2011

August, 2011

By: Schulz, Lee L.; Schroeder, Ted C.; Ward, Clement E.
Price differences among fed cattle prices in Canada and the United States (referred to here as fed cattle basis) are important for Canadian cattle feeders, but changing government regulations in Canada and the United States have made basis more variable. This article uses transaction data from Canadian feedlots to quantify fed cattle price differentials in light of new policy initiatives. Using transaction prices, we find that differing slaughter regulations, labeling laws, and policies affecting access to U.S. markets for Canadian cattle affect fed cattle basis.

August, 2011

By: Wolf, Christopher A.; Tonsor, Glynn T.; Olynk, Nicole J.
A choice experiment was used to examine the value of various fluid milk attributes. Respondents were surveyed regarding half or whole gallon milk purchases. A split-sample design was used to examine consumer inferences regarding food safety. Willingness to pay for verification of production process attributes varied across attributes and verifying entity. Consumers were generally willing to pay substantial premiums for milk produced without the use of rbST, on local family farms, with assured food safety enhancement, and for these claims to be verified by the U.S. Department of Agriculture.

August, 2011

By: Colson, Gregory; Huffman, Wallace E.; Rousu, Matthew C.
This paper assesses consumers’ acceptance of nutritionally enhanced vegetables using a series of auction experiments administered to a random sample of adult consumers. Evidence suggests that consumers are willing to pay significantly more for fresh produce with labels signaling enhanced levels of antioxidants and vitamin C achieved by moving genes from within the species, as opposed to across species. However, this premium is significantly affected by diverse information treatments injected into the experiments.

August, 2011

By: McLaughlin, Patrick A.
I test the level of information regarding possible groundwater contamination in the residential real estate market in Washington County, Minnesota. An approximately seven square-mile trichloroethylene plume has affected hundreds of households’ water supplies since at least 1988 in the region. I find that homeowners were initially well-informed by market forces, but were later somewhat misinformed by government actions regarding the potential of water contamination from the plume. A disclosure law passed in 2003 may have added new, low-cost, and imperfect information to the market that could explain the change in informational awareness.

August, 2011

By: Bark, Rosalind H.; Osgood, Daniel E.; Colby, Bonnie G.; Halper, Eve B.
It is important to understand tradeoffs in preferences for natural and constructed green space in semi-arid urban areas because these lands compete for scarce water resources. We perform a hedonic study using high resolution, remotely-sensed vegetation indices and house sales records. We find that homebuyers in the study area prefer greener lots, greener neighborhoods, and greener nearby riparian corridors, and they pay premiums for proximity to green space amenities. The findings have fundamental implications for the efficient allocation of limited water supplies between different types of green space and for native vegetation conservation in semi-arid metropolitan areas.

August, 2011

By: Hu, Ruifa; Liang, Qin; Pray, Carl E.; Huang, Jikun; Jin, Yanhong H.
Private R&D is a major source of innovation and productivity growth in agriculture worldwide. This paper examines trends and determinants of agricultural R&D in China. Results show that while the public sector monopolized agricultural research until recently, private agricultural R&D has grown rapidly since 2000, driven largely by agribusiness privatization. Public-sector R&D investments in basic research also encouraged private R&D research, but public investments in technology development crowded out private R&D investment. China’s private R&D investment would grow more rapidly if the government shifted public resources from technology development to basic research.

August, 2011

By: Roosen, Jutta; Bieberstein, Andrea; Marette, Stephan; Blanchemanche, Sandrine; Vandermoere, Frederic
We evaluate the impact of different information sequences on participants’ hypothetical willingness to pay (WTP) for food produced using nanotechnology. In three treatment groups, information on the health, societal, or environmental impact linked to nanotechnology was revealed in different sequences: an imposed order, a chosen order, and a chosen order after a discussion among participants. Results show that information choice is important. While in the imposed order, the first information revealed has no effect on WTP, the information chosen first has a strong impact. Discussion has no further impact. Health information was a priority and significantly decreased WTP, while societal and environmental information did not significantly influence WTP.

August, 2011

By: Kobayashi, Mimako; Melkonyan, Tigran A.
We model a game between two players taking biosecurity actions and characterize the Nash equilibria and their properties for the cases of strategic complements and substitutes. Implications of the theoretical model are investigated using data for biosecurity behavior among producers participating in a livestock exhibition. Biosecurity actions with own benefits and lasting impacts in home communities exhibit a positive relationship with behavior of the producers from geographically close areas. The number and probabilities of biosecurity actions taken by exhibitors are positively associated with the number of animals exhibited and they vary among commercial and hobby producers and across species/types of commercial production.

April, 2011

By: Robinson, Christina A.; Zheng, Xiaoyong
This study examines the dynamic relationship between a household’s Food Stamp Program (FSP) participation and the extent to which children in the household are overweight or obese. In contrast to previous studies employing static models, our results suggest that FSP participation significantly affects the deviation of current body mass index (BMI) from the ideal level in older male children who are currently underweight and for older female children who are already overweight. For older male children, the effect is desirable; for older females, however, our findings indicate that FSP participation has an adverse effect on their health and may contribute to being overweight or obese.