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By: Kassas, Bachir ; Palma, Marco A. ; Hall, Charles R.
The consistent appeals against mandatory checkoff programs stimulated a wave of research investigating voluntary contributions mechanisms (VCMs) as a potential alternative in the provision of generic advertising. Using a public goods experiment with heterogeneous income and marginal per capita returns (MPCR), we examine the interaction between high- and low-income individuals in VCMs, an understanding of which can help enhance the performance of voluntary generic advertising programs. While free-riders were present among both income types, the majority of low-income individuals were keen on stimulating higher contributions through cooperation. Conversely, high-income individuals tended to decrease their contributions in the presence of the low-income type.
By: Luckstead, Jeff ; Devadoss, Stephen
We use a broiler supply-chain model to examine the impacts of COVID-19-induced labor shortages and income reduction throughout the sector. Results show that the labor shock has negative effects on production throughout the supply chain, causing meat shortages and the average retail price to rise by 11:11%. The income shock lowers both quantities and prices in the supply chain. The combined production effects of both shocks are generally more pronounced, as they reinforce each other. However, retail prices move in opposite directions, with labor shock increasing prices and income shock reducing prices, leading to a 5:44% net increase in the average retail price.
By: Mulenga, Brian P. ; Raper, Kellie Curry ; Peel, Derrell S.
Existing studies on calf management practice adoption tend to treat practices individually and, by implication, ignore the possibility that some practices are more likely than others to be jointly adopted. This study applies market basket analysis to examine bundling of calf management practices based on the likelihood of joint adoption using producer survey data. Results indicate that the base practices of horn management, deworming, and castration are the three most widely adopted practices and are more likely to be jointly adopted in varying combinations with other practices. We discuss implications for extension programming and future studies concerned with understanding practice adoption decisions.
By: Boyer, Christopher ; Burdine, Kenny ; Rhinehart, Justin ; Martinez, Charley
We simulated beef cattle producersÕ returns to shortening a 120-day calving season to 45 and 60 days by replacing late-calving cows for two herd sizes. We developed dynamic simulation models to consider production and price risk. We explored outcomes from annually replacing 10% or 20% of the late-calving cows to reach the desired calving-season length. The optimal scenario depends on herd size and whether the producer wants to maximize profits or certainty equivalent. The smaller herd benefited more from shortening calving season relative to the large herd.
By: Feuz, Ryan ; Feuz, Kyle ; Johnson, Myriah
Feedlot managers make difficult culling decisions using their best subjective judgment together with advice from animal health professionals. Using routinely collected operational feedlot data and five well-known classification methods, we construct mortality predictive models to aid managers in making objective culling decisions. Simulation results suggest that net return per head for calves having been treated at least once for any health incident would increase on average by $14.01 if the best-performing model were used as a culling decision aid. The probability of a positive return is 60.9%. Using cost-sensitive learning, the average value may increase to $45.27/head.
By: Dhoubhadel, Sunil P.
This paper uses the staggered difference-in-difference model to assess the ex post impact of precision agriculture (PA) technology adoption on whole-farm profitability. The results indicate that PA technologies do not contribute as much to farm profitability when analyzed over a period of time. PA technologies may increase some operational efficiency, but farmers should not adopt PA assuming that it will improve farm profitability. The positive contribution of a majority of PA technologies to farm profitability has not yet been established.
By: Mills, Brian E. ; Brorsen, B. Wade ; Arnall, D. Brian
Past research on the profitability of precision phosphorus (P) application has used a small number of fields and a short time frame. Data on grid-sampled fields provided by producers are used to define the distribution of phosphorus within fields. Expected yields and net present value (NPV) are simulated to compare variable and uniform rate P. The highest NPV used a variable rate that changed each year based on yield and predicted carryover. A variable rate using the same rates for 4 years was inferior to simply applying a little extra P at a uniform rate.
By: Wang, Tong ; Xu, Zheng ; Kolady, Deepthi ; Ulrich-Schad, Jessica D. ; Clay, David
Using bivariate ordered logit models, we investigate factors that determine farmersÕ perceptions of cover-crop profitability and likelihood of future usage in the climate transition zone of the Northern Great Plains. Our results indicate that approximately 40% of long-term (10+ years) users perceived a profit increase of more than 5%. Additionally, future adoption decisions are positively affected by environment-oriented attitudes and negatively affected by prioritizing short-term profitability. More efforts can be directed toward educational programs that enhance understanding of the short- versus long-term economic benefits of cover crops.
By: Bir, Courtney ; Wolf, Christopher A. ; Widmar, Nicole Olynk
This paper examines U.S. pet owner demand for veterinary service payment plans. Results revealed a strong preference for discounts and promotions for veterinary pet care. Examining specific attributes for a wellness plan revealed that respondents were clearly willing to pay more for preferred pricing compared to discounts for multiple pets. Respondents were indifferent between payment plans that distributed costs across 12 months compared to 6 months. In absolute terms, dog owners were willing to pay more than cat owners. However, when normalized by mean prices for dog versus cat veterinary service pricing, there were no statistically significant differences.
By: Gezahegn, Tafesse ; Van Passel, Steven ; Berhanu, Tekeste ; D’Haese, Marijke ; Maertens, Miet
This paper analyzes how structural and institutional heterogeneity among irrigation cooperatives shapes the impact of membership on farmersÕ welfare in northern Ethiopia, using a novel heteroskedasticity-based identification strategy. More specifically, we estimate how cooperative characteristics influence membersÕ income and poverty level. We find that stricter water use regulations have income-enhancing and poverty-reducing effects for farmers. We also find that farmers benefit more from membership in larger, younger, and bottom-up cooperatives initiated through grassroots collective action. Our findings have implications for irrigation development in Ethiopia and call for a better deliberation of organizational heterogeneity in cooperative impact studies.
By: Eun, Jihyun ; Sheldon, Ian ; Thompson, Stanley R.
We develop a heterogeneous firm model that allows us to identify the relationship between firm productivity and product quality. The model is used to analyze the impact of trade costs on food and agricultural trade based on a bilateral trade dataset covering 159 countries over the period 2010--2013. The results show that a high firm capability cutoff---implying an ability to produce high quality---limits export market entry. In addition, fixed and variable trade costs have a negative and significant impact on the probability of firms entering export markets, while variable trade costs have a negative and significant effect on firms' export levels.
By: Kuhn, Arnim ; Britz, Wolfgang
This study develops long-term scenarios combining trends in population numbers, incomes, and crop productivity for Sub-Saharan Africa (SSA) up to 2050 by using a recursive-dynamic version of the GTAP general equilibrium model. Results suggest that crop productivity will have a major impact on cropland expansion in SSA, giving potentially available cropland the role of a buffer that could smooth differences between future production outcomes. Another inherent smoothing factor will be countervailing trends in population and income growth that will diminish future differences in food commodity consumption per capita and limit the impact of African trends in the rest of the world.
By: Zhang, Yinjunjie ; Palma, Marco A.
Berkeley's sugar tax policy is currently under intense scrutiny and debate, while similar tax policies are rapidly expanding to other U.S. states. Contrary to theoretical predictions and policy expectations, previous literature documents short-term evidence of increased consumption of sugary drinks in response to a sugar tax policy. We investigate the underlying mechanism behind this behavioral anomaly using the Berry, Levinsohn, and Pakes (BLP) random coefficient (RC) logit demand model in characteristic space. We find that the consumption increase is mainly driven by a change in the average valuation of the sugar content going from negative to positive following enactment of the sugar tax policy.
By: Worley, Julian ; Dorfman, Jeffrey H. ; Russell, Levi A.
The impact of breed on carcass characteristics in various breeds of cattle has been well documented. This paper attaches these differences in breed characteristics to end revenue via different breed and breed combinations, percentage of Angus in pedigree, and purebred status. We find that while the genetics of many breeds is priced roughly in line with its value, some breeds are overpriced or underpriced by enough to significantly improve a cattle operation's profitability. We find that, relative to a pure Angus base, most breeds are less profitable in terms of carcass revenue per hundredweight.
By: Lakkakula, Prithviraj; Wilson, William
Forward pricing and allocation mechanisms for rail transportation serve critical functions for the grain-marketing system. We examine the effects of shipping costs on the origin and export basis using a panel simultaneous-equations model. Results indicate that the origin and export basis are determined simultaneously, with each one affected by the dynamic variability of shipping costs. On average, a $1 increase for the shipping costs decreases the origin basis by $0.19 and increases the export basis by $0.82/bu of soybeans. The interaction between shipping cost and exports on the export basis impacts both marketing and trading strategies in the grain-marketing system.
By: Cho, Whoi ; Brorsen, B. Wade
This article considers three possible issues about the design of the Rainfall Index Pasture, Rangeland and Forage (RI-PRF) crop insurance program: (i) how well the rainfall index matches actual rainfall, (ii) whether the county base values can be made more accurate using spatial smoothing, and (iii) optimal choices of RI-PRF crop insurance alternatives for producers and reducing the number of choices that producers have to make. Based on the results, we conclude that the RI-PRF crop insurance program needs to reduce the number of choices and provide suggestions for restricting the choices.
By: Ng, Horlick ; Ker, Alan P.
Although there is significant literature on technological change in U.S. crop yields, very little has been done with Canadian yields. We model the changing nature of county-level yields for barley, canola, corn, oats, soybean, and wheat in Canada. We use mixtures to allow and test for heterogeneous rates of technological change within the yield-data-generating process. While we tend to find increasing but heterogeneous rates of technological change, increasing and asymmetric yield volatility, and increasing absolute but decreasing relative yield resiliency, our results differ across crops and exhibit spatial bifurcations within a crop. Using a standard attribution model, we find changing climate has differing effects across crops.
By: Johansson, Per-Olov ; Kristršm, Bengt
The purpose of this note is to address a problem faced in using stated preference methods to estimate willingness to pay (WTP) for a project. The considered problem occurs under pure altruism. Even though an agent is equipped with well-behaved preferences, a conventional closed-ended (binary) valuation question may induce her to overrate or underrate her true WTP. On the other hand, an open-ended valuation format seemingly provides a correct answer, but such a format fails to be incentive compatible.
By: Otto, Steven ; Poe, Gregory ; Just, David
Rent-seeking behavior in payment for environmental services auctions reduces the number of affordable contracts and decreases environmental protection. We propose a new auction mechanism, the provision point reverse auction (PPRA), to mitigate this behavior. The PPRA includes a public component in which the probability of contract acceptance for one individual is affected by the sum of the other accepted offers. We provide theoretical support for the new mechanism and follow with laboratory experiments. The experiments yield average offers that are 12.57%--58.17% smaller than in alternate reverse discriminative auctions, with the exact difference dependent on the compared mechanism and auction parameters.
By: Speir, Cameron ; Lee, Min-Yang
We evaluate whether changes in geographic distribution of landings coincided with implementation of individual transferable quotas (ITQs) in the limited-entry groundfish trawl fishery on the U.S. Pacific coast. We use a spatial Theil index, kernel density functions of port revenue share, and Shorrocks index of intradistributional mobility to measure changes in spatial distribution. We find evidence of increased spatial concentration; however, this appears consistent with preexisting trends and not related to ITQs. Further, we find a high degree of intradistributional mobility in the revenue share of ports that coincided with ITQ implementation.