2023

January, 2023

Are Intensive Farms More Emission Efficient? Evidence From German Dairy Farms

By: Stetter, Christian; Wimmer, Stefan; Sauer, Johannes
This study compares the greenhouse gas (GHG) efficiency of intensive and extensive dairy farms and determines their GHG mitigation potential. We combine the concept of eco-efficiency with latent class stochastic frontier analysis and the estimation of a stochastic metafrontier. In the case of Bavaria, Germany, we find that intensive dairy farms convert GHG emissions on average more efficiently into farm economic output than their extensive counterparts. Extensive farms could, on average, reduce GHG emissions by 225 t CO$_2$ equivalent per year while intensive farms could reduce emissions by 130 t CO$_2$ equivalent without reducing their economic output.
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January, 2023

Employer-Sponsored Health Insurance Coverage, Government Payments, and Labor Allocation: The Case of US Farm-Operator Households

By: Miller, Cristina D. M.; Mishra, Ashok K.; Villacis, Alexis H.
This study investigates the impact of health insurance coverage and participation in government counter-cyclical, conservation, and risk management programs on off-farm labor allocation decisions among US farm-operator households. Using household-level data, this study employs a simultaneous probit estimation method to estimate the empirical model. Results show that US farm-operator households with employer-sponsored health insurance coverage are also 14% more likely to work off farm. Second, farm familiesÕ off-farm work is associated with a 4% increase in health insurance coverage. Counter-cyclical, conservation, risk management payments have a negative and significant effect on US farm-operator householdsÕ off-farm work decisions.
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January, 2023

Productivity-Based Indicators for Nitrogen Use Efficiency

By: Ancev, Tihomir; Bostian, Moriah; Barnhart, Brad
Nitrogen use efficiency (NUE) is often used to evaluate an agricultural system's relative ability to process nitrogen (N) inputs. However, no universal indicator has simultaneously considered both economic and environmental objectives. We develop Luenberger indicators of NUE that incorporate both economic and environmental objectives to examine spatio-temporal changes in NUE, which we apply to the Upper Mississippi River Basin (UMRB) for the period 2002--2012. We find considerable spatial-temporal variation in NUE, which could be used to inform future agri-environmental policy and conservation targeting decisions in the UMRB. Using this approach could lead to more cost-effective targeting of areas for N reduction in the UMRB.
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January, 2023

Comparative Profitability of Irrigated Cropping Activities for Temporary Water Transfers under Risk Aversion

By: Mooney, Daniel F.; Kelley, Timothy H.
Temporary water transfers are attractive to farmers because they provide revenue, but they also reduce water available for crop production and may affect economic risk. We compare the expected profitability, risk exposure, and water savings (i.e., conserved consumptive use) of irrigated cropping activities for temporary transfers in Colorado. Crop switching, modified harvesting, rotational fallow, and limited irrigation significantly affect gross margins, risk premiums, and consumptive use. Excluding risk from the economic analysis underestimates breakeven water transfer values by 4%Ð36%. Compensating farmers for risks they take and forgone returns from water they transfer will increase willingness to participate in temporary transfers.
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