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January, 2024

By: Rezitis, Anthony; Mishra, Ashok; Kumar, Shalander
This study estimates changes in productivity and profitability and their respective components for two major Indian pulse crops, pigeon peas and chickpeas. Results show that average profitability declined during the period under consideration (2009Ð2014) for both pulse crops. Lower profits are driven by increases in input prices and decreases in total factor productivity, output growth, and output (constant) prices. The reduction in total factor productivity is primarily due to a slow increase in output. Finally, the technical efficiency estimates are lower than for cereal crops like rice and wheat: 72% for chickpeas and 71% for pigeon peas.

January, 2024

By: Kaminski, Danielle M.; Caputo, Vincenzina; McKendree, Melissa G.S.
The social license between the US public and food producers has grown increasingly complex, especially as it relates to the treatment of farm animals and workers. In this study, we employ two bestÐworst-scaling experiments to elicit the publicÕs preferences regarding animal and worker welfare farm practices within the dairy and poultry industries. Using a latent class modeling approach, we find that US consumers generally value animal welfare practices more than they value worker welfare practices. However, population subgroups with strong preferences for worker welfare practices exist, primarily among older, highly educated, Democrats living in the Northeastern United States.

January, 2024

By: Zapata, Samuel D.; Carpio, Carlos E.
This study introduces distribution-free methods to estimate interval-censored willingness-to-pay (WTP) models. The approaches proposed encompass the recovery of WTP values using an iterated conditional expectation procedure and subsequent estimation of the mean WTP using parametric and nonparametric models. Methods allow us to estimate the effects of covariates on the mean WTP and the underlying probability distribution. We employ Monte Carlo simulations to compare the performance of the estimators proposed against standard parametric and nonparametric estimators. We illustrate the estimation techniques by assessing producersÕ WTP for services provided by an e-marketing website that helps connect farmers with local consumers.

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.

January, 2024

Propensity score matching is used to estimate how direct-to-consumer (DTC) marketing influences farm survival and growth over 5-year periods. Results show that beginning farms with DTC sales grow more slowly but are more likely to survive in business compared to similar farms without DTC sales. The study finds that DTC marketing is associated with lower financial performance and a greater likelihood of facing borrowing constraints, which might help explain the slower farm growth. DTC marketing is also associated with lower farm income volatility, which might help explain the higher survival rate.

January, 2024

By: Garcia, Viviana; Mšhring, Niklas; Wang, Yanbing; Finger, Robert
We study the adoption of a new pesticide-free wheat production system in Switzerland. Large-scale transitions to such production systems have implications for the entire agricultural and food sector. Using survey data from 1,073 Swiss wheat producers, we empirically test whether risk preferences and risk perceptions in four domains relate to farmersÕ decisions whether and when to adopt pesticide-free production. We observe heterogeneity in farmersÕ risk perceptions (e.g., early versus late adopter) and find that farmersÕ risk preferencesÑas well as their perceptions of production and institutional riskÑare related to adoption behavior rather than to perceived market and investment risks.

January, 2024

By: Neill, Clinton; Zhang, Peilu
The pain of payment---a negative feeling consumers experience during the process of paying for a good or service---can reduce access to the veterinary services market. We examine the potential of payment plans to reduce pain of payment among pet owners from a theoretical and empirical perspective. We find that payment plans reduce pain of payment by decreasing the price and income effects of purchasing veterinary services. An important, additional finding is that some consumers discount the payment plan option. We suggest that payment plan options should be carefully considered for different groups of consumers.

January, 2024

By: Santeramo, Fabio Gaetano; Martinez-Gomez, Victor; M‡rquez-Ramos, Laura; Lamonaca, Emilia
The European fruit and vegetable (F&V) trade regime is regulated by the Entry Price System (EPS), a nontariff measure on imported goods. We investigate the trade effects of the EPS by estimating a structural gravity model for the major European suppliers of apples, lemons, oranges, peaches, pears, table grapes, and tomatoes. We assess how imports react to EPS overshoots, and price dynamics. The EPS limits imports, but marked differences exist across products. The efficacy of the EPS is valid for all products; its effectiveness is found only for less perishable F&Vs.

January, 2024

By: Wilson, William; Lakkakula, Prithviraj; Bullock, David
The Russian invasion of Ukraine disrupted grain flows from that region. As a result of the invasion, Ukraine has evolved from a country with some of the lowest logistical costs in the world to having the highest logistical cost. This paperÕs purpose is to analyze the effects of the Russian invasion on the logistical functions and the costs for corn exports from Ukraine and its competitors using an optimized Monte Carlo simulation model. Most important are the effects of the radical increase in shipping costs from Ukraine, reduced port capacity and export supplies.

January, 2024

By: Yin, Mengyu; Raper, Kellie Curry; Peel, Derrell S.; Hagerman, Amy D.
The stocker industry plays numerous critical roles in the cattle industry and is the most flexibleÑyet complicatedÑsegment of the beef supply chain. Stocker producersÕ calf-purchasing decisions have historically been diverse and difficult to characterize. This study uses data from a unique survey to analyze factors affecting stocker producersÕ calf-purchasing decisions. Latent class analysis is used to classify stocker producers into subgroups based on cattle-purchasing preferences. Results indicate that stocker producers can be divided into four distinct latent classes according to calf-purchasing preferences.

September, 2023

By: Kahsay, Goytom Abraha; Garcia, Nerea Turreira; Bosselmann, Aske Skovmand
This paper investigates the association between mobile internet use (MIU) and climate adaptation among Vietnamese coffee farmers. We find that farmers with access to mobile internet are more likely to take adaptation measures and obtain higher coffee yields using both simple regression and instrumental variable models. Our data suggest that the adaptation results are driven by changes in water and crop management practices and mediated by farmers' access to weather forecasts and farm price information. Policy support for MIU may enhance farmers' climate resilience in developing countries.

September, 2023

By: Graven, Atticus; Schaefer, K. Aleks
The Coronavirus Food Assistance Program (CFAP) was unique in that it was the first US farm support program that allowed producers to enroll through an online portal rather than in person through a local Farm Service Agency (FSA) office. This research investigates the extent to which broadband connectivity affected access to US government farm support under CFAP. We find that a 1-percentage-point increase in county-level broadband availability is associated with a $2.13 increase in county payments per capita under CFAP. However, this relationship is inherently nonlinear along the rural--urban divide.

September, 2023

By: Koirala, Samjhana; Jakus, Paul M.; Watson, Philip
We propose a method that incorporates specific business needs and community goals to identify community assets that most constrain local economic development. Access to a managerial workforce was the most common highly ranked constraint, but the set of most constraining assets varies across communities. Thus, a one-size-fits-all development policy is not appropriate. We also find that constraint rankings are highly correlated among communities that share tourism potential, that share energy resources, or that rely upon production agriculture. Development practitioners may craft a suite of development policies, each tailored to communities of a given typology.

September, 2023

By: Lee, Marissa C.; Suter, Jordan F. ; Bayham, Jude
The impacts of wildfire are widely felt across the United States and expected to increase in coming years. However, little is known about the long-term impacts of wildfire on recreation. We evaluate the impact of wildfire on reservations to US Forest Service (USFS) campgrounds and find that wildfires decrease camping reservations up to 6 years after a fire occurs. The impacts vary across USFS regions, and our analysis reveals the important role of forest cover in determining the magnitude and duration of impacts. Our results imply that wildfires reduce benefits to campers, which can translate into less spending in nearby communities.

September, 2023

By: Hildebrand, Kayla; Chung, Chinjin
We examine selectivity bias in the US cattle procurement market. We hypothesize that feedlots optimize profits by selecting specific cattle to sell either in the cash market or through alternative marketing agreements. High-quality cattle are more likely to be sold in the alternative market as prices are not fully calculated until after harvest, allowing carcass quality premiums to be added. Consequently, it is assumed that low-quality cattle are sold in the cash market to avoid potential carcass discounts. Depending on a feedlotÕs size, relationship with packers, and marketing costs, these selection assumptions may not be accurate and bias prices.

September, 2023

By: Smith, Katy V. ; DeLong, Karen L.; Griffith, Andrew P.; Boyer, Christopher N.; Martinez, Charley; Jensen, Kimberley L.
Genomic enhanced expected progeny differences (GE-EPDs) combine expected progeny differences (EPDs) with DNA information to improve EPD accuracy values. In 2020, Tennessee cattle producers completed a between-subjects choice experiment for bulls marketed with either EPDs or GE-EPDs. Panel Tobit regression results indicate that, on average across all considered EPDs, producers were not willing to pay significantly more for GE-EPDs than for EPDs. However, producers were willing to pay more for the calving ease direct EPD if it was genomic enhanced. This is the first known study to evaluate producersÕ value of improved accuracy scores associated with GE-EPDs.

September, 2023

By: Wang, Qian; Li, Fan; Heerink, Nico; Yu, Jin; Fleskens, Luuk; Ritsema, Coen J.
Using panel data for the years 2013, 2015, and 2017 collected through field surveys in eight counties in the North China Plain, we examine the relationship between smallholdersÕ land rental behavior and their (agricultural) incomes, with a particular focus on heterogeneous specialization among smallholders. We find that farming-specialized households experience a significant higher increase in agricultural income and a larger decrease in poverty incidence by renting in land than nonspecialized households. Off-farm specialized households had a decreased likelihood of being poor by renting out land, whereas nonspecialized households experienced no decrease in poverty incidence after renting out land.

September, 2023

By: Jablonski, Becca B.R.; Pender, John; Bauman, Allison; Rupasingha, Anil
Despite substantial effort to conceptualize wealth as supporting positive community economic development, little research tests the relationship between development outcomes and community wealth. This research assesses the relationship between the value-added food and agriculture business (VAFAB) sector and stocks of community wealth by leveraging a new dataset of stocks of community wealth and National Establishment Time Series data. We find significant relationships between the growth of VAFAB establishments and employment and stocks of community wealth. These results have implications for economic developers and policy makers in prioritizing investments should they want to grow the local VAFAB sector.

September, 2023

By: Lai, Yufeng; Yue, Chengyan; Watkins, Eric; Barnes, Mike
Government rebates provide monetary incentives to encourage consumers' adoption of eco-friendly technologies. Understanding how consumers perceive the value of rebate is crucial to policy makers. We use the smart irrigation system as an example and design choice experiments that present rebates in two formats: the total device cost and the cost consumers needed to pay versus the total device cost and the rebate value. We find that consumers discount the value of the rebate more when presented with rebate value. Additionally, the framing of incentives has a spillover effect on the perceived value of a seemingly unrelated attribute (i.e., water saving).

September, 2023

By: Nalley, Lawton Lanier; Durand-Morat, Alvaro
Increasing milling potential could provide more food for human consumption at current yields and input uses. We estimate the impact of increasing rice milling yields in Arkansas from 2004 to 2020 using actual yields by variety. The results suggest that a marginal 1% increase in the percentage of whole kernels could increase the number of rice rations by 0.89 million to 1.05 million annually, or up to 2.94 million and 3.5 million annually if the genetics of all Arkansas rice were at least at the standard of a popular purebred variety. Improving rice milling yields can have significant food security implications.