Public interest in food systems has grown dramatically, and agricultural economists have important roles to play in contributing to and leading large-scale interdisciplinary studies of the subject. Key topics include understanding food system participants' behaviors and incentives and determining what food systems can and cannot achieve. I review a global food-security project funded by the National Institute of Food and Agriculture that illustrates the interactions between production, distribution, and consumption of food and regional self-reliance, as well as other important areas in which agricultural and regional economists can gainfully apply their tools and methods, including studies of the impacts of local food and network analyses.

Decreased care or offsetting behavior by potential victims can reduce or reverse benefits provided by some safety policies. We explore reasons for offsetting behavior associated with food safety policies using a survey of a nationally representative sample of almost 3,000 consumers. Results reveal that positive food safety information can change consumers’ risk perceptions and attitudes, causing them to be less vigilant and to consume more of relatively unsafe foods. This behavioral anomaly plausibly explains ongoing incidences of food poisoning after a meat processing facility implements a pathogen-reduction hazard analysis of critical control points (PR/HACCP).

We assess empirically how agricultural lands should be used to produce the highest valued outputs, which include food, energy, and environmental goods and services. We explore efficiency tradeoffs associated with allocating land between food and bioenergy and use a set of market prices and nonmarket environmental values to value the outputs produced by those crops. We also examine the degree to which using marginal land for energy crops is an approximately optimal rule. Our empirical results for an agricultural watershed in Iowa show that planting energy crops on marginal land is not likely to yield the highest valued output.

This study analyzes the participation decision and income impacts of fair-trade coffee certification on small-scale coffee producers in the Araku valley in India using panel data for 183 households and endogenous-switching and quantile regression methods. The results show that fair trade certification has a positive effect on income; the income of certified farmers is 17 percent higher on average than the income of uncertified coffee producers. Furthermore, fair trade certification has a “bottom of the pyramid” effect in that the largest income gains accrue to farmers in the poorer quantiles.

This study evaluates the environmental performance of northeastern U.S. dairy operations that differ in size using a directional output-distance function that measures the joint production of milk and emissions while incorporating a four-way error approach that captures farm-size heterogeneity, transient and persistent technical efficiency, and random errors. For the emission component, a comprehensive pollution index is generated that incorporates three major sources of pollution in dairy farming: fuel, fertilizer, and livestock. Computed shadow prices and Morishima elasticities of substitution reveal that large dairy operations are environmentally inefficient compared to their smaller counterparts.

This research employs an agricultural sector model that links seasonal crop production with disaggregated livestock production sectors, in tandem with observed quarterly data on U.S. drought conditions to assess the long term economic implications of drought for U.S beef cattle producers. Short term impacts show increases in feed costs as well as increases in cattle slaughter resulting from drought-induced culling. The price of live cattle decreases in the short run; however, feed prices remain above baseline levels, and beef cattle breeding inventories decline in the long run, leading to fewer calves moving through the supply chain.

A growing body of literature demonstrates that many behavioral anomalies observed in stated-preference elicitation methods such as the contingent valuation method are also observed in actual choices and vice versa. This presentation furthers the argument that such parallel behaviors should be viewed as a strength of stated-preference methods. Three well-known anomalies observed in both stated preferences and actual choices are first reviewed to lay the foundation for this argument. A number of lesser-known anomalies are then presented to demonstrate the wider prevalence of parallel anomalies in stated preferences and actual choices.

Impacts of historic and cultural amenities on property values and the economy have not been widely studied in part because of problems isolating statistical effects using nonmarket valuation and lack of study areas. Three jurisdictions in Virginia containing major historic sites provide a unique setting in which to isolate the effects of historical amenities on residential property values using revealed preferences and quantify their economic benefits. We find that historic areas provide both open space and historic amenities. Furthermore, being adjacent to a historical area is not a positive benefit on average, perhaps because of activity and congestion associated with tourism. Residing close to such areas is valuable to buyers.

Evaluations of generic advertising programs by commodity check-off programs involve analyses of counterfactual scenarios in which advertising and promotion expenditures are set to zero over the program's history. In actual practice, the counterfactual is rarely realized. We present a case in which such a natural experiment occurred when generic advertising and promotion expenditures for U.S. orange juice were cut nearly to zero. Using structural econometric and autoregression models, we estimate losses in consumption and sales revenue and examine the time required for the market for orange juice to recover from the check-off's strategy of going nearly dark.

Two benefit-transfer approaches are used to estimate welfare losses from closure of Lake Erie beaches. We identify conditions for which the function transfer, which is more time-consuming and data-intensive, is worth the effort relative to a simple value transfer. The function transfer was essential for estimating beach demand (trips) and demand elasticity (change in trips); when evaluating individual beach closures with known trip demand, the two methods yielded similar results. Results produced by the two transfer methods deviated (up to 106 percent) when multiple beaches were closed simultaneously because value transfer did not account for the loss of beach substitutes.

This study identifies clusters of certified organic operations in the United States and determines the form of spatial autocorrelation present in the operations’ distribution. We identify large hot spots of organic operations along the West Coast and in the Midwest and Northeast with some variation based on how we define an organic operation. Further analyses suggest that organic operations do not necessarily follow the same geographic patterns as nonorganic agricultural and general business establishments. Spatial autoregressive models confirm the presence of significant spatial dependence in the distribution of certified organic operations for a number of different definitions of an organic operation.

Since cow-calf operations are large contributors of agricultural greenhouse gas (GHG) emissions in North America, consequences of pasture species composition, weaning age, and stocking rate decisions were examined by operation size, calving season, and pasture fertility. Fixed resource use and seasonal prices affected the mix of forage and beef production. Overall, adding fertilizer to pasture was unprofitable, resulting in increased stocking rates and greater emissions. Calving season and attendant breeding failure rates influenced the relative profitability of the analyzed beef-production strategies, which in turn affected farm GHG emissions. More-efficient practices led to greater amounts of beef sold per bred cow.

Few studies have examined the impacts of ground water quality on residential property values. Using a unique data set of well tests, we link residential real estate transactions to home-specific contamination and conduct a hedonic analysis of sales in Lake County, Florida, where pollution concerns relate primarily to agricultural run-off. We find that recent testing and contamination of ground water there correspond to a 2–6 percent depreciation in home values, an effect that diminishes over time. Focusing on nitrogen-based contamination, we find that prices decline mainly when concentrations exceed the regulatory health standard, suggesting as much as a 15 percent depreciation at levels twice the standard.

We study consumers’ motivations for buying organic food by analyzing their shopping baskets. Buying organic can be motivated by concern about sustainable development and/or self-interest (considerations related to health or product quality). Pro-social motivation is inferred from the presence of fair trade products in the consumer's basket; consumer self-interest is deduced from the presence of healthy and higher-quality products bearing special quality labels or certifications. Our results indicate that environmental motivation predicts organic food purchases better than health or quality considerations: the complementarity between organic and fair trade products is strongest. In addition, the household's socioeconomic background influences secondary motivations.

Direct-to-consumer (DTC) agricultural sales doubled in the United States between 1992 and 2007 and then plateaued between 2007 and 2012. It is not clear whether the plateau in sales was attributable to the recession, market saturation, an aging population, or other factors. We estimate the influence of socioeconomic factors in metropolitan areas on DTC agricultural sales between 1992 and 2012 in thirteen Northeast states using county-level panel data. We find that the income elasticity of DTC agricultural purchases ranged from 2.2 to 2.7 and that counties in metropolitan areas did not have higher DTC agricultural sales than other counties, ceteris paribus.

This study uses a field experiment involving 251 adult participants to determine which messages related to climate change, extreme weather events, and decaying infrastructure are most effective in encouraging people to pay more for investments that could alleviate future water-quality risks. The experiment also assesses whether people prefer the investments to be directed toward gray or green infrastructure projects. Messages about global warming induced climate change and decaying infrastructure lead to larger contributions than messages about extreme weather events. The results suggest that people are likely to pay more for green infrastructure projects than for gray infrastructure projects.

We investigate heterogeneous consumer preferences and willingness to pay (WTP) for various sweet cherry attributes using choice experiments. A mixed logit model and a latent-class logit model are used to estimate consumer WTP for the attributes and identify groups of consumers based on those preferences. We find that consumers of sweet cherries will pay the greatest premium for sweetness and the smallest premium for fruit size. Three groups of consumers are identified—flavor sensitive, price sensitive, and storage sensitive. The results are useful for suppliers of sweet cherries when adopting targeted marketing strategies.

We conduct a laboratory experiment to test for the existence of the endowment effect—a gap between willingness to accept and willingness to pay—for improved drinking water quality using a within-subject design. We find a statistically significant and positive gap. Willingness to accept is 62 to 125 cents higher than willingness to pay on average, indicating the presence of endowment effects. This gap is robust to information about the quality of water being consumed. We also identify some heterogeneity in the size of the gaps that is associated with differences in subjects' knowledge of drinking water quality and disparities in their incomes.

The number of food hubs—businesses that aggregate and distribute local food—in the United States is growing, fueled in part by increasing public support. However, there have been few data-driven assessments of the economic impacts of these ventures. Using an input-output-based methodology and a unique data set from a successful food hub, we measure net and gross impacts of a policy supporting their development. We estimate a gross output multiplier of 1.75 and an employment multiplier of 2.14. Using customer surveys, we estimate that every $1 increase in final demand for food hub products generates a $0.11 reduction in purchases in other sectors.