.
Published: July 2016

We study the relationship between the off-farm labor decision and the limited-resource farmers' and spouses' off-farm wages, experience, education, and sources of income. We found that farmers' and spouses' off-farm experience and wages are significant factors in explaining the off-farm labor supply decision. Contrary to expectations, farm income variability is not significant in the farmers' and spouses' decision to seek off-farm work. The off-farm labor supply of farmers and their spouses is negatively correlated with income transfers from the government. It was also found that the spouse is a residual supplier of on-farm and off-farm labor.
Consumers' Willingness to Pay for Eco-Certified Wood Products
Authors: Jensen Kimberly L. , Jakus Paul M. , English Burton C. , Menard Jamey
Published: July 2016

We use Kriström's simple spike model to assess the factors influencing consumers' willingness to pay a premium for a variety of certified wood products. A survey of over 1,600 Pennsylvania and Tennessee residents found that approximately 35% were willing to pay some positive “premium” for environmentally certified wood products. For three types of wood products (a $28.80 shelf, a $199 chair, and a $799 table), we find the estimated market premiums to be $3.74, $15.94, and $45.07, respectively.
Expected Utility Analysis of Stocker Cattle Ownership Versus Contract Grazing in the Southeast
Authors: Anderson John D. , Lacy Curt , Forrest Charlie S. , Little Randall D.
Published: July 2016

Stocker cattle ownership is compared to contract grazing using stochastic simulation. Returns are evaluated for both cattle owners and caretakers in contract grazing agreements. For caretakers, contract grazing is significantly less risky than cattle ownership. Slightly to moderately risk-averse caretakers could be expected to prefer some type of contract grazing to direct ownership of cattle. For cattle owners, contracting reduces risk only slightly while significantly reducing expected returns.
Effect of Ranchland Attributes on Recreational Hunting in Florida: A Hedonic Price Analysis
Authors: Shrestha Ram K. , Alavalapati Janaki R.R.
Published: July 2016

Recreational hunting has been an attractive enterprise for some ranchers who are interested in supplementing their income from cattle. Ranchland attributes—such as parcel size, tree cover, and proximity to urban centers—are expected to influence hunters' preferences and, thus, hunting lease payments. We estimated the effects of these attributes on hunting revenues using a hedonic model. The results reveal that trees and vegetation cover on ranchlands have a positive impact on hunting revenues, indicating opportunities for silvopasture practices. Those ranchers in Florida who maintain about 22% trees and other vegetation cover receive $16.15 per acre per year from hunting leases, but doubling the cover would generate only an additional $3.20 per acre per year.
Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan
Authors: Dickinson David L. , Von Bailey Dee
Published: July 2016

We employed Vickrey auctions to generate willingness-to-pay (WTP) data for red meat traceability and related product characteristics with comparable experimental auctions in the United States, Canada, the U.K., and Japan. The results show that subjects are willing to pay a nontrivial premium for traceability, but the same subjects show even higher WTP for traceability-provided characteristics like additional meat safety and humane animal treatment guarantees. The implication is that producers might be able to implement traceable meat systems profitably by tailoring the verifiable characteristics of the product to consumer preferences.
Technology Adoption and Off-Farm Household Income: The Case of Herbicide-Tolerant Soybeans
Authors: Fernandez-Cornejo Jorge , Hendricks Chad , Mishra Ashok
Published: July 2016

We model the interaction of off-farm work and adoption of agricultural technologies and the impact of adopting these technologies on farm household income from on farm and off-farm sources after controlling for such interaction, and estimate the model for the case of adoption of herbicide-tolerant (HT) soybeans using a nationwide survey of soybean farms for 2000. We find that adoption of HT soybeans is positively and significantly related to off-farm household income for U.S. soybean farmers, after controlling for other factors. In addition, while on-farm household income is not significantly related to adoption, total household income increases significantly with adoption.