This paper develops a framework for competitiveness that incorporates path dependency within production regions. Patterns of technological innovation, product development, institutions, and market orientation follow a certain local path. This evolution creates regional economies that emerge with unexpected competitive advantage. The model draws on previous work looking at, among other things, induced innovation. The framework is applied here to the major regional tomato producers in North America. The paper examines the role of various institutions (grower associations, governments, research institutions, and support industry) in influencing the path along which a regional sector evolves.

The demand for a variety of fresh fruits and vegetables, including fresh market tomatoes, has increased significantly over the past decade because of greater convenience in use, improved selection, and rising health and diet concerns. As U.S. demand for tomatoes and other horticultural crops strengthens, inexperienced domestic and international suppliers believe they can compete effectively within U.S. markets. Free trade agreements have reduced monetary barriers to trade, but remaining impediments, such as institutional and competitive market constraints, represent significant challenges for southern U.S. growers. This paper discusses points addressed by VanSickle, Eastwood, and Woods concerning trade and horticultural market development.

Crop insurance is the cornerstone program of domestic farm policy in most developed countries. Although most countries’ rating methodology corrects for time-varying movements in the first two moments, it is unclear whether using the entire yield series remains appropriate.  We use distributional tests and an out-of-sample retain-cede rating game to answer whether governments/insurers should historically trim yields in estimating their premium rates. Despite small sample sizes and the need to estimate tail probabilities, the historical data appear to be sufficiently different such that trimming is justified.

The American Viticultural Area (AVA) allows designated wine regions to be created, marketed, and protected. But many of the now 248 AVAs may be meaningless to consumers. Are AVAs thus meritless? Can AVAs affect consumers despite low recognition? A choice experiment examines three appellations that are applicable to the same wine: New Jersey, USA; Pilesgrove, New Jersey; and Outer Coastal Plain (OCP)—a New Jersey AVA. The results show that consumers prefer OCP wines over the former alternatives, affirming the marketing potential of AVAs that omit state names. Nevertheless, AVA may have exploited consumers’ lack of information.

The purpose of this study is to assess the impact of participation in the land rental market on smallholder farmers’ commercialization using farm household panel data in Tigrai, Ethiopia. Regression results reveal that 1 hectare increase in area rented in by tenant households leads to a 60% increase in the likelihood of participation in the output market as a crop seller and increases the marketed output sold by tenant households by US$ 200/year. The results appear to indicate that land rental market in the land scarcity economy to some extent contributes positively in the facilitation of transformation toward smallholders’ commercialization.

This article undertakes an empirical investigation of the determinants of voluntary adoption of the ISO 14001 environmental management system by French farmers. The adoption model incorporates the expected profitability of implementing the standard and investigates the impact of prior knowledge on the probability of adopting. Two information measures are considered: a “reported information” indicator and an “estimated knowledge” score. The probit parameter estimates reveal that, while the expected profitability of implementing the standard is a significant determinant of adoption, real and perceived prior knowledge measures play a significant but potentially counterintuitive role.

In general, investigations of the cattle cycle have concentrated on the cyclical fluctuations in inventories based on the number of head of cattle on farms as of January 1. The emphasis in studies of the cycle in numbers appears to be on providing a system of logic to explain why a cycle could or even should exist. Very little attention has been given to describing in any precise manner, the characteristics of “the cycle.”

Rapidly declining gasoline prices from their record high during the summer of 2008, while ethanol prices remained relatively high, made it difficult for many bio-fuel policy modelers to fully explain the impacts of U.S. bio-fuel policies on fuel prices. Using profit-maximization models for blenders, refiners, and distillers, we conduct a comparative static analysis to measure the relative magnitudes of the impacts of tax credits and blending mandates on fuel-energy market equilibrium prices. Our results indicate that first, the prices of all fuels including conventional gasoline, ethanol, and blended gasoline decline as the biofuel tax credit increases, but they increase as the rate of the blending mandate increases. Second, the shadow value of a blending mandate represents the marginal rate of substitution between the marginal price change associated with a blending mandate and the marginal price change associated with a bio-fuel tax credit. Therefore, bio-fuel policies can affect the prices of all fuels including conventional gasoline, ethanol, and blended gasoline. Finally, ethanol imports are affected by domestic blender's market-power effects, more than by the import duty imposed to offset the tax credit associated with the use of imported ethanol in the blending process.

International markets for the majority of agricultural commodities are extremely complex. They include public and private traders along with influences from domestic and international government policies. In recent years, the United States has experienced a decline in the market share in two of its major agricultural exports—rice and wheat. For example, at one time the United States had roughly 45 percent of the world wheat market; but, by the end of 1985, its share had dropped below 40 percent. Also, in terms of rice, the United States market share has dropped from 25 percent to below 20 percent.

An example of agricultural research technology transfer and implications for the fiscal coordination and conduct of agricultural research programs is presented. Uniform Soybean Tests conducted in four Southern States are used to estimate the potential for transferability of soybean variety research among homogeneous sub-areas. The results indicate a high degree of transferability among the sub-areas. Coordinated management of soybean variety research could potentially provide more effective expenditure of soybean breeding research investments. Additionally, the concept or research transferability is not limited to soybeans or soybean variety research. Increased coordination of agricultural research investments by individual states may enhance existing benefits.

A two-stage multinomial logit selection model is used to model the relationship between demographic characteristics and housing density across Tennessee's six metropolitan statistical areas. The study finds that there is both spatial correlation and heterogeneity in the spatial distribution of housing both within and across the six areas. For example, Memphis, the most densely populated area, has the least amount of spatial correlation among housing density at the neighborhood level, while Johnson City, which has the lowest overall housing density, has the highest degree of spatial correlation.

The age-old conflict between producers and market middlemen in the food industry has surfaced in the finfish industry with respect to market prices, producer prices, and marketing margins. Unrest among fishermen (producers) about the performance of the marketing system for various species of finfish has sparked numerous protests in the United States. Some protests have ended in lawsuits; in other cases, marketing cooperatives and/or marketing associations have been formed to integrate several steps in the marketing process. These events have been common in the Florida Atlantic Coast marketing system.

The location basis variability aspect of hedging commodities in futures should be of especial concern to Southern hog producers who might contemplate hedging in the live hog futures market. Location basis variability affects hedgers who, like Southern hog producers, are distant from designated futures contract delivery points and cannot, as a practical matter, make (or take) physical delivery to discharge their obligation under a futures contract. To liquidate hedges, Southern producers would have no real alternative but to market hogs locally and purchase offsetting futures contracts. Any change in the spatial relationship of hog prices between the time a hedge was placed and when it was lifted causes a disparity between the intended and actual outcome of the hedge, hence, the term location basis variability. Hedgers with access to a delivery-point market are more or less insulated from its effect, because of the delivery option. Since hedging is presumably conducted to reduce the effects of price variability on the enterprise, location basis variability stands as a potential barrier to the usefulness of hedging to Southern hog producers.

An important objective of Japanese agricultural policy since the early 1960s has been to increase farm incomes by raising the farm price of rice, the country's principal agricultural crop (Hayami). This objective was accomplished through a two-tiered pricing scheme administered by the Japanese Food Agency, the country's principal purchaser and seller of rice, which maintained producer support prices at levels higher than the consumer equivalent. However, in recent years, the accumulation of excess rice stocks has forced Japan's policymakers to implement major changes in rice policy to reduce persistent overproduction. These policies include diversion payment programs that provide incentives to divert paddy land to production of priority crops such as wheat, barley, and soybeans, as well as surplus disposal programs that subsidize the disposal of accumulated rice stocks for export, industrial, and feed use. Other policy changes include adjustments in the wholesale (resale) prices of rice and wheat to favor rice consumption, and adjustments in producer support prices to promote production of competing crops. This study analyzes the impact on trade of recent changes in Japanese rice and wheat policy.

Recently many state and federal agencies in the U.S. have embraced an ecosystems management approach to environmental protection and regulation. This approach requires a high degree of cooperation between natural and social scientists to translate policy objectives into research hypotheses, models, and evaluation procedures to guide implementation decisions. An adaptive procedure to guide interdisciplinary research is described and illustrated with highlights of recent progress and pitfalls from the restoration initiative for the Everglades/South Florida ecosystem.

The United States leads the world in agricultural biotechnology research, adoption, commercialization, and exports. Our biotech commodities are highly dependent on international markets. Thus, any biotech policy changes by key importing countries may affect U.S. agricultural biotech product exports. This article identifies key markets for U.S. agricultural exports including biotech commodities and discusses current and proposed biotech policies in key markets for U.S. agricultural exports focusing on Canada, Mexico, Japan, the European Union (EU), and China. Among these markets, labeling of biotech products is voluntary in Canada and Mexico but is mandatory in Japan, the EU, and, most recently, in China. For the EU, U.S. corn exports were almost completely shut out, while U.S. soybean exports also declined because of the EU's biotech policies. The World Trade Organization dispute filed by the United States has yet to be finalized. China's biotech regulations raised concern by U.S. agricultural exporters. However, through U.S. Department of Agriculture education programs, U.S.–China negotiations, and China's domestic soybean shortage, China's biotech regulations do not appear to have had long-run impacts on U.S. soybean exports to China.

Eight input combinations of commercial fertilizer, insecticides, and herbicides on a corn-soybean crop rotation in the Brazos River Bottom of Texas are evaluated. Input combinations which do not fully utilize all three inputs are consistently ranked higher by all criteria as the preferred input strategy for the corn-soybean rotation system. These results, which indicate limited input crop rotations that fall somewhere between the extremes of conventional agricultural production and organic agriculture, deserve further attention as a possible production alternative.