Wallander, Steven

January, 2024

By: Burnett, J. Wesley; Lacombe, Donald J.; Wallander, Steven
While markets for agricultural commodities are often global, markets for cropland can be highly localized. Soil makeup and climate also tend to make farmland rental markets localized. This study compares several econometric models to measure the extent of spatial spillovers within these markets. A fully dynamic spatial model estimated on cropland transactions shows that sales are highly localized in the short term but face greater neighboring spillovers in the long term. Accounting for longer-term spatial interdependence of farmland markets can help to improve land value forecasts.

September, 2019

By: Chavas, Jean-Paul; Cooper, Joseph; Wallander, Steven
This paper investigates the measurement of risk exposure in agriculture and its linkages with input and output decisions. We develop a conceptual analysis of risk under general risk preferences, including cumulative prospect theory. The approach is applied to a sample of U.S. farms from 1996 to 2011. In a multi-input, multi-output framework, the analysis documents the effects of management on production risk exposure and estimates the cost of risk under alternative frameworks. We find that variable inputs contribute to increasing risk, while livestock contributes to reducing risk. Nonfarm income reduces the cost of risk.