Journal of Agricultural and Resource Economics
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We develop a perennial crop vintage-investment decision model that incorporates the dynamics of growers’ endogenous removal and planting decisions with uncertainty regarding the future release date of a new variety. We apply the model to coconut cultivation to examine the effects of a new cultivar’s higher yield, lower input requirements, and lower discard rates on the removal and planting decisions for various vintages of existing trees and different announced release dates of new cultivars. Results show that if the new variety is highly (moderately) profitable, growers will alter their planting and removal decisions to plant the new variety sooner (later).
We investigate the relationship between the level of food safety risk in retail food establishments and average incomes in surrounding communities. Building on the environmental justice literature, we hypothesize that there is a relationship between community income levels and levels of food safety risk. Using data on the prevalence of Listeria monocytogenes (Lm) obtained from grocery store delis, we find that stores located in census tracts whose residents are in lower income quartiles have greater Lm prevalence. An indicator for American Indian and Alaskan Native residents also has a positive statistically significant relationship with food safety risk.
In this paper, we analyze the effect of nontariff measures (NTMs) on upgrading food product quality. Based on a multisector Schumpeterian model—and given threat of entry, compliance costs, and monopoly profits—NTMs are predicted to have heterogeneous effects on quality upgrading. Using disaggregated data for 14 European Union (EU) countries across 18 food industries for the period 2008–2019, NTM enforcement is found to deter quality upgrading for products distant from the quality frontier due to compliance costs. Conversely, NTM enforcement stimulates quality upgrading for products close to the quality frontier, given an increased probability of capturing monopoly profits.
The value of information to farmers from a soybean rust sentinel plot monitoring network is estimated. Monitoring provides value over time from farmers learning about their risk of infection and contemporaneously from farmers making more profitable fungicide applications. Optimizing the spatial configuration of the network reveals the value of information plateaus at around $920M with around 75 sentinel plots. The optimal spatial distribution of sentinel plots differs substantially from historical placements. Optimal sentinel plot placement would have included fewer plots in the Southern United States where the risk of infection is relatively high and more in the Midwest where soybean production is relatively high.
Bovine spongiform encephalopathy (BSE) has caused turbulence in international beef markets over the last 40 years and resulted in severe economic consequences for countries with identified BSE cases. Brazil’s latest atypical BSE cases occurred in 2021 and 2023, and China banned Brazilian beef imports in each case. This study employs a computable general equilibrium model to assess the economy-wide impacts of BSE in Brazil due to negative domestic and international market reactions. Decreased beef exports lead to welfare losses for Brazil, while Brazil’s most important competitors in the international market for beef benefit from trade diversion.
This article investigates the relationship between the health news environment and the healthfulness of consumers’ food purchases. We estimate an unconditional quantile regression model using household-level purchase data from 2015–2018 and find that more health information is associated with a better diet. The relationship is slightly stronger at the lowest quantile of the Healthy Eating Index distribution, although we cannot reject equivalence with the estimate at the mean for most quantiles. Further, the association between health information and diet quality is weaker in households with higher education, implying that high education households are less likely to be affected by media information.
We explore the impact of direct marketing on farm sales applying a treatment effect generated by a multinomial selection process. Producers engaged in direct marketing using diversified outlets experience significant sales gains, as do producers who market primarily to consumers. The direct marketing effect is apparent even after controlling for operator demographics, farming and marketing experience, farm operation characteristics, and geographic effects. Using data from the Local Food Marketing Practices Survey (LFMPS), direct sales are higher by 31% for marketing in diversified channels and 148% for the marketing primarily to retailers, an effect that is relative to those marketing to consumers.
Marketing orders are government-supported cartels designed to help farmers by allowing them to set production quotas and quality standards. Given that, it is surprising that a growing number have been voluntarily terminated in recent decades by their constituent farmers. To better understand why, we construct a novel data set on the timing of initiation and termination of marketing orders active between 1974 and 2019 and estimate duration models to examine the impact of specific factors on marketing orders’ probability of survival. We find that the most significant factor affecting marketing order persistence is whether the order had a corresponding marketing agreement.
By Kolady, Deepthi; Thapaliya, Pramisha; Dumre, Amrit; Motallebi, Marzieh; Alhassan, Mustapha; Van der Sluis, Evert
This study uses choice experiment data to explore the role of program attributes and farmer characteristics in explaining differences in farmers’ behavior toward carbon payment programs. Results show that most farmers in the study prefer the status quo over carbon payment programs for switching to carbon-sequestering conservation practices. Farmers have negative preferences toward contract length and positive preferences toward government or not-for-profit organizations as governing entities. Besides program attributes, farmers’ climate consciousness and adverse weather experiences influence their choices and willingness to accept carbon payments. The results suggest the potential for targeting carbon payments to specific groups of farmers.
Economic research has not assessed the relationship between physical exercise and protein consumption, which is frequently discussed across media platforms. This study uses news articles related to physical exercise to construct fitness-related media indices. Incorporating these indices and national prices and disappearance for meat from 1993 to 2022, a Rotterdam demand model was used to estimate news media elasticities. We find little evidence that news media attention to physical exercise has direct or spillover effects on beef, pork, or chicken consumption. Further, news media information does not shift demand for food into or out of the aggregate meat complex.
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