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A COMPARISON OF CAPITAL MEASURES IN U.S. AGRICULTURE

Matthew A. Andersen, Julian M. Alston, Matthew A. Andersen & Julian M. Alston
This study compares two panel data sets that measure capital input at the state-level in U.S. agriculture. Despite a number of similarities between the data sets, such as the composition of assets, aggregation procedures, and time frame, an examination of the final estimates of capital service flows reveals that they are drastically different for all 48 contiguous states. We examine the methods used to construct the capital series for each data set, consider some important...

TARIFF EQUIVALENCE OF AGRICULTURAL SUPPORT POLICIES

Roger Martini, Joe Dewbre, Roger Martini & Joe Dewbre
A partial equilibrium model of agricultural markets and detailed PSE data are used to identify the uniform tariff that is 'equivalent' to existing producer support in terms of trade, production or farm household income. Resulting indicators are compared to other measures of policy intervention in agriculture.

THE IMPACT OF MARKET MECHANISMS AND HACCP REGULATION ON FOOD SAFETY QUALITY

Michael Ollinger & Michael Ollinger
Economists have long debated the relative effectiveness of markets and regulations in reaching socially desirable outcomes. This empirical study of meat and poultry food safety regulation suggests that market mechanisms and flexible regulatory instruments, e.g. HACCP systems, have a greater impact on food safety quality than less flexible regulatory instruments. Subject code: 9 (Food Safety and Nutrition).

THE IMPORTANCE OF SPATIAL DATA IN MODELING ACTUAL ENROLLMENT IN THE CONSERVATION RESERVE ENHANCEMENT PROGRAM (CREP)

Jordan F. Suter, Nelson L. Bills, Gregory L. Poe, Jordan F. Suter, Nelson L. Bills & Gregory L. Poe
This paper uses actual enrollment and Geographic Information Systems (GIS) data in six geographically diverse states to demonstrate that enrollment rates in the Conservation Reserve Enhancement Program (CREP) are a function of the incentives offered. If aggregate county land use data were used, as has been done previously, incentives appear insignificant.

Wal-Mart and Rural Poverty

Stephan J. Goetz, Hema Swaminathan, Stephan J. Goetz & Hema Swaminathan
Wal-Mart® has created tremendous economic benefits for consumers by providing more choices at lower prices. The benefits are felt especially in communities that had only local retail monopolies prior to the arrival of the store. Yet no mretailer evokes stronger negative emotions than this chain. Recent media attention has focused on questionable labor practices and low wages combined with lack of benefits paid by the corporation, while academic studies have examined effects of the stores...

DETERMINANTS OF RESOURCE ALLOCATION IN LOW INPUT AGRICULTURE: THE CASE OF BANANA PRODUCTION IN UGANDA

Wilberforce K. Tushemereirwe, Enoch M. Kikulwe, Mariana Rufino, Arie Kuyvenhoven, Ruerd Ruben, Fredrick Bagamba, Robert Kalyebara, Wilberforce K. Tushemereirwe, Enoch M. Kikulwe, Mariana Rufino, Arie Kuyvenhoven, Ruerd Ruben, Fredrick Bagamba & Robert Kalyebara
Banana production provides suitable options for subsistence and income generation in the mid and high elevation areas of East Africa, including Uganda. Limited access to factor markets (labour, land and credit), as well as critical biophysical factors (pests, diseases and soil degradation) have led to the decline of banana production in central Uganda and its rise in the southwest of the country. We formulate a farm production model to analyze farm household behavior in developing...

THE CASE FOR ACCEPTABLE LEVELS OF ENVIRONMENTAL SELF-REGULATION IN THE POULTRY INDUSTRY: POLICY AND ECONOMIC IMPLICATIONS

Manjula V. Guru, Harold L. Goodwin, Manjula V. Guru & Harold L. Goodwin
With increased production of poultry in key areas of the country, poultry litter is becoming the focus of increasing concern and scrutiny. This paper proposes to identify specific concerns of growers related to management of poultry litter, and analyze potential outcomes of possible environmental quality related clauses, based on field studies.

A MODEL OF PRODUCER INCENTIVES FOR LIVESTOCK DISEASE MANAGEMENT

Ram Ranjan, Ruben N. Lubowski, Ram Ranjan & Ruben N. Lubowski
We examine the management of livestock diseases from the producers' perspective, incorporating information and incentive asymmetries between producers and regulators. Using a dynamic model, we examine responses to different policy options including indemnity payments, subsidies to report at-risk animals, monitoring, and regulatory approaches to decreasing infection risks when perverse incentives and multiple policies interact. This conceptual analysis illustrates the importance of designing efficient combinations of regulatory and incentive-based policies.

THE PROSPECTS OF AGRICULTURAL ADAPTATION TO CLIMATE CHANGE: CLIMATE-TECHNOLOGY INTERACTION IN RICE -WHEAT CROPPING SYSTEM IN NEPAL

Netra B. Chhetri, Sundar S. Shrestha, Netra B. Chhetri & Sundar S. Shrestha
We use panel data from Nepal to examine the effect of climate in inducing technology to understand potential agricultural adaptation to climate change in rice and wheat crops. We find different degree of climate-technology interaction in the productivity of two crops.

DOES THE MARKET ANTICIPATE SMOOTHING IN USDA CROP PRODUCTION FORECASTS?

Olga Isengildina, Scott H. Irwin, Darrel L. Good, Olga Isengildina, Scott H. Irwin & Darrel L. Good
This study examines whether market participants anticipate the predictable component in USDA revisions of corn and soybean production forecasts during 1970/71 through 2003/04 marketing years. The analysis revealed that markets consistently under-predicted October corn production revisions and over-predicted September soybean production revisions. These biases may be attributable to inefficient use of information about smoothing in USDA revisions. In all other cases market analysts seemed to be aware of USDA smoothing practices and generally efficiently incorporated...

THE ECONOMIC IMPACT OF PEANUT RESEARCH ON POVERTY REDUCTION: RESISTANCE STRATEGIES TO CONTROL PEANUT VIRUSES IN UGANDA

Sibusiso Moyo, George W. Norton, Jeffrey Roger Alwang, Sibusiso Moyo, George W. Norton & Jeffrey Roger Alwang
Economic impacts of research that developed Rosette Virus-resistance peanut in Uganda are estimated. Changes in economic surplus are calculated and combined with household data to assess changes in poverty rates and effects on livelihoods of the poor. The poverty rate may decline up to 1.5 percent as a result of the research.

COMMODITY PRICES AND UNIT ROOT TESTS

Dabin Wang, William G. Tomek, Dabin Wang & William G. Tomek
Endogenous variables in structural models of agricultural commodity markets are typically treated as stationary. Yet, tests for unit roots have rather frequently implied that commodity prices are not stationary. This seeming inconsistency is investigated by focusing on alternative specifications of unit root tests. We apply various specifications to Illinois farm prices of corn, soybeans, barrows and gilts, and milk for the 1960 through 2002 time span. The preponderance of the evidence suggests that nominal prices...

RISK BALANCING USING FARM LEVEL DATA: AN ECONOMETRIC ANALYSIS

Yan Yan, Ani L. Katchova, Peter J. Barry, Yan Yan, Ani L. Katchova & Peter J. Barry
In the paper, an econometric model is proposed to test the risk balancing hypothesis using farm level data. For the purpose, a constraint on expected utility maximization with respect to farm financial structure is given. Cluster method is applied to pick out the farms on the efficient frontier under expected utility maximization given risk attitude and actual interest rate. Regression results are given and compared to previous findings. Farm characteristics associated with the risk behaviors...

Willingness-to-Accept and Willingness-to-Pay for GM and Non-GM Food: UK Consumers

Wanki Moon, Arbindra Rimal, Siva K. Balasubramanian, Wanki Moon, Arbindra Rimal & Siva K. Balasubramanian
Our research elicited UK consumers¡¯ willingness-to-accept (WTA) discount in exchange for giving up non-GM food and willingness-to-pay (WTP) premium to purchase non-GM food. Eliciting only WTP does not provide sufficient information for determining substitutability between GM and non-GM food. Results indicate that there is a strong demand for non-GM food in the UK, but a non-negligible segment expressed their willingness to substitute non-GM food with GM version either without discount (12 %) or with discounts...

ESTIMATING THE MVP AND OPTIMUM IRRIGATION LEVEL FOR GRAIN SORGHUM UTILIZING EVAPOTRANSPIRATION REQUIREMENTS FOR THE TEXAS PANHANDLE

W. Arden Colette, Lal K. Almas, W. Arden Colette & Lal K. Almas
Production data provided by commercial producers of grain sorghum is used to estimate response functions for three alternative management decision models. The evaluation of yield to the total water availability, irrigation, and water application as a percent of potential evapotranspiration. The three methods provide similar results, but each provides unique information and adds valuable information to the decision process. The value product functions and the energy cost function are used to determine the profit maximizing...

PROMOTIONAL EFFORTS VS. ECONOMIC FACTORS AS DRIVERS OF PRODUCERS' DECISIONS TO EXPAND OR START A DAIRY

Phillip R. Eberle, Clinton Milliman, William C. Peterson, C. Matthew Rendleman, Phillip R. Eberle, Clinton Milliman, William C. Peterson & C. Matthew Rendleman
States have developed programs to expand or attract new dairies. Whether these programs played a role in producers' decisions is evaluated. A multi-state survey of milk producers was conducted to identify factors affecting producers' decisions to expand dairy. Results are presented by state and size of dairy. The public promotion and support category was ranked the lowest in importance for dairy growth, but individual items within the category were rated as positive. Of the 42...

CREDIT SCORE MIGRATION ANALYSIS OF FARM BUSINESSES: CONDITIONING ON BUSINESS CYCLES AND MIGRATION TRENDS

Jill Phillips, Ani L. Katchova, Jill Phillips & Ani L. Katchova
This study examines credit score migration rates of farm businesses. We test whether migration probabilities differ across business cycles. Our results suggest that agricultural credit ratings are more likely to improve during expansions and deteriorate during recessions. We also test whether agricultural credit ratings depend on the previous period migration trends. Our results show that credit score ratings exhibit trend reversal where upgrades (downgrades) are more likely to be followed by downgrades (upgrades).

TARIFF ESCALATION: IMPACTS ON U.S. AND GLOBAL RICE TRADE

Eric J. Wailes, Alvaro Durand-Morat, Linwood A. Hoffman, Nathan W. Childs, Eric J. Wailes, Alvaro Durand-Morat, Linwood A. Hoffman & Nathan W. Childs
Tariff escalation is an important aspect of protection for domestic milling industries, particularly in Central America. The United States exports over 40 percent of its rice as paddy. This study uses a spatial equilibrium trade model to evaluate the impacts of tariff escalation on U.S. and global long grain paddy and milled rice trade. Tariffs are harmonized for paddy and milled rice at two levels: milled tariff rates and zero. The results indicate that tariff...

EVALUATION OF CONSERVATION POLICIES FOR REDUCING NITROGEN LOADS TO THE MISSISSIPPI RIVER AND GULF OF MEXICO

Katsuya Tanaka, JunJie Wu, Katsuya Tanaka & JunJie Wu
This study integrates economic and physical models to estimate the social costs of several commonly suggested policies (chemical-use tax and three types of conservation payments) for reducing nitrogen loads to the Mississippi River and for controlling hypoxia in the Gulf of Mexico. The economic models predict farmer's crop rotations, tillage practices, and participation in the Conservation Reserve Program (CRP) at more than 44,000 Natural Resource Inventory sites in the Upper Mississippi River Basin. The estimated...

SOCIAL CAPITAL AND THE REPRODUCTION OF INEQUALITY IN SOCIALLY POLARIZED ECONOMIES

Tewodaj Mogues, Michael R. Carter, Tewodaj Mogues & Michael R. Carter
This paper explores the idea that how wealth is distributed across social groups (ethnic or language groups, gender, etc.) fundamentally affects the evolution of economic inequality. By providing microfoundations suitable for this exploration, this paper hopes to enhance our understanding of when social forces contribute to the reproduction of economic inequality, and what the relevant policy implications might be. In tackling this issue, this paper offers contributions in two domains. First, it adds a dimension...

WATERSHED CONSERVATION AND EFFICIENT GROUNDWATER PRICING

James A. Roumasset, Basharat A.K. Pitafi, James A. Roumasset & Basharat A.K. Pitafi
Conserving the watershed can help to preserve the groundwater supplies by avoiding loss of recharge. Preventing overuse of available water through pricing reforms can also substantially increase benefits from groundwater stock. Since efficiency prices are generally higher than the inefficient, status quo prices, efficiency pricing may be politically infeasible and watershed conservation may be considered as an alternative. Using Pearl Harbor water district as an example, we find that pricing reform yields large welfare improvement...

ON THE FRONTIER OF GENERATING REVEALED PREFERENCE CHOICE SETS: AN EFFICIENT APPROACH

David Scrogin, Richard Hofler, Kevin J. Boyle, J. Walter Milon, David Scrogin, Richard Hofler, Kevin J. Boyle & J. Walter Milon
Deterministic rules for generating choice sets are often employed by analysts confronting universal sets with large numbers of alternatives. For destination choice analysis, site exclusion rules defined by travel time, distance, or quality have a behavioral appeal, yet are fundamentally limited by their one-dimension scope. To remedy this shortcoming while maintaining the concept that trips require costly inputs to yield utility generating outputs, we develop and test an exclusion rule for generating choice sets defined...

SWEET PERSUASION: SOFT DRINKS, SCHOOL FUNDING, AND CHILDREN'S HEALTH

Wen You, Paul D. Mitchell, George C. Davis, Wen You, Paul D. Mitchell & George C. Davis
"Pouring rights" contracts between soft drink companies and schools have created substantial controversy. Treating the issue as externality problem, we analyze the Pigouvian tax solution and propose a contract between the government and schools to provide an incentive compatible method for government to utilize the tax revenue.

THE IMPACT OF HEALTH INFORMATION AND DEMOGRAPHIC CHANGES ON AGGREGATE MEAT DEMAND

Christiane Schroeter, Kenneth A. Foster, Christiane Schroeter & Kenneth A. Foster
Over the past few decades, U.S. meat consumption patterns have changed. Food consumption patterns are influenced by changing demographic characteristics, changing lifestyles, increasing health, and nutrition concerns. Prior research suggests that these factors have significant influence on the demand for meat (Capps and Schmitz; Kinnucan, Hsia, and Jackson). By incorporating a demographic and a health information variable in the meat demand system, this study aims to quantify and interpret important non-price determinants of meat demand....

APPROACHES TO MANAGEMENT AND FARM BUSINESS SUCCESS

William D. McBride, James D. Johnson, William D. McBride & James D. Johnson
Exploratory factor analysis was used to analyze responses to management questions asked a sample of U.S. cash grain farmers. Results indicate that 3 factors described farm management approaches, price negotiation, long-term cost control, and input adjustment. Price negotiation was positively associated with farm business success, but the input adjustment approach had a negative impact on farm performance.

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