This study determined the competitive potential of the temperate southeastern U.S. region to produce selected fresh vegetables for the national market. Results indicated that the region may be competitive in the production and marketing of snap beans, cucumbers, bell peppers, and spring tomatoes. The region would also be competitive in the production and marketing of broccoli, summer and fall tomatoes, and spinach, given cost reductions of 10 to 15 percent. Major cost reductions were required for the region to be competitive in the production and interregional marketing of sweet onions in the absence of effective product differentiation.

This research examines the success of stabilization policies to control hyperinflation in Bolivia. Money demand functions for the hyperinflation and stabilization periods were econometrically estimated and statistically tested. We conclude that the demand for money in Bolivia changed after stabilization policies were implemented, indicating that the new government's objectives were met. Stabilization policies resulted in real economic growth for Bolivia's economy, including its agricultural sector, where agricultural export shares increased tenfold as stabilization policies corrected overvalued exchange rates.

Relationships between cotton export sales and export shipments are examined, and a quarter-specific lag structure is estimated. Two econometric systems are estimated, one employing export shipments and the other using export sales. Results indicate that sales are more sensitive to changes in economic variables than shipments and that stocks net of outstanding export sales are more responsive to price and interest rate changes than gross stocks. Sales and shipments are different variables and cannot substitute for one another in econometric modelling. Use of export sales data should be considered in estimation of export demand and stock demand parameters.

Southeast drought conditions have accentuated the demand for irrigation in the face of restricted water supply. For allocating this supply, Georgia held an auction for withdrawing irrigated acreage. This auction withdrew 33,000 acres from irrigation, resulting in a physical estimate of a 399 acre-feet daily increase in water flow. The actual reduction is driven by crop distributional changes on the basis of economic substitution and expansion effects. In contrast to the physical estimates, an econometric model that considers these effects is developed. The differences between the physical and econometric models result in an increase in the estimate of water savings of around 19% to 24%.

Commercial farmers remain a primary political force in support of publicly-supported research and educational programs to create productivity gains in crop and livestock production. Have the technical productivity gains brought about by both public and private sector research and educational efforts improved the well being of American farmers? A great number of agricultural scientists believe that they have. Studies have attempted to provide estimates of the internal rate of return and benefit/cost ratios for agricultural research and education. The vast majority of these studies estimate a quite favorable internal rate of return and a high productivity for public-sector agricultural research (Huffman and Just, p. 828). But these studies have focused on rates of return to agricultural research and education for society as a whole, without attempting to determine if these gains accrued to farmers, consumers, or perhaps the agribusiness firms who purchase raw farm commodities from farmers or sell them inputs.

Perhaps the first important question is, “Will the next few years be significantly different from those of the past decade”? Assuming that the world is not again engulfed in a war of major magnitude, it is probably safe to conclude that many of the agricultural problems of the 1960's will continue to be of importance well into the 1970's. The problems associated with a highly competitive industry in which output per man-hour of labor is increasing rapidly while the demand for its output is both inelastic and expanding slowly are not likely to disappear at an early date.

First let us focus attention on problem areas which may not be “new” in any basic sense of that word, but which are likely to be of increasing importance in the years immediately ahead.

Selected problems and opportunities inherent in educational work with large Agricultural and Agribusiness firms are examined in this paper. The problems arise largely because of the increasing size and complexity of today's large firms; the nature of their requests for assistance; and existing means of teaching the personnel of those firms. The opportunities lie in helping solve their problems in a manner which retains University contact with this important audience without disrupting academic budgets and faculty relationships.

Payment arrangements among members of a cooperative play a critical role in the performance of the cooperative. The impact of three payment systems is assessed for Florida sugarcane cooperatives through a bi-level programming model which incorporates both individual and collective behavior.

The production of beef cattle has historically been an important component of the Southeast's agricultural economy. In 1977 the region had 24.6 million cattle and calves, accounting for more than 28 percent of the total mature beef animals in the United States [3]. Despite this large and active cattle industry, however, the region is substantially deficient in carcass beef production.

One of the chief complaints against the federal tobacco program is that it sets prices too high relative to foreign tobaccos: most foreign burley tobaccos are priced between one-third and one-half the price of U.S. burley. Critics feel that if the government program were changed so that burley production could increase, prices would be lower, and more burley tobacco would be consumed. Production increases could bring about two beneficial effects. First, U.S. burley tobacco would be more competitive in overseas markets, and, therefore, exports could increase. Second, U.S. imports of foreign burley could decrease. This study examines the validity of the first argument; its main objective is to evaluate the elasticity of demand for U.S. burley tobacco in European markets. Of course, the more price elastic is the demand for U.S. burley in these European markets, the more exports will expand if U.S. prices are lowered. Evidence is also provided on the growth potential of these foreign markets.

Two years ago, in his presidential address, Dr. C. E. Bishop told members of the American Agricultural Economics Association that “… our preoccupation with the problems of the farm firm has resulted in little or no attention to problems that are much more important to the majority of the rural population”.

Preoccupation with the farm firm is evident in our traditional approach to the study of incomes of farm people. There is still a tendency to look at the incomes of farm firms rather than at the incomes of people who farm. Present income statistics are oriented to the farm firm in a way that makes it fairly difficult to study the economic well-being of people involved in farming.

Artificial drying of corn in the Southeastern Coastal Plain was shown to be financially feasible for average annual per farm production levels of greater than 10,000 bushels. Net present values for four types of drying systems were evaluated using simulation modeling in which weather conditions, yield levels, and prices were entered as stochastic variables. Scale of production and irrigation substantially influenced crop drying potential. Stochastic efficiency analysis was used to evaluate the riskiness of the investment.

The impact pre-harvest hedging and crop insurance strategies have on expected revenue and associated risk as well as how producers' risk attitudes affect optimal strategies was analyzed for Kansas wheat farms. No insurance, Catastrophic (CAT), Actual Production History (APH), and Crop Revenue Coverage (CRC) were considered. Average revenue was similar across alternatives, but APH and CRC resulted in the least income variability. Risk reduction effects of hedging were small and the advantage of CRC over APH decreases as hedging increases. This historical study provides useful information; however, if future market conditions differ significantly from the past, optimal strategies may change.

All those who have worked closely with farmers know that uncertainties in farming are great. They stem from many sources — natural forces such as weather, disease, variation in market prices, etc. Some uncertainties, e.g., weather hazards such as hail, can be insured against; others can be reduced by increased wealth. Farmers can also reduce uncertainty through contracting, as these may specify price and quantity.

Most crops grown in the U.S. Central Cornbelt are sold on highly developed public markets with daily prices and offerings. While target prices for soybeans and corn exist, price uncertainty still remains at the time farmers make decisions. Futures markets have long been available. However, few farmers use futures markets to predetermine prices in their crop planning process. One reason for this is that while use of futures markets can remove price risks, biological weather risks remain.

Conservancy districts can plan and apply land treatment and structural measures to reduce flooding and associated damages. The Conservancy District Act permits conservancy districts to appraise benefits and levy assessments to pay the cost of installing, operating, and maintaining works of flood protection not included in legislative appropriations. We are concerned with the method whereby these specified costs are distributed among flood plain farmers.

The assessment criterion is: Each beneficiary shall be assessed in relation to the proportion of benefits received. That is, flood plain farmers are to pay the proportion of specified flood protection costs that equal the proportion of total benefits received. The objective of assessing is consistent and equitable, but there is yet to be developed a method for computing assessments which meet this norm or objective.

In many regions, irrigation water is pumped from an underground aquifer that receives little or no recharge. With an exhaustible water supply, water available in year t + 1 depends on quantity of water available in year t − 1 and the quantity withdrawn in year t. As the water supply decreases, pumping costs increase and returns to water and management decline.

The exhaustible nature of the water supply causes an especially difficult problem for the farm operator in that he must allocate water within and among years. In addition, the farm operator is faced with irrigation investment decisions; e.g., type of irrigation distribution system to use. He must consider simultaneously, labor intensive versus capital intensive systems and effect of each system on present value and economic life of his specific water supply. To manually evaluate the alternatives, making the necessary calculations would be prohibitive in terms of both cost and time.

A useful guide for the direction of future agricultural policy on energy requires, in part, detailed knowledge of the demand for different types of energy in different types of agriculture. Two approaches have been used in examining these demand relationships: (1) projecting total agricultural energy requirements, allocating these requirements among different agricultural subsectors, and estimating energy use in different agricultural enterprises; and (2) linear programming (LP) or constrained input-output (I/O) analyses to assess impacts of high energy prices and quantity restrictions on agricultural activities. However, these approaches usually require some stringent assumptions which limit the applicability of the results, and they provide little information about the economic factors that influence the demand for various types of energy. In short, the two approaches may be too restrictive to portray adequately the range of opportunity and response open to the agricultural sector. Emphasis needs to be given to those approaches which can provide information about the economic structure of energy use in the agricultural sector.