Much of the increase use of vertical coordination in the U.S. swine industry has taken place through contract production. While the incidence of contracting is much higher in non-traditional hog production areas, a growing number of Midwestern producers are being faced with contract options. A variety of contractual arrangements are available through feed companies, integrators, genetics firms, and packers. However, little is known about the profitability and risk characteristics of these alternatives. This research suggests that risk neutral producers in the Midwest would prefer independent production, and risk averse producers would prefer to choose among the various types of coordination arrangements.

No-till acreage has increased in recent years, but many farmers alternate no-till with other tillage practices, limiting public and private benefits from sustained no-till adoption. Revealed preference data are used in an ordered logit regression analysis to determine the effect of soil characteristics, climate, regions, farm characteristics, and producer demographics on producers’ choices to use continuous tillage, alternate no-till systems with tillage systems, or continuously use no-till. The model provides insight into the characteristics and conditions that are conducive to each tillage regime. The attributes found to significantly affect continuous no-till use are erodibility classification, drainage, farm size, and climate.

Forward pricing behavior of random samples of Indiana, Nebraska, and Mississippi crop producers was analyzed using Heckman's two-step limited information maximum likelihood estimation procedure. Producers who forward priced during the 1995–1998 period generally expected to forward price in 1999 using similar techniques. Probit models were estimated for cash forward contracts and taking a direct position in futures or options separately and combined. Results provide limited support for the hypothesis that forward pricing should be analyzed as an adoption decision. Variables reflecting risk attitudes do affect the decision to use forward pricing, while variables related to economic position affect the level of forward pricing.

This study applies portfolio theory to rice varietal selection decisions to find profit maximizing and risk minimizing outcomes. Results based on data from six counties in the Arkansas Delta for the period 1999-2006 suggest that sowing a portfolio of rice varieties could have increased profits from 3 to 26% (depending on the location) for rice producers in the Arkansas Delta. The major implication of this research is that data and statistical tools are available for rice producers to improve the choice of rice varieties to plant each year in specific locations. Specifically, there are large potential gains from combining varieties that are characterized by inverse yield responses to growing conditions such as drought, pest infestation, or the presence of a specific disease.

Binary logit analysis was used to identify the factors influencing adoption of Global Positioning System (GPS) guidance systems by cotton farmers in 11 Mid-south and Southeastern states. Results indicate that adoption was more likely by those who had already adopted other precision-farming practices and had used computers for farm management. In addition, younger and more affluent farmers were more likely to adopt. Farmers with larger farms and with relatively high yields were also more likely to adopt. Education was not a significant factor in a farmer's decision to adopt GPS guidance systems.

We use a sales database of farmers market vendors in the Washington, D.C., area to estimate how first half 2020 sales were impacted by the coronavirus (COVID-19) outbreak. We use 2019 data as a counterfactual for sales that would have occurred in 2020 in the absence of COVID-19. For neighborhood weekend markets that were able to remain open during the pandemic, the change in 2020 average sales between the winter and spring is between 75% and 79% lower than in 2019. Other farmers markets, particularly weekday markets in business districts, experienced delayed openings or were closed for the entire year.

Beginning January 1, 2015, conventional cage housing for egg-laying hens is scheduled to be prohibited in California. We consider the economic implications of the new hen housing regulations on the California shell egg industry. Our data show that egg production is more costly using noncage systems than conventional cages. The main result of the new regulations will be a drastic reduction in the number of eggs produced in California, a large increase in egg shipments from out of state, little if any change in hen housing for eggs consumed in California, and little change in egg prices in California.

Investing in a new perennial crop variety involves an irreversible commitment of capital and generates an uncertain return stream. As a result, the decision to adopt a new variety includes a significant real option value. Waiting for returns to rise above this real option causes a delay in adoption because of economic hysteresis. This study tests for hysteresis in the adoption of wine grape varieties using a sample of district-level data from the state of California. The empirical results show a significant hysteretic effect in wine grape investment, which might be reduced by activities that smooth earnings over time.

Rising landfill costs have forced solid waste managers to consider waste stream reduction alternatives such as household recycling. Explaining the factors which motivate households to recycle is important to regions where households must bear a large portion of the recycling cost because unit-based garbage disposal fees and curbside recycling are not feasible options. Empirical results indicate that residents are responsive to constraints introduced by the household production technology, such as time costs and storage space, but are not responsive to variables measuring a recycling promotional program. Promotion efforts should switch focus from broader “public good” benefits of recycling to reducing household-level household production constraints.

Although Tennessee has Advanced Master Beef Producer (AMBP) and Beef Quality Assurance (BQA) certifications for cattle producers, currently there is no state-certified beef labeling program. A choice experiment was administered to Tennessee consumers to determine their willingness to pay for Tennessee Certified Beef (TCB) and other attributes such as labels indicating producer participation in AMBP and BQA. Random parameter logit model results indicate consumers most valued TCB steak and no-hormones-administered ground beef. Consumers also valued many labels when appearing alongside the TCB label. The impact of providing participants label definitions prior to the choice experiment was examined.

Computers change rapidly, yet the last survey on computer use in agriculture was in 1991. We surveyed Great Plains producers in 1995 and used logit analysis to characterize adopters and non-adopters. About 37% of these producers use computers which is consistent with the general population. We confirmed previous surveys emphasizing the importance of education, age/experience, and other farm characteristics on adoption. However, we also found that education and experience may no longer be a significant influence. Future research and education could focus on when and where computers are most needed, and therefore when adoption is most appropriate.

The environment for decision-making at the farm-firm level has always been volatile, but particularly so in recent years. Product prices have seen wide fluctuations, due in part to a reduced emphasis on farm-price support programs and more reliance on world markets. Input prices, especially those that are energy related (fertilizers, chemicals, fuels), have also increased in an erratic manner in recent years.

Panel data are used in almost all subfields of the agricultural economics profession. Furthermore, many research areas have an important spatial dimension. This article discusses some of the recent contributions made in the evolving theoretical and empirical literature on spatial econometric methods for panel data. We then illustrate some of these tools within a climate change application using a hedonic model of farmland values and panel data. Estimates for the model are provided across a range of nonspatial and spatial estimators, including spatial error and spatial lag models with fixed and random effects extensions. Given the importance of location and extensive use of panel data in many subfields of agricultural economics, these recently developed spatial panel methods hold great potential for applied researchers.

Most technology adoption research has focused on crops. Primary data were used to determine differences in management practices among two groups of Oklahoma cow-calf producers based on herd size and cattle income dependence. Significant differences were noted between two groups of producers (smaller operations with less dependence on cattle versus larger with more dependence on cattle) in 79% of the management practices examined. Logit models determined factors influencing the probability of adopting 17 recommended practices. Important factors included the firm goal to choose practices that reduce labor, income dependence on cattle, human capital, and size of operation.

As with most agricultural industries, the U.S. dairy industry has evolved into a structure including fewer yet larger firms. In Louisiana, total milk production has declined along with dairy farm numbers since 1972. This study addresses the impact of alternative policies, macroeconomic factors, and technology on the structure of the Louisiana dairy industry using a micro-data non-stationary Markov chain analysis. Results indicate that a number of factors have affected the structure of the industry in Louisiana, including but not limited to prices, milk supply reduction programs, technology and interest rates.

Use of seasonal climate forecasts is a rapidly evolving area. Effective research and application of climate forecasts require close cooperation between scientists in diverse disciplines and decision makers. Successful collaboration requires all players to at least partially understand each other's perspectives. Issues associated with seasonal forecasts, through a selected review of both physical and social sciences literature, is presented. Our hope is that the review will improve research in this area by stimulating further collaborations.

The location of ethanol plants is determined by infrastructure, product and input markets, fiscal attributes of local communities, and state and federal incentives. This empirical analysis uses probit regression along with spatial clustering methods to analyze investment activity of ethanol plants at the county level for the lower U.S. 48 states from 2000 to 2007. The availability of feedstock dominates the site selection decision. Other factors, such as access to navigable rivers or railroads, product markets, producer credit and excise tax exemptions, and methyl tertiary-butyl ether bans provided some counties with a comparative advantage in attracting ethanol plants.

This study investigates the effects of material and symbolic quality attributes on the Cup of Excellence specialty coffee quality scores and prices. The estimates from the quality score equations suggest that material attributes are important determinants, but symbolic attributes have a greater explanatory power. The hedonic price estimations show that specialty coffee prices are mainly determined by symbolic attributes and market conditions such as the number of coffees in the auction. Overall, the study reveals that fruity, floral, sweet, spice, and sour acid are cuppers' and buyers' most favorite coffee flavors and aromas.

The 1996 Farm Act and the 1994 Crop Insurance Reform Act are recent examples of policy changes that have increased risks for U.S. farmers. New products are emerging to help farmers manage risks. This article examines some of the policy changes, farmer responses, and new risk-sharing products. The focus turns to the new revenue insurance products and their potential in the South. While there are reasons to believe revenue insurance should be attractive in the South, any revenue products that use existing crop insurance rates will face difficulties since poor actuarial performance in the South has resulted in relatively high rates.

Student unrest and the dissatisfaction of activists with the performance of “the establishment” shook our society to its roots in the late 1960s and early 1970s, as underlying values and accepted concepts of right and wrong were criticized. Agriculture did not escape and is still widely criticized. Agro-ethics was born. Phrases sufficient to indicate the extent of the current concern about agro-ethics include: animal rights, environmental ethics, recombinant DNA, hard tomatoes/hard times, the export of our soil, energy ethics, Nestle and the multi-nationals, feeding the world's hungry, the plight of the small farm, helping the poorest of the poor, farmer-adapted technology, small is beautiful, and who controls U.S. agriculture.