The risk effects of irrigation scheduling in a sub-humid climate have been well documented recently using approximations of the variance of net returns. A method to determine the exact variance of net returns assuming only multivariant normality is presented. The approximation technique in contrast to the method presented in this research was shown to have a non-uniform effect on the variance of net returns of each schedule.

Some believe Panama Canal toll rates will increase dramatically as Panama's sovereignty over the Canal becomes complete at the end of this century. This paper focuses on the ability of Panama Canal management to extract additional toll revenues from United States grain traversing the Canal and the impact of increased toll rates on export grain flows. Analyses show toll rates established by a revenue-maximizing Canal management would exceed historical and current rates. A monopolizing Canal operator would have moderately increased Pacific port exports in the mid-1970's; whereas, in the 1979-82 period, Pacific port flows would have exceeded historical level.

Restricting or eliminating the use of atrazine in the Midwest would have important economic consequences for farmers, consumers, and the environment. These consequences can only be evaluated with cooperation between economists and weed scientists. The weed control choice set available to farmers cannot be observed through deductive research. Economists and weed scientists worked together to identify all possible weed control strategies for corn and sorghum in the Midwest and to incorporate them into an economic model. An atrazine ban was found to be the costliest strategy, and a targeted, water-quality based strategy the most cost effective.

In general, people are aware of the rapid growth of urban areas, the spread of suburban developments, urban sprawl, strip developments, and extensive highway systems, but they are seldom aware of the extent to which prime agricultural land has been, and is being, diverted to these and other nonagricultural uses.

The Dixit-Pindyck model was applied to examine the hypothesis that uncertainty associated with grapefruit production costs and returns is an important determinant of Texas grapefruit growers' investment behavior. Freezes, price variability, and the effects of expanded trade were analyzed as risk factors. An investment decision rule based on a net-present value calculation would approve a 25-year commitment to a 20-acre grapefruit grove, given a 6-percent discount rate. The modified hurdle rate, calculated using an ex ante version of the Dixit-Pindyck model, is 24 percent. The major source of the risk borne by Texas grapefruit investors is from freezes, rather than from expanded trade.

During the past few decades, U. S. agriculture has experienced remarkable gains in productivity and efficiency. While the number of farms has declined, the economic activities supporting production agriculture continue to comprise a major sector of the U. S. economy. The value-added food and fiber complex serves as an important link between production agriculture and the larger U. S. economy. Value-added products from agriculture have a retail value of more than $700 billion annually and engage about 20 percent of the U. S. labor force (ESCOP).

Wyoming Game and Fish Department depredation payments were established to increase landowner tolerance toward, and thus the supply of, certain types of wildlife. This study examined how socio-economic and demographic characteristics of farmers and ranchers in Wyoming relate to tolerance toward wildlife and depredation claim submission. The severity of depredation and landowner satisfaction with the depredation policy were evaluated. The financial stability and economic intent of farmers and ranchers significantly influenced tolerance toward wildlife. Landowners tended to be less tolerant of depredation ensuing from elk. The complexity of the submission process was a deterrent to damage claim submissions.

Previous studies have consistently indicated the anomalous result of a price inflexible demand for pecans. However, these efforts did not have an adequate measure of pecan stocks available and, as a result, stocks were either excluded from consideration or a proxy variable was introduced. A time series of pecan stocks is now available. Use of this time series in a price dependent demand function results in a flexible farm level demand for pecans. This points out the danger of excluding an appropriate variable or using a so-called “reasonable” proxy variable.

The objective of this paper is to estimate the impact of domestic policy on comparative advantage of agriculture in the South. I utilize estimates of projected prices in a market-centered agriculture to examine the degree of insulation from market forces for major crops produced in the South and to calculate the relative net returns per acre in the absence of commodity programs. The price and net returns are probably below long-term equilibriums but are useful measures of relative prices and returns among commodities even if the returns are negative.

The Orbit demand model allows the magnitude of the calibration to stated purchase intentions to vary based on the magnitude of the stated quantities. Using an empirical example of stated trips, we find that the extent of calibration varies substantially with less correction needed at small stated trips (-25%) but larger corrections at higher quantities of stated visits (-48%). We extend the Orbit model to calculate consumer surplus per stated trip of $26. Combining the calibrations in stated trips and value per trip, the Orbit model provides estimates of annual benefits from 60% to 111% less than the count data model.

Producer-owned business models are rapidly evolving. Producer-owned, value-added ventures face a number of organizational challenges, including capital acquisition, security exchange registration, antitrust exemption, borrowing eligibility, and operational flexibility. This paper examines the success of evolving producer-owned business models in addressing these challenges. The need for uniform criteria to distinguish producer-owned business from other business forms throughout the complex structure of policies and laws affecting value-added ventures is highlighted.

As part of its strategy to attract new businesses, in 1994 the State of Alabama won the Mercedes Benz bid to establish an automobile assembly plant in Vance, Tuscaloosa County, Alabama at the cost of $222 to $253 million worth of incentives. The study assessed the economic impact of the Mercedes Benz investment using IMPLAN. The IMPLAN industry code 49, industrial construction, and industry code 384, motor vehicle, were used to project the impact of the investment for the construction and production phases respectively. The results from four scenarios indicated that the investment would generate sizable direct and indirect employment, income, output, and tax revenue for the state economy. From the estimated revenue, the pay-out period for the cost of the incentive would be from four to seven years. The scenarios also indicated that the increase in the volume of locally purchased automobile parts will increase the multiplier effects for the state economy. Currently, the direct benefits from suppliers accrue to other states with established suppliers networks. The finding also suggested a heavy concentration of the impact of Mercedes Benz plant in the north and northeast part of the state. These counties were also the beneficiaries of past agglomeration economies in terms of critical physical infrastructure and human resource development.

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.

We determined how pasture and grazing management practices affected the number of days hay was fed to cattle by season. Data were collected from a survey of Tennessee cattle producers. Days of cattle on hay varied across seasons because of variations in forage production and weather. The number of days hay was fed to cattle varied with pasture-animal management practices such as rotating pastures, forage mixtures, and weed management strategies. Having mixtures of cool- and warm-season grasses reduced the number of days on hay in the winter, spring, and summer months indicating benefits from diversified forages.

The U.S. Department of Agriculture (USDA) releases crop condition reports detailing crop progress and growing conditions for various crops including corn, soybeans, and winter wheat. Previous research has investigated market impacts from various USDA reports, but crop condition reports have received little attention. This article investigates the impact of crop condition reports on winter wheat prices at the national level and for a local market. We employ both parametric and nonparametric tests. Results suggest that crop condition reports for winter wheat do not generally affect market prices. This contrasts with results found in corn and soybean markets.

Major components of agricultural competitiveness, including definitions, factors, and indicators of competitiveness, are discussed. The case of the North American Free Trade Agreement (NAFTA) is used to illustrate how factors have influenced the competitive position of the NAFTA countries. Traditional neoclassical trade theory is used to evaluate the impact of currency exchange rate fluctuations and trade preferences on agricultural competitiveness. Pre- and post-NAFTA market shares are evaluated for five agricultural commodities of importance to the southern United States. The results of these evaluations are compared with theoretical expectations and discussed with special emphasis on implications for future trade negotiations.

This paper examines the potential effects of agricultural investment on economic outcomes in Guinea-Bissau (2014–2030). Through a dynamic computable general equilibrium (CGE) model, we found that improved agricultural performance will positively impact economic growth, sector output, and job opportunities for rural and urban workers. The decline in food prices will propagate indirect impacts on urban household welfare, while rural households will benefit from direct and indirect effects through the decline in the consumer price index. Poverty alleviation suggests agriculture’s crucial role in supporting ongoing industrialization and food security in Africa with attenuated income inequality.

This study scrutinizes spatial econometric models and specifications of crop yield response functions to provide a robust evaluation of empirical alternatives available to researchers. We specify 14 competing panel regression models of crop yield response to weather and site characteristics. Using county corn yields in the US, this study implements in-sample, out-of-sample, and bootstrapped out-of-sample prediction performance comparisons. Descriptive propositions and empirical results demonstrate the importance of spatial correlation and empirically support the fixed effects model with spatially dependent error structures. This study also emphasizes the importance of extensive model specification testing and evaluation of selection criteria for prediction.

Motivated by disease outbreaks and trade shocks, a dynamic equilibrium displacement model is calibrated for the U.S. pear industry to simulate welfare from various shocks compared to a baseline. Our contribution is assessing the impact to intermediary packers for fresh fruit and processors for processed fruit in addition to growers and consumers. The processed market is more sensitive than the fresh market generally, and supply shocks induce larger impacts on both markets than trade sanctions. Impacts to intermediaries are on par with growers, indicating that not considering them misstates the distribution of damages to the industry from a shock.