Farmers in the Northeast have traditionally rotated crops in a particular field. This system has several advantages. Rotation of crops reduces the buildup of weeds, insects, and diseases specific to one crop. Legumes such as alfalfa fix nitrogen for use by the following grain crops. Including close growing crops in the rotation reduces soil loss. Growing several crops distributes labor requirements and reduces risk.

The contribution of research to agricultural production is measured by estimating a production function which includes variables to reflect conventional inputs as well as agricultural research. Conventional inputs considered are hired labor, feed and livestock, seed and fertilizer, and capital and depreciation. Investment in agricultural research and extension within the region and investment in agricultural research in other production regions of the U.S. are included in the production function. Marginal products and internal rates of return axe derived for the own region and outside-the-region investments in agricultural research.

The empirical results indicate that sane agricultural production regions have a greater capacity for exporting agricultural research results while some have a greater capacity for importing agricultural research results from other production regions. Of the ten agricultural production regions of the U.S., the Northeast had the lowest marginal product per dollar invested in agricultural research during the 1977–81 period and the lowest internal rate of return to investment in agricultural research. For the same time period the average annual spillovers from the Northeast were approximately 3.3 times as large as the average annual regional benefit and the spillovers from the Northeast were about 2.3 times as large as the spill-ins into the Northeast region. The ratio of federal to state expenditures on agricultural research in the Northeast was 1.03 and compared to a ratio of spillover's to regional benefits of 3.3 suggests that the Northeast does not fare well in terms of federal support of agricultural research benefiting other regions of the U.S.

We estimate the relationship between farm animal welfare (FAW) efforts taken by beef farmers and the economic performance of beef farms by using farm accounting data from the Swedish Farm Economic Survey matched with survey data on farm management practices. To this end, we perform a two-step analysis. First, an item response theory (IRT) model estimates the latent FAW effort on farms. FAW effort likely depends on a host of complementary FAW-improving strategies, and the IRT model combines the considered strategies into a unidimensional scale. We take this to represent on-farm FAW effort. Second, we use instrumental variable regressions to estimate the relationship between FAW effort and multiple measures of farm economic performance. We find that higher FAW effort scores have no effect on margins and costs. However, higher FAW effort scores are associated with lower farm sales. Findings suggest that policies (such as targeted label for high FAW) that increase farm revenue as well as incentivize the uptake of FAW-improvement practices may be able to compensate farmers for their FAW effort.

To investigate the poor participation rate of cranberry growers in the multiple-peril crop insurance program, a sample of 15 Massachusetts growers was interviewed. According to their risk preferences, a much greater proportion of growers should have insured, than actually did. A possible solution is to match the distribution used by the insurer closer to that believed by the grower. Adjusting each grower's historical yield series for trend brought the historical and subjective mean yields much closer. However, an aggregate test found the effect of adjustment to be insignificant, implying that the avenue for increased participation lies elsewhere.

Given the relatively small industry scale of cow-calf operations in New York to other regions of the country, little is known about differences in determinant values for feeder cattle. Using auction prices and quality characteristics over 7 years, differences in market, lot, and quality parameters suggest opportunities for improved marketing performance. A delta profit model is constructed to inform timing of marketing decisions for producers. The results indicate a relatively high potential for producers to increase farm returns by delaying sales of lighter-weight feeder cattle from the fall to spring auction months, given sufficient rates of gain and reasonable overwintering costs.

Federal agencies invest taxpayer dollars every year in conservation programs that are focused on improving a suite of ecosystem services produced on private lands. A better understanding of the public benefits generated by federal conservation programs could help improve governmental efficiency and economic welfare by providing science-based evidence for use in policy decision-making regarding targeting of federal conservation investments. Of specific concern here are conservation investments made by the U.S. Department of Agriculture (USDA). While previous research has shown that efficiency gains are possible using cost-benefit analysis for targeting conservation investments, agency-wide implementation of this approach by policy makers has been constrained by the limited availability of location-specific information regarding conservation benefits. Cost-effective opportunities for integrating location-specific ecosystem service valuation research with USDA conservation decision-making include: (1) institutionalizing funding of comparable studies suitable for benefit transfer, (2) utilizing non-traditional data sources for research complementing benefit transfer, and (3) creating a state-of-the-art program for developing and communicating research in ecosystem service valuation exemplifying the highest standards of scientific conduct.

Quality of the environment is measured and evaluated by some criteria, such as composition, and by performance. However, quality, in terms of composition and/or performance, as a factor in environment has no meaning except as it relates to some use of the environment and scale of health, happiness and aspirations of man. For example, an environment is regarded as having a lower quality than 15 years ago because of an increase in the phosphorus contained in surface water and/or a change in the species of fish present in surface waters. In terms of performance, a particular environment (watershed) is not producing enough because the soil and phosphorus losses are twice the acceptable rate. Furthermore, the composition and performance of an environment are related. Measurement of the nitrogen and phosphorus content of water helps to determine if a given water resource can be used (perform) in a particular way.

The use of hedging with commodity futures markets to reduce the price risk in corn production is examined. Both intra-year and inter-year risk are evaluated with different hedging strategies. Strategies involve no hedge, hedge and hold, controlled hedge placement and hold, and in and out hedging. Both technical and forecasting criteria are used to place hedges in the more active strategies. Substantial risk reduction is possible, often without a reduction in price received. Considerable basis risk diminishes the risk reducing properties of a hedge and hold strategy.

Considerable attention has been given to the proper measurement, estimation, and analysis of the technological structure of aggregate U.S. agriculture (Binswanger, Brown, Ray, and Antle). During the last decade, duality theory-motivated studies have also analyzed regional farm production (Saez, and Shumway). Except for the Saez study, no attempt has been made to analyze the farm production structure of the Northeast region.1

The effects of rail deregulation on feed transportation in the Northeast are examined through construction of a spatial equilibrium model of the Northeastern feed industry. Short-run and long-run effects of deregulation are analyzed through incorporation of rail rate structures for 1981 and 1984, respectively, into model simulations and comparison with pre-deregulation base year results (1980). The results show that the Northeast feed economy has generally benefited from rail deregulation which has led to lower transportation costs, lower feed costs and an enhanced competitive position relative to the Southeastern U.S.

Two topics dominate discussions of public elementary and secondary education. The first is declining enrollments and the second is fiscal problems, especially those problems associated with such catch words as equity, taxpayer revolt, and tax reform. In this paper, we analyze the relationship between these two topics by examining enrollment change and fiscal characteristics in 504 Pennsylvania school districts. Our purpose is to provide a descriptive base for further research on the fiscal problems raised by changing school enrollments.

Three major problems appear common to recent research efforts aimed at measurement and assessment of the adequacy of community services. These include:

1. (i) difficulties and inconsistencies which relate to the definition and interpretation of utilization behavior,

2. (ii) econometric misspecification—e.g., omission of critical variables affecting needs or use—, and

3. (iii) choice of inappropriate estimation technique when the dependent variable (e.g., use or non-use of the service) is dichotomous.

The use of emergency, disaster, and other ad hoc sources of income support to American farmers escalated dramatically between 1991 and 2002, increasing year-to-year uncertainty about the magnitude and distribution of farm program benefits. Ad hoc payment mechanisms, while meeting needs now apparently unsatisfied by other farm programs, have the potential to substitute for or conflict with agri-environmental and conservation program goals. Federal budget constraints likely make continued growth in ad hoc payment schemes unsustainable, raising questions about what will take their place. There is ample room for new research on how alternative farm program approaches and program combinations interact to affect stewardship behavior and associated agri-environmental outcomes.

Four key policy challenges, framed here as dichotomies, are commonly associated with attempts to improve the use of natural resources in the socioecological commons. These dichotomies present tradeoffs when addressing market failures and in general seem to suggest the need to settle for second-best outcomes rather than first-best outcomes identified in stylized models. Citing examples, we argue that these models, while illustrating these dichotomies, also suggest means for circumventing them, and perhaps provide a degree of optimism about prospective outcomes in socioecological systems.

Canada and the United States are the world's largest trading partners. The total volume of two-way merchandise trade in 1985 was $165 billion Canadian ($124 billion U.S.). Canadian dependence on U.S. markets has grown to the point that nearly 80% of our exports are destined for our southern neighbor. By the same token, more than 70% of Canada's imports originate in the U.S. That volume represents 20% of total exports from the U.S., the largest proportion going to any individual country. Obviously, trade relations between Canada and the U.S. are very important to both countries. Indeed, given their combined role in total world trade, the importance of trade relations between them goes beyond whatever it might be to those two countries alone.

Assessments of the NJARE and other agricultural economic journals by faculty in the Northeast Region were contrasted to those made by faculty in other regions. Faculty in the Northeast judged the NJARE to be of high professional quality and personal usefulness and felt that the NJARE had made substantial quality improvements. A strong regional character in the NJARE was evidenced by low journal participation rates by faculty in other regions. Impacts of recent changes in the Journal and the need for future assessments were discussed.

Adoption of advanced breeding technologies and management practices (BTMP) in U.S. meat goat production and their impact were examined. Adopters generally had larger-scale operations, used rotational grazing and/or dry lot systems, and sold larger percentages of animals for breeding and show purposes. Farmer demographics and farm variables also influenced adoption. Complementarity of adoption was found—adopters of one BTMP tended to adopt other BTMPs. Measures of productivity and profitability were not affected by adoption. Goat breed, farmer experience, production system used, and specialization influenced productivity, and farm size had the greatest influence on enterprise profitability.

On most Northeastern dairy farms bull calves are considered a superfluous output and are sent to auction markets as soon as possible after they are born. The excess supply situation in the United States dairy industry combined with other obstacles to dairy herd expansion has resulted in dairy producers seeking expansion options other than increased dairy herd size. Several alternatives for expanding the dairy farm business that utilize bull calves as a resource are possible. Dairy beef systems that are most complementary to the ongoing dairy business should be particularly attractive.

The presence of allocatable fixed inputs may cause truly joint technologies to appear nonjoint in the short run as well as truly nonjoint technologies to appear joint. This paper demonstrates theoretically why this can happen and then documents that it actually occurs in a significant way in aggregate U.S. agricultural production. A simple testing procedure is used that requires no data on input allocations. The important finding is that failure to reject true (apparent) nonjointness does not justify modeling short-run (long-run) supply independent of alternative output prices.