The effects of various supply and demand shifts on beef price, quantity, andindustry welfare have been widely studied under the assumption of beefquality homogeneity. In this paper, we construct a model of the beef sectorthat incorporates differences in beef quality. The model is used to analyzethe effect of supply and demand shifts on changes in prices and quantitiesof high- and low-quality beef and changes in revenue accruing to producersof high- and low-quality beef. Model results indicate that supply and demandshocks have the potential to alter the average quality of beef on the marketand the price premium charged for high-quality beef, which has importantimplications for retailers selling quality-differentiated beef and producersselling cattle on a grid.

Whereas consumer theory employs several different empirical specificationsfor estimating indirect utility functions, producer theory has relied on theTranslog specification to estimate the indirect production function. In thispaper, we apply Lewbel's more general functional specification andinvestigate its implications for the estimation of indirect productionfunctions in productivity analysis. An attractive feature of the Lewbelmodel is that it nests both the Translog and the almost ideal supply system,offering a method to assess the empirical validity of all threespecifications. Aggregate U.S. production data are used to examine theperformance of the three models in an empirical application.

An extension of the Guerrero et al. (2010) net present value (NPV) analysisusing real options analysis (ROA) is offered to improve machineryreplacement decisions. Specifically, the feasibilities of replacing naturalgas irrigation systems with either electric or hybrid (electric/wind)systems are evaluated. Results indicate NPV and ROA criteria can yieldopposite decisions depending on the stochastic nature of the parameters,reversibility of the investment, and flexibility of investment timing. Forpolicy, NPV results indicate that replacing natural gas with a hybrid is onthe cusp of being optimal. However, ROA indicates this NPV implication maynot hold.

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.

Determinants of prices of 1,302 weanling Thoroughbreds sold at the 2010 Keeneland November Breeding Stock Sale are investigated. A hedonic pricing model is adopted to identify price determinants, and the corresponding marginal values of those determinants are estimated. Prices were responsive to pedigree quality variables, including the sire's stud fee, the stage of the sire's breeding career, and whether the dam or the dam's progeny had earned “black type.” In addition, individual weanling characteristics such as gender, age, state of birth, and sale placement influenced price. Results can be used as a decision tool by both buyers and sellers.

Both market advisors and researchers have often suggested multiyear rollover hedging as a way to increase producer returns. This study determines whether rollover hedging can increase expected returns for producers. For rollover hedging to increase expected returns, futures prices must follow a mean-reverting process. To test for the existence of mean reversion in agricultural commodity prices, this study uses a longer set of price data and a wider range of test procedures than past research. With the use of both the return predictability test from long-horizon regression and the variance ratio test, we find that mean reversion does not exist in futures prices for corn, wheat, soybean, soybean oil, and soybean meal. The findings are consistent with the weak form of market efficiency. Simulated trading results for 3-year rollover hedges provide additional evidence that the expected returns to the rollover hedging strategies are not statistically different from the expected returns to routine annual hedges and cash sale at harvest.

Pollution from fossil fuel use is a global problem. Studies have shown that a worsening of environmental quality has adverse effects on worker productivity and health. In this study, there is an inexhaustible natural resource that deteriorates environmental quality and affects productivity. There also exists a perfect substitute clean backstop, which is initially too costly to operate and whose costs can be reduced through investments in knowledge. Depending on the endowment of environmental quality, the optimal solution shows that the planner should only use the resource or only the backstop until a constant steady state is reached in which the polluting resource and backstop are used in fixed proportions. We show that investments in alternative technologies from the very beginning can help an economy make the eventual switch to clean energy sources, thereby attaining better environmental quality.

Agricultural production in Brazil has increased in recent decades. Despite this, the rural population continues to face income inequality. Policies targeting this issue, such as rural credit, have been implemented during this period. This study estimates the influence of credit on income inequality in Brazilian rural areas. Results suggest that the family farming credit program (PRONAF) is not associated with increase in inequality. However, access to rural credit from sources other than PRONAF has led to greater household income inequality. Results also indicate that greater levels of education and access to rural extension have boosted the effect of credit on income.

We assessed hunters’ willingness to participate in a scheme to recover the costs associated with processing diseased game. The results indicated that fifty-one percent of the hunters in a region affected by chronic wasting disease are interested in such a scheme and willing to pay an average of $20 per animal. Their willingness to participate is affected by risk perception, hunting experience, use of processing services, and income. Further, establishing such a market-based scheme would be financially profitable to game processors and helpful to wildlife agencies interested in encouraging hunters’ harvest to reduce herds and facilitate effective disease surveillance.

Asian countries consume approximately 90% of the world’s rice supply. Between 2007 and 2014, Thailand, Vietnam, and India accounted for 60% of the world’s exports of rice. A nonlinear autoregressive distributed lag (NARDL) econometric model is utilized to estimate the impact of exchange rate fluctuations on rice trade in Southeast Asia. Focusing on the largest importing countries and exporting country by volume, the analysis considers Malaysian, Indonesian, the Philippines, and Chinese rice imports from Thailand. Results show that importing countries’ state trading enterprises (STEs) generally do not follow profit-maximizing behavior in reacting to exchange rate volatility.

We calculate the welfare effects of the Washington State University (WSU) wheat breeding programs for producers and consumers in Washington, Oregon, Idaho, and the United States, and for importers of U.S. wheat. We develop a partial equilibrium multiregion, multiproduct, multivariety trade model for wheat that provides consumer, producer, and total surplus for each wheat class and region. Our results provide evidence suggesting that WSU wheat breeding programs have increased welfare for the state of Washington, the United States, and importers of U.S. wheat.

Farmer perceptions of extension program delivery methods and an analysis of the relationships of method and farmer characteristics to evaluation scores are presented. Evaluation scores tend to increase with written, interactive and variable-scheduled methods and methods where users determine the agenda. Evaluations tend to be lower for high user cost and “high-tech” methods. Substantial similarity of results exists across groups of farmers differing by age, education levels, farm size and farm type. There are differences, however, in absolute valuation of the method characteristics across the groups.

This study evaluates econometrically the effect of government support to agriculture on a measure of the affordability of food in 10 Organization for Economic Cooperation and Development (OECD) countries. The panel model we construct specifically utilizes two values calculated by the OECD: Producer Support Estimates as a percentage of gross farm receipts and the Consumer Nominal Protection Coefficient. These two variables represent transfers from taxpayers to agricultural producers through government programs and transfers from consumers to government through protectionist measures, respectively. By using dummy variables, we find implications for groups of countries on the basis of their relative levels of support and protection.

A linear probability function permits the estimation of the probability of the occurrence or non-occurrence of a discrete event. Nerlove and Press (p. 3–9) outline several statistical problems that arise if such a function is estimated via OLS. In particular, heteroskedasticity inherent in such a regression model leads to inefficient estimates of parameters (Amemiya 1973, Horn and Horn). Moreover, without restrictions on the conventional OLS model, probability estimates lying outside the unit (0–1) interval are possible (Nerlove and Press). Goldberger and Kmenta suggest two approaches for alleviating the heteroskedasticity problems inherent in the OLS regression model. Logit analysis will also alleviate heteroskedasticity problems and ensure that estimated probabilities will lie within the unit interval (Amemiya 1974, Hauck and Donner, Hill and Kau, Horn and Horn, Horn, Horn, and Duncan, Theil 1970).

This study used aggregated data for fresh vegetables and fresh fruits toanalyze how trade flows in the fresh produce industry have changed undertrade agreements and to assess the potential implications to nutritionpolicies in the United States. The first part of the analysis uses aBai-Perron test to endogenously determine any structural break points invegetable and fruit trade movements and prices. Directed acyclic graphs andhistorical decompositions are used to establish causal patterns oninnovations from vector autoregression models fitted to annual observationsof trade flows, prices, and income. The results showed that trade agreementshave had significant impacts to the produce industry. Income was a majordeterminant of domestic fruit production and imports.

Prior to the last decade, federal water-project construction programs dominated water policy. These programs continue, but at a reduced level of funding, and the nation now is denning a new agenda of water resources issues to include water quality management and water allocation. Economists engaged in studies of water resources policy, and who seek to influence the direction of policy through research, teaching, and extension will find these exciting times.

In anticipation of Congressional debates over an expanded environmental title in the 1990 farm bill, several studies on pesticide use and the impacts of reduction were undertaken (e.g., Smith et al., Knutson et al., Osteen and Szmedra, and GRC Economics). Osteen and Szmedra reported that the use of herbicides, insecticides, and fungicides increased steadily from post-World War II to 1982 before decreasing as crop prices declined and acreage reduction programs reduced planted acreage. Heightened concerns and perceptions about the presence of pesticides and nitrates in our food and water supplies have led to calls for the reduction and/or elimination of agricultural chemicals. For example, a National Academy of Science study has concluded and therefore fostered the perception that substantial reductions in chemical use are possible without large impacts on production and/or prices.

China has become the largest importer of roundwood and lumber products in recent years. In this study, the degree of competition among major supplying countries in China's import market is measured through the inverse residual demand elasticity over 1995–2015. Time-series properties of the data are considered through the autoregressive distributed lag model. The analysis reveals that market power exists in roundwood and lumber markets for a few supplying countries. The suppliers in the lumber import market have more market power than those in the roundwood market. Individual countries with substantial market power have more fluctuations in trading volumes.

This study examines the short- and long-run effects of changes in macroeconomic variables—agricultural commodity prices, interest rates and exchange rates—on the U.S. farm income. For this purpose, we adopt an autoregressive distributed lag (ARDL) approach to cointegration with quarterly data for 1989–2008. Results show that the exchange rate plays a crucial role in determining the long-ran behavior of U.S. farm income, but has little effect in the short-run. We also find that the commodity price and interest rate have been significant determinants of U.S. farm income in both the short- and long-run over the past two decades.

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.